Thought Leadership

Should You Consider Business Process Outsourcing in India?

Are you considering outsourcing business processes to India but not sure if it’s the right move for your organization? It’s one of the hottest destinations for business process outsourcing in the world, but it’s also not the right choice for every company or business process. We’ll break down the reasons for business process outsourcing to India, some of the advantages, and provide a few statistics below.

Benefits of Business Process Outsourcing in India

It’s less expensive to operate in India. Nearly two-thirds of companies who outsource to India say the reduced costs were a factor in their decision.

Companies want to focus on their core areas of business. Repetitive tasks, such as data entry or data processing, can draw focus and resources away from core functions. Outsourcing frees businesses of the burden and more than half say this contributed to their decision to outsource.

Expanding through outsourcing addresses capacity issues. Nearly half of those who open new Indian operations say their original facilities were operating at capacity and expansion was necessary.

Service offerings can be increased. Almost one-third say one of their reasons for business process outsourcing to India was to improve offerings, such as providing round-the-clock support.

Advantages of Outsourcing to India Over Alternatives

India offers a good mix of value and savings. One of the biggest advantages of outsourcing to India is that, although costs are lower than onshoring or nearshoring, the location doesn’t come with the hassles that other offshore destinations do.

The country boasts the second-largest English-speaking population in the world. With roughly 1.3 million English speakers, India comes second only to the United States. It even beats out the U.K. and the Philippines.

The Indian workforce is skilled. The Indian school system has seen dramatic changes since the country gained its independence and citizens are hungry for learning opportunities. A great many seek educational opportunities abroad and the country has developed into a tech hub as well. This makes it much easier to build strong teams who are skilled in technology and can handle complex data-related tasks.

Infrastructure is solid and getting stronger by the day. Back in 2016, CNN reported that just 22 percent of the population had access to the net, putting it well behind countries like China. The news outlet noted infrastructure was a major concern, but the country has focused on making improvements and likely surpassed the billion-user mark sometime last year, according to the Economic Times.

The country has outsourcing-friendly policies. One of the biggest streams of foreign income for India is outsourcing and the country’s involvement in the industry has helped it develop one of the fastest-growing economies in the world. Because of this, the country has mindfully crafted regulations to support the industry.

How Many Companies Outsource to India?

A recent survey indicates that 59 percent of businesses worldwide employ Indian workers and 22 percent say they would consider moving operations to India or already have plans to. The country’s business process outsourcing market is worth an estimated $150 billion.

Get More Information on Outsourcing to India

Outsourcing can be a great choice if your company wants to reduce costs while maintaining quality, but sometimes nearshore or onshore outsourcing options are a better fit. With more than three decades of experience and facilities in the U.S., Mexico, and India, DATAMARK can help you find the right solution for your needs. Contact us to learn more.

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