One of the recent survey conducted by Buoyant Economy, Regulatory Reforms, i.e., CBRE in the year March 2017, says that “India is the most preferred market for outsourcing business among more than 75 percent multinational companies”. It also added that “More than 75 percent of the multinationals consider India as a preferred market for outsourcing”. This survey had been conducted largely by focuses on the responses received from the 50 multinational respondents.
Consequently, another survey conducted in early 2017 stated that “80% of Europeans and US outsourcing firms ranked India as their number one outsourcing destination.” The National Association of Software and Service Companies (NASSCOM) also reported that almost half of all Fortune 500 Companies choose to outsource software development to Indian outsourcing firm. There are tough competitors in the market of outsourcing with India being so diversified and magnificent in their own vast country is preferred on top by the small, medium and large scale business enterprises across the globe.
The current population of India marks that 60% of the population consists of youth, which makes India more preferable compared to other countries. Moreover, India is a vast source of disciplined, well educated and technical sound personnel is preferred more. It has a low-cost labor available in abundance, due to a huge population.
There are several reasons as mentioned below which emphasis companies to outsource from India.
1. Language Barrier
It is a well-known fact that India has largest English speaking population in the world making it easier for the people to communicate smoothly. With proper communication, proper understanding can be built for a project or task which makes it easy to achieve the goals and deliver highest results.
2. Educated and talented workforce
The population of India is 1.2 billion people from that approximately 3.1 million people are basic graduates, who develop their career by joining a firm every year. The culture and ancient history itself tells the youth of India is not only highly educated but are also creative and skillful.
3. Manpower Cost
India being a developing country has a low-cost standard of living compared to developed countries, hence the companies hiring personnel will get a benefit to pay the personnel of India according to Indian payment standards, which in turn will save their manpower cost.
4. Government support
Government of India largely supports the Information Technology and Information Technology Enabled Services (ITES) industry in India to grow their infrastructure and build advanced IT parks in the country. Indian Government promotes foreign transactions to increase their GDP. India has also permitted 100% foreign equity. Hence, the rules and regulation for outsourcing personnel are supportive and policies are liberal and beneficial both to companies as well as personnel.
5. Adaptive personnel
Nature of people of India is very adaptive, personnel is flexible to work for any particular time. Moreover, all are adaptable to newly invented technology hence the companies may reduce their cost of training the personnel.
6. India provides consistent and high-quality services
According to National Outsourcing Association (NOA), the majority of countries prefer India for outsourcing. The company gets not only consistent service from the personnel but also with high quality as the personnel has basic ethics which will help the companies to grow in an overall span.
7. Time Zone Difference Support
With its unique geographical location, India is 5.30 hours ahead of the Coordinated Universal Time (UTC) with time offset of half-hour. This means that there are 8 to 12 hours of time zone difference between India and countries located in the US and other developed countries. This offers reduced turnaround times and perks to a global organization. Hence, the companies located in the USA can ensure complete customer support for 24*7 and 365 days.
8. Latest Technology Integration and High-end Infrastructure
With the advent of technologies, Indian companies have integrated latest technologies and state-of-the-art infrastructure in their systems assuring them to provide high-quality customer support services. Additionally, they also check upon timely technology upgrades to keep pace with the ever-growing trend in the industry.
India being the nation with a larger population is much attractive to work with. And, it ever-growing economy has open doors for the companies of other countries to outsource their small tasks and big projects to Indians.