What do indians think of outsourced
Like the Philippines , India has been a profitable outsourcing destination for hundreds of companies including Silicon Valley giants like Google and Facebook. India has a low cost of living compared to other developed countries like the United States. This translates to lower salaries for your outsourced staff.
You also benefit from reduced startup cost due to the availability of ready outsourcing infrastructure in India. The availability of skilled professionals is another reason why companies choose to outsource to Indian service providers. India churns out a massive number of skilled professionals every year from its many colleges and universities. Most of them are well-versed with world-class business practices and the latest technologies to perform your tasks efficiently.
This ensures that Indian outsourcing firms have access to the right skill sets to consistently deliver quality work. Issues with outsourcing work mostly arise when there is a lack of understanding due to a language barrier. However, many Indians speak fluent or native-level English since the medium of instruction for most higher education institutions is English.
According to a recent study , India ranked 5th among the Asian countries proficient in English. Some outsourcing tasks, such as customer support, require dedicated technology and infrastructure.
Recently, India has seen tremendous improvement in telecom, broadband, power and other infrastructure. As Indian cities also have the advantage of lower real estate prices, Indian outsourcing firms can offer you quality services at a lower price than most other countries. While India is one of the top business process outsourcing destinations in the world, there are some drawbacks to outsourcing there:.
Most Indians are proficient in English; however, you might still face some communication difficulties. And though outsourcing to India may be the more economical option, political pressures have meant a slowdown in order flow from America. There are problems at home too — including rising costs and a shortage of talent. Not necessarily, according to Wharton management professor Saikat Chaudhuri , who characterizes the current challenges as a passing phase.
I see these as normal changes that the media is blowing out of proportion. The entire outsourcing industry was complaining. We have billion-dollar revenue companies like Genpact; it took much longer for TCS, Wipro and Infosys to reach half a billion dollars.
Experts are unanimous on the principal strategy that will help providers thrive amid a changing environment — specialization. But nothing is a goldmine. Indeed, many Indian BPOs realized early on that their clients would eventually outgrow a need for only the basic bread-and-butter services. But the BPOs approach was to try and provide the additional expertise within their existing infrastructure.
Most knowledge processes — in the legal, engineering and medical fields for instance — require different corporate cultures and support systems. The education levels of employees need to be higher; the salaries are necessarily more.
Thus, it took some time for KPO services to evolve. Nehru, Iqbal, cricket and the question of Muslim identity. Hate smug liberals? Interested in blogging for timesofindia. We will be happy to have you on board as a blogger, if you have the knack for writing. Just drop in a mail at toiblogs timesinternet. Accept Reject. Update Consent. Facebook Twitter Linkedin Email. Start a Conversation. Please note: TOI will have complete discretion to select bloggers TOI's decision in this regard will be final There's no remuneration for blogging TOI reserves the right to edit all blogs.
More Blogs. Indrani Bagchi Globespotting. However, you need to be completely informed before outsourcing to India and this write-up covers everything you might want to know.
So, let's get started. Although other countries like China, the Philippines, Irelan d, and Mexico are giving tough competition to India, the country remains to be the most preferred outsourcing destination. If you are also planning to outsource software development to India or have been outsourcing to the country for some time, here is a complete guide covering everything you need to know about outsourcing to India.
Let's start with the basic question- ' What is outsourcing? In simplest terms, outsourcing is the process of getting your business operations performed outside your in-house infrastructure. You are said to be outsourcing when you hire remote developers , dedicated teams, distributed teams, freelance professionals, or get your complete project completed at some external location. It all started in the s and s when the rallying cry of diversification was at its loudest.
Businesses started looking forward to broadening their corporate bases and leveraging the economies of scale. Their main agenda was to identify what processes they needed to keep in-house and which they could outsource to other economies for protecting profits.
It became an official business strategy only after when businesses acknowledged getting services and support services for cost-savings. Over the years, outsourcing has become an imperative business strategy of global corporations, startups, mid-sized companies, enterprises, and all others to get the highest level of service while cutting down the price.
Now, a strategic partnership between the two firms for achieving the best outcome from an outsourcing venture has become the way out. Especially the pandemic of enabled more businesses to outsource to India and similar destinations to experienced web development companies. This became their sole way to ensure business continuity. Knowing the meaning of outsourcing is not enough for a successful business venture. It is imperative you have a clear understanding of what strategy you are adopting, without confusing it with anything else.
Right at the mention of outsourcing, thoughts start hopping from outsourcing to offshoring to nearshoring. They are interchangeably used to denote, what we call, getting work done from anywhere but in-house.
We have already discussed what outsourcing means in the last section. In the simplest of terms, offshoring is shifting your business processes, services, or other tasks to a different country. While outsourcing is contracting your business processes, offshoring is shifting them all together to software development companie s in a different country.
This is basically centered on the geography of the work. It is well known that the cost of labor in Western countries like the United States is really high.
Developing countries like India have a vast pool of talent that is available at a comparatively inexpensive rate. By shifting their operations to these developing countries, companies can leverage the cost differentials and get their services completed at a much lower price.
Reduced costs, better focus on core activities, expertise, scalability. The main difference between outsourcing and offshoring is summed up in the table above. Defining nearshoring in simple terms - it is that aspect of outsourcing where you contact a software outsourcing company in a nearby country to outsource your business processes, especially IT processes. It is also based on geographical factors as companies ensure that the geographical distance is a minimum to avoid any cultural or traditional barriers.
As mentioned, companies majorly look for nearshoring when their main agenda is to avail the business process efficiency offered by outsourcing but without actually experiencing any risks of time zone gap or cultural barrier. Most companies feel that outsourcing could create complications if the company is oceans apart.
Nearshoring eliminates all these barriers and provides a smoother communication flow. So, if you are company in Sri Lanka, outsourcing software development to India would basically mean nearshoring for you! While the benefits of nearshoring might impress many companies, the challenge of cost , advanced technologies, service variety, etc.
Depending on the scale of your project, technology requirements, budget constraints, and other factors, choose whether you want to go for outsourcing, offshoring, or nearshoring. If getting the best quality service while on a tight budget is your requirement, outsourcing would certainly be the best approach. The cost of outsourcing MVP developmen t to India is much lower compared to several other countries.
Moreover, the quality, technical expertise, and skills offered in India are unmatched. It enables you to scale, offers complete flexibility and agility that might be restricted if you go for offshoring or nearshoring.
When you choose to outsource solely depends on your company's requirements. But, we can certainly tell you if outsourcing is for you or not. Keep reading to know more. The one question that most companies, entrepreneurs, solopreneurs, technical co-founders , and enterprises ask is if outsourcing to India is the right choice for them or not! But before we go forward, there is one more thing that you need to know- Whether you should outsource at all or stay with in-house team only.
To understand this, let's start by studying the table encapsulating the differences between outsourcing and in-house development. Apart from knowing the differences between outsourcing and in-house , there is one more thing that could help you make a better decision. This would be knowing the pros and cons of both in-house and outsourcing. So, let's break it down for you. The main reason why companies started to outsource software development in the very first place was to cut down their operational cost.
By shifting their processes to a third-party, companies can not just leverage the cost difference prevalent in the global market, they can also hire the best remote developers without paying a huge package sum. While you are getting the tasks completed in some other place, your employees can produce better plans to scale, now that they are stress-free. Apart from that, you can also enjoy the freedom to choose from the endless technology stack available in the market and be sure to get the best results as they are committed to perform.
Every coin has a flip side! If outsourcing comes with a broad spectrum of advantages, it also has its own share of cons. You might find it difficult to find the best IT outsourcing company in India that you can trust and contract your services to.
It's not as easy to screen an outsourcing vendor through virtual interviews or simply going through their portfolio as you do not get to meet them. Apart from that, lending your work to a third-party always comes with a level of risk and security threats about your ideas being stolen.
You might even find it difficult sometimes to overcome the barrier of communication. You will also need a good engagement model to build your offshore development team. Many companies still believe that in order to see magic unfold within an organization, it is imperative that the talent is put under the same roof. The camaraderie and the sharing of ideas that can take place within the same environment cannot be done when the teams are oceans apart.
You can directly share any inputs with them and get any changes implemented right in front of you. The talent you hire in house is aware of your company policies and fit right into your corporate culture. Moreover, it is always easier to communicate with your teammates face to face than through some virtual channel. Although easier communication, instant exchange of ideas, and a cultural fit might be some enticing reasons to stay put with your in-house team, it might cost you a lot.
You might even have to stretch your company's budget in order to find the technology stack that you actually need for your development task within your region. Well, there are a number of pros and cons associated with outsourcing to India as well as in-house development.
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