Outsourcing is not new and it has been around since the 1700s. During the Industrial Revolution, manufacturers shifted goods to countries where labor was cheaper. Between the 15th and 21st centuries, land, sea, and air routes developed. Nations began trading with other nations, eventually leading to India as they see huge benefits of outsourcing to India. In India, services outsourcing started in the 1980s and rapidly accelerated in the ’90s.

The first companies to start outsourcing their back-office work to India were global airlines. Afterward, IT companies followed. Some companies that outsourced to India early are:

  • American Express
  • GE
  • Texas Instruments
  • British Airways
  • Swissair

Companies outsourcing jobs to India has boosted its economy. Outsourcing has created job opportunities for many Indians. The reduction in the cost of goods results in more production.

India established itself as the best destination for IT-BPO. The National Association of Software and Service Companies plays a roll in outsourcing in India. NASSCOM acts as a coordinator in the industry. Most companies have seen a profit from outsourcing to India.

Over time, India has become a hub of job outsourcing across the world. As the needs of businesses change, India has evolved to accommodate them. Globalization has increased the jobs outsourced to India. There are two kinds of jobs mostly outsourced to India. They are computer programming and call center jobs. The two types of outsourced jobs are BPO and KPO.

BPO stands for Business Process Outsourcing. It is a method of subcontracting operations to third-party agents. Not only does BPO apply exclusively to manufacturing commodities, but it also applies to outsourcing services as well. The two main areas companies adopt BPO practices are back-office and front-office operations. Examples of front-office BPO tasks are:

  • Payroll
  • tech support
  • Billing
  • Marketing
  • Sales

Examples of back-office BPO tasks are:

  • Record maintenance
  • Settlements
  • Accounting
  • Regulatory compliance
  • IT services

The top BPO Companies in India are:

  • Genpact
  • Tata Consultancy Services
  • Wipro BPO
  • WNS Global Services

KPO stands for Knowledge Process Outsourcing. It is the outsourcing of core information-related business activities. KPO is outsourcing subcontracts to individuals with advanced degrees. KPO is the allocation of high-level tasks. These tasks involve specialized knowledge. Examples of KPO outsourcing domains are:

  • Legal
  • Investments
  • Research and development
  • Financial consultant
  • Data analysis and interpretation

There are many advantages to outsourcing work to India. Every year in India, 3.1 million people graduate from college. Five hundred thousand of those students graduated with an engineering degree. India’s youthful professionals are talented, creative, and innovative.

Outsourcing work to India is cost-saving to companies. By outsourcing to India, businesses save money on office space and IT infrastructure.

India is the second-largest English speaking country in the world. Communication with Indians will not be a problem for companies.

India’s economy is growing fast. Technology in India is well-developed. India’s IT infrastructure is state-of-the-art. Companies in India that offer outsourcing assistance mobile app development solutions, software development solutions, and custom web development solutions are all high-quality solutions.

Politically and economically, India is a stable country. In India, the government views IT as one of its priority industries. Because of India’s policies, outsourcing is highly favorable.

The time-zone difference gives outsourcing to western countries the benefit of round the clock service. While the CEO’s sleep, developers in India are keeping their businesses flourishing. Working round the clock will add a boost to the productivity of your company.

India is the most cost-effective country when it comes to outsourcing. Labor costs in the US compared to India are massive. Simply put, companies outsource work to India to save money.

How To Start Outsourcing In India

Do you want to start outsourcing in India? Here’s a manual to help you out:

1. Learn The Outsourcing Industry

Without a clear understanding of how outsourcing in India works, it will be hard to find an Indian service provider. If you have a niche, learn the task outsourced in that niche. There are risks with everything you do. Identifying the risk associated with outsourcing is an easy way to stay ahead of the competition. To mitigate the risk, if possible, consult with other firms.

2. Decide What To Outsource

What activity do you want to outsource?

Besides saving money, you need to decide what task you’re willing to hand over when you outsource them. Only outsource tasks your business lack. Also, figure out the cost of outsourcing these tasks. By doing this, you’ll have a better idea of what you want to outsource.

3. Find A Service Provider

Choosing a service provider isn’t as easy as it sounds. In India, there are plenty of firms in your niche. Remember, the firm you choose plays an essential part in your company. Evaluate Indian outsourcing companies like an employee. Check reviews of each company, and ask people you know in the industry. A company with a stellar work record would be the best choice.

4. Learn What Tools You Need To Succeed

Because your outsourced staff is across the world, having the right tools to manage your project is crucial. The tools you’ll need are project management tools, communication tools, and performance monitoring tools.

Project tools help you delegate tasks to your staff, share necessary files, and monitor the progress of the project.

Communication tools help you have conversations with your staff, get updates on progress, and hold meetings with your team.

Performance monitoring tools help you monitor the progress of the project. Monitoring tools check your team’s work hours, records how long the project took to complete, and ensures your team is actively working.

There are many incentives associated with outsourcing to India. The tax holiday lasts for five years in the first eight years of production. There are tax exemptions on exports even after the tax holiday. Companies outsourcing in India get a great rate of interest on loans.

If you’re interested in outsourcing services to India, all the tools you need are listed here. Cutting costs by outsourcing tasks to experienced professionals can help your business grow.

 

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