Introduction
Companies today in the world are hustling in order to build up themselves and also outgrow their competitors, which are also finding ways to better themselves.
In order to better themselves, companies are always innovating themselves and trying to focus on their main core business activities. Still, it’s not just the core business activities that a company deals with; there are various related activities that companies need to focus on.
Software companies, for example, have to deal with other activities apart from creating software; they also have to handle their finances and marketing. So to make sure they’re not shifting their focus from the core job, they tend to outsource other related business activities.
Today, top companies are outsourcing their major business activities other than their core activities. Businesses consider outsourcing more convenient than training employees, hiring, and undergoing those time-consuming processes.
Most businesses in the world are adopting this practice, and one of the favorite choices for them as a country is India, but that must have raised the question of why India is the foremost destination for companies to outsource their services.
Data suggests that about 80% of US and European outsourcing companies choose India as their outsourcing destination. One of the major reasons why India is considered the most desired outsourcing destination is the availability of skilled workers in large numbers and the ability to hire them at affordable rates.
Among the various sectors, IT services are one of the top services that company outsource in the country, and top IT Companies in India have been the greatest contributors. In this article, we will understand some of the major reasons for the attractiveness of IT outsourcing in India.
Before going deep, let us understand what exactly outsourcing is all about.
What is Outsourcing?
Outsourcing refers to companies contracting their related services to third parties.
Companies are faced with a lot of difficulties when handling multiple processes all by themselves. Moreover, employees cannot focus on significant tasks because their daily tasks take up much of their time.
By outsourcing, you will be focused on important aspects of your business while still providing high-quality service to your customers and standing on their expectations.
While we might think the cost and the hassle of recruiting would be the top reasons for companies to outsource their service, a company’s primary reason for outsourcing its services is the chance to concentrate on core activities along with making sure they’re not compromising with the quality and consistency of other related services.
Thus, most companies look for outsourcing companies that will understand their needs and provide them with services of the same quality as those they outsource.
Some of the top companies in India that foreign countries prefer to outsource their services include Genpact, Tata Consultancy Services, Wipro, Infosys, Aditya Birla Minacs, and many more.
Top 5 Biggest Destinations of Outsourcing
Going deep into knowing about what companies are preferring worldwide to outsource their related service, let us look at which are the top preferred countries for outsourcing services.
#5 Poland
The country home to the biggest castle in the world is also known as one of the biggest and most popular countries where companies prefer to outsource IT services. The positive economic climate and stable market of Poland also makes the country an ideal location for companies to outsource their services. The data shows that 70% of Polish IT specialists work for foreign companies outsourcing IT services.
Top Services: IT & Software Development
Price Range: $50-$100 per hour
#4 Ukraine
This is another East European country on the list that companies are attracted to outsourcing IT services. Ukraine is gaining momentum as a top IT outsourcing destination mainly due to its large tech talent pool and low labor costs. Although after the Russian-Ukraine conflict, the situation has changed a lot. Data suggests that 90% of IT services in Ukraine are outsourced to foreign countries.
Top Services: IT Outsourcing
Price Range: $30-55 per hour
#3 China
One of the strongest nations in the world is also known to be a popular country in tech support and IT-related services outsourcing. China, popularly known as the “factory of the world,” is also considered one of the most attractive places that companies choose due to the low prices and skilled labor at a cheaper cost. As per Statista, the outsourcing industry in China is worth $175.35 billion.
Top Services: Tech Support, IT-Related Services
Price Range: $35-55 per hour
#2 Philippines
The Asian country, popular as a tourist destination, is a major provider of customer service outsourcing and back-office services. You can usually see most MNCs having their call centers in the country. Since the country has a proficient workforce, cultural compatibility with Western countries, and affordability, there is no surprise that many foreign companies choose to work with service providers. A report suggests that the country will generate around $29 billion by 2022.
Top Services: Customer Service & Back Office
Price Range: $20-$49 per hour
#1 India
The country that has given so many good minds in the world is also top preferred by companies for outsourcing their services. The country’s talent mostly specializes in IT and software development, working 24/7 to provide to the world. You can hire dedicated developers in India for your project at affordable rates. If we look at the data mentioned in an article on published Market Research, it says that the Indian IT outsourcing market was valued at INR 5,649.47 Bn in 2019.
Top Services: IT & Software Development
Price Range: $25-$50 per hour
Benefits of Outsourcing to India
Being the topmost preferred destination for companies that outsource their business needs, let us look at what are some of the benefits of outsourcing services to India.
Largest Talent Pool
India has been a place that is filled with talented people looking to grab opportunities. Each year the country produces skilled and educated employees with sufficient technical knowledge, which are the key requirements of a good resource(in terms of manpower) for any company that works as IT Outsourcing Services. All of this results in the Indian IT companies delivering excellent work to the business without worrying about their need to reassure everything. As India is known for offering good IT services, people are focusing more on building related skills such as Artificial Intelligence, Machine Learning, Mobile App Development, eCommerce Web Development, Graphics Designing and much more.
High-Quality Services
The quality of the service Top IT Companies in India are providing to their clients is one of the most important aspects of outsourcing. The talent that works with Indian companies can deliver excellent work and consistency, which is why India is an ideal choice for foreign countries who want to get their work done by outsourcing all their needs.
Cost Savings
India’s range of low-cost pricing plans is one of the topmost reasons why India is the top country providing outsourcing services all over the world. However, this doesn’t mean that companies outside India have to compromise the quality of the work. Among various countries offering outsourcing services, India is known for delivering high-quality work at affordable rates. Whether you are looking for a reputed website design and development company or Digital Marketing Agency, outsourcing to India will always result in cost savings.
Time zone Advantages
Due to the wide time difference between India and other countries, there is a great possibility of work being completed much earlier than expected. Increased productivity, increased development initiatives, and greater efficiency are all benefits of the time difference.
Well Developed Infrastructure & Technology
Technology and infrastructure investments are among the most strategic investments that companies have to make. But most of the time, companies prefer to outsource their activities apart from their core services instead of spending their finances on infrastructure and technology as this helps them to save a lot of their cost, which they can use to focus on the main task and activities. Indian companies are well equipped with all the required infrastructure and technology requirements.
English Proficiency
In India, the number of people speaking English is increasing every year, and the percentage of English speakers as compared to native speakers is higher than in other countries. India benefits from this situation, and even the top companies consider it one of the most important reasons they outsource to India
Have a look at the list of top 10 english speaking countries below:
| Rank | Countries | % of English Speakers | Number of English Speakers |
|---|---|---|---|
| 1 | United States | 95.46% | 283,160,411 |
| 2 | India | 12.18% | 125,344,737 |
| 3 | Pakistan | 57% | 108,036,049 |
| 4 | Nigeria | 53.34% | 79,000,000 |
| 5 | Philippines | 63.73% | 64,025,890 |
| 6 | United Kingdom | 97.74% | 59,600,000 |
| 7 | Germany | 56% | 45,400,000 |
| 8 | Bangladesh | 18% | 30,108,031 |
| 9 | Canada | 80.10% | 29,748,265 |
| 10 | Egypt | 35% | 28,101,325 |
Source: Maps of World
Most Common Outsourced Services in India
With all the key advantages India possesses, companies have been able to deliver relentlessly good quality outsourcing services to companies in various sectors. Keep reading as we highlight some of India’s most preferred outsourcing services.
Software Development
Software development is one of the most popular forms of service that is outsourced to Top IT Companies in India. Your company’s development process can be improved by outsourcing software development to reduce operational costs. Besides gaining greater profits, the company gets access to employing the top skilled experts by outsourcing software development. These experts will use their professional experience to work on your requirements timely, and you can stay assured that all will be done in a cost-effective manner.
Website Design and Development
To be able to do business online, businesses will require a website that, along with being visually appealing, is also packed with features, functionality, and functionality that can allow them to run their business online well. To create such a website, there will be a requirement for technical expertise, and for that, companies prefer to outsource website development work to an eCommerce Web Development company, which is technically qualified to handle all such aspects and can build websites that are tailored to meet the needs of companies.
Also read: What Is ECommerce Website Development? Guide For Beginners (2022)
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Mobile App Development
The growing age of mobile phones has made businesses need to develop mobile-friendly applications that results in increasing their sales and revenue. Innovations in the mobile industry occur frequently, so staying updated and making changes for companies with their own applications can be challenging. The problem of staying updated can be figured out by outsourcing(Hire Dedicated Developers India) all app development-related functions to a company that will make sure that the apps remain up-to-date with all the latest features.
Digital Marketing
Outsourcing digital marketing services have allowed businesses to have higher exposure online, and with that, they have been able to serve a large audience. When companies are hiring a Digital Marketing Agency, they make sure your company has a good build online reputation, and they also make sure with Search Engine Optimization Services, Social Media Marketing, and all related services, they consider it a responsibility to provide effective results to the companies with their services also able to make profits online.
IT Support
In the era of softwares, websites and digital platforms, companies need to make the most of outsourcing services to get the benefits of Information Technology at its best. Several benefits can be gained from IT outsourcing, including a more straightforward process for finding subject matter experts. The cost to Outsource IT Services can also be reduced, and resources are focused on core business development.
How to Find a Good Outsource Company in India
You must have understood the benefits of how outsourcing can work for you and what its advantages are, but one of the most crucial things for you is to select the right company to outsource your services. To make things easy for you, we have mentioned below how you can find a good outsourcing company in India.
Define Your Project Requirements
The first step in order to look for the ideal IT outsourcing company in India is to know your requirements. Create a rough outline of what you require regarding services and your expectations with the company. Once you define your goals and understand your project requirements, you’ll have a better idea of what you are looking for in an outsourcing company in India. It can be a simple website or an eCommerce store development, UI/UX, social media marketing, campaign management, Search Engine Optimization Services and more.
Online Marketplaces
The next thing you have to do is to look out for outsourcing agencies. One of the best ways to search for outsourcing companies is through either you look out for them on the internet directly, or you have the option of looking at them on different online markets that make it easier for you to find IT outsourcing because online marketplaces offer organizations access to hundreds of vendors worldwide.
Check for Proven Track Records and Portfolio
Once when you’re looking out for the company, you have to make sure that you’re looking at their track records. This will give you a clear idea of how they have performed in the past. You can also check on the number of companies they have been working with and what kind of work they have delivered over the period. Checking on their portfolio will also give a clear idea of the work you can expect from them.
Protect Your Data and Intellectual Property
A Non-Disclosure Agreement (NDA) is the best way for businesses to safeguard and protect the data they handle. By doing this, you can ensure that the information exchanged under this agreement can be sealed. With the NDA, you can conceal trade secrets, intellectual property rights, code details, and several other details.
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Conclusion
Outsourcing services has provided many advantages over the long run and gained a competitive edge over time. With the changing times, the importance of the same will be more crucial, and India will still be the top most preferred option worldwide.
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