Why India is the right choice for offshoring?

Jonathan
3
minute read
Journal
>>
Why India is the right choice for offshoring?
Published on
January 10, 2024
Updated on
August 19, 2024

Have you ever thought about why India is a leading name in the offshoring and outsourcing market? India stands out as an offshore destination for UK companies, offering a unique blend of advantages.

These include lower labour and operating costs, a highly educated population across various fields, English fluency, and well-developed high-tech industries.  

Such an environment stimulates idea generation, adoption of high-tech solutions, and quicker delivery of services by UK businesses in selected fields, notably software development, AI, and data analytics, where Indian specialists shine.

Concerning the legal structure for the protection of innovations, India offers favourable circumstances regarding IPRs that, therefore, comfort UK entities in safeguarding their innovations and proprietary technologies.

Want to know how you can offshore services to India? Connect with Black Piano.  

Here are some significant factors which make India the best country for offshoring your duties:

Scale

India's greatest asset for UK companies considering offshore solutions is the sheer scale of its skilled workforce. With over 3.7 million IT graduates annually, India is a hub of highly educated professionals in IT, engineering, finance, and customer service.  

It has a robust educational system that guarantees a constant flow of qualified people, and estimates show that currently, it issues about 5 million engineering graduates annually. These technical workers possess knowledge of many types of technologies and other business regions, and hence, they draw outsourcing firms to India.  

Be it Software or design and engineering, finance and accounting or customer services, Indian professionals add a great deal of value to the competitive advantage that UK companies strive to achieve.‍

Cost

India's cost advantages make it a financially savvy choice for UK firms considering offshore outsourcing. The significantly lower cost of living and employee remuneration in India compared to the UK leads to substantial payroll savings, reducing overall costs for UK companies.  

For instance, the average monthly salaries of skilled personnel in India are notably less than in the UK, leading to substantial payroll savings. Additionally, office space rentals and other overheads are more affordable in India, further reducing costs.  

By leveraging India's cost advantage, UK companies can optimise their operational expenses and bolster their competitiveness in the global market.

Experience

India's extensive experience in outsourcing and offshoring, particularly with UK and US businesses, instils a sense of security and confidence. Indian firms have honed communication channels, project management methodologies, and collaboration tools to ensure seamless interaction with clients in different time zones.

English language skills

India's widespread proficiency in English can be attributed to its colonial history and educational policies. With over 125 million English speakers, India boasts the world's second-largest English-speaking population after the United States.  

English is the primary medium of instruction in many Indian schools and universities. This linguistic advantage makes communication seamless for UK companies outsourcing to India, as there are fewer language barriers.  

With both parties fluent in English, communication becomes more efficient and effective, fostering collaboration and ensuring clarity in project requirements and deliverables. India's strong English proficiency, with its large English-speaking population and emphasis on English-medium education, enhances its appeal as an offshore destination for UK companies seeking to streamline communication and facilitate successful outsourcing partnerships.

Work culture

The hardworking nature of India and its people’s commitment to work also reduces the risk of UK firms investing in Indian professionals. Employees from India are disciplined, punctual, hardworking, and result-oriented; hence, they meet the requirements of the work culture in UK organisations.  

This is because India values togetherness, group work and conflict-saying, and this has enhanced the organisation’s environment to promote healthy and efficient communication between on-shore and off-shore employees.  

The employment practice of liberal working hours and impeccable tolerance for change in time zones gives Indian employees an excellent advantage over UK companies in monitoring and facilitating round-the-clock operations.

Don’t confuse yourself with outsourcing and offshoring, read our blog to learn the difference between the two.

Reliable internet

The reliable internet connection provided in India, with the addition of 5G, even in the rural regions, can be considered a strength for UK companies that want to offshore their business to India. This has helped achieve optimum connectivity without hitches and would enhance the efficient operation of the organisation’s onshore and offshore employees.  

Unlike some regions such as Southeast Asia or South Africa, India does not have serious power supply problems or load balancing, which is one of the attractiveness of other offshore destinations.  

Therefore, considering the actual values obtained from both the measurable attributes and the importance of infrastructure, it is seen that UK companies get fully supported infrastructure in India to carry out the functions and activities independently and in an efficient manner, which has eventually made India the most preferred offshoring location for UK companies.

Time zone advantages

India has a favourable time zone in terms of the international market, as it is only four hours ahead of the major markets in the world. It is still 5 hours ahead of the UK, another reason it is a perfect destination for offshoring by UK firms.  

This also means that on-shore and off-shores have relatively close time zones, which means the working hours can conveniently overlap, hence accessible real-time communication, support and collaboration.  

There is a great willingness among Indian workers to change shift timings to UK or European time to exercise good synchronisation and quick response to client’s requirements. This flexibility in working hours adds to the efficiency of offshoring arrangements, making India perfect for any company from the UK seeking to make efficiency gains overseas.

‍Calculate the cost of offshoring to India with our employee calculator.

Overall, India's combination of cost-effectiveness, skilled talent pool, language proficiency, favourable time zone, infrastructure, government support, market potential, and technological prowess makes it an attractive offshore destination for UK companies aiming to enhance their global competitiveness.

Ready to learn more? Let's chat.

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About the author

Jonathan is the CEO here at Black Piano. He is on a mission to help small to medium-sized businesses scale as quickly and affordably as possible. He's a management consultant by trade, but hey, nobody’s perfect! Jonathan excels in building remote teams and has expertise in offshoring, outsourcing, team building, EoR, business development and much more.

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