Why Does US Outsource To India
Howdy! A Portland, OR native, I currently reside in the northern San Diego County area as a freelance writer. When I'm not sipping coffee, soaking up some rays and writing or playing guitar you can find me at the hot yoga studio.
This article will discuss why does the US outsource to India? How do we outsource to India?
Are they cheaper? What are the benefits of outsourcing to India?
Can I really get by with outsourcing work to India? Why do we only think about outsourcing to India if it is the only alternative to outsourcing?
In my years of consulting and management, I have seen it all when it comes to outsourcing.
It seems like everywhere in the UK now outsourcing agencies are popping up and everywhere they operate out of they seem to be charging excessively high prices.
As a full-time consultant with a UK-based company I am working with different customers every week but today I am going to discuss outsourcing to India.
Why is it so hard to outsource IT?
So let’s take a look at the many reasons why outsourcing IT is a difficult task for us to undertake for our own business?
The cost of outsourcing IT is often quoted as being cheaper for UK businesses that have to pay taxes and national insurance, the cost of business rates, and the cost of delivering IT packages that outsource companies can deliver.
The cost of insurance that comes with outsourcing is another issue that concerns many people, as we have to bear all the risk in terms of ensuring the work that is outsourced to a company.
There is also the issue that can come from not outsourcing your IT as the IT is also running your business and it has access to your employees and other important information.
Most outsourcing companies can deliver all the technology you need for your business but if you wish to save money, the cost of delivery is the most important thing to consider.
The benefits of outsourcing to India
The benefits of outsourcing IT are enormous. First of all, you are saving the cost of labor and all the hidden costs that go with this.
This is massive. You don’t have to find the staff to run your business as you would have to.
If you have an accountant then they can advise on the best financial deals to be found for you and if you want to hire staff then you can get quotes for these and get quotes for the cost of this staff.
The only thing you are paying out is the hard costs that are required to deliver IT.
Having your own IT department for your business can sometimes be difficult to manage as you do not know how you will pay the bills or you do not know how to spend the money you have.
One of the things that have surprised me most about India is the way they deal with outsourcing IT.
The source of your IT
One of the biggest problems I have seen in India is they will say they are “partners” with a particular company but this company does not really deliver the service that they have promised.
The suppliers may work with multiple companies in India but there is no guarantee that you will get the same service and you do not know where the IT is actually being delivered.
So if you are considering outsourcing your IT to India, make sure you check if the company you are dealing with is really delivering what they have said they would.
The technical support for your IT
If you have a problem with your IT, the first thing you should do is check out the technical support from the supplier.
If they are providing this support on their website then you may have some worries.
The service will often be very good but you may think that your problem would get a response or would get fixed quickly.
It may only get a response if they are working with a supplier for whom they are providing support.
You could find this for yourself. I am regularly asked by companies how their technical support is.
They often claim their technical support is excellent but this is not the case.
I have spoken to people here in the UK who have had bad experiences of technical support from suppliers.
So if you are outsourcing your IT, make sure you check on the technical support.
Pricing of the IT
I have mentioned that you don’t pay for the services you have received. This is because you do not get all of the costs associated with the delivery of the IT.
This includes all the paychecks of the people who deliver the IT as well as the project managers who set up the work and maintain the system.
If you look at the cost of delivering an IT project in India you will see that they often offer a 10% reduction on this and you could have a project done for a tenth of the price that it would be in your own country.
One of the biggest surprises for me was that they often offered payment over the completion of the project and would not work over a single year.