Why outsource to India? author:Harjeet Singh source_url:http://www.articlecity.com/articles/business_and_finance/article_4861.shtml date_saved:2007-07-25 12:30:07 category:business_and_finance article:
Why should I consider outsourcing?
This is the first question comes to our mind when We think of outsorcing.
I'll be, without making a foundation, quickly list out the benefits: o Survive and be stable in tough compitition o Cut those hefty Expanses: o Increasing payouts o Employee Benefits o High Infrastructure cost o Recruitment costs o Other overheads o Talented and experienced staff o Better production, lesser disappointments o Meet deadlines, and o Focus more on growth than production problems Now if we go specific about outsourcing to India: o Cheaper, experienced and English speaking talent o Currency difference o Time Gap Advantage (India works while west sleeps) o Stong hold in IT service sector outsourcing. 85% of US and UK market.! o Growing outsourcing reputation.
Let's have a look what NASSCOM has to say: "Despite the challenges such as slow growth of IT spending globally, a jobless recovery in major markets and appreciation of the Indian rupee [against the U.S. dollar], the Indian software and services industry has been able to maintain its growth momentum and consolidate its partnership with overseas customers, adding to their competitiveness," _ Jerry Rao, chairman of NASSCOM.
Furthermore Nasscom says: Recent studies on the benefits of IT outsourcing by business intelligence organizations such as McKinsey & Co. and other leading research companies have indicated the following: o The ITES/BPO market is likely to touch US2 billion in 2009, against the current cost of US2 billion for these services.
The difference of US$ 390 billion represents the net saving the US economy can expect from offshoring o Such savings have a huge economic impact on dollar savings, leading to value creation for shareholders and the common man o US banks, financial services and insurance companies have saved US-8 billion in the past four years owing to IT outsourcing to India o Helped by these savings, companies have prevented layoffs and instead added 125,000 more jobs o Offshoring to India has resulted in quality and productivity gains of the order of 15-20 percent o US BFSI sector has managed to register customer satisfaction of almost 85% due to Offshoring to India vis-a-vis their European competitors What can we outsource to India? * Medical/Insurance Process * Business Process * CADD and Solid Modelling * Help Desk / Customer Support * Call Center * Architecture * Game and Graphic development * Chartered Accountants and other Accounts oursourcing * Software development * Graphic and web design * Medical Transcription, * and much more I guess we have got a long list of benefits one can get from outsourcing.
We are also aware of India's contribution to the outsourcing world.
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