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Outsourcing to India – Special Considerations

Apr12



As opposed to common belief and cynical theories, business process outsourcing continues to live on in India. Over the years, this industry has flourished and evolved in India. Being a storehouse of resources, India exports software to roughly 95 countries all over the globe, a fine example of its business process outsourcing expertise in global operations worldwide.

Outsourcing of business processes to India is done for a number of reasons, of which quality, cost control, technological agility, flexibility, competitive market and time-to-market are just a few. India has now started to enjoy the confidence of what it feels like to mingle with global corporations. According to surveys, almost 82% of all the US companies have voted India as their preferred choice for business process outsourcing. What exactly makes India the current favorite?

India is now one of the biggest outsourcing destinations because of the manpower and resources available. Indian-Americans are running over 750 companies in the American Silicon Valley and Bill Clinton rightly said, “You liberated your markets and now you have one of the 10 fastest growing economies in the world”. Being an IT superpower, India offers several advantages to the outsourcing industry.

Most of the leading corporations worldwide know that to stay ahead of the competition, they need to provide the best possible quality, reduce costs, be innovative and reliable and they need to use the latest high-tech skills. Since India provides all these features, what better place to outsource your business to?

Most companies prefer to outsource their business processes to a mature industry that contains world-class systems and quality. Of the 23 different software companies in the world that have been given the prestigious SEI-CMM Level 5, 15 of the companies are Indian. According to Nasscom, India will soon flaunt the most number of ISO-9000 software companies.
Since India has state-of-the-art technology, most companies outsource their turnkey projects here for total solutions.

Being an excellent investment prospect, India was ranked third in all of Asia, after Japan and China, in terms of the investment potential for the next 10 years.

The IT Parks in India provide world-class, state-of-the-art infrastructure and various concessions and incentives to promote foreign investment and encourage software development. The stable government has made India one of the fastest growing economies in the world. Since call centers are viewed as the most common outsourced work for all major companies, they are now a booming industry in India. There are major call centers like IBM Daksh, Infosys Progeon and Convergys and upcoming BPO’s like Wipro, Telegenisys and Aegis BPO Services in India, making it the leading player in the BPO industry.

The ones who benefit the most from this growing outsourcing industry are the youth. In comparison to the regular nine to five jobs, the youth are given the opportunity to earn fat pay packets. This works as motivation to work harder and for longer periods, which reflects in the quality of work. Apart from that, training the youth to become more adaptable for the various outsourcing positions generates more returns than training people who are already experienced and less flexible.

There is absolutely no doubt that business-process outsourcing has contributed a great deal to India, both in terms of economy as well as culture. It is no small wonder why so many countries are craving for this kind of success. India has become one of the greatest avenues for recruitment over the past few years and that too, with a minimal fixed capital investment. And, this success has definitely not gone unnoticed, especially with countries that also consider their people to be their most valuable asset.

Over 50 countries are now presently interested in this outsourcing trend and have begun conducting research to try and uncover the strategy or the secret behind India’s booming success.



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