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Why outsourcing to India is a never ending trend?

Outsourcing to India started way back in the 90s and since then the BPO industry has undergone many changes. Within this period other destinations like Philippines, Brazil, eastern Europe countries too became emerging outsourcing hubs. However, as far as  IT outsourcing was concerned , India continued to rule the roost. Experts affirm that India has stood the test of time and globally outsourcing seems to be a never ending trend. Although the outsourcing industry underwent lot of changes in dynamics and trends, India could adapt to these changes perfectly and therefore remained sustainable. Over the years, the entire business has changed but in terms of quality India continues to deliver the best of the lot.

 

The Dynamics in Favour of India

 

In the global outsourcing market there are two giants that are neck-to-neck in competition. These two countries are India and Philippines. Both are competing with each other to get a bigger share in this market. As the race is on between the two it has led to a tremendous growth in the outsourcing market. Despite of immense competition,  outsourcing to India  continues to remain the most preferred option for a majority of countries. India has an edge over Philippines when it comes to availability of workforce. If the population of Philippines stands at 94 million, in India it is more than 1 billion. Moreover the average labour rate in India is much lower than Philippines. Of course there is one department where Philippines scores over India and that is cultural compatibly. Moreover, when  it comes to clarity and quality in communication a Filipino sounds better than an Indian.

 

In IT outsourcing industry, it is the technology that calls the shots. In this aspect India is a clear winner. In fact, India has grown in leaps and bounds in terms of technological advancements. It has set up numerous IT educational institutions, that spread awareness about latest technologies and hones the IT skills of aspirants as per these new changes. All these things certainly weighs in the mind of a client who wishes to outsource their services. 

 

There is another factor that makes outsourcing to India a wise decision. The Indian government has been lending solid support to the outsourcing industry through its BPO centric policies. When a business venture gets the required government support (in the form of tax relaxation) it can attain insurmountable heights. The government has already implemented an action plan that is targeted towards the growth of the Indian BPO industry. Although Philippines have also taken some notable steps in this regard yet it is somewhat behind India.

 

Analysts believe that, the ongoing trend of outsourcing to India will remain bullish for sometime now. In the outsourcing business, India is indeed solidly placed. Although there are some worries like  rising operational costs, high rate of employee attrition and adverse political pitches in US due to election time,  however, they all these can be sorted out if the industry is willing to act in a  smart and intelligent manner.

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Tags: bpo, business-outsourcing, business-process-outsourcing, call-centers, india-outsourcing, outsourcing, outsourcing-business, outsourcing-in-india, outsourcing-india, outsourcing-to-India

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