India, undoubtedly, stands out like a giant as an outsourcing destination. Despite many new countries like Romania and Philippines and china plunging into the fray India still emerges a leader for various reasons.
The first and foremost reason is that it is most cost effective. Companies which outsource to India save at least 60% of their costs according to the National Association of Software and Services. There is great competition for cost but when one compares cost it is not done in isolation. Factors like quality, professionalism and dependability also have to be taken into account. India is the most cost effective because
· Labor cost-The labor cost advantage makes outsourcing to India very cost effective. The salary of an average call centre employee is about 15% cheaper in India than in UK. This is likely to last for the next 20 to 30 years. The differential in wages between the parent location and India is often as high as 70%.
· Insurance and banking-According to Nasscom insurance and banking generate a large percentage of cost savings because of the high proportion of processes that can come offshore. According to Nasscom the US banking and financial sector .has made savings to the tune of $8 billion in the last four years simply because it outsourced to India.
- Versatility is another factor which makes India cost effective. There is no dearth of IT professionals, transcriptors, managerial talent and writers in India. They are available under one umbrella.
- Low personal costs-there is a wide gap between the personal costs in India and the developed countries. Thus countries which outsource to India benefit economically.
No comments:
Post a Comment