Offshoring to India has become a prominent strategy since the rise of IT-based business functions from the UK and US in the mid-1980s. Its enduring appeal lies in its cost-effectiveness and continually improving services. A key role of established management consultancies is to design customized business models for companies seeking offshore solutions in India. This includes providing guidance, connecting clients with third-party agencies, or offering dedicated teams to handle outsourced tasks while adhering to agreed-upon cost and quality standards.
The primary advantage of choosing an offshoring company in India is the significantly lower operational costs. Whether it’s production, manufacturing support, or marketing, offshoring provides improved operating margins through cost savings and maintained productivity.
Several factors influence an organization’s decision to offshore to India. The allure of expert services, often available at less than 50% of onshore costs, is a major draw. While competition exists from other Asian countries like China, Indonesia, the Philippines, and Malaysia, India holds a distinct advantage.
While the IT sector’s offshoring to India and other Asian nations is driven by the strong dollar and pound, India distinguishes itself through lower costs, consistent quality, and lower attrition rates compared to Western countries. Experts also highlight India’s larger pool of English-speaking talent willing to undertake a wide range of tasks. This was confirmed by A.T. Kearney’s Global Services Location Index (GSLI) survey.