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7 Reasons why Outsourcing to India is good for your Business

7 Reasons why Outsourcing to India is good for your Business

With globalization flattening the world, it has become increasingly important for companies to utilize outsourcing firms in India to stay competitive. India is the best outsourcing destination for technical work, when compared to other outsourcing locations in Eastern Europe, the Pacific Rim and Latin America. Here are seven reasons why your company must seriously consider outsourcing to India.

1. India can help you achieve more with less

Almost every business is under constant pressure to produce huge volumes of work and generate more revenue with their existing staff. By outsourcing to India, you can use your current staff to manage the outsourced team and projects, thereby increasing the output of each member. Only outsourcing to India can result in a marked improvement in your company's productivity.

2. India can give you access to educated professionals with skill sets

When you outsource to India, you will be working with people who are highly educated, often holding degrees from some of the world's finest universities. Though language and cultural barriers still exist, you need not worry when you outsource to India, as Indian professionals speak better English than other leading outsourcing destinations.

3. India can help you focus on core business competencies

As your business grows, you will need to support your increasing customer base or research and test new products while continuing your current growth rate. Handling everything in-house may take your focus away from core business activities. However, outsourcing to India can enable you to delegate noncore activities while you continue to manage the business functions that make you successful. India is a versatile outsourcing location, where you can easily find a service provider for customer support, research, marketing or any other business activity that you would prefer to outsource.

4. India can help your company become more scalable

Since business is often unpredictable with its own peak and slow seasons, you may not always have the right number of staff members with the appropriate skills for your current workload. Outsourcing to India can help you handle such impossible business situations, by giving you access to skilled people, as and when you require them. Whether you require less or more resources, outsourcing can provide your company with a certain level of scalability.

5. India offers better pricing flexibility

American labor is expensive, since the cost of living in the US is high when compared to other countries. As an employer, you will be for paying for taxes, computers, cubicles, health insurance and liability insurance, in addition to each staff member's salary. When you outsource to India, you can cut down on the cost of labor drastically. The range for a skilled developer in the US can be anywhere from $50 to $80 per hour, while the hourly cost of an experienced developer in India can be negotiated down, to as low as, $15 per hour. India's pricing flexibility enables you to more creative in managing your budget when your company cannot afford to pay high salaries.

6. India can help you determine appropriate staff levels

You may find the task of maintaining proper staff levels to meet business needs cumbersome. If you have less staff, you run the risk of failing to deliver during times of increased business activity. On the other hand, if you have too many employees on your staff, you risk losing quality people to boredom or the lack of challenging work. Outsourcing to India can help you solve this problem, by giving you the flexibility to determine appropriate staff levels. You can hire a core team to meet your business needs 80 percent of the time. As business activity increases due to seasonal or other demands, you can keep adding bandwidth through outsourcing to India. You will also be able to keep your full-time employees at a steady utilization rate throughout the year.

7. Outsourcing to India is easy

Getting started with outsourcing to India is as easy as finding a suitable Indian service provider and signing an outsourcing contract. However, you will need to take deliberate steps to ensure that you outsource only what you can handle. Here are a few suggestions to help you get started on outsourcing to India:

  • Consider your business goals and evaluate your needs before outsourcing
  • Investigate the market and potential Indian vendors before you outsource
  • In the beginning, outsource a simple project to test your chosen outsourcing service provider. This will enable you to develop a relationship with your team in India
  • Invest in web conferencing tools such as GoToMeeting and Webex, that will help you communicate with your remote team in India
  • Manage your outsourcing partner in the same manner, as you would your in-house staff. Define your deliverables and deadlines, along with a document of your expectations. Arrange regular meetings with the vendor, to review the status of your project and to set priorities

Make a decision to outsource to India and witness a marked improvement in your productivity, profit and net income. Get in touch with us to start outsourcing to India.

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