Advantages Of Offshoring Business Process To India

July 3, 2010

Outsourcing has turned into a popular strategy used by businesses today. The reason: outsourcing offers an inexpensive strategy for completing all or part of the bpo task. Currently, outsourcing has emerged as the most recent trend in business.

Analysts say that outsourcing bpo to top outsourcing locations lets companies save money. How? Primarily because outsourcing to India, for example, is due to lower labor costs. Most of the bpo from countries like Canada, Europe and the U.S. is sent to under-developed nations like India. India has now turned into a hub for business process outsourcing.

Outsourcing to India involves companies like web designers and website development companies. Outsourcing Information Technology to India is a popular strategy used by North American firms. Outsourcing results in lower costs considering the high salary needed to get the job done in-house. In comparison to the full time, employee who is entitled to benefits, outsourcing business processes can be done at a fraction of the cost. According to statistics, if a project costs $100 per project, it would only cost $20 to get it done via outsourcing to India.

A case to be made for India is that the country has a large talent pool that may be as skilled as IT professionals in the U.S. Additionally, by decreasing the workload, outsourcing provides a way for companies to focus tightly on using all its resources to improve profits.

One commonly outsourced category is the help desk or the contact center. It takes several staff to answer customer complaints and enquiries. For many firms, this can be better accomplished outsourced. In terms of infrastructure, the help desk requires a heavy investment in computers, software and VoIP. Additional staff is also required to run this operation smoothly.

However, this investment can be bypassed by outsourcing the help desk to one of India’s contact centers. It will cost less since there is no direct investment in infrastructure or employees. The Indian contact center can offer the same service at an affordable price. India is considered to be a leading destination for these help desks, since its residents speak  English fluently and has qualified staff that can be hired at a fraction of the cost of U.S. counterparts.

Hence, India has emerged a leader in outsourcing business processes offering a high degree of quality to companies in the U.S.


Comments

7 Responses to “Advantages Of Offshoring Business Process To India”

  1. Make a Progress With Accounting Outsourcing in India | Tax Accountant | Bookkeeper | CPA in Norcross |Mary Lee Kuebler | Taxes| CPA in Lilburn on July 3rd, 2010 6:30 pm

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  3. Contract Attorney on July 5th, 2010 3:17 am

    Outsourcing Is not confined to India. The Philippines is a leading venue for outsourcing companies. The Filipino’s excellent command of the English language and the Philippines’ close affinity with the United States are but two of the factors which make the Philippines an attractive candidate for outsourcing. For specialized outsourcing such as legal process outsourcing (LPO), the Philippines enjoys a clear advantage over other countries. The Philippine legal educational system closely parallels that of the United States, with the requirement of an undergraduate degree prior to law school. Philippine commercial laws, such as the securities and corporation code, draw largely from U.S. law. All laws and cases are in English. Further, all lawyers must have passed a competitive bar examination administered nationwide before admission to the bar. These factors weigh heavily in the Philippines’ favor as the logical choice for legal process outsourcing. See http://www.americandiscovery.com.

  4. Outsourcing Industry Network on July 11th, 2010 6:13 am

    Philippines is fast emerging as a viable alternative to india. Interesting writeup.

  5. Accurate Data Entry on July 14th, 2010 7:41 am

    Now, every developing countries compete to gain the IT projects from developed countries

  6. cmms software on July 30th, 2010 7:30 am

    BPO makes the organization very agile. It allows the expansion of a company with the extra help from a perceived ally. While those mentioned advantages are very nice to hear, the risks should still be a word of caution to the firm.

  7. June Harris on August 23rd, 2010 4:18 am

    Outsourcing is not confined to IT Services; KPO is the next big thing that includes Business Research, Investment Research, Healthcare Research, Market Research, Legal Process Outsourcing, and more.

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