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Offshore Outsourcing to India: Does Indian Outsourcing have Specific Advantages?

Feb 25, 2008
Outsourcing to India has advantages over outsourcing to other countries. It is the leader in offshore outsourcing today in most areas - from IT and BPO to data and medical transcription.

Here are some of the advantages and reasons for outsourcing to India:

Strong Presence of the English Language

The penetration of the English language (the main language of the Internet) is massive in India. Almost everybody in the metros areas, such as Mumbai, Delhi, Bangalore, Chennai, Kolkata and Chandigarhis are comfortable with english. This is a key factor in effective off-shoring. It helps interaction and communication.

Massive Pool of Skilled and Unskilled Talent
India is a country of many societies and subcultures and a massive population. As such there is a huge supply of both skilled an unskilled labor. If one were setting up an offshore development center, one would get the required profiles and resumes - from the office boy to the CEO and all points in between.

Educational Facilities and Talent

Education plays a very important part in the life of many of India's citizens. The basic education of an Indian in a metro area will be more or less equal to the education of someone in a more developed country. Likewise, India benefits from overseas education. Tens of thousands of Indian get advanced degrees in foreign countries such as the U.S., U.K. and Australia. Years ago, these people would stay in there host countries.

Now, many of them return to India to take advantage of it's growing opportunities and power. If you want to tap the talent of these people you can still get them cheaply in India.

Robust Infrastructure

India is one of the most technologically progressed countries in the list of developing countries. In fact, the lifestyle and technology in the Indian metros is equal to many cities in developed countries. Government policies support outsourcing, technology and infrastructure development, and the growth is forecast to continue.

Cost Management

Though India has progressed greatly, and labor is not as cheap as it once was, its currency is still weaker than the U.S. dollar, the British pound and many other currencies. In other words, India is still highly cost effective for many businesses.

Because India is a developing country, outsourcing is looked upon favorably by the most segments of the population. In fact, there is a minimal amount of red tape involved while outsourcing to India and most government policies support it.

In short, India is the leader in outsourcing. Other countries will continue to make strides and increase their capacity, but India is set to remain a key-player and keep developing its capacity.
About the Author
Ryan C. Nagy, M.A. is a university instructor, small business owner & consultant who uses Indian outsourcing to increase profits and eliminate many mundane business tasks. Come see Ryan at The Outsourcing Review or The Web Whisperer.
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