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  Offshore Outsourcing and India

India has been one of the most popular choices by far to send offshore work. In fact, it has been estimated that companies have sent in excess of five billion dollars worth of work to the country in the past few years. India is truly a hotbed in the world of offshore outsourcing.

India’s computer market has been increasing exponentially over the past few years, and many technology companies are sending more resources and money to the country. Some American companies that have contracted for offshore outsourcing in India include Hewlett Packard and Intel. Other companies include IBM, Dell, and Acer. It has been estimated that one in ten computers sold in the Asia-Pacific region alone has come from India.

India has experienced some fits and starts in the process of increasing offshore outsourcing. The country is home to over one billion people and has a high illiteracy and poverty rate. However, in recent years, the Indian economy has been improving, resulting in a vast increase of offshore outsourcing contracts. Not only has the economy improved, but the education rates of Indians have improved as well. More and more Indians are receiving education in the information technology (IT) industry. This means the country is home to many highly qualified technology industry employees. And because the country has lower wage rates than the United States, offshore outsourcing companies can still hire these candidates without having to pay them the same high wages they would if hiring an American IT industry professional. This holds many benefits for companies looking to remain price competitive, and it also further stimulates the technology industry in India.

Certainly the increase in education in India combined with the country’s high population and low rate of pay has made the country very attractive to American companies determining where to do their offshore outsourcing. Even outsourcing countries have their competitors, however. South Africa and countries in North Africa like Morocco are entering the outsourcing market, offering services such as call centers. China is also becoming a major player in offshore outsourcing. Even with these competitors, India is home to one of the biggest centers of offshore outsourcing in the world and will likely continue to remain so.