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IT Outsourcing in India - An overview

Outsourcing is all about contracting with another company, to do a particular function. Typically, non-core functions are outsourced. The firms that are proving the outsourcing services are called service providers or third-party providers. In the recent years, Outsourcing in India has increased by leaps and bounds. Organizations from developed countries are outsourcing their low end as well as high end services to India due to the several benefits in terms of cheap labor, better infrastructure and stable government.

According to reports, India is the leading player in the outsourcing market catering to diverse business requirements. Outsourcing to India provides cost benefits, flexibility, quality work, technological dexterity and various other competitive advantages. Moreover, Indians are proficient in English. Firms in India provide diversified outsourcing services that include everything from low end services to diverse high end services.

The Indian companies offering outsourcing services are quality certified by international certifying companies like the ISO.

Initially, most companies in India were not in a position to handle an entire business process on their own due to financial constraints and lack of resources. With new companies joining the league, Indian companies have started to move up the value chain. Nowadays, companies are in a position to handle an entire business process on their own.

Especially talking about the IT sector, The IT outsourcing and software market in India is developing at a rapid pace. Outsourcing in India has revolutionized the Indian economy in a major way. The IT outsourcing statistics clearly indicate that India is the undisputed leader when it comes to outsourcing business process outsourcing services.

There are several benefits of outsourcing in India such as:

  • Availability of cost-efficient workforce
  • People are computer savvy and proficient in English
  • Better infrastructure in terms of communications
  • Quality certified software firms
  • Relatively stable government
  • Investor friendly laws

Outsourcing in India can be done in various cities like Delhi, Kolkata, Bangalore, Chennai, Mumbai, and Pune. The Indian government has implemented some investor friendly laws to make sure that processes take place faster.

For developed nations, India is the preferred destination for outsourcing IT services. Some of the IT services being outsourced to India are:

  • IT Services: These include data warehousing and mining, e-commerce applications, offshore IT consulting services, and software development services.
  • IT -enabled Services: Data entry, mass e-mailing, clerical support for inbound & outbound communications are some of the IT-enabled services.
  • BPO (Business Process Outsourcing): Companies from around the globe are outsourcing crucial business processes like Customer Relationship Management, Supply Chain Management, and Enterprise Management to India. This has helped Indian BPO market to grow at a rapid pace.
  • Back office Operations: These include hardware maintenance, internal auditing, Benefits administration, payroll, inventory to name a few.
  • Web Development Services: Nowadays, companies are outsourcing web development services such as ecommerce consulting, Website design and development, Website maintenance and promotion to India. The developed nations are fast discovering the fact that that India is a super power when it comes to developing IT solutions. India provides high quality work, meeting international standards. Significant cost saving can be achieved by IT outsourcing to India. Outsourcing in India can ensure maximum benefits.