Benefits of Outsourcing to India and Offshore Development

Here, I, being a software & technology consultant, am going to explain the major benefits of having offshoring rather than a dedicated captive center. Budding business can save their time and efforts by offshoring their projects to companies and agencies. So, let’s look at the benefits resulting from outsourcing and offshore development.

Cost saving:

Every business keeps looking for ways in which it can get skilled work but in fewer price rates. Outsourcing a development project reduces employee levels and related costs such as recruitment, supervision, salary, and other advantages. Moreover, it also reduces the cost of obsolescence and depreciation.

Though, a portion of the cost will go to the outsourcing company. But the company will not require investing a lot in setting up infrastructure and hiring people.

Quality of Service:

When you outsource a project to an outsourcing company, your company becomes the customer of an outsourcing entity. So, here attitude is quite different from the attitude exhibited by an in-house employee.

More Captial Funds:

Offshoring reduces the requirement of investing in non-core business functions making your capital investments free to acquire profits in the business.

State of the art Technology:

Since this field has a broad scope. Outsources spend a lot of time and money on the latest equipment and employee training in order to stay ahead in the competition.

So, by outsourcing in various areas, you get the most efficient services and the latest technological expertise within that function.

Price Stability:

When you outsource your project, it is quite probable that you get stable pricing. And this stability in pricing eliminates the future need to shop around. Moreover, it will help in budgeting operating expenses and capital purchases more accurately. At the same time, it prevents the likelihood of surprise expenses.

New Business Partners:

Outsources are always considered as business partners. And being a business partner, they wish to keep your company functioning at its maximum capability.

Outsources are always considered as business partners. And being a business partner, they wish to keep your company functioning at its maximum capability.

More time to focus on core business activities:

When you outsource your project, you get more time to focus on core business activities. There will be more time to plan and innovate various business strategies.

Other benefits of doing businesses with companies in India:

  • In spite of coming up of several government coalitions, the  Indian government continues to liberalize various markets.
  • Numerous opportunities for trade through investment incentives. Examples include the so-called Special Economic Zones and lowering of import tariffs for various product groups.
  • A big customer market where you find more than 1 billion customers. Many of them have more capability to spend.
  • A pool of young as well as highly skilled personnel. India has around 400 universities and 1500 research institutions. India produces around 2 lac engineers and 9000 doctoral graduates every year.
  • Their knowledge and command over the English language are proficient.
  • According to KPMG, India has good legal security for investments.

Why Only India?

India has been a one-stop shop for offering information technology outsourcing services all across the globe. In the present time, India has become the outsourcing hub just because it offers the best quality at the lower price and hence reducing the operational costs.

Outsourcing to India provides companies a competitive edge to tackle the recession. The list of reasons are:

  • Time Zone Advantage: There is a time zone advantage between India and various countries in the US and Europe. Indian Standard Time is around 13.5 hours ahead of Pacific Standard Time. Moreover, most of the Indian developers start their day late. So, they can be quite comfortable to attend meetings at the time. But if you do your project by yourself, then your developers might not feel good to stay late in their office.
  • Yes Culture: India always says “yes” for almost everything while actually, it may mean “maybe”, “I will try”. They may agree on various tasks that they do not understand. So, you may have to ask them to repeat things that you asked.
  • Stable Government: According to the bill named “IT acts 2000”, India has been rated as the world’s best investment potential destination. With the help and support of the Indian Government, there are several IT parks made throughout the country. These parks offer better infrastructure and the government has also allowed 100% foreign equity. Moreover, the growing economy has also played a vital role in it.
  • Indian Advantage: Cost effective services are among the major benefits that India offers. The reason behind this is that India has a various skilled and talented pool of the people. There are more than 20 companies that have achieved the CMM level and 65% of the CMM level 5 companies in the world are located in India. Moreover, it has the highest level of ISO-9000 software organizations.

So, India has been the most preferred company for outsourcing web development projects. There are various web development companies in India that provide the best quality web development services at affordable price rates.

Reference Blog: Benefits of Outsourcing to India and Offshore Development

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