A Complete Guide On Outsourcing to India
You can see what we’re best at and who we work with, or just contact us to talk about particular needs of your business. For these reasons, it may be a good idea to partner up with a company with offices in your home country and at least several years of experience in business and recruitment in India. And if you prefer to retain as much control as possible, consider leveraging the Build-Operate-Transfer model. The Ease of Doing Business Ranking was an inseparable part of the yearly report. In 2020, India placed 63rd in the overall ranking (which translated to 17th place among Asian economies).
- Think payroll management, tax consultancy, and other back-end tasks that form the outsourcing backbone.
- It’s a process of getting work done by a third-party vendor located in a nearby country with a similar timezone.
- And as most of these companies have been doing this for decades, you don’t have to worry about any dip in the quality of work.
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India is clearly a great outsourcing destination, as the benefits of outsourcing here far outweigh the drawbacks. Now, let’s dive into some common software services that companies outsource to the country. 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.
Financial services outsourcing companies
It’s wise to seek legal counsel, especially for high-stakes, big-budget projects. When outsourcing IT services or back-end tasks to India, comprehensive project details are crucial. Any omission can lead to misunderstandings or misaligned deliverables. Another aspect is the time zone difference, particularly pronounced if you’re based in the US, requiring work schedule adjustments and effective coordination. Occasionally, power interruptions at an offshoring company can lead to unforeseen halts.
- This way, you’re free to focus on core business activities that really need your staff’s inputs.
- Some examples include VR (Virtual Reality) and AR (Augmented Reality), alongside cloud-based gaming services like Google Stadia, NVidia GeForce Now, etc.
- As a result, accounting firms in India are equipped with the latest accounting software, internet services, and security solutions.
- The company invested roughly $130 million to equip its center with the latest tools and technology.
- India counts the Iron and Steel industry as one of its major industries.
Many companies based in the United States outsource their web development from India and other overseas locations, including popular outsourcing destinations like the Philippines and Vietnam. The main reason they do this is that they are saving money, taking advantage of India’s cost-effective solutions. In this post, we’ll talk about the pros and cons of SEO, customer service, software outsourcing to India, and more.
KPO Philippines: Top services, benefits, service providers
This movement led to economic growth, which the country’s outsourcing industry benefited from. By 2025, India’s IT and BPO industry is projected to generate $350 billion in revenue, up from $177 billion in 2022. 59% of American companies, according to a survey by Deloitte, outsource to India. In 2023, nearly 54% of businesses will use third-party support teams to communicate with customers. The most common rationale for outsourcing IT functions, at 49%, is to free up resources to focus on core business.
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Besides that, cities are being developed as new call center hubs in the Philippines. Infrastructure prevents Indian outsourcing companies from doing a work-from-home setup. Logistics setup is complex as most of their employees reside outside the city. There are a lot of businesses that shut down because of significant restrictions due to community quarantines.
Access to young and qualified technical professionals
You have the option, after a predetermined period, to “Transfer” the team to their organization, maintaining the experienced team and expertise acquired during your partnership. You are not venturing into uncharted territory; rather, you are joining a long line of contented businesses that have garnered the benefits of outsourcing to India. Over the years, professionals have refined their skills and emerged as the global frontrunner in outsourcing projects to India. Its success is based on an unwavering dedication to client contentment and a dedication to delivering exceptional results. The development cost in India is 30 to 35 percent lower compared to the US and Europe.
The demand for data bandwidth and better communication quality is always high and companies are increasingly investing in the telecom sector. This progress in the telecom sector took place because service providers are enthusiastic about adopting new emerging technologies such as real-time data analytics. Vietnam has invested a lot in its economic resources and focuses a lot on IT and software outsourcing. Similarly, to India, Vietnam is also becoming a popular software producer for many global technology companies, making it a budding global outsourcing destination.
As companies need quicker digital solutions for their business, they’ll be looking to get standardized services. Such services would not just give them a faster time to market but also lower their development cost. As per reports, IT outsourcing spend was expected to surpass the one trillion benchmark.
Moreover, most outsourcing service providers are based in countries where expert human resources are available at a low cost; therefore, corporate houses look for benefits from reduced costs. This automobile giant had initially outsourced profit and loss statement vs balance sheet its back-office work to India. Ford also established a software development facility in India to manage its e-commerce solutions. Ford outsourced their call to India because of its incredibly cheap call center pricing.
Why is India so popular when it comes to IT outsourcing?
It was found that IBM employed more workers in India than in the U.S. Although it outsourced many of its operations to India, IBM experienced declining sales. It offers IT services, IT consulting, and software project management, to companies across the globe.
This outsourcing failure caused some call center operations to return to the U.S. Support for small-business and consumer accounts remained in India. Some law firms have filed class-action suits on behalf of financial institutions. Complainants stressed that AMEX violated the Right to Financial Privacy Act and Consumer Protection Act. This is because the company outsources customer call services abroad.
Top 40 BPO companies in the Philippines
While other countries have their strengths, India offers a versatile buffet of services – from IT to customer support, and even niche sectors like BPOs and backend tasks. India is one of the few countries in the world that have massive technology infrastructure for serving overseas industries. India is known for tech savvy, exposure to western culture and the English language, and low cost of living.