India as Offshore Outsourcing Destination


Offshore outsourcing that started in India in mid 80s, specifically with the IT and BPO sector, witnessed an upsurge as a result of the dot com boom and the need to prepare for potential Y2K bugs. Over the passage of time, the parameters for success in the market underwent complete makeover. With resource optimization, scalability and adoption of newer technologies as the defining factors, the western enterprises scouted for newer ways of investing more on core business function thereby outsourcing the peripheral ones to outsourcing destinations like India and Philippines. The then India at the verge of major faceoff in communication technology quickly leveraged the opportunity. With its expansive talent pool of well educated and quality workers, India emerged as one of the greatest offshore outsourcing destination.

The Great Indian Advantage

  • India with its renowned technical institutions is famed for producing brilliant technical students who can not only communicate in English but also significantly value add to the business.

  • Skilled Indian resources with their salaries manifold times lower than that of the western market positioned India favorably in the global outsourcing market.

  • Offshore outsourcing called for infrastructure establishments and the operations cost in India proved to be much lower compared to their global counterparts.

  • India’s openness to the new technologies paved the way for outsourcing business as more and more Indians were abreast with the upcoming technologies across the globe.

  • The establishment of research and innovation centers by the blue chip companies also set the foundation for collaborative models with India.

  • The range of offshore outsourcing services is huge thereby offering ample hiring options for the different industry verticals in west.

The major offshore outsourcing deals in India have resulted from the country’s flexible approach towards the business outsourcing model and a major shift towards knowledge services. India’s sustenance in the global outsourcing platform in the wake of recession is a testimony to its unique capability of moving along with the market.