Outsourcing To India In 2022: Reasons To Outsource & Trends To Watch
Application development can be broadly categorized into mobile and web application development. Educational institutions like IIT Madras are investing in AI, machine learning, and other latest technologies – ensuring a promising future for hyper automation in the country. This means that a small business with a limited budget may find it challenging to find quality outsourcing vendors at competitive prices. Besides, other operational costs like office space rent, electricity charges, etc., are relatively less expensive in India. You can only enjoy the benefits of offshoring to India if you are sure it is the right choice for your business. You will also need to be sensitive to the religion and culture prevailing in the Indian outsourcing company to avoid misunderstandings.
The multinational networking firm invested millions of dollars in structuring and advancing its technology development in India. And besides India, they also offshore to the Philippines, a popular offshore location in Southeast Asia, to handle its customer service. And with voice search queries in India growing at 270%, the country could become a major player in voice technology development and usage. In this article, we will explore why offshoring to India is increasingly popular and highlight five major companies engaged in the practice. We will also discuss the major advantages and challenges of offshoring to India.
Commonly outsourced services in India
This would attract more corporations to outsource their business in India. Thus, administrative work and checking all the requirements is an overwhelming task to do. This is the reason why most insurance companies outsource these processes. On top understanding real vs. nominal interest rates of that, they can save money because of lower pricing compared to an in-house team. In 2004, Telstra earned the ire of the government and trade unions. Workers, consumers, and industry experts even planned a rally outside Telstra’s headquarters.
- So unless your offshore outsourcing partner offers to set up a team for late-night shifts that match your company’s time zone, you may have to put up with communication delays.
- When it comes to India, the cost of labor on a per day basis comes up to as little as $2 per day.
- For example, if you’re a small business with limited resources, you can start by outsourcing your payroll services to an agency.
- Companies typically outsource those tasks that are non-core to their business.
- It is alarming, especially if those businesses keep sensitive information for big corporations.
Besides that, some of their employees can’t provide equipment for themselves during the lockdown. Another significant benefit of outsourcing in India is the unlimited workforce available. Building infrastructure is one thing; you still need people to work for your company. For example, if you want your project to be worked on around the clock.
Banking Operations
Examples of these services include data management, data entry, data mining, data processing, and other types of back-office support. These are high-end services for which you need to understand the nature of business and process large volumes of information. As establishing this in-house requires lots of time and other resources, it’s best to outsource it to Indian service providers.
When you combine that with movements like Digital India and economic reforms like GST, offshoring to India becomes even more desirable. The deal also covered over 400 locations through 100+ countries — including Bangalore, one of the major IT hubs in India. In general, these systems contain IoT-based devices, making the machine-to-machine communication model possible without the need for human interference. AI-powered solutions, like smart home systems, are becoming increasingly accessible to all. Like eDomotics, Philips, etc., several IT companies in India develop ready-to-use smart home system solutions. Thus, this model is ideal for long-term projects with changing requirements.
Call Center Executive
They can relate to almost all Western cultures, an excellent customer service feature. Besides that, accent is also not an issue as they can do neutral accents when on the phone. Call centers in the Philippines value the importance of satisfaction rate while maintaining workload efficiency. If you want to outsource in India, you might want to look for some freelance virtual assistants.
The Outsourcing Industry in India
The most popular reason why most companies prefer offshoring to India is the cost advantage. The American company has established a state-of-the-art research and development center in Bangalore. It is also the second-largest GE research and development center in the world, staffed with a vast number of Indian experts. With excellent offshore operations underway, the company also shifted its call center to India to offer reliable 24/7 support. There are several business activities foreign companies can offshore to India to gain a competitive advantage. Swati Sharma, a writer by day and an avid reader by night, works with Classic Informatics, a leading web development company in India.
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Speaking of establishments, the country also has a lot of space to build new infrastructures. Foreign investors can use this space to develop their own outsourcing company. On top of that, this country’s property price is more affordable compared to industrialized countries in Europe. Government policies are also a favorable factor for every company’s outsourcing. The India BPO Promotion Scheme plans to incentivize BPO establishment of more than 48,000 seats.
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This way, your business can function even while your in-house developers rest. One of the primary reasons why companies outsource software development to India is to save money. In this article, we’ll explain the five benefits and two challenges of software outsourcing to India. We’ll also cover six software services that you can outsource to the country. Businesses would be looking to adopt the single-vendor approach when looking for technology partner. For over two decades, India has been a preferred outsourcing destination by many western countries.
