Why Outsource Work To India

Why Outsource Work To India

Studies show that over 80 percent of firms in the United States and the United Kingdom outsource most of their data and back-office tasks to India. According to research, more than half of the top 500 companies on the fortune list outsource Data entry tasks to India. In the recent past, a few more companies from China and other parts of Europe have joined the bandwagon. India remains one of the top countries where most of the work is outsourced. Several factors put the country ahead of the pack. Favorable government policy, an educated and talented labor force, a well-developed infrastructure and advancement in IT are the contributing factors. In this article, we delve into the reasons why India is the most preferred destination for outsourced data entry and back-office tasks.

Great pricing 

Perhaps this is one of the topmost factors that make India ranked high among countries that engage in Business Process Outsourcing activities. The cost of labor is almost a third of what is paid in the UK and the US. Also, you don’t have to pay for space and meet overhead costs associated with hiring additional staff. Besides, the Indian government has realized the importance of outscoring; as a result, it has kept the taxes low to reduce the cost of outsourcing.


No other countries can boast of great talent and technology like India. This makes it easier for companies to access the right talent they want easily. What’s more, is that English is one of the languages that are fairly spoken in India. So, the language barrier is not a problem when outsourcing data entry and back-office tasks. Also, the number of students studying in foreign universities specifically in the US and UK helps a lot. It allows them to master the skill level and deliver on BPO expectations. Generally, the country is unmatched when it comes to talented and skilled manpower. Every year, about 3.1 million graduates join the labor force. Most of them end up in the BPO sector. These are youths who are quite creative and contribute a lot to the growth of the industry. They provide the much-needed labor force to ensure that orders are delivered within the agreed timelines.


A population that has embraced technology

India has a population of 1.3 billion people. Most of this population are the youths who are fairly learned and have embraced technology. The population understands how to leverage technology for business solutions. These are youngsters who have access to top education programs designed to help the BPO sector to grow. It equips the youth with skills that make them offer their services in the BPO sector.

The Indian government has also passed favorable legislation to help facilitate and ensure that the BPO industries thrive. Legislation on privacy is in line with international standards and is intended to help protect valuable and confidential data. This is why companies in sensitive areas such as healthcare and finance choose to outsource their back-office tasks to India.

Well-developed infrastructure and technology

India has a fairly advanced infrastructure compared to other countries with a well-developed BPO industry. The cellular network, the ISP, and the telecom sector are well developed. Also, most companies in the BPO sectors have access to the best software technology. It helps them to complete the outsourced tasks on time. Besides, they have access to customized solutions for the engineering sector, e-commerce, and other sectors. Also, there are plenty of communication channels that include high-speed bandwidth, fiber optic network and submarine cables.

Notice that in India, the IT sector enjoys a lot of benefits from the government. They have access to tax-related benefits. It is meant to ensure that the sector grows with the rest of the world. For instance, it has enacted the information technology Act that allows for the e-filing of documents. Besides, the Act bars cybercrime and recognizes electronic contracts.

The time difference 

Clients from the United States benefit a lot from the twelve-hour time difference between the US and India. It means that any company that outsources projects to India will always have the task completed earlier than expected. This increases efficiency and enhances productivity. Also, companies that capture their data manually can have online versions available before the next business day commences.

Reduces management risks

The U.S. law favors employees. It means that business owners in the United States face a higher risk of being sued. Most of the litigations result in prohibitive fines and compensations. But these companies can avoid these by having the tasks outsourced to offshore companies in India. It eliminates the $125,000 businesses to lose in employee-employer court-related cases. When you outsource the task to India, the risk is transferred to the Indian based company.

A stable government and a good economy

India is a federal state with a president who is the head of state and the prime minister who is responsible for the day to day running of the government. For decades, the Indian government has emphasized democracy and good governance. These are ideals that encourage entrepreneurship. They also provide a favorable environment for businesses to thrive. It allows the business to invest in costly equipment that they need in their day to day activities. The BPO sector has benefited a lot from this. Companies in foreign countries are almost guaranteed that any task outsourced to India will be completed on time. It allows them to plan and focus on activities that are core to their businesses.

Flexible workforce

The BPO sector is growing fast. New tasks that require different levels of skills keep on emerging. It requires varying skills and technology to do some of the tasks. India, Is home to talent. Besides, it has a pool of trained human resources equipped with the right skills required to accomplish different tasks. Besides, it is easier to find the right skill that fits your needs from India than any other country.

Bottom line

India remains among the leading countries that provide BPO services. It enjoys a flexible and educated labor force which ensures that quality is maintained. If you know the reason for outsourcing and what you want, you will remove tasks such as data entry, data capture, and other back-office services from your shoulders. It will free your employees and allow them to focus on the core of your business. It will save you from the need to create extra space if you hired people to have the job done in the house. It also saves you from employer-employee litigation risks. What’s more is that when you outsource, you allow the work to be done by the competent and experienced staff. It guarantees quality.