Pain for IT and outsourcing companies stems from a decline in spending on IT projects by companies in the U. Less troubled-sectors, such as banks and financial services firms, are in cash-conservation mode and looking to delay new IT projects. The company said its revenues are under pressure due to delays in new business and government lockdowns, which have impacted service delivery.
IT services and outsourcing companies in India struggled to shift their workforce to a remote work setting following the nationwide lockdown. Companies scrambled to provide computers to hundreds of thousands of employees, overcome low internet bandwidth issues, and get permissions from clients to allow work from home, which was earlier barred due to security concerns.
One segment of the IT industry that has struggled are "captive centers" of global companies. Walmart Labs and U.
India hosts 1, captive centers, compared to in the Philippines and in China, according to a report by ISG. On a positive note, the pandemic is expected to push more organizations worldwide to undergo digital transformations, which includes shifting to digital technologies to manage everything from business processes to customer engagement.
Many Indian IT companies already offer these services. Companies may fund these transformations by cutting back on IT expenditures elsewhere, so it may not add to overall revenues for IT companies. But over the long run, it could be the big driver of the industry's growth. You may be trying to access this site from a secured browser on the server. Please enable scripts and reload this page. By Shefali Anand May 4, Reuse Permissions. Page Content. You have successfully saved this page as a bookmark.
OK My Bookmarks. Please confirm that you want to proceed with deleting bookmark. Delete Cancel. You have successfully removed bookmark. Delete canceled. Please log in as a SHRM member before saving bookmarks.
OK Proceed. Your session has expired. Please log in as a SHRM member. The country is also known as the best IT outsourcing hub! This can be time-consuming and super expensive. The Indian software industry has the ready infrastructure, specialized knowledge and skilled software developers for the job.
This frees up your time and resources to focus on growing your business. But answering tons of customer calls and replying to their emails can be very time-consuming and tedious.
These are high-end services for which you need to understand the nature of business and process large volumes of information. By outsourcing to Indian service providers, you get high quality work done by engineers and MBAs without having to deal with finding and recruiting skilled talent. Like the Philippines , India has been a profitable outsourcing destination for hundreds of companies including Silicon Valley giants like Google and Facebook.
India has a low cost of living compared to other developed countries like the United States. This translates to lower salaries for your outsourced staff. You also benefit from reduced startup cost due to the availability of ready outsourcing infrastructure in India. The availability of skilled professionals is another reason why companies choose to outsource to Indian service providers.
India churns out a massive number of skilled professionals every year from its many colleges and universities. Most of them are well-versed with world-class business practices and the latest technologies to perform your tasks efficiently.
This ensures that Indian outsourcing firms have access to the right skill sets to consistently deliver quality work. Issues with outsourcing work mostly arise when there is a lack of understanding due to a language barrier.
However, many Indians speak fluent or native-level English since the medium of instruction for most higher education institutions is English. According to a recent study , India ranked 5th among the Asian countries proficient in English. Some outsourcing tasks, such as customer support, require dedicated technology and infrastructure.
Recently, India has seen tremendous improvement in telecom, broadband, power and other infrastructure. As Indian cities also have the advantage of lower real estate prices, Indian outsourcing firms can offer you quality services at a lower price than most other countries. While India is one of the top business process outsourcing destinations in the world, there are some drawbacks to outsourcing there:.
Most Indians are proficient in English; however, you might still face some communication difficulties. While virtual communication tools can help you cross the distance, time zone differences can create a delay in getting the message across. For example, tools like Slack and Fleep can help you message your outsourced staff, but sometimes you might want to explain things over a video call.
However, time differences can make it difficult to organize these calls! When your outsourced staff is working thousands of miles away, it can be challenging to keep tabs on their work activity. Considering that most outsourcing firms charge by the hour, you need to know how many hours it really took to finish the task. For example, an outsourcing firm could bill you for five hours when it only took three hours to do the job!
The Indian outsourcing industry caters to a large number of different businesses! Outsourcing is not just about saving money. You need to know what tasks you are willing to cede control over by outsourcing them.
0コメント