Why India for IT outsourcing

India has emerged as the nucleus of outsourcing storm sweeping across the globe right now. The majority of outsourcing contracts are moving to India, despite the fact that countries like China or Russia are offering better rates. The chief reason is the availability of a large pool of IT and engineering talent and a huge skilled workforce, at very competitive costs.
India has effectively provided efficient software solutions to Fortune 500 companies. Citibank, Morgan Stanley, Wal-Mart, AT&T, General Electric, Reebok, General Motors, Sony, Boeing, Coca-Cola, Pepsi, Swissair, United Airlines, Philips, General Electric, IBM, Reebok, Lucas, British Aerospace, General Motors, and Sears are some companies relying on software companies in India.
It is not surprising that corporate giants in the United States, UK, Europe and Japan are increasingly looking to India for cost-effective and high-quality software solutions. In fact, a World Bank-funded study in the United States confirmed that vendors rated India as their number one choice for outsourcing.

Benefits of Outsourcing from India are:

  • Large pool of computer literate and English speaking professionals
  • Well-recognized Information Technology skills
  • Wide gap between personnel costs in India and developed countries
  • Combination skill sets easily available (For example computer and legal or medical skills)
  • Strong government support for such activities
  • Excellent training infrastructure
  • Excellent Telecom infrastructure in major cities
  • Access to leading practices: external service providers give companies access to an extensive, highly specialized knowledge base--which providers must improve continuously to stay in business.
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