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Evolving aspects of outsourcing to India essay sample

Evolving aspects of outsourcing to India essay sample


Many companies do some outsourcing because it is a profitable, efficient, and safe technique. Initially, outsourcing was common only for the manufacturing sector and all the “blue-collar” work. Over the time, it became possible to outsource even white-collar jobs to developing countries where running a business is always cheaper. Currently, India is the top destination for outsourcing IT and business process outsourcing jobs. Though the country opened its market later than China or Singapore did, India provides plenty of benefits for IT outsourcing in particular.


Unlike the developed countries, India can offer a qualified workforce at a lower cost. The average annual salary of an IT specialist in India in 10 times lower than it is in the US, which is the enormous saving for businesses. At the same time, the country annually produces plenty of computer science and engineering graduates who possess strong English language skills. Over the last 20 years, India developed world-class IT service vendors that perform at top levels. The difference in time between India and the US stretches the operational time of companies to 16-20 hours, which is critical to product development. Besides, the country has an independent judiciary that helps to protect property rights.


Though India skyrocketed in IT outsourcing, it can be a good place for other types of businesses too. The country also has a lot of young talents in finance, accounting, economics, and applied sciences, which makes it appealing to more investors. Well-qualified engineers allow outsourcing manufacturing to India besides China and Thailand. Mobile phone manufacturing giants have already set foot in the country to meet the global demand for their devices.


Lately, many Western research and development laboratories appeared in India. Large pharmaceutical companies develop their products here, and there are more human patients willing to test new drugs in the country. Outsourcing of clinical research is an emerging trend in India with a strong tendency to growth.