Why Outsourcing
According to IDC, worldwide Business process Outsourcing will grow from $380 billion in 2004 to $640 billion in 2009.
It improves profitability
It helps you focus on the core business.
It helps in building robust processes.
With offshoring as an accepted and tried option in the US, it is important to use this engine in our economy, lest we are out-competed.
Many times it is a business need to get processing done overnight in order to get the final out put in the morning for inputs delivered the previous evening.
Till now, mainly large corporations have enjoyed the benefits of offshore outsourcing. But there is an increasing trend in SMEs to take advantage of it.
Other reasons on the horizon –
Beginning March 31, 2008, the minimum wage will be $8.75, followed by rises to:
• $9.50 as of March 31, 2009
• $10.25 as of March 31, 2010
While you already may be paying a higher wage, this will result in an across the board increase in your cost of business.
With a strong Canadian dollar, profits will be under stress.
A cost reduction achieved through outsourcing will be healthier for the bottom line.
With the US market under threat of recession, it will be prudent to reduce costs.
Why India?
India remains the largest provider of outsourcing services in the world, accounting for half of the global offshore BPO market. 400 of the Fortune 500 companies either have their own centers in India or are currently outsourcing work to Indian technology companies!
Two million graduates each year (Existing Pool: over 25 million)
120,000 Engineers every year vs. 63000 in US
English speaking and IT savvy workforce
Cost reduction up to 50%
Government support for IT and BPO industry
Improving telecom infrastructure
Lower infrastructure costs
Favorable time lag: approximately 12 hours
Overnight turnarounds possible
Resources with experience of financial and legal systems similar to the west
Strong domestic IT services industry to support IT led BPO