Innovations in the Software Industry
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Innovations in the Software Industry

India Offshore Outsourcing

Monday, November 20, 2006

American and English have always turned to India as a primary Outsourcing country. India is a developing nation, but it surpasses all countries but America when it comes to the number of scientifically minded English-speaking individuals. Since India has yet to be labeled developed, the immense talent it holds is available for outsourcing at very cheap rates -- about 50% of what an employee in the US or UK would demand.

Since the 1960s, India has been under the consideration of European and American companies. Previously, the prime reason for choosing Indian companies for sub-contracting was that Indian manpower was available for at much lower rates than its indigenous counterparts. This brought the overhead expenses down dramatically for the parent company.

Indian companies recruit special coaches and trainers to make their employees adept in western modes of life to become more palatable to their clientele. There are quality supervisions and time-bound projects to make their employees more proficient.
BPOs in India work in two shifts – day and night. The night shift makes better business sense to the Americans and Europeans, as they become prime time workers in their own countries. However, they are paid half the amount of what an American or European employee would be paid.

Of late, offshore companies have mushroomed in all the metropolises of India including Chandigarh, Mumbai, Delhi, Chennai, Kolkata and Bangalore. Call centers are considered to be a highly reputable profession for urban youth, who consider this job a channel to western advanced countries. In fact, the salaries from Outsourcing companies form a major chunk of the income earned by the youth in Indian cities.

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posted by Stella Parker, 12:34 AM

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