OFFSHORING IT SERVICES TO INDIA IS MORE PROFITABLE THAN YOU THINK

One of the biggest hurdle for any entrepreneuris the cost factor that acts as a deterrent to business expansion. Offshoring became a norm in businesses when cost saving without quality compromise became essential to surviving in the market. However, there still remained a problem of finding such a solution.

Post the dot com boom, India has carved an identity for itself in the IT and ITES niche. Owing to certain education policies and priorities, India produces a number of skilled IT professionals each year and they help in creating an international brand by providing quality services at remarkably low prices.This has revolutionized and empowered the SMEs to offshore their significant amount of projects and gain tremendous profits off it.

Obviously, when considering an offshore client, quality check is must to ensure your brand name is not soiled. As soon as you cross that front, selecting the right company becomes important. It is advisable to go with experienced lot who have capability of handling multiple portfolios and industries. This gives you a unique ability to attract clients from various domains.

If you really wish to know what makes outsourcing to India a viable choice, here are your reasons-

1. Lower Cost: Probably, everybody routes for outsourcing to save cost and resources.And the biggest argument you hear in favor of India is the remarkably low cost of business. Naturally, it is the first reason to crop up in any such write-up. For example, if you take an IT service like Web Development and compare the price of the services offered in India and US you will come to know the stark differences in the costing.When you outsource, you not only save your time and cost but also optimize your business process to achieve the most out the situation.

For a detailed explanation, you can refer to the comparative study of outsourcing web development work cost in India as well as USA.

Here you can see the difference in between the prices is staggering as compared to US,making India a viable choice for many small and medium scale enterprises to offshore their work.

2. Good Infrastructure: Many big and small IT companies in India are enabled with latest infrastructure and technology. These companies can actually purchase more due to low infrastructure and labor cost. Many foreign companies and investors are now switching to India for IT and web related services since they get the extreme combination of advance infrastructure and low costservices. If you are talk about Indian IT giants like Infosys, TCS and HCL then these have time again proved their mettle in being the best service partner to IT giants of Silicon Valley.

3. Higher Skills: A big argument thrown against low cost services is their quality of work. However, it is in conjunction with global scenario that Indians are regarded as IT geeks and its example can be found in the boardrooms of Google, Microsoft and Adobe, and all three have completed their Engineering Degree from India. The labor cost in India is dirt cheap while you find IT professionals in abundance, who are ready to work at a lower wage.

4. More Resources: Why outsource? To free your resources into working towards business development activities that will drive growth and increase your revenue in the long run. Many expansion activities or, systemic changes can be undertaken by an enterprise if it offshores the work to a capable and low cost company. Thus, if any damage or loss is incurred in making those business driving changes, that can be recoveredby the offshore project cost and the profits earned subsequently.

5. Long Working hours: Do you know average working hours in Indian IT industry is 54 hours in week?Longer working hours often don’t make one productive is a sound argument, however in a country of 1.25 billion individuals, to stay viable in competition people develop the ability to perform in longer. Hence, ability to stretch for long working hours is pretty common in India. Moreover, many IT companies work 24x7 in double shifts, hence their partners are reaping the benefits of round the clock service.

6. Faster Project Completion: With an abundance of skilled human resources it is easier for some firms to complete the project on a given deadline or even before that.The client has complete access to the workings of his/ her project and can closely monitor the ongoing developments in real time. However, such access is project specific.

7. Multicultural Experience: For some,offshoring is an opportunity to have a cross cultural experience in this global economy of diminishing boundaries. You may be amazed or sometimes face a culture shock, but regardless it will be an immersive experience to know something new and look at things with a different viewpoint. There are many aspects you come to know when you deal with a certain set of people or companylike- how they work, which technology they use, at what time zone they are really efficient, etc. The consideration of these above factors can actually give you even better results in future.