Key Reasons: Why US Companies Outsource to India
Why do US businesses outsource to India when there are other options such as China, Philippines, Vietnam, Mexico and Ireland? Since the 1990s when offshore outsourcing became an attractive solution for US companies to remain competitive in the market, India has been quietly but effectively stealing a march over outsourcing competitors. Today, India is the top offshore outsourcing destination due to the following reasons.
Why Do US companies Prefer Offshore Outsourcing?
With increasing competition, companies in developed countries are under increasing pressure to innovate and cut operational costs. At the same time, thanks to technological advancements, many operations can now be carried out in a virtual environment by staff working in remote areas – this is where offshore outsourcing companies step in. Outsourcing helps companies reduce operational costs, increase workplace efficiency and share risks equally with an outsourcing firm.
Substantial Cost Savings When Outsourcing to India
One of the main reasons for US companies to outsource to India is cost savings. The cost of labour in India is much lower than what it is in the USA or any other outsourcing country. Hiring an in-house software developer in the US may set you back by around 80$ per hour. If you outsource the work to an outsourcing company in India, you can negotiate the rate to around 15$ per hour – an incredible saving of 65$ per hour. Furthermore, you don’t have overheads such as training, insurance and other worker benefits to deal with.
Confidence of High Quality Solutions
While cost-saving is an attractive reason to partner an offshore outsourcing service provider in India, it doesn’t mean that the quality of work is low. Millions of intelligent students graduating from good universities are added to the workforce every year. The criteria to get into good universities is extremely rigorous and only the best get admission. The fact that some of the best tech companies in the world such as Google, Microsoft, Cisco, Hewlett Packard and Oracle have offices in India and outsource projects to India is a strong indicator of their confidence in the locally available talent pool to deliver high quality outcomes.
Effective Communication Due to English-Speaking Populace
Another factor in favor of India outsourcing services is the widespread availability of English-speaking professionals. This facilitates effective communication without any problem of language barrier that you US businesses may face in other outsourcing countries. India was under British colonial rule for over two hundred centuries – this facilitated the penetration of English in different parts of the country. English is taught from an early age in schools across India and the expanding consumption of English content on various communication platforms also paves the way for effective communication in the language.
24/7 Services Leading to Effective Time Management
Offshore outsourcing service providers in India are able to offer rapid time-to-market due to the vast time difference with countries in the West. There is a 12 hour time difference between India and the United States and Indian outsourcing companies serve clients 24/7. Outsourced staff in India are available on Skype, Zoom, Hangout and other virtual communications platforms for face-to-face interactions as per client convenience. The significant time difference enables many opportunities for increased productivity and greater efficiency. Many a times, outsourcing companies deliver projects ahead of the agreed upon time line.
Solutions for Wide Variety of Requirements
India outsourcing services providers help clients with a wide variety of back-end services. Whether you need the services of a PHP developer, virtual staff to handle customer calls or someone to handle business processes, an Indian outsourcing company can help you. This is again due to the fact that there is a huge talent pool of professionals with competencies in many different areas. You will find offshore outsourcing services to be highly beneficial as your business grows and expands. As your business scales up, you may not have the resources to effectively manage all aspects of your company. By partner an outsourcing partner, you may delegate some tasks and focus on what you do best.
Last but not the least, India has world-class IT infrastructure and technology to offer highly reliable and top-notch solutions for any outsourced service. If you are convinced of the benefits of outsourcing to India and want to capitalize on these benefits, consult a reliable business outsourcing company in India and explore how their services fit your requirements!