Why outsource to India?
20/7/2004
In 10 or 15 years, organizations may be outsourcing all work that is "support" rather than revenue producing, and all activities that do not offer career opportunities into senior management. In the 1990s, outsourcing took on new strategic dimensions. Rapidly changing market dynamics caused organizations to spend more time focusing on their core business and global competitive pressures.
Organizations are realizing that they can't be all things to all people. As a result, organizations are focusing more on their core competencies and relying on service providers to manage critical but non-core processes for them. India has effectively provided efficient software solutions to Fortune 500 companies. Citibank, Morgan Stanley, Wal-Mart, AT&T, General Electric, Reebok, General Motors, Sony, Boeing, Coca-Cola, Pepsi, Swissair, United Airlines, Philips, General Electric, IBM, Reebok, Lucas, British Aerospace, General Motors, and Sears are some companies relying on software companies in India. It is not surprising that corporate giants in the United States, Europe, and Japan are increasingly looking to India for cost-effective and high-quality software solutions. In fact, a World Bank-funded study in the United States confirmed that vendors rated India as their number one choice for outsourcing. India has invested heavily in technical education and can provide a ready supply of bright people at relatively low cost. Infrastructure improvements in India, particularly in the area of telecommunications, and the independent nature of working in IT make it possible to bring this talent to bear on virtually any programming task. Traditionally, the most active location for staging these types of IT initiatives has been India. A strong supply of high-programming talent, favorable government and tax incentives, and the ability to complement U.S. time zones with a virtual around-the-clock approach are some of the advantages India has to offer. Some of the key benefits of outsourcing from India are: