Why Is India A Preferred Destination For Outsourcing?

Outsourcing is a practice in which one company hires another company or individual / individuals to perform specific tasks, handle operations and provide services.

Recent years have shown that most of the European and American companies have shifted to Asia as their preferred destination for outsourcing.

In the recent survey, about 82% of the European and US- based companies have voted for India as their first and most preferred destination for software outsourcing.

Preference for outsourcing depends upon low cost, increase quantity, and innovative solutions a country can provide and the Asian countries like China and Phillipines also provide low cost services, it is only talent-rich India that provides good quality and has skilled resources in almost every field.

Rise of educational institutes provides a good quality of workforce and a huge population gives a huge workforce to the outsourcing companies.

Reasons for India to be the favourite outsourcing place are:

#1 - POPULATION

India has the second largest population, after China and world's largest youth population. Every year many students graduate which makes the workforce stronger and stronger every year.It also makes the worforce bigger with every passing year. So, the outsourcing companies have a large skilled workforce for them which makes them to outsource here.

#2 - ENGLISH

English is the most common language used in the world and India is the second largest country to speak english, after U . S . A as India has adopted English curriculum in most of the schools and colleges so the students graduating every year are comfortable and confident in English making companies to want to outsource in India.

#3 - PRICING FLEXIBILITY

One of the main advantages that India offers is the cost effectiveness in services. Low costs are favoured by the outsourcing companies fo obvious reasons. Thus, this makes the companies to easily manage to outsource according to their budget again making India a favourite outsourcing destination.

#4 - GOVERNMENT

India, being the largest democracy in the world has without any doubt the most stable government. IT sector has always been the first priority of the government of India.

The government of India has implemented the 'National IT task force' 108 point action plan to promote the growth of IT in India.

Also, in May 2000 Indian parliament passes an Information Technology Bill, called the IT Act 2000. Over the years, Indians have built IT parks which haveone of the the finest technologies and infrastructures.