WHY TO OUTSOURCE | OUTSOURCING IN INDIA | REASONS TO OUTSOURCE - Free Job Alert 2020 | Rozgaar Express

Monday, 23 March 2020

WHY TO OUTSOURCE | OUTSOURCING IN INDIA | REASONS TO OUTSOURCE

Are you thinking why you should outsource? Read this complete article to get all the answers to your questions. I am here in the technology park of India and I will be sharing with you a lot of information about outsourcing in this article. What is going on? Welcome to one more article. Many people ask what is outsourcing and what the advantages of it are. Whether it will be useful for their business and how. Also why they should consider outsourcing jobs to India. In this article, I am going to tell you everything about outsourcing and how India has sustained its position for the last two decades.

Question number one what is outsourcing and what are the reasons? So outsourcing is a process to get your work done from a third-party vendor instead of keeping it in your company. The companies started using it as an important strategy after 1990. The organizations, which were not very self-sufficient, they outsource those functions to the third-party vendors. In the 1990s, as companies began to focus more on cost-saving measures they started to outsource. The companies outsource their work for a couple of advantages. The major reasons are to reduce operating costs, improve company focus, and to use internal resources for other reasons. For example, delta airlines had outsourced their customer service to India.

So when the passenger used to call for baggage claim the customer care executive sitting in India used to handle the query. These companies also outsource their functions because of various challenges in their home country. In many cases, they are facing increasing wages or a shortage of talent or maybe they don't have enough domain expertise in a particular area. Almost every company outsources in some or the other way. The most common forms of outsourcing are information technology outsourcing and business process outsourcing. However, there are many outsourcing firms such as legal process outsourcing, recruitment process outsourcing or manufacturing. I am curious to know, how you are associated with the outsourcing industry. 80% of European and US outsourcing firms ranked India as their number one outsourcing destination. India is leading in the competition with China, Mexico, Ireland, and the Philippines.

As per (NASSCOM) almost half of all fortune 500 companies choose to outsource software development to Indian outsourcing firms. BPO role in India’s economic growth is making a significant impact now. Indian BPOs are leading the competition because of Quality services, skilled workforce, cost-effectiveness and quick turnaround time. Question three - Which are the major Indian cities to outsource? When we talk about outsourcing to India, the major cities that come in mind are Bangalore, Mumbai, Delhi, and Chennai. However, certain Tier II and Tier III cities in India are emerging as a hot destination for the IT/ITeS industry. These emerging destinations not only provide significant cost savings but also possess a strong talent pool in specific domains. 

For example Finance & Accounts skills in Ahmedabad and English Language skills in Kochi or Indore. Companies also consider Pune for their IT requirements. Most of these emerging destinations have the fast-improving infrastructure and developed IT parks. Attrition levels are much lower in these cities where an outsourcing job is still considered attractive. Question 4 - Which industries outsource the most & what task is outsourced to India? The Indian IT/ITeS industry has a strong and established customer footprint in North America and Europe. The industry coverage is also extensive, with clients from Manufacturing, Telecom/Hi-tech, Retail, BFSI, Healthcare, and travel, and transportation.

In outsourcing, the BFSI industry has the largest share of 41% Depending upon the requirement these companies outsource various functions. It involves simple data entry to complex research and development. Just to highlight the examples, companies outsource back office, customer contact, common corporate functions such as finance and HR, knowledge services and research and development. Question 5 - What to expect in India for outsourcing? In India, you can expect the widest spectrum of services and capabilities. You can consider this destination for cost advantage and scalability. India has a large talent pool for IT/ITeS industry with more than 100 million English-speaking people – the second largest in the world after the USA. India has an existing talent pool of IT employees with the outsourcing industry providing direct employment to 3 million people.

Every year more than 200,000 engineering graduates are joining the IT industry ((Conclusion)) if you are considering outsourcing to India it could the best option for your business. If you found this article helpful, make sure you give a thumbs up and I will see you in the next article.