Why

Why is India a good place to outsource
operations?

Money is at the core of all reasons for outsourcing. India is an undisputed leader in the outsourcing industry. It offers a wide range of English-speaking skilled labor that no other low-cost countries can match.
It has proven to be the most cost effective. Labour costs in countries such as the US, UK, Australia, Canada and Dubai are enormous as compared to India. Lower costs directly have an impact and increase the ROI.
India is well-positioned to leverage this success and cater to more skill-intensive and increasingly digitized services. It has demonstrated its strength of being one of the largest exporters of IT and BPO services globally. India has a large labour and consumer base, low operating costs, and linkages to important international markets.
India’s strong services exports have grown by 14% over the last two decades and stood at US$254.5bn in 2021-22. A large part of services exports is from the Information Technology (IT) Services and Business Process Outsourcing (BPO) services with US$157bn in 2021-22.

Global corporations are leveraging Indian technology talent through their capability centres in India, which employ approx. 5 million people. India’s demographic is best fitted for global set up as it offers “Numerous industrial zones, workforce and labor availability, lower labor costs and a relatively open environment for foreign direct investments”

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India shines: Global outsourcing statistics

The  2021 Global Services Location Index (GSLI) overall country rankings indicate that, at a regional level, Asia continues to dominate the index. India, China, Malaysia, and Indonesia hold the first four spots in the global services value chain again this year. Additionally, Vietnam, Philippines, and Thailand also continue to maintain their foothold in the top 10 rankings

The rankings make it evidently clear that while most locations have seen changes in their rankings due to intense competition, India outsource continues to shine since the measuring of attractiveness for locations started.

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4 most commonly outsourced services in India

The Indian workforce can ensure that quality work can get done at affordable rates. Below is the list of outsourcing services India can act as an ideal destination for.

  • 1. Information technology (IT services)
  • 2. Knowledge process outsourcing (KPO)
  • 3. Back-office support
  • 4. Customer support services
Information technology (IT services)

Technology and digital platforms are a growing necessity in the business world, and IT outsourcing can significantly help enterprises gain a competitive advantage. IT services require expertise in specialized fields and proper tools and technology. Therefore, there
is an inherent need to train employees and set up the infrastructure required for the same. This process can be expensive and also time-consuming.

The important IT support services required by any industry are:

  • Technical Support
  • Software Development
  • Website and Mobile App Development
  • Digital engineering
  • Advanced Tech learning solutions 
  • Data and Analytics
  • Platform and Product engineering

Many businesses prefer India as outsourcing destinations since the Indian software industry has skilled software
architects / developers, quality engineers, project managers and all related skilled workforce along with well developed required infrastructure.

Knowledge process outsourcing (KPO)

The knowledge process outsourcing (KPO) sector has seen unprecedented growth in recent years. We have seen increased demand from clients not only for research but also for more value added tasks across the capital markets and banking value chains. It’s the same across all the industries. Human and Machine join as KPO sector accelerates Digital transformation.

KPO involves theoutsourcingof core, information-related business activities. Some of the key tasks that require information processing are:

  • Financial and Investment Research
  • Research and Development
  • Data Analysis and Interpretation

To perform these high-end tasks, there is a need to understand the nature of business and the underlying technology. It also requires the processing of large volumes of data. So, it involves a workforce that has advanced degrees and expertise in specialized areas. This requires a high amount of resources, effort, and time. In such a scenario, it makes more practical sensefor organizations to outsource.

Back-office support

Our world has become increasingly connected through the digital sphere, resulting in the exponential growth of social media platforms. This has led to the need for content moderation. Furthermore, companies need to ensure the safety and security of their customers on their digital platforms. Transaction management and complex data processing are also some of the most sought-afterback-office processesthat businesses look to outsource.

Some other back-office support services that can be outsourced are:

  • Content Moderation
  • Fraud Protection
  • Application & Document Verification
Customer support services

Addressing customer needs and concerns is one of the most important tasks for businesses. If the queries are addressed on time, it goes a long way in fostering customerloyalty. But answering all the customer calls and replying to their emails is a tedious, time-consuming task.Businesses outsource customer support to third-party call centres to attend to their customers’ needs in a timely and efficient manner. An ideal outsourcing partner leverages a dedicated staff and proper technology to provide uninterrupted support round the clock. Companies can direct their focus on their core business activities by enlisting an outsourcer for these services. Due to the availability across time zones, skilled labour, cost-effectiveness,and many more such advantages, companies choose India as the outsourcing centre.

Businessesoutsource customer supportto third-party call centres to attend to theircustomers’ needs in a timely and efficient manner. Anidealoutsourcing partnerleverages a dedicated staff and proper technology toprovide uninterrupted support round the clock. Companiescan direct their focus on their core business activitiesby enlisting an outsourcer for these services. Due to the availability across time zones, skilled labour,cost-effectiveness, and many more such advantages,companies choose India as the outsourcing centre.

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