Off Shore Outsourcing to India

The phenomenon of outsourcing has gained momentum only in the last decade with the advent of the Internet. Since fiber optic submarine were placed, has helped in boosting internet connectivity across continents. Advantageous to access the worldwide web has helped in the growth and evolution of a knowledge economy that has led to a redistribution of wealth around the world.

People who have used computers for many years would be re-collected that the sending of a 1 MB file even used to take a whole night, now the same can be done in a jiffy. The wave of outsourcing has become an avalanche when sending large amounts of data over the Internet to another corner of the world has become a breeze.

Another factor that has contributed to the growth of the outsourcing phenomenon, was the realization that India has had a large pool of talented English speaking professionals who could deliver a high quality work at low cost. Companies in the Western world realized that sending work offshore proved to be a viable proposal, the response was even faster than vendors based in the country of origin. Not only India, other countries of Eastern Europe also benefited from this realization.

Offshore outsourcing phenomenon is not just a fluke, but it is here to stay long term. Several factors have contributed to the growth of this phenomenon. First among them being the high quality of mathematics and computer science graduates being churned out by Indian universities. Unlike the west, where the educational system focuses on creativity and innovation, the Indian education system places strong emphasis on the absorption of mathematical concepts and rote learning. The net result is that in India the logic-oriented graduates are adept at solving problems and number crunching while the West still retains its lead in marketing mainly because of an academic ecosystem that fuels creativity and innovation.

Globalization has also had an important role to play in the phenomenon of offshore outsourcing. Increasing cost pressures forced companies to rethink their cost structures and business models that led in a globally distributed supply chain and workforce. We work all over the world now goes to the location where you can do better and at lower cost. Based on this cardinal principle of macroeconomic, you can say that India will continue to maintain its leadership position in the offshore outsourcing space .......