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Reasons why India is a favorite outsourcing hub

Published on: Monday, 27th September 2010 01:17 AM     By      Administrator


The number of businesses in the United States and other countries that have outsourced jobs to India has been staggering. One of the main reasons behind this growing trend is the number of talented workers in India who are performing business tasks for a mere fraction of what they would cost in the West. Price is not the only factor. There are many other reasons why India is the prime choice for outsourcing


The English Language


Due to British colonization, many Indians can speak fluent English. This is one big advantage that other Asian countries don't have. No intepreters are required, there are fewer misunderstandings and business communication can flow freely. This is why the call center industry has exploded in India. Customers calling from Canada, the United States and Britain can make inquiries and voice their concerns with ease. Despite the use of different idioms, Westerners generally don't have worry that the person on the other end of the line will be speaking in an unintelligible language.


Highly Educated Workforce


The Indians have proven themselves to be quite adept at developing software, and the quality of the work is being recognized as meeting acceptable international standards. Western companies are also finding the Indians useful for performing other tasks relating to financial reports, accounting, tax processing, photo editing services and more. Computer literacy among Indian workers is high and this is what gives the country a leg up on the competition. Universities are adding more graduates to the pool of skilled workers each year and seeing as they are young, they can adapt to change more easily.

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More Open to Doing Business


Up until reforms began in 1991, India was seen as an almost impossible market to crack. The License Raj was put in place after independence in 1947, and the rules were so confusing and hard to navigate that it's no wonder the country's economic progress was minimal. Indian leaders knew they would be in serious trouble unless they made some big changes — quickly. Today, foreign investors are coming back to India in droves. Companies that were once prohibited from setting up operations are being allowed to enter the market. India's legal system has been influenced by the British colonialists and Western businesspeople feel more comfortable in this type of environment.


A Matter of Geography


India is located in a rather convenient time zone. At about the same time as American workers are heading home, the Indians are waking up. Somebody in the U.S. who can't work late can send jobs that need to be finished to India. By the next morning, they will be completed. This is great for productivity, because the work continues and fewer tasks are overlooked.