Why Outsource To India

August 13, 2021 Sarah Dameron

business employee explaining why India outsourcing is the best choice

Why outsource to India? There’s a multitude of reasons (think – cost, quality and more) – but did you know that outsourcing is the main source of foreign income for India’s economy? So for the many degreed, trained and qualified workers in India, the outsourcing industry is ingrained in the culture of work. Moreover, AT Kearney’s 2019 Global Services Location Index ranks India as the number one country for outsourcing. It makes sense based on decades of outsourcing success.

Peter Drucker, management consultant, once coined the phrase, “Do what you do best and outsource the rest.”

If you’re ready to explore outsourcing as a solution to all your back-office needs, you’ve probably searched online for offshore locations that give you most bang for your buck. Furthermore, you’ve probably made a pros and cons list for each country that thrives with outsourcing. Maybe you’ve taken it a step further and itemized each back-office function that could benefit from outsourcing such as:

  • Data entry

  • Order processing

  • Data collection

  • Market research

… and much more.

So why is India such a premiere destination and what does that mean for U.S. businesses seeking to offload a few of their tasks? Below are just a few reasons why India is the clear choice for outsourcing your back-office functions.

Read More: The Advantages Of Outsourcing Your Back Office Needs

Reason 1: Cost-Effectiveness

The number one reason why companies outsource their accounting functions to India (or any overseas site for that matter) is to contain costs. When you add up all the costs of hiring and retaining an employee – salary, onboarding, technology, and benefits – you end up with a number that’s well-over your allocated budget. That’s where outsourcing comes in.

Business leaders and C-level executives can hire the best back-office professionals at 40-50 percent of the cost of what it would be to hire that same position here in the U.S. India also has a lower cost of living compared to other countries which means lower salaries for your outsourced team (including overhead costs).

Reason 2: When Companies Outsource to India They Gain Access To A Large Talent Pool

the benefit of having large talent room when outsourcing to India

Finding the right talent to fit your business needs can not only a time-consuming task, but also a frenzied one. While the talent market here in the U.S. might be scarce, the same can’t be said for India. With a labor force population of just over 500 million, it’s no surprise that India is quickly becoming the top outsourcing spot for back-office support.

Moreover, here at Personiv, our Gurugram and Coimbatore offices are home to many well-known colleges and universities, which means an abundance of fresh talent is at your fingertips. Additionally, India churns out over 3.1 million graduates each year – the optimal formula for enticing international businesses.

Reason 3: Quality Standards When You Outsource to India

High standards is another reason why you should outsource to India. As stated by The National Outsourcing Association (NOA), reducing costs is only one of many reasons why companies make the switch to outsourcing – “… there were advantages in the time-to-market-and-quality, which led to a saying that companies initially chose India to save costs, but that it remained for the speed and quality.”

Professionals in India follow international standards with certifications such as PCI and ISO– as well as keep up to date with memberships in top outsourcing industry associations like CII and NASSCOM.

They are also instructed through a U.S. lens in their higher education systems. Take accountants matriculating in India. They’ve been instructed in GAAP, and in fact, American accounting standards and rules are imparted to Indian students in their college (or university) curriculum.

Reason 4: Outsourcing Is Not A New Concept In India

personiv india outsourcing employees with years of experience

India is accustomed to the influx of companies looking to outsource with their qualified talent. In fact, the outsourcing industry in India is estimated to be more than 150 billion U.S dollars.

Outsourcing itself is not a new concept – it started during the Industrial Revolution before shifting to what we know it as today. The history of outsourcing in India initially began in the 1970s with the goal of developing cost-cutting strategies. However, decades later, those strategies have expanded to include outsourcing as a whole strategy rather than just one task or project.

Reason 5: They Can Work Around The Clock

If you dread the middle-of-the-night messages that plague you each week, you’re not alone. It’s one thing to oversee and lead a team of professionals, it’s another thing to have to be at your client’s beck and call (especially outside of normal work hours). Fortunately, with an estimated 11–12-hour time difference between the U.S. and India, U.S firms are able to serve their clients day and night without being locked into set hours.

And according to Personiv’s very own, David Graham, VP of Client Services, “If the provider is working in the BPO space, the service provider is accustomed to working all shifts to cover global time zones as requested.”

So, whether you want tasks done and completed while you sleep and in your inbox at 8 a.m., or perhaps you want your offshore team working when you do, you’re in luck. For those that choose to outsource to double (or triple) their production, maybe a team that works 24 hours is the right call. Either way, it’s all up to you.

Read More: Putting Outsourcing Myths To Bed: The Truth About Working Across Time Zones

India has become a premiere outsourcing destination for good reason. So we’ll ask again – why outsource to India? From cost savings and top talent to quality standards and around the clock work, India is the outsourcing hub for back-office functions. If you’re interested in seeing our Indian team in action, get in touch. We can help you bring efficiency back to your back office. To view our back-office solutions, take a brief tour of our Gurugram and Coimbatore facilities.

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