The answer is ‘INDIA’, when the question emerges as, “Which country is best for Outsourcing?”. According to A.T. Kearney’s survey on ‘Preferred Outsourcing Countries in 2020’, India tops the chart followed by China, Malaysia, Indonesia.
These days, much of software and IT related work is outsourced to countries such as India, Singapore and Chine. This is mainly due to the fact that the workers there deliver good quality work at a lower price. Thus many companies are benefiting from this outsourcing work.
As many as 400 companies outsource their work regularly to China and India. The main outsourcing countries are UK and other European countries apart from USA.
The Main Agenda:- Cost Effectiveness
When it comes to manufacturing, auto components, textiles are the most outsourced items. Many companies outsource more than 50% of their work essentially due to low labor cost in the other country. For ex: a company like BMW outsources its component requirements to India basically to cut down its costs. In addition, if a company has to manufacture on its own, it has to incur a huge capital expenditure also on the machinery. Therefore, they resort to outsourcing the work to competent companies based in the countries where the cost of labor is quite low.
A quick look into ‘Benefits of Outsourcing’
The way a team plays as a whole determines its success. You may have the greatest bunch of individual stars in the world, but if they don’t play together, the club won’t be worth a dime.
– Babe Ruth
The Current Scenario:-
Covid-19 pandemic has struck the world very hard. And the global economy has taken a major hit. The emergence from this blow will be a steady one, however, we require a stable resource to overcome this difficulty.
More often than not, outsourcing has played a huge role in developing a particular country’s economy. Countries like India, Indonesia depend upon outsourcing work heavily & they deliver result perfectly.
India: Leading From the Front:-
India remains the leading country to outsource as per Tholons Top 50 Digital Nations and A. T. Kearney Global Services Location Index of 2019. The country also has 14 super cities listed in the Tholons report. Aside from the 24/7 service and the latest technology used at work, it prides its top talents mostly specialized in IT and software development.
- 2019 population: 1.24 billion
- Literacy rate: 69.1
- English proficiency: #35/100 in the world and #5/25 in Asia
- Employment rate: 51.8
- Real GDP (in USD): 956.96 billion
- Government support in outsourcing: full support to develop the IT and Manufacturing Industry
- Industry body: National Association of Software and Services Companies (NASSCOM)
Outsourcing has become a standard way of doing business in this global economy. Many people will argue that it’s not fair to outsource jobs to foreign countries. These foolish people don’t understand the fact that our economy is global and if a country’s companies cannot compete on a global basis by employing the most economical resources than the jobs lost to outsourcing will eventually be lost anyway. In the second scenario, however, the entire company is lost.
So the equation becomes simple, when it comes to outsourcing, choose INDIA..choose IDSS Global..!!