Before we talk about why countries all around have been outsourcing to India? We should first know, what is Outsourcing?
Now, Outsourcing is an agreement or contract of the business process established between two or more companies where one company hires another one to make it responsible for a planned activity.
As per recent surveys, 80 % of European and US outsourcing firms ranked India as there number one outsourcing destinations. Even though many companies from countries like China, Mexico, and Ireland have emerged as big competitors, India has evaded all others and emerged as the top destination in the world in terms of outsourcing.
So, let us know the major facts that make India the top outsourcing hub in the world:
- Largest Technical and professional Talent pool:
When it comes to the vast pool of skilled and talented human resources, India remains unmatched. Over 3 million graduates are added to the workforce every year from the population of 1.2 Billion. India also holds the rank of largest English speaking nation in the world which is way more than US and UK combined. The country is not only counted among the ones with vast population but also in numbers and quality of talent with innovative ideas.
- Optimal Infrastructure and Technology:
Modern India is on the path of rapid development and industrialization. The development is also preceding India to acquire the best infrastructures and technologies. The government of India is expected to invest highly, around 1.55 billion to boost the telecom infrastructure. The telecom sector of the country is in the state of revolution with rapid up-gradation. Outsourcing companies are maintaining uninterrupted communication channels to the clients by providing the latest and best software technology.
- Consistent High-Quality Services:
Despite the fact that cost factors play a huge role in outsourcing, Indian outsourcing firms provide high-quality work which enables India to remain as the top outsourcing destination. The National Outsourcing Association has listed India in their preferred outsourcing destination in its Annual offshore outsourcing conference. The company also said that cost reduction served as the only major reason that companies all around considered offshore outsourcing. Low-cost outsourcing brings in benefits such as timely marketing and optimum quality. This started with companies picking India to save cost input but they actually stayed longer for the quality and speed that came with time.
- Flexible Pricing Option(Negotiation):
When it comes to the main reason for India remaining as the top outsourcing country, the answer is that it provides a flexible and significant pricing system. This is mainly because of the wide gap that exists between personnel costs of India and that of the developed countries. For example, a developer in the U.S lists his price as 50 dollars to 80 dollars an hour to work. This cost completely depends on the skill and experience of the developer which can increase accordingly. But in India, the cost is negotiable which starts from 15 dollars per hour with ample scope for negotiation. This pricing flexibility allows the company to gather large profits and freedom to manage their budget.