2/3 of all the Fortune 500 Companies Outsource to India, Why?

According to a recent survey by NASSCOM, 80% of US and European outsourcing firms chose India as their number one destination for outsourcing. Undeniably, the idea of offshore outsourcing is not a new phenomenon. But, do you know when this concept really began? You might be dumbfounded to know that benefits of outsourcing existed way back during the Industrial Revolution period when the goods were shipped to other countries at cheap labor costs.

Outsourcing of manufacturing goods is a bygone but outsourcing of services is comparatively a new concept. This notion accelerated in the 90s and has now become a reliable part of Fortune 500 companies. As information technology has expanded its reach, you may notice a drastic change in the term “outsourcing”. Nowadays, the firms have begun focusing on their core business operations and, therefore, they outsource several non-core services, especially outsourcing development services. This helps in maximizing productivity as well as saving valuable time.

According to NASSCOM, almost half of Fortune 500 companies select Indian outsourcing firms. In spite of the fact that Ireland, China, the Philippines, and Mexico have turned out as major competitors, India has managed to circumvent all other nations and has popped out as the top outsourcing country.

When it comes to choosing the right outsourcing company, you can find a plethora of options available. But, to get the maximum benefits, it is always wise to choose the best.

As per NASSCOM, $154 billion revenue has been aggregated by the IT-BPO industry in India in 2017.

So, after getting an insight into the background of outsourcing, it’s time for you to understand how outsourcing to India can be a boost to your business. In this article, you will get to know about the benefits of outsourcing to India.


Cost is one of the prime drivers for several firms outsourcing their business operations. Hiring and training can be a drawn-out and time-taking process, thus, outsourcing can be helpful. It can provide you the resource without letting you worry about recruitment, annual salary, insurance, and other benefits.
Outsourcing to India can let you hire 3 developers at the cost of 1 local developer. But, does that mean poor quality of work? India has the most number of ISO-certified firms, so the quality can nowhere be compromised.

How to save cost?Time Zone Advantage

The difference between IST and EST is 10.5 hours and the IST is 5.5 hours ahead of the GMT. So, the corporations get their work done even when they are closed because the professionals are always working in other parts of the world at the same time.
This means all the pending job gets done when the U.S start their work the next day which helps in keeping the customers happy on a 24/7 basis. Also, many Indian companies work in the same time zone as in the U.S to maintain stability and better communication with their clients. This is also a major reason why India is a preferred outsourcing destination.

Read more about “How to select an Outsourcing Company?”

How to select an Outsourcing Company?

Focus on Core Competencies

Outsourcing helps businesses to focus on the core areas rather than managing non-core operations. When your firm scales up, you need to prioritize core services to survive in the competitive market. If not handled appropriately, this can eventually result in poor business productivity. This is where outsourcing comes in. India has all the necessary technology and experienced professionals you need to get the best-customized solution for your business.

Access to Skilled Workforce

Outsourcing to India facilitates access to trained professionals with an array of experience. India has the highest number of skilled resources in sectors like IT, Finance, BPO, and more which means your most critical projects can be handled with utmost ease. The availability of skilled and qualified professionals at affordable pricing is icing on the cake.

According to a study,
“Over 500 companies in India offer outsourcing services to over 66 countries. About 200 multinational corporations operate out of India.”

Many studies have shown that India professionals are technically superior as compared with IT experts from other countries. As such, choosing India as an outsourcing destination is always beneficial.

Have you ever outsourced to India? If so, do not hesitate to share your experience with us! Let us know the pros and cons that you have faced in the comment section.