Why Most US Businesses Outsource To India?

Category Outsourcing
29 May 2013, Comments Comments Off on Why Most US Businesses Outsource To India?

The United States have been suffering from a stifling business climate. Most companies in the United States are struggling to make ends meet. That is why US businesses are looking for ways to cut down on spending and maximizing the benefits—that is why they are outsourcing some if not all processes to vendors located in India.


Cost effectiveness. We all know that cost is the leading reason why US businesses are looking to outsource to India. The flexible pricing options that are offered by Indian outsourcing vendors are the real reason for the upsurge in the outsourcing game. Take the example that it will cost companies at least $50 per hour to maintain a good programmer. In India, the rate could go as low as $15 per hour. The quality is the same and the ability to come up with competitive products is always there for Indian companies.


Consistent quality. Speaking of quality, India provides services to its clients with predictable quality. Cost effectiveness, according to some US businesses, is only part of the story. The bulk of the story why most US businesses are outsourcing to India is all about the quality. India has long been known for its ability to stick to industry standards and other accepted quality assurance techniques that ensures that quality is ensured and the services are align with what the companies expect as a result of the move to outsource some of the processes and services.


Technological capacity. Modern India boasts of having one of the most sophisticated and developed technologies in information and Internet networks. It has the best cellular networks and telecom facilities built on the premise of providing support to business process outsourcing companies. The BPO industry contributes around one percent of the country’s gross domestic product. The technological capacity is amazing given the costs to run it which is cheaper and with the same reliability as the ones found in the United States.


Talent capacity. Without a doubt, India offers one of the best talents in the world. The exposure to the English language and Western cultures are the factors that made India as the top outsourcing destination in the world. The quality of talent in India have been at the radars of US businesses and not only the numbers that matter but the number of quality workers that really make a dent.


It has been no secret that companies needs to remain relevant and in so doing employing drastic actions to stave off the challenge of bankruptcy. The cost of labor in America is going to erode the competitiveness of American businesses. The labor cost will make the profit margins thin and the spread will not be to the liking of most stakeholders. That is why it is important that hiring an Indian outsourcer is the best move that any business will make to stay afloat in the challenging business climates.


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