Why outsource to India?

Why should I consider outsourcing? This is the first question that comes to mind when we think of outsourcing. I will, without laying down a foundation, quickly list the benefits:

o Survive and be stable in tough competition

o Cut those hefty expanses:

o Increase payouts

o Employee benefits

o High infrastructure costs

o Recruitment costs

o Other overhead costs

o Talented and experienced staff

o Better production, fewer disappointments

o Meeting deadlines, and

o Focus more on growth than production problems

Now if we go specifically about outsourcing to India:

o Cheaper, experienced and English speaking talent

o Currency difference

o Time Gap Advantage (India works while the west sleeps)

o Strong position in outsourcing of the IT services sector. 85% of the US and UK market.!

o Growing outsourcing reputation. Let’s see what NASSCOM has to say:

“Despite challenges such as the slow growth of IT spending globally, a jobless recovery in key markets and the appreciation of the Indian rupee [against the U.S. dollar]India’s software and services industry has managed to maintain its growth momentum and consolidate its partnership with overseas customers, adding to their competitiveness,” said Jerry Rao, Chairman of NASSCOM.

Further, Nasscom says: Recent studies of the benefits of IT outsourcing by business intelligence organizations such as McKinsey & Co. and other leading research firms have demonstrated the following:

o The ITES/BPO market is expected to reach $142 billion in 2009, against the current cost of $532 billion for these services. The US$390 billion difference represents the net savings the US economy can expect from offshoring

o Such savings have a huge economic impact on dollar savings, leading to value creation for shareholders and the common man

o U.S. banks, financial services and insurance companies have saved $6 to $8 billion over the past four years through IT outsourcing to India

o Aided by these cuts, companies avoided layoffs and instead added 125,000 jobs

o Offshoring to India has resulted in quality and productivity gains in the range of 15-20 percent

o The US BFSI sector has managed to register a customer satisfaction rate of almost 85% thanks to offshoring to India compared to their European competitors

What can we outsource to India?

* Medical/insurance process

* Business process

* CADD and solid modeling

* Help Desk / Customer Support

* Call center

* Architecture

* Game and graphics development

* Chartered accountants and other account outsourcing

* Software development

* Graphic design

* Development of e-commerce and portfolio websites

* Development of mobile applications

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* medical transcription,

* and much more…

I think we have a long list of benefits you can get from outsourcing. We are also aware of India’s contribution to the outsourcing world.