India as an Outsourcing Leader

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TAJA survey done recently indicates that almost 80% of European as well as American outsourcing firms are ranking India as a leader amongst outsourcing destinations. Even the National Association of Software & Service Companies (NASSCOM) reports that nearly half of the Fortune 500 companies are outsourcing software development to India. There are a number of other countries as competitors, such as China, Ireland, Philippines and Mexico but India still remains the top outsourcing destination. There are many reasons behind this which are leading India to experience a growth rate of nearly 25–30% each year.

Large Talent Pool

India has a vast pool of skilled human resource. This country has a huge population with around 3.1 million graduates being added to its workforce per year. It has the largest English speaking population in the world. Apart from these numbers, the quality of this talent is important too. These are innovative and creative people who can contribute to the business. Hence companies do not have to bother about micro-managing this work that they have outsourced as they are well aware that they would be getting a good product in the end. Next is the speed and the consistency in quality that has retained India as an outsourcing leader today.

Cost Effective

India is a top outsourcing provider due to the significant cost savings provided to companies. The personnel costs in India are much lesser than that of the developed countries. Hence this pricing allows companies to manage their budget and reap large profits. Companies consider this as saving of resources which can then be diversified to other areas of their core business.


India is offering the best in infrastructure as well as technological capabilities today to companies all around the world.  There are well-developed telecom and ISP networks in all the major cities today. Clients are being offered the latest in software technology. In addition, customized solutions are being offered for various applications in e-commerce, system integration, business process re-engineering, besides system migration and legacy system maintenance and much more. Effective communication is being maintained by various outsourcing companies with their clients due to high-speed bandwidth through satellite connectivity, fiber optic network as well as submarine cables.

Even the Indian government is coming out with policies to make it easy for companies around the world to do business here. All this has made India a favored outsourcing leader today.

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