Advantages of outsourcing

You may be wondering why many companies outsource certain services to other companies. So here are the many advantages that outsourcing provides to these businesses.

  • Expertise
    Since the work that a business is going to outsource is going to be outsourced to service providers who will be experts in their field, and will be generally well-experienced, therefore, the business is going to get a better output and a better quality of work.
  • Time
    Needless to say, the outsourced work, since it is done by those who specialize in their fields, will take less time.
  • Infrastructure
    Another important factor is infrastructure. Those who carry out the outsourced work have the required equipment and other infrastructure for the work. Therefore, the business need not spend on buying these equipments.
  • Focus on Core Functions
    It is generally the supporting processes that are outsourced, which allows the company to focus on its core processes and functions.
  • Cost Effective
    It is worth mentioning that outsourcing significantly cuts down costs. A business that is outsourcing a service need not hire in-house individuals for that service and also saves on the costs incurred due to the recruitment and training of the individuals for that service. The operational costs are reduced.
  • Risk-sharing
    Another crucial factor that operates here is risk-sharing. Risk-mitigating factors are better planned by experts, therefore, outsourcing these responsibilities to them may provide a better risk analysis which will eventually determine the outcome of any campaign.

India as an Outsourcing Hub

India has the largest technical and professional talent pool in the world. This is one of the most important reasons why India has been turning into an outsourcing hub in recent years. What started off with call centers and back-office jobs has now spread to high-end product designing work, packaging, graphic design and web development.

Advantages of Outsourcing to India

The reasons why India is widely preferred as an outsourcing destination are many. Here are some of the major advantages that are primarily responsible for turning India into an outsourcing hub.

  • Lower Costs – India has been a very cost effective country for outsourcing services, and is therefore, preferred by many businesses that look to reduce the costs of operation.
  • Skilled Workforce – India has a very large skilled workforce, especially in the sectors like IT, BPO, finance, and so on that handles projects with great expertise.
  • Communicate – Since English is one of the common media of expression, Indians can communicate easily with businesses from many other countries.
  • Policies – India has outsourcing-friendly policies which are flexible and encourage overseas agencies to outsource their services to India in a manner that is hassle-free and convenient.

In addition to these factors, there are various other factors that make India a good country for outsourcing, such as infrastructure, technology, a large trained and specialized workforce and so on. At the same time, outsourcing to India has also had its effect on the Indian economy as thousands of jobs have been created an employment has been generated. The IT Revolution in India has also been linked to this. Some of the most commonly outsourced streams of business are IT outsourcing, Legal outsourcing, content development, web design and maintenance, recruitment, logistics, manufacturing and customer support.


As the outsourcing trend continuous to grow, some of the major factors for this growth have been lack of expert labor in some sectors of the business, the availability of cheaper labor without compromising on the quality of the work, and also the advantage of concentrating on the other, more important aspects of the business. For this reason, outsourcing is being widely used and more jobs are being created that require skilled workforce.

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