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  • Why India is becoming an Outsourcing Magnet

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    Of all the projects that were outsourced globally in 2018, India accounted for 67% of the overall share. It has become one of the top outsourcing destinations in the world. India is also the first choice for most companies worldwide searching for responsible outsourcing vendors who are capable of giving them a strong and professional online presence. As a matter of fact, even experts around the world have gone on record saying that outsourcing work to India is a business practice that companies will continue to pursue in the coming times as well.  


    As far as outsourcing in India is concerned, Achyuta Ghosh, Head of Research at NASSCOM (National Association of Software and Service Companies), told ZDNet “India is a unique example of the ‘big getting bigger’ in an extremely competitive landscape. Its IT-BPM exports have doubled in the last six (6) years, driven by increasing focus of the new industry in new drivers such as digital technologies, growth of an innovative start-up ecosystem and adoption of multiple business models such as partnerships, collaboration, local presence and mergers and acquisitions. India is a global digital hub offering a plethora of opportunities and services. There is a special focus on the latest technologies like Big Data, Internet of Things (IoT), Cloud, Social Media and Mobility. In addition, solutions are being developed that emphasize on design, creativity, agility and customer experience”. According to Ghosh, IT exports are expected to exceed $330 billion by 2019-20.  


    Below are a few points that further make it clear that India’s outsourcing service offerings are on the rise and will be so in the coming times as well:


    • Availability of Immense Talent and a Massive Resource Pool: There is no shortage of resources in India. Indian professionals are highly-skilled and well- trained in their respective technology fields. This is evident through all the successfully delivered projects in the past and the ongoing tech boom in the country. India ticks higher up in any organization’s bucket-list because of the easy availability of dedicated offshore developers capable of offering intricate solutions on time. Remote teams adopt to new technologies faster and develop better solutions. Indian companies also enjoy a reputation of staying up to date with the latest trends.



    • Budget-Friendly Services: Cost is often the most decisive factor that compels companies to outsource work to India. If one compares, India costs around 30 to 35% lesser than US and Europe. Most offshore development centers in India charge their clients on an hourly basis or have fixed monthly deals which clients can choose from as per their convenience. Overall, 65% operational expenses can be saved when outsourcing to India. And this invariably increases an organization’s profit. India also gains an advantage over others because of the optimized approach that it works with and the cost-effective flexibilities that it offers.


    • Reliable Service and Focus on Delivering High Quality: Indian companies provide high-quality work and are very particular about meeting international standards. Indian vendors are known to follow best global practices including the use of:

    a. Capability Maturing Model (CMM): This can help assess the capability of all the processes of an organization in order to implement the perfect workflow for a project.

    b. International Standard Organization (ISO 9000): This assures premium quality in design, development, production and installation.

    c. Total Quality Management (TQM)

    d. Six Sigma Quality Certification

    e. Customer Operations Performance Center (COPC): This guarantees software delivery within a deadline.

    A couple of staggering facts here are that the highest number of ISO-9000 certified software
    companies are in India and the country is also home to 70% of the world’s CMM Level 5 certified


    • Flawless Communication: Communication bridges the gap between two parties doing business together. Maintaining strong channels of communication has been the edifice on which Indian vendors have built their rock solid reputation. The latter precedes them wherever they go around the world pitching for Indian service. There are 125 million English-speakers in India at present, making it the second largest English speaking country in the world after the United States of America. India prides itself on consistent and reliable communication ensuring good connectivity with the world, a trend seen, felt and experienced by offshore businesses for the longest time.


    • Round-the-Clock Services: Software outsourcing in India is a globally proven model. Multiple companies have delivered successful results over a very long period of time and have also managed to comply with demanding situations and task management. This is made even better with the availability of email services, chat support and audio-video conferencing.


    Facts that vindicate the growth of the Indian Outsourcing Industry:

    • According to a Times News Network report, 40 companies continue to set up operations in India every month.
    • Another report by Times News reveals that Bangalore attracts 50% of US investment, Chennai attracts 20% and the rest is shared between Mumbai, Pune, Kolkata and Gurugram.
    • reveals that Bangalore accounts for 36% of India’s software exports that touched $12.5 billion in 2004-2005. The city, has risen to be the Mecca of “Domestic and Overseas IT Firms”.
    • A Software Technology Parks of India report reveals that every 3 days a company is being set up in Mumbai.
    • reveals that one of every four global giants outsources their software requirements to India, contributing to the country’s rise as the leading ITES-BPO hub.
    • Asia Times Online released a report about Bangalore bringing in software exports totaling $2.4 billion in 2004.
    • Cut to the present, the global IT services market is predicted to reach $1.031 trillion. 30% of this is outsourcing work with an outsourcing service provider always coming into the picture. Indian companies still and will continue to command 60% of the total share which is about $180-200 billion in contracts.
    • India remains the leading cost arbitrage for software services, the main reason why US-based tech companies are keen on using India-based teams for their software projects.


    These facts very strongly highlight India’s influence on the outsourcing sector and show clearly why the country remains one of the most sought after outsourcing destinations for organizations worldwide. Outsourcing work to India remains as popular as it was 15 years back, with the work done by the country’s leading IT Firms and aspiring start-ups only helping that stature grow.

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