Outsourcing To India In 2022: Reasons To Outsource & Trends To Watch

Because Indian cities have cheaper real estate rates than Western countries, Indian outsourcing companies can provide you with high-quality services at a lower cost than most other countries. Over the years, outsourcing companies in India have been providing best-in-class services by adapting to internal and external capabilities. Due to the skills, communication, technology, deliverables, and many more advantages, India is perceived as a global destination for outsourcing IT services. Eastern European nations, especially Ukraine, Poland and Romania, are featuring a lot in discussions on high-end software development, several experts concurred. Ukraine and Poland are the two Eastern European countries where high-end software development is going on,” says Jigsaw Co-founder and CEO Gaurav Vohra.

We’ve been the unseen hand guiding numerous businesses towards global success. We recognize your unique challenges and align our solutions to augment your teams, manage talent shortages, and keep operating costs low. Our approach isn’t just cost-effective; it’s quality-driven, delivering the twin advantage of cutting costs without cutting corners. Another point that should be considered while outsourcing, not only to India but any other region, is Intellectual Property Protection. When companies outsource their work, they have to dilute their core knowledge related to process before transferring the diluted knowledge to the outsource. If they fail to do this, the outsource can learn enough about the outsourcing organization’s business to compete with them later by offering similar services in their own country or even multi-nationally.

• This is in light of the rising cybersecurity issues in Indian companies that year.
• It determines how successful your outsourcing venture would be and how long it would last.
• In simplest terms, outsourcing is the process of getting your business operations performed outside your in-house infrastructure.
• As you can clearly see outsourcing to India has many advantages over building an in-house team, thus no wonder why this practice has become so prevalent.
• It is the process of contracting out specific business tasks and services to a third-party vendor based in the same country.

But as most businesses are scaling and speeding-up their digital transformation initiatives, IT companies in India are winning new deals. Thus, the Indian IT outsourcing industry is certain to see a rise in revenue. Now, companies are looking for IT outsourcing firms that follow the agile model and can share their expertise with the clients as well. They want remote agile teams as they have been more productive in getting work done faster. It won’t take the focus away from the development priorities and can get even a small change implemented in a sprint instead of investing time in functional capabilities.

Larger Labor Pool

According to the latest data by Statista, there are 27.7 million developers worldwide, 5.4 million are Indian. Today India has the largest population (19%) of software engineers globally and has surpassed the USA, which has 4.4 million software developers. So, make sure that you consider all these legal aspects before outsourcing work to India. However, as a reliable outsourcing company in India, Isourcing makes your whole outsourcing process easier and reduces the risks involved in outsourcing to India. We can support you by doing a market assessment study and evaluation of possible collaborations and entry strategy.

Some of the key reasons that make India the preferred outsourcing destination are an immensely talented workforce, favorable government policies, and fast-developing infrastructure. In order to detect and correct process abnormalities, it is important to have a reporting system that can monitor all aspects of your business processes. Outsourcing to India can be a great option for companies that already have this capability to ensure quality in place. In order to maintain quality control, it is essential to have near real-time monitoring of your business processes. This means having the ability to track process performance and make changes quickly if necessary.

What will be India’s outsourcing strategy?

Moreover, most software and communication tools used in India have an English user interface, including popular cloud accounting software like Xero. While employers outsourcing their accounting needs to India benefit from cheaper labor, the low costs do not influence the quality of work. However, when you outsource accounting service procedures to an agency in India, they can handle these on your behalf. Outsourcing helps businesses save time and resources while benefiting from high-quality labor. According to the National Association of Software & Service Corporations, half of all Fortune 500 companies choose to outsource to Indian software companies (NASSCOM).

Additionally, reviewing the company’s case studies or success stories can provide insight into their problem-solving and project management abilities. Data entry outsourcing (DEO) is the contracting of the entry and verification of data to a third-party provider. DEO services can include but are not limited to, contact list management, order processing, and product cataloging. Accounting process outsourcing (APO) is the contracting of an organization’s accounting operations to a third-party provider. APO services can include but are not limited to, accounts payable, accounts receivable, and bookkeeping. While the global outsourcing market has grown, India has steamed past most countries to become a leading source of skilled labor.

Algoscale has been building trust and relationships across the globe with Large Enterprises & Start-ups by leveraging cutting edge technology and top notch service. This firm has developed 150+ unique solutions so far to empower Start-ups, SMEs & Large Scale Enterprise leveraging trending technologies. Focaloid is a globally renowned digital consulting firm that has been successfully collaborating with several companies across the globe.

Finally, we’ll introduce India’s five popular outsourcing companies and share four best practices to help you outsource successfully. Still, if you want quality services, we recommend using top-notch developers like the ones we have on board at TMS. When you are outsourcing to India, it does not guarantee that costs are going to be cheaper. You may have to pay for extra costs due to services being done incorrectly or other causes. When you are working on a project, time is one of the most precious resources that you have. Time can get lost when you are doing client communication or translating requirements to Indian programmers.

Time zone differences can be beneficial

Outsourcing companies in India are also well-trained to cater to the needs of their client no matter where they are across the world. Its growing IT industry has pushed India’s name into notoriety in the global outsourcing sector. Their outsourcing workforce has also been a relief for most foreign companies, especially in these times when there is a shortage of tech talents. India has slowly emerged as a top outsourcing destination for large corporations worldwide. Some of the best outsourcing companies in the world are born in the country — such as Tata Consultancy Services (TCS) and Infosys.

• For example, if you’re a small business with limited resources, you can start by outsourcing your payroll services to an agency.
• And businesses across the globe have been putting their faith in Indian IT outsourcing companies for their tech needs.
• The use of productivity monitoring tools like Traqq, Time Doctor and ProHance is becoming essential productivity management tools.
• In fact, Kearney’s 2021 index introduced a digital resonance metric to score countries on their digital skills.
• The Indian government has strategically invested in growing IT outsourcing to India.

Your IT outsourcing in India starts with an SLA (Service Level Agreement) that establishes communication protocols, response times, and performance expectations to ensure accountability. India’s outsourcing industry began with outsourcing back office work by global airlines, which IT companies then followed. Texas Instruments, American Express, Swissair, British Airways, and GE were among the first companies to enter the Indian outsourcing market. India has the most CMM Level 5 certified software outsourcing companies globally, with over 75%. Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day.

The Top 5 Advantages of Outsourcing to India

While virtual communication tools can help you cross the distance, time zone differences can create a delay in getting the message across. India churns out a massive number of skilled professionals every year from its many colleges and universities. Most of them are well-versed with world-class business practices and the latest technologies to perform your tasks efficiently. It’s no secret that most companies prefer offshore outsourcing to save costs. And as most of these companies have been doing this for decades, you don’t have to worry about any dip in the quality of work. Plan on-site visits and meet them in person to better understand the outsourcing companies.

IT outsourcing no longer remains daunting if you have a trusted partner like (YTII). YTII helps you mitigate the challenges of working in an offshore environment, navigating you to success. You can evaluate the company’s stability based on its financial reports Is Prepaid Rent an Asset and years of experience operating in the market. These two factors will give you a clear picture of the company has grown since its inception. Verify the quality standards and certifications of the companies to see if they follow best coding practices.

Once you’re more familiar with the service provider, you can collaborate more effectively to achieve the desired outcomes. For instance, your outsourced team may not have the same working days or holidays as your country. As a result, companies outsourcing to India can benefit from cost-effective labor and reduce their operational costs. Because of the simple availability of trained workers, companies ranging from enterprise-level to fledgling startups are outsourcing to India. You may easily discover an IT specialist with the required experience in India, whether you need to employ a Laravel developer, Flutter app developer, or Python developer.

Lastly, telecommunications company AT&T also has its share of the story in hiring an outsourcing partner in India. Starting in 2011, the company has shifted its in-house call centers to outsourcing companies in top countries, including India. Based on studies, the majority of companies in the West are already outsourcing to India. This trend of partnering with an outsourcing company has been expected to increase due to the pandemic. Cutting costs and business continuity are some of the reasons for these businesses to outsource. W3care provides web & mobile app development services on all major technologies and platforms.

In addition, the company has a solid background in building custom IoT solutions from scratch. They have worked on various platforms and technologies to keep in line with the technological changes. With a blend of ingenuous expertise, system prowess, and cloud compatibility, RailsCarma endeavours to maximize the profit that clients educe from their IT investment.

Why are businesses outsourcing to India?

BinaryFolks is a trusted global software development outsourcing company with over 8 years of experience in providing solutions to a wide spectrum of clients. ValueCoders has worked with digital agencies and enterprises, startups, and software product development companies. They work hard to simplify their IT outsourcing and also to provide services at a better cost and to speed up the process of getting software on the market. They have been chosen as the best software development company by more the dozen independent US-based review firms. Needless to say, their employees have the expertise in almost all the programming languages you require to develop your technology.

Not just that, 22% of those that are not currently outsourcing to India are planning to do the same in the coming times. Over the years, several business strategies came in and flew by but outsourcing stayed. And today, it has become an imperative business strategy of global corporations, startups, mid-sized companies, enterprises, and all others to get the highest level of service without increasing their budgets. So, the future of IT in India focuses on the training of staff and as well as to develop the infrastructure for the same.