Why India : Why should you outsource to India

The abundant skilled manpower has made India a target destination for multinationals to back end their operations in India. India ranks high in areas such as qualifications, capabilities, quality of work, linguistic capabilities and work ethics, and thus is ahead of competitors such as China, Philippines, Ireland, Australia, Canada etc. Indian companies have unique capabilities and systems to set, measure and monitor quality targets.

In specific BPO categories, Indian centers have achieved higher productivity levels-for example, the number of transactions per hour for back office processing, than their Western counterparts. Also, India is able to offer a 24x7 service and reduction in turnaround times by leveraging time zone differences. India's unique geographic positioning makes this possible. Many state governments in India are offering incentives and infrastructure to set up IT enabled services.

About 100,000 engineers graduate from India every year. Many of these engineers are employed with call centers for troubleshooting and providing technical support at salaries that are dramatically lower compared to the pay scales in the US. The average monthly salary in India is $400-700 compared to $2,700-2,800 in the US.

BPO	India	China		Russia	Canada	Ireland
Government Support
Labour Pool
Infrastructure
Educational System
Cost Advantage
Quality
Cultural Compatibility
Time/distance Advantage
English Proficiency
High Medium Low			Source : neoIT

Strengths	Weakness
Solid history in software development. English proficiency Government Support Cost advantage Strong tertiary education Process quality focus Skilled workforce Expertise in new technologies Entrepreneurship Reasonable technical innovations Reverse brain drain Existing long term relationships	Positioning & Brand management Infrastructure Cultural differences Sales & marketing Leverage expertise for higher-value education Business process experience Distance from US Fear/Uncertainty from Pakistan Legal system Poor globalization skills
Opportunities	Threats
Creation of global brands BPO & Call center offerings Expansion of existing relationships Chinese domestic & export market Leverage relationships in West to access APAC/Middle East markets Indian domestic-market growth	Internal competition for resources Over-promise / Under-deliver Regional geopolitical uncertainty Rising labor costs Competition from other countries Sometime blinding nationalism Government blocking reform/deals Corruption/piracy/trust Political & religious instability -war