Offshore outsourcing to India is one of the most popular management practices today. Although it is generally perceived to be a cost reduction practice, this is just one of the reasons one should consider offshore outsourcing. Most parties who outsource are unaware that Indian Service Providers do not just offer cost effective solutions, but also world class solutions living up to internet, CMM, ISO and other global standards.
However, offshore outsourcing has come under attack recently. There has been an outcry by overseas companies accusing Indian companies of spoiling the market rates and delivering below par quality products and services. This claim can wholly be justified owing to the hoard of mom and pop outfits mushrooming in India.
But experts believe that outsourcing is essential and the benefits outweigh the shortcomings by a long way. Low prices offered by markets such as India as compared to the US and UK is certainly one of the major reasons, the other being the cost saving in initial investment in infrastructure, training, and other such preliminaries.
There will be savings and along with these savings there is great value addition in terms of quality offered especially in markets such as India. Most who outsource only realize the quality and value addition after the offshore outsourcing relationship begins. This is not usually the primary goal when deciding to outsource, and the creativity and talent in India comes as a surprise to many.
Offshore Outsourcing to India is about quality and value at a reduced cost.
The fact that so many companies continue to outsource is living proof of this. Along with the sheer volume of work that is pouring into the country comes recognition of the talent and expertise held by Indian programmers and other man force. Indian software vendors have developed more of a global services delivery capacity than their counterparts in other countries. India's work also offers the largest pool of technical skills in the world, and the country universities add 180,000 engineering graduates to its ranks annually. Already many companies are outsourcing with quality rather than cost in mind.
So, the moral of the story is that outsourcing is here to stay because it:
o Reduces overheads, free up resources
o Improves speed and service
o Reduces operating costs
o Gets you access to specialized skills
o Saves on manpower and training costs
o Widens your skill set.
o Avoids the cost of chasing technology
o Reduces the overall IT management burden while retaining control of strategic decision making