India has certain advantages which makes it a favourite outsourcing destination. What are these advantages?
India has certain advantages which makes it a favourite outsourcing destination. What are these advantages?
Most multinational corporations and even small companies are outsourcing their services to India owing to the following advantages:
(i) Availability of Cheap Labour: India is a country with a large population and thus, an abundant supply of labour. Due to this reason, labour in India is available at low wage rates. This helps foreign companies in reducing cost of operation by outsourcing their business processes to India.
(ii) Skill and Accuracy: India has a wide pool of talent in the form of educated and trained youth who have the required skills and can work with accuracy in the business processes such as accounting, record keeping, IT consultancy, etc.
(iii) Continuity and Risk Management: Periods of high employee turnover add uncertainty to the operations of a company. Outsourcing will provide a level of continuity to the company while reducing the risk that a substandard level of operation would bring to the company.
(iv) Reduced Overhead Costs: Overhead costs of performing back-office functions are extremely high but due to the outsourcing these costs can be reduced.
Most multinational corporations and even small companies are outsourcing their services to India owing to the following advantages:
(i) Availability of Cheap Labour: India is a country with a large population and thus, an abundant supply of labour. Due to this reason, labour in India is available at low wage rates. This helps foreign companies in reducing cost of operation by outsourcing their business processes to India.
(ii) Skill and Accuracy: India has a wide pool of talent in the form of educated and trained youth who have the required skills and can work with accuracy in the business processes such as accounting, record keeping, IT consultancy, etc.
(iii) Continuity and Risk Management: Periods of high employee turnover add uncertainty to the operations of a company. Outsourcing will provide a level of continuity to the company while reducing the risk that a substandard level of operation would bring to the company.
(iv) Reduced Overhead Costs: Overhead costs of performing back-office functions are extremely high but due to the outsourcing these costs can be reduced.
