Many companies based in the United States outsource their web development from India and other overseas locations. The main reason they do this is that they are saving money. If you are also thinking about outsourcing to India, you may be wondering about the pros and cons that come with outsourcing. This is perfectly normal, and we want to help you by addressing these concerns, and getting your answers.
Why are businesses outsourcing to India?
Outsourcing is something that has been happening more business world as demands increase. You can consider it a simple process, an operation where jobs and tasks that would usually be done by your employees, are done by someone else outside the company. This is done using a contract usually and hiring a third party for a specific time.
When outsourcing to India, any web design-related tasks that you are considering will be the lowest in price. However, the biggest challenge is to find the right candidates. Indian outsourcing can also take some of your time because there are a lot of offers to choose from. When you visit different freelancing sites, you will understand even better how competitive this market is.
Another interesting aspect is also that more and more companies are cutting down on their staff. The main reason for this is because of automation and redundancy. It is anticipated that in the next two or three years, more than 200,000 employees in India are going to lose their jobs.
What are the pros of outsourcing to India?
Costs
The most obvious reason people choose to outsource is to cut costs. If you are going to check the price without taking anything else to account, the cheapest alternatives are in India. Getting your own website can be around a few hundred dollars. Mobile apps also go for a similar range depending on the complexity that they have.
The price is going to make you consider outsourcing to India as a good option. Why would you spend $4,000 when you can get it done for $400? India outsourcing can be a wise choice for your budget.
Even for support-related tasks, you can consider outsourcing. This means that you can focus more on the core tasks that your business has and let the support to somebody else.
Larger Labor Pool
Another reason why India outsourcing can work for you is that there are a lot of providers to choose from. Initially, there were also many freelancers or companies from India that did not deliver great quality. However, as the competition became bigger now there are very low chances of running into trouble.
Get access to different services
Many businesses offer different services for their clients. If you want to offer multiple services, this means a huge investment is needed. On top of that, there is also the risk of projects that happen only at certain times.
This is why outsourcing can be a great option that you can take advantage of when scaling. This also leads to the creation of a favorable environment, especially for IT startups.
What are the cons of outsourcing to India?
Poor management and poor quality
When you are working on a project, time is one of the most precious resources that you have. Time can get lost when you are doing client communication or translating requirements to Indian programmers.
If we look at the number of outsourcing India options, the number is huge. This means that there also going to be some cases when poor quality might be the result. Be careful when you choose and ask for a lot of past examples of work that has been done.
Infrastructure
Even though investments are being done, sometimes, the difference is still too large. The reason behind this is that there is a strained power capacity due to international connectivity.
Sometimes, the lights at an offshoring company might get shut a few times per day. This might lead to delays, which can cause a lot of problems when we are talking about project management.
Regional and Communication Differences
Outsourcing to India can also be difficult due to culture, time zone, and language differences. You will have to adjust to the social and cultural norms and practices of your targeted partner.
Another thing that needs to be considered is the time zone and time difference. The difference is substantial if you are in the US, and you will need to find a way to adapt to it.
Communication Challenges
When outsourcing to India, you need to offer all the details of your project. If you accidentally leave out details, this will become a problem.
Make a brief, and be sure to include all the planning steps that you have in mind. Describe the idea you have and make sure that you focus a lot on communication. If you do so, your project has a higher chance to be successful.
Another tip would be to keep your communication in writing using email. This way you will be able to keep a better flow of your ideas and reduce the risk of errors.
Lack of Privacy and Security laws
The chances of getting a copy are quite large when you are choosing Indian outsourcing. What is bad about this is that these projects just get sold again and again, and you don’t have a guarantee that you will be kept secure. This is a big issue that many outsourcing projects face with copyright and licensing.
Therefore, we recommend that you sign a non-disclosure agreement (NDA) with the outsourcing partner you have. Indian laws are quite different from US laws, so clients need to mention some demands based on a contract. Be careful with this aspect and even consider hiring a lawyer, especially when we are talking about big-budget projects that involve a lot of money.
Unwanted Expenses
When you are outsourcing to India, it does not guarantee that costs are going to be cheaper. You may have to pay for extra costs due to services being done incorrectly or other causes.
FAQs about outsourcing to India
1. What types of services can be outsourced to India?
Software development, customer support, accounting and finance, human resources, digital marketing, data input and processing, content creation, and many other services can be outsourced to India.
2. How do I find a reliable outsourcing partner in India?
By conducting extensive research, looking for reviews and endorsements from previous clients, conducting interviews, performing due diligence, and working with a reputable outsourcing company that has relationships with Indian vendors, you can find a trustworthy outsourcing partner in India.
3. What are the advantages of outsourcing to India?
Cost savings, access to a big and experienced workforce, high-quality services, quicker turnaround times, and the capacity to scale operations quickly are just a few benefits of outsourcing to India.
4. How much can I save by outsourcing to India?
The amount you can save by outsourcing to India relies on several variables, including the service being provided, the scope of the project, the location of the vendor, and the required level of competence. Cost reductions of up to 60–70% relative to in-house operations are, nevertheless, not unusual.
5. What are the risks associated with outsourcing to India?
The dangers of outsourcing to India include challenges with communication and project management, cultural and linguistic obstacles, intellectual property theft, data security worries, and legal and regulatory compliance.
6. How do I ensure data security and confidentiality when outsourcing to India?
When outsourcing to India, you can set stringent security standards, sign a non-disclosure agreement with the vendor, use secure communication channels, and cooperate with a vendor who has a proven track record in data security to ensure data protection and confidentiality.
7. How does the time difference affect outsourcing to India?
For instance, the time difference between India and the US might have an impact on outsourcing by making it difficult to arrange meetings and phone conversations during typical business hours.
This can, however, also be a benefit because it enables 24-hour operations and expedites project completion.
8. What are the cultural differences that I need to consider when outsourcing to India?
When outsourcing to India, it’s important to take cultural differences into account in terms of communication style, workplace culture, religious beliefs, and social customs.
Building stronger connections with your outsourced workforce can be facilitated by being aware of and accepting these variances.
9. How do I manage and communicate with my outsourced team in India?
You can use project management tools, create crystal-clear communication channels, offer frequent feedback and updates, and promote a culture of openness and collaboration to manage and interact with your outsourced staff in India efficiently.
10. What are the legal requirements and regulations I need to be aware of when outsourcing to India?
Data protection rules, tax laws, intellectual property rights, and employment laws are a few legal prerequisites and regulations to be aware of while outsourcing to India.
Compliance with these regulations can be facilitated by working with a reputable outsourcing company or legal counsel.
Other Outsourcing Destinations to Try
Besides India, there are also other players in the outsourcing industry. China, the Philippines, and even Vietnam are known for being reliable partners. China is very good at promoting its strength using media channels and is also quite low in costs.
In creative work, the Philippines have garnished some reputation in recent years. So, you may want to consider the Philippines when you want some creative juice in your project. In terms of customer support and VA, research shows a lot of success in hiring from the Philippines.
Vietnam has invested a lot in its economic resources and focuses a lot on IT and software outsourcing. Similarly, to India, Vietnam is also becoming a popular software producer for many global technology companies.
Still, if you want quality services, we recommend using top-notch developers like the ones we have on board at TMS.
If you enjoyed reading this article on outsourcing to India, you should check out this one about nearshoring.
We also wrote about a few related subjects like in-house development vs outsourcing, outsourcing to Serbia, outstaffing, outsourcing failures and best countries for outsourcing.
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