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Outsourcing is defined as the delegation of non-core operations or jobs from internal production to an external entity that specializes in that operation. Outsourcing is a business decision that is often made to focus on core competences.

Economic pressures have forced professional firms to think hard about ways to increase profitability and be more competitive in the market place. The changes in technology and globalization have made it feasible for companies to succeed in today’s competitive economy by leveraging outsourcing. Firms that take advantage of outsourcing are well positioned to be competitive and innovative.

Outsourcing can have a powerful impact on your competitive advantage. Businesses of all types and sizes are outsourcing most of they IT tasks in order to benefit from better, faster, and cheaper execution of those processes.

The primary benefits of properly executed outsourcing are easy to understand: better, faster, and cheaper execution of business processes with less risk and greater flexibility.

Why Outsource?

Outsourcing reduces or altogether eliminates the need for hiring new employees and spending valuable resources in terms of equipments and time for training them. When a company outsources most of its IT requirements, the need for spending on new IT equipments also reduces considerably. There is also the added benefit of not having to learn or train employees for using new software programs.

  • Better process execution
    Specialist organizations can often increase the quality and consistency of how a task is executed because that is their core focus.

  • Faster process execution
    For many tasks, outsourcing can provide a quicker turnaround time. Additional capacity an outsourcer has in comparison with internal staff can also affect turnaround times.

  • Cheaper process execution
    By avoiding the fully loaded costs of in-house employees (hiring, training, taxes, office space, equipment, benefits, etc.) these resources can be applied to other functions that can grow your business, or the savings can be passed on to customers to increase your market share.

  • Risk reduction and flexibility
    While outsourcing creates some business risks that must be analyzed and mitigated, there are other risks that outsourcing can reduce such as the risk associated with meeting increased or decreased demand. Outsourcing can enable you to scale up or down more easily and avoid the risks of unfulfilled demand or underutilized capacity.

Why Outsource to India?

India has an enormous supply of qualified, technical, literate &
English speaking/fluent workforce and the salary rates compare very favorably with other developed/developing nations around the world.
Hence, India is an obvious choice. As per the last statistics published by NASSCOM, about 200+ of the Fortune 500 companies are outsourcing their IT services to India.

India has already established itself as a Silicon Valley of the east. Countries like Ireland & Singapore, the traditional outsourcing hubs are finding it difficult to attract new customers because of labor shortage and many other short falls. The potential for overall savings could go as high as 50-60% for organizations that outsource to India. Indian IT organizations are able to deliver superior quality because of specialization and scale benefits

The cost of living in India is much lower than most of the western countries. The salaries are generally in the range of 20% to 30% of what they are in the western countries. Even if the capital expenditure is considered at par, in India, the cost still is very low because the operating costs are much lower. This is one of the main advantages of having India as your outsourcing base.

 
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