According to Statistica’s forecast for the upcoming year 2018, based on the survey time between 2013-2017, the outlays in the IT services industry is estimated to reach around $US 14.31 Billion in India. Hexagon Consulting’s study proves India’s supremacy in the remote hiring scenario as India’s outsourcing business amounts to roughly $US 118 Billion. These statistics are evident enough to authenticate the efficiency of Indian professionals in the remote hiring market. Here, we discuss six main factors why India is preferred for outsourcing work by several global companies to get a general idea of outsourcing in India advantages and disadvantages.
1. Time Zone Advantage:
The time difference between U.S and India, if worked upon effectively, can lead to splendid outcomes. Since the difference between IST and GMT is 5.5 hours, and the IST is 10.5 hours ahead of the EST, this helps in keeping the customers of the companies in the U.S happy on a 24/7 basis. Also, this way corporations find it easy to get their work done even when they are closed after regular office-hours because the professionals are always working from the other part of the world for them even after the in-house employees go home. Hence, the next day when people in the U.S start their work, they get all the pending job done. Moreover, many remote professionals work in the same time zone as in the U.S offices to maintain consistency at work. This is why outsourcing work to India is preferred.
2. Extremely Cost-effective and Value Secure Services
It goes without saying that since the cost of living in the US is tremendously high when compared to India, hiring an American professional is expensive. Various overlays apart from the employee’s salary include taxes, computers, office space, medical insurance and accountability insurance. Low cost of remote professional services is one of the significant benefits that the companies in the U.S leverage in this scenario. Furthermore, the level of quality of the services is always maintained despite the low pricing which is one of the major benefits of outsourcing to India. Indian professionals work according to practices that are driven by most cutting-edge technologies. India is recognized to have the most significant number of ISO-9000 software corporations and fifteen Indian companies have accomplished the remarkable SEI–CMM Level 5 certification. Hence, the quality of productivities is boosted, and respective progressions are implemented orderly.
3. Hospitable IP Protection Policies and Tax Structures
There are both advantages and disadvantages involved when outsourcing to India. India has a stable democratic and most principally a pro IT government. Since the past few years, various state-of-the-art IT parks and structures have been established to give IT industry a boost. Foreign equity up to 100% is provided by the Government of India which is why India is preferred for outsourcing by companies. The Government along with NASSCOM is working towards shielding the benefits of the IT sector and promoting foreign companies in India. Additionally, the tax incentives offered by the Government provides to the stockholders are immensely advantageous. This is one of the huge benefits for companies when they outsource to India.
4. Huge Pool of Skilled Workforce
Flair and skill have no boundaries. The options are naturally restricted to a commutable range when looking out for candidates in a specific geographical region. It is akin to finding a needle in a haystack. Remote hiring from India, where around 1.5 million engineers graduate yearly, opens access to a broader range of professionals to hand-pick from. This way the firms in the U.S get the best talent from the outsourcing companies in India without compromising on geographical limitations. A proper hiring process within a large pool of talented professionals guarantees the formation of an excellent team that is why outsourcing to India is preferred.
5. Latest Technology Solutions
Indian companies providing remote services emphasize the deployment of the modern infrastructures and technologies. Apart from that, training the employees on the advanced skills is one of the essential approaches for most of the remote staffing companies in India. This guarantees that the professionals are performing at their best potentials and meeting the requirements of foreign clients. Moreover, one of the major benefits of outsourcing to India for the U.S clients is that Indian professionals consistently stay updated with the state-of-the-art updates that the client uses in the organization in-house.
6. Communication and Client Support
Communication is considered one of the most important factors that leads a business forward. Expertise in English Language is what helps Indian professionals to work efficiently with the U.S firms. The ease of communication of Indian professionals with Americans helps in updating the latter about the daily tasks and updates on the ongoing projects. In addition to excellent communication skills, the Customer Support services offered remotely by the Indian professionals are what the U.S companies benefit from. The client support provided by remote employees to the U.S firms have always been appreciated in the global market, is one of the major reasons why India is preferred for outsourcing. Consequently, this industry in India continues to boom.