Outsourcing to India, Indian Outsourcing, Outsourcing in India, Indian Outsourcing Industry, IT Outsourcing India

Outsource to india

Indian Outsourcing Scenario

India started becoming a global outsourcing hub in the 1990's when companies first realised the huge advantages of offshoring work and jobs to India given the comparatively low salaries prevalent in India and the huge reservoir of skilled manpower available. Add to this the Indian proficiency in English, its colonial language, and India offered an unbeatable package over other outsourcing destinations like China.

However it wasn't all smooth sailing for India. According to David Wood, Otis director, India had terrible infrastructure including nearly non-existent telecommunications in the early 1990's and roads felt like craters. But as India progressed due to investor friendly policies and cutting down red tape the Indian outsourcing industry also responded to the changing times.

Clearly India is most preferred for IT outsourcing enabling company managements to cut down on software development and maintenance expenditure, effectively meet up's and down's of software demands while focussing on the core work. Various studies and surveys point out that about 50% to 75% of all Fortune-500 companies are already outsourcing to India and this trend is only likely to rise. In fact at one time the cost advantage of offshoring work to India was 1:6, i.e. a company saved as much as 60% on labour and other charges, enough to leave any CFO salivating.

Cities like Bangalore, Hyderabad, Mumbai, Delhi, Pune, Chennai have emerged as outsourcing capitals of the world and even relatively unknown cities like Mysore, Chandigarg, Gurgaon are catching up with their more illustrious city cousins thanks to companies like Infosys, TCS, Wipro and many others that have up set up offices in these cities.

Indian BPO Industry Facts and Figures:

Indian IT companies like Infosys, TCS, Wipro and many others that have earned big reputations for themselves globally have done so almost entirely due to the IT outsourcing and offshoring phenomenon. According to NASSCOM IT Industry Factsheet for 2008 the total revenues of the Indian IT-BPO sector in 2007-08 amounted to US $64 Billion and the sector grew by 33% over the previous year, a truly spectacular performance by any yardstick.

The Indian BPO services exports increased by 30% to $10.9 billions accounting for over one-fourth of the total exports, making BPO services exports the fastest growing sector across software and services exports. The NASSCOM study states that the US (61.4%) and Europe (30.1%) markets alone accounted for more than 90% of the total exports but the footprint of the Indian IT-BPO industry was steadily widening incorporating new regions, as diverse as, Czech Republic, Mexico, Brazil, South Africa and many more.

Today the Indian outsourcing landscape comprises a truly diverse collection of BPO units including those of MNC's like American Express, GE, IT majors like Wipro, Infosys, TCS, Patni, Satyam, Internationsl BPO's like Convergys, Sitel, IBM Daksh, Accenture and today we are witnessing the blossoming of rural BPO's like Fostera, GramIT and many others. The Indian outsourcing revolution has not just benefited the client companies but domestically it has created numerous new jobs offering good money and a modern lifestyle to the youth who are ready to work in shifts and adapt to global professional culture.

The future surely is bright for the Indian Outsourcing industry then.


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