India as an Outsourcing Hub

India is fast emerging as a hub for outsourcing.Whirlpool, GE, LG, Philips and Bosch are setting up
Outsourcing simply means that some tasks that theresearch and design centers in India. With the advent
company needs to do, instead of doing it within its ownof globalization, more and more jobs are being
organization one “outsource” it to some otheroutsourced to India. The outsourcing trend has brought
firm. "Outsourcing jobs in India started in a small way,with it a vast number of opportunities to India. Following
but are going to be big”. This is the latest trend inare the reasons why India is fast emerging as a hub in
the today’s world. A product is today conceived inoutsourcing:
one country, designed in other, manufactured in someFirst of all India Offers High-Quality Services rather
other Country and sold in markets across the globe.than cost. Indian companies are fast scaling up to
India is ready to emerge as a global outsourcing hubmatch or surpass international quality standards and
for commodity financial services. For instance aare ensuring that they stay ahead through stable
financial firm needs to do payroll accounting. Instead ofquality systems and continuous quality improvement.
doing it themselves they outsource it do an accountingNext is the Investment Hub of India. City like Bangalore
firm. The idea behind it is the work will be done cheaplypossesses much of the attraction of other cities in
and the company can focus on its own specialty. ItIndia for the BPO sector; talented resources, good
also effects a lot on Indian economy by this processeducational institutions, a large English speaking
thousands of jobs are being created and much ofpopulation, and technological prowess. However, it is a
these services are export oriented job growthproactive state government that makes constant
intensive. India is now flooded with calls to manageefforts to facilitate new investments, which gives
foreign demat commodity accounts and warehouseBangalore an edge over other Indian cities. Business
receipts sitting right here. What make this businessprocess outsourcing or BPO in India has evolved from
bigger and better than ordinary call centers are not justits early ‘sweat-shop’ image to the status of a
the sheer volumes in commodity trading. Indianstrategic differentiator in the global marketplace. BPO
commodity BPOs will be offering high-value, complexis the contracting of a business task to a third party
back-office processes to foreign banks. That putsservice provider. Factors responsible for outsourcing
them higher up the value chain than the classicsuccess are: quality processes, scalability, and
low-cost, low-end transactional services offered byintegration of global markets and seamless global
the typical neighborhood BPO... There were over 400delivery of work across borders through the internet.
companies operating within the Indian BPO space,Other is Intellectual Property Outsourcing. Intellectual
including captive units (of both MNCs and Indianproperty (IP) refers to creations of the mind: inventions,
companies) and third-party services providers. The keyliterary and artistic works, symbols, names, images and
enabler for this has been cheaper bandwidth leading todesigns used in commerce. IP plays an important role in
low telecom costs for leased lines and availability ofIndia an increasingly broad range of areas, ranging
educated English speaking workforce in India. The highfrom the internet to healthcare to nearly all aspects of
level of engineering skills in India also helps companiesscience and technology, law, literature and the arts.
face the growing competitive pressure to create newBusiness Opportunities in India are much. If you are
products and bring them to market faster, or add newlooking at reducing your software development costs?
features and functionality to existing ones. Even theOne attractive way would be to relocate some of the
cost benefits are enormous, for example as designersdevelopment work to countries like India. While there
in India don't charge by the time as opposed to theare tremendous opportunities in these countries, a
charge-by the-hour system in the developed world.clearer understanding of the tax and legal formalities
Off shoring of jobs to India which started off withcould mean the difference between smooth
call-centers and back-office jobs like accounting hasoutsourcing of work and a confusing tangle of delays
today spread to include high-end product design workand cost overruns.
and even packaging and graphic designs. AsSoft Solutions, a India based SEO company provides
manufacturers look at reducing costs and productIT outsourcing services, search engine optimization india
development cycles, India is fast emerging as theand directory submission services.
new-age design board for MNCs. The result: MNCs like