The Pros and Cons of Outsourcing to India

With outsourcing to India gaining popularity in countries like the US and the UK, it is important to assess the pros and cons of it. Starting with the back office operations in the early 1980s, the outsourcing process to India evolved in the new millennium. This has expanded with the growth of software development and web designing projects outsourced to India. Finally, the rise of the BPO (business process outsourcing) industry strengthened the concept and cemented the trust of global companies in the Indian outsourcing community.

However, there has been a constant debate as to whether outsourcing jobs to India has as many cons as it does pros. The following are some of the postive as well as negative aspects of outsourcing to India.

Available infrastructure
If one goes back to the early 1990s, the Indian infrastructure available to the foreign companies outsourcing to India suffered from a number of flaws. Lack of telecommunications, for example, was one major drawback. Its high costs and unreliability made doing business in India much more difficult.
The things have changed drastically in the past 10-15 years. Telecommunications, for example, have been upgraded are now provides the infrastructure that allows outsourcing to grow. An exceptional change has been brought by the growth of IT infrastructure, which is currently capable of catering to most demands of outsourcers. However, as a lot more improvements are still needed, this con has a way to go before it becomes a pro.

Skills and Talent

This aspect should be counted among the pros of outsourcing to India. Any company considering outsourcing a job related to most particular skills can find thousands of people willing to take it and complete it in a very efficient manner. Implementation of the modern technologies and conceptualization of innovative ideas can be expected from the talented workforce in the country.

English speaking capability
This aspect can be considered as a pro as well as a con. There are a greater number of English speaking people in India than in any other Asian country. However, the problem lies in the issue of accent, which bears a regional influence. The solution, which many Indians who want to work for foreign countries resort to, is opting for accent training, which can be easily availed from one of the many language institutions located in different cities across the country. Those who are talented are definitely willing to undergo such training programs to get absorbed in the workforce of these outsourcing companies.

Difference in culture
There is a huge difference in the culture of India and the countries like the US and the UK. However, these differences do not have to have a deep impact on the way outsourcing businesses are conducted. One can see a number of cities like Bangalore, Chennai, Noida and Hyderabad following similar working culture as followed in the developed countries. Moreover, the outsourcing companies in India reserve a sufficient deal of money to invest in cultural training (similar to English training).

Time zone differences
While it can make communication difficult on occasion, time differences can be a pro as far as the process of outsourcing to India is concerned. A company in the US, for example, provides work to an Indian outsourcing company when it is daytime in the US. Indians start working during night hours of the US. This forms a 24×7 working schedule that helps in the on-time delivery of projects.Outsourcing to India


Cost factors

Cost is undoubtedly the most important of the factors that draws global companies to the practice of outsourcing to India. However, the countries in rivalry, including China and Taiwan, are making attempts to cut their costs further. Even then, the Indian rates are often considered as a benchmark to compare the rates offered by other countries. The cost factor is and will remain a pro for the outsourcing concept.

Outsourcing to India is often regarded as a double-edge sword and there are personal opinions on whether outsourcing pros weigh the cons or vice versa. In actuality, the answer may vary with the industry. Every company needs to look at the big picture and decide what is best for them.

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