Offshoring
May 28, 2018

Companies Who Offshore To India And Why?

Before we take a look at the major fishes swimming towards the Indian shore, let us understand what exactly is meant by offshoring.

Offshoring is when an organization gets work done in a different country and outsourcing is when an organization contracts some work to a 3rd party. When you combine the two by outsourcing work to another country, it is called offshore outsourcing. Companies can choose either offshoring or offshore outsourcing, depending on their requirements and other related factors.

Which Companies Offshore To India?

Google – has 3 offices in India in metropolitan cities, most of which focus on the core work that affects hundreds of millions of users around the world and not just locally.

Microsoft – their work at Indian offices includes Research & Development, Global Delivery, Sales & Marketing, Global Technical Support Center (GTSC), etc.

IBM – had started transactions with India way back in the 1950s. They shut their operations in June 1978 and have been back in operations since February 1992.

General Electric (GE) – has its first and largest integrated, multidisciplinary Research and Development Center outside of the U.S. in Bangalore, India.

Ford Motor Company – outsources its software development, IT & customer support to India.

Cisco – has invested in building and exchanging their technology development enterprise in India.

The list doesn’t end here because there are many more big sharks such as Dell, Oracle, Hewlett-Packard, American Express, etc who offshore to India.

Why Do Companies Offshore To India?

Flexible pricing options – One of the top reasons why India remains a preferred destination for offshoring are the low and flexible pricing options. This happens due to the wide gap that exists in the currency rates and personnel costs in India and those of developed countries. The pricing flexibility allows you the freedom and creativity in managing your budget and will help you reap large profits.

Quality work – Gone are the days when India was considered only for budget cuts. Indian software developers provide consistent high-quality work with a ‘can-do’ attitude.  High-quality services are what have led India to be top in rank amongst other offshore outsourcing destinations. The quality of work is absolutely on par with other developed nations, and this is why the country is preferred by many American companies.

The timezone difference means that the work is done earlier than expected, which gives an added benefit of a quick turnaround time. Quicker time-to-market will give your company an edge in the competitive world.

Largest professional and technical pool of resources – The higher education system of India is world’s 3rd largest, after China and the US. There is also no dearth of young talent as India has more than 50% of its population below the age of 25.

The country has the largest professional and the technical pool of resources, which is a necessity for any offshoring destination. Indians are not only passionate about their jobs but are also career-oriented individuals on the constant lookout for an upgrade of their skills. They are open for new opportunities and ideas to work on which makes them capable of dealing with challenges.

India is the second-largest English speaking nation; hence, it has a high number of individuals who are proficient in the language.

Infrastructure & Technology – State of the art telecom, ISP and networks are easily available in all urban areas of the country. Offshore outsourcing companies provide customers with the latest software technology, as well as customized solutions for all their needs in various sectors. Uninterrupted communication is easily maintained with the clients by way of high-speed bandwidth via satellite connectivity, fibre optic networks, and submarine cables. This helps in avoiding any miscommunications so that the work can be done smoothly.

Stable Government – When comparing with other offshoring destinations, India has a stable and pro-IT government. The Indian offshoring industry has benefited by various policies and decisions of the government. In fact, IT is considered to be in one of the top 5 most focused industries in the country. Although this may not be a top contributing factor for you to offshore to India, it definitely is one of the major reasons for the growth and development of the IT sector in the country.

Business is mostly unpredictable and has many highs and lows; it is difficult to always find the best of breed employees that align with your budget. By offshoring to India, you not only get access to skilled individuals but also get more scalability, whether you need a few resources or way too many.

Companies always want to stay ahead in the competition and so they consider offshoring to India to avail of all the aforementioned benefits as well as other pluses.