Outsourcing in India is one of the most popular management decisions today. Although it is generally supported by the cost reduction factor, this is just one of the reasons companies outsource to India. Many parties who outsource are unaware that Indian IT companies do not simply offer cost effective solutions, but also provide value addition by improving productivity and quality. Already many companies are outsourcing with quality rather than cost in mind. Several companies are motivated by the vast talent pool in India and not necessarily the cost cutting aspect.

In today's world a company must outsource to stay competitive. Leading companies worldwide acknowledge that to stay ahead, they need to reduce costs, provide the best quality, use the latest high-tech skills, as well as be reliable and creative. There are several simple reasons why to outsource in India. India is a talent-rich country that exports software to some 95 countries around the world. India has a mature industry with world-class systems and quality. Not only does India offer technological agility, flexibility, time-to-market and a competitive advantage, it also offers world-class infrastructure and numerous incentives for foreign investments.

India is emerging as a global brand when it comes to superior quality which is not only seen in IT but also in manufacturing which has so far been considered China's strong-point. India stands out as a leading market for call center and IT outsourcing. This is the reason why most fortune 500 companies outsource to India.

Advantages of Outsourcing

The Outsourcing market is estimated to grow tremendously in the coming few years with an increasing number of companies planning to outsource both low end and high end jobs to offshore destinations. Also the number of companies providing outsourcing services is on the rise, thus resulting in larger variety. Due to the fact that more and more companies are outsourcing, the risks are getting smaller as businesses have more experience and clearer objectives.

Concentration on core business areas

Back office operations of a company require high maintenance and specialized attention. Yet most of them are critical for the company's everyday activities. By outsourcing their back office operations businesses can concentrate on their core competencies while their back office operations are being managed smoothly by a specialized third party company

World-class technology at lower rates

Investing in new technology is very costly and often risky. As the technology market develops rapidly, it is difficult to keep up with latest innovations and solutions. Thus outsourcing to companies that have the resources, expertise and desire to continuously update their technological solutions, offers a true advantage of outsourcing.

Skilled manpower at affordable prices
Outsourcing gives a company the ability to get access to skilled and trained man power at extremely low rates. This in turn leads to an increase in productivity as well as cost savings. By outsourcing a company saves on recruitment, training and other human resource costs it would otherwise have to maintain internally. Also an advantage of outsourcing is that a company is able to utilize the kind of expertise it could not internally provide.
Increased productivity

By employing skilled manpower in larger numbers at lower costs companies can really increase their productivity. This in turn would result in better customer satisfaction and increased profitability.

Beat Competition

n today's fast paced global economy a company needs to provide high-quality services to its customers in order to retain them, as well as provide the services for cheap prices. Outsourcing in this case can help the company maintain lower rates with better service solutions, thereby giving them a better market position or even a competitive advantage.

Tax benefits

By selecting the right BPO destination companies can save up on taxes in turn saving on costs.