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What are the Cost and Benefits of Outsourcing to India

By Tapas Ojha Subscribe to RSS | February 10th 2012 | Views:

With the presidential election in USA knocking the door, the voice against outsourcing is getting shriller. President Obama has given hints that government will take action against those companies that outsource to India and other destinations alike. The entire hue and cry is nothing new. Political experts are of the view that voices against outsourcing to India is nothing more than an election rhetoric and will subsequently diffuse once elections are over.

Business leaders opine that the opposition for outsourcing to India defies common business sense. Outsourcing, contrary to popular opinion, brings benefits for everyone. Outsourcing not only helps in lowering costs for the parent company thus positively affecting the bottom-line but also opens up new horizons of opportunities and skill-sets which would otherwise incur large investments.

Let us understand this with an example. If office space lease rentals in California or in London go up causing pressures on the margins by increasing the fixed costs; companies outsource to India for some of the low- end jobs because commercial lease rentals are quite cheap and to hire employees in India is also economical thus, saves precious money which fuels growth of the company.

Lowering costs of business operations is obviously main argument in favour of outsourcing. However, benefits accrued to the firm goes beyond that. As businesses grow, focus from core-competencies reduces. Outsourcing helps companies focus on their core-competencies. It frees companies from hassles of low-end mundane jobs without compromising on the quality and efficiency.

Another major factor that works in favor of outsourcing to India is improvement in delivery of services due to difference in time zones. Work of a company never stops in that way. If business office is closed in the evening at one location, office at other location starts beaming with activities. This becomes of critical importance as the service industry is booming across the globe.

It helps in building and developing new skill sets for the employees of the company. Generally, execution of large projects requires whole range of skills that employees of a particular company don't necessarily have. Outsourcing brings various stakeholders on the same platform and employees in this process learn many new skills that they don't possess.

India has highly skilled large talent base. World has already recognized prowess of India in the field of information technology, computer programming and telecommunication. Indian employees have lower salaries and they are quite enthusiastic about international nature of the job.

The popular notion that Outsourcing to India is a filthy job needs to change now. It is only set to grow in the future. It does not take jobs on the contrary; it helps in keeping the company competitive. People in western countries have to understand that if their companies will not be competitive, they will not survive the onslaught of competition and will cease to exist. Thus outsourcing to India and other destinations in Asia will continue.

Tapas Ojha - About Author:
Tapas Ojha is a Senior Content Writer and SEO Working for a Remote Staffing Outsourcing company in India. For more Information by visiting our Outsource to India and Hire Employees in India.

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