Understanding the term-
In the wake of globalization resulting in heightened interconnectedness and severe competition, Outsourcing i.e. ‘The practice of having certain job functions done outside a company instead of having an in-house department or employee handle them’ has become a defining feature of any business. Outsourcing carries with it a series of most lucrative benefits involving cost- effectiveness, high efficiency, high standards and the like.
Outsourcing to India
A large number of outsourcing firms are located in India as India has been a pioneer platform in providing outsourcing services ensuring reduced costs and high quality and at the same time providing its clients with great flexibility. This Business Model of Outsourcing to India entails the following advantages-
- Cost Effective Services- India has a large scale population making the cost of labour significantly cheaper in the country with an abundance of technically skilled manpower. The hourly rates of a developer in the developed West vary from $60 to $80, whereas in India it can be negotiated to as low as $15. The flexible pricing ensures that even small businesses have the outsourcing options to suit their budget. Finally, as the cost of production and investment in labour-power goes down, there is a steady increase in profits.
- High-Quality Services- With the abundance of skilled manpower, outsourcing firms in India can largely guarantee high quality services. The manpower posses the requisite expertise to provide best quality as they are often equipped with the latest technology, software and infrastructure. Outsourcing in India ensures high-quality services without having to spend extensively.
- Stable Democracy- India is considered to be one of the largest democracies with a stable system of governance at the centre. The major priority of the Indian government since Independence has been on developing a highly efficient IT sector. Subsequently, the Indian manpower is well equipped with a highly modern and regulated IT sector consisting of cutting- edge technology.
- Variety of Services to Offer- The Indian Outsourcing Sector offers a wide variety of services including E-commerce, System Migration, etc with its large manpower. These outsourcing firms help businesses concentrate on core services while the secondary functions can be outsourced to ensure a judicious both physical and human resource. In case of a start-up, one can delay the recruitment of a skilled Technical Team if some functions are outsourced.
- Timely Delivery of Services- The manpower of outsourcing firms in India are well trained to deliver the required services in a given time period reducing any lag in a company’s functioning. The firms meet the client’s needs adhering to a stipulated deadline.
- Quality Communication- Outsourcing generally requires an effective means of communication to ensure that ideas are passed on without any confusion. Indian outsourcing firms offer a range of means to communicate including e-mail, telephonic conversation and even video calls, giving their clients the flexibility to alternate between the desired means to maximize efficiency and output.
- Division of Labour- Indian outsourcing firms have various departments of professionals to carry out particular services. This division of labour ensures complete expertise and professionalism in the tasks carried out. Not all companies can afford to set up different departments for each service and thus outsourcing to India seems like a viable option to ensure specialty of services.
To sum it up, Outsourcing to India is highly beneficial as it ensures that the required services are provided for at the lowest rates possible without compromising on the quality. The greatest advantage of outsourcing to India is primarily the effort that the Indian manpower puts in the services catered adding to the quality and quantity of output increasing its standing in the Market place. Therefore, each business holder, bug or small, must consider outsourcing a few of its services to India for guaranteed results.
You can thus outsource the technical aspect of your Business to Recro and cut time in above mentioned points
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