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Why India Is The Global Outsourcing Leader?


With a share of around 18% in the global outsourcing market, India is no doubt the market leader. India’s main strengths are it’s IT (Information Technology) and BPO (Business Process Outsourcing) industries, which together have allowed India to achieve and sustain the leadership position for many years now. There are many reasons as to why India has managed to achieve such an eminent position, but if we were to identify the most prominent of those reasons, it would certainly include the cost competitiveness of India’s IT and BPO companies. Implementing cost-cutting measures and world-class management skills may be valid reasons for the low-cost operations of India’s IT and BPO companies, but it also cannot be denied that the country has some natural advantages that automatically reduce operational costs.

What’s conspicuous is the fact that being a developing country, India offers the most competitive rates for all related activities such as hiring human resources, creating infrastructure, and installing systems and equipment. This naturally reduces the operational costs of India’s IT and BPO companies, something that helps in achieving and delivering the desired cost benefits to clients. Apart from cost savings, India’s outsourcing companies are also known for their quality and efficiency. This is made possible by implementing time-tested management concepts and methodologies such as TQM, Kaizan, Six Sigma and others.

Clients prefer cost savings, but when quality and efficiency are also made available along with it, the scales dip dramatically in favor of outsourcing companies who are able to do so. India’s IT and BPO companies have been doing just that ever since outsourcing came to India and that explains India’s current #1 position in the global outsourcing market.

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