Why do Companies Outsource to India – 3 Reasons

What is Business Prosessing outsourcing?

The term outsourcing refers to the process of allocating certain business prospects and projects to an external service provider, an organization that takes the responsibility of handling all the issues of the allocated processes by their own with minimal failures. This is usually done because the company or the business organization is not able to handle all the aspects at a time. On the other hand, sometimes an organization may come up with some temporary processes which do not require recruiting a separate manpower. This calls for efficient and reliable outsourcing. Now in a country like India, many foreign companies love to outsource their products and services to the country simply because of the diligent employees present on the go and the public, which is more than enough to improve business globally. With a massive population and the number of well-qualified professionals rising every year, companies feel a sense of reliability that outsourcing themselves to India would an exciting venture. An organization, before outsourcing themselves keeps certain aspects in mind, such as time, human resources, money, capital, labor etc. India becomes an obvious choice for many companies for various reasons.

Potential Countries Outsourcing to IT Call Centers and BPO Companies In India

The United States of America is the largest outsourcer in terms of both volume and value. The next largest outsourcer is the United Kingdom. Other European countries are the third resource for outsourcing to India. At present United States of America ( USA ) and Europe – especially United Kingdom( UK ), Germany, France, and Switzerland are potential countries, which like to outsource business to India more than others. Australia outsources in the onsite-offsite model. UK goes for the onsite-offshore model but takes a longer time to decide cost may not be that constraints. US outsource most from cost saving perspective.

Difference between INBOUND and OUTBOUND Call Centers

Many Call centers and BPO companies prefer cold calling or phone marketing to find their prospects which are called outbound call centers while second types of call centers and BPO companies uses inbound marketing strategies to receive calls from their customers which are called Inbound Call Centers. Countries like India, Philippines, China, Malaysia, Thailand, And Brazil are the hub of BPO companies and great destinations for outsourcing business.

 Why do Companies Outsource to India 

  1. Why do Companies Outsource to India Reason 1 – Efficiency and Productivity

It is quite easy to understand, that dividing a single work into multiple units can always improve the quality and quantity of the required work. Outsourcing does exactly the same. With an icing to the cake, it is known how Indians can manage differences and work diligently towards a common agenda. This means that there is always a greater chance to expect results in lesser time, with minimal flaws.

  1. Why do Companies Outsource to India Reason 2 – Reduced Operational Costs

When a company decides to place themselves in India, a major advantage is a cost. With the capital being cheaper, and labor easily accessible, where a great control over the operational costs improves the budget and finance department of the company. Outsourcing places the organization’s odds and it becomes the responsibility of the service provider to maintain and grow the company’s finance department.

  1. Why do Companies Outsource to India Reason 3 – Risk analysis and Risk Sharing

This is one the most important aspects of outsourcing. Sharing the resources with a third party vendor implies that even the risk analysis is a joint venture. Since a company decides to put their resources in the service provider, it is the service provider who is to study and analyze risks. And it is usually observed that service providers in India are specialist in risk analysis, then provide a better risk management. These are just a few of a lot of points that justify a company deciding to outsource themselves in India. Not only do the organizations find it easy to grow in India, there is also a sense of trust from the Indian professionals and organizations. India has observed a massive boom in companies resenting themselves in investing to India and using their services to maximum potential.

Rohit Sharma
Rohit Sharma

My name is Rohit Sharma. I have 8+ years of experience in digital marketing, Inbound Marketing & SEO, and lead generation. I have worked on digital marketing projects with several major brands. I work as a digital marketing Coach with Coaches, Consultants, Trainers, and B2B services providers to grow and scale their businesses. Book a Free discovery call with me

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