Advantages and Disadvantages of IT Outsourcing to India
The success of any company in any sector depends on three things: money, time, and expertise. If your business can save money and at the same time have enough time to complete all tasks with high-quality expertise, you'll definitely be ahead of the competition.
But that's not always the case because companies usually don't have time, budget, or staff to complete their core projects and other ancillary tasks. That's why outsourcing to destinations like India has become a popular solution in recent years. In fact, the IT outsourcing industry in India is expected to reach $19.90 billion by 2025.
But, with a vast range of IT outsourcing companies available in the market, you need to understand the pros and cons of IT outsourcing to find the right partner. We’ve listed some of them right here. Let’s start with the advantages.
Table of Contents
Pros
If we wanted to list all the pros and cons of outsourcing to Indian IT companies, it would be a very long article. To make it short, we’ve settled on only five benefits.
English Proficiency
When assigning tasks to someone, language is a critical factor. Success is guaranteed by both sides' effective communication abilities. Compared to China, India has excellent English language skills, resulting in continuous and open channels of contact.
Other major competitors for India are Russia and Indonesia. Due to the country's highly developed education system, Indian companies and communities are familiar with English.
An Enormous Talent Pool
Given the diverse backgrounds of people in India, the country has an ample supply of workers. There are programmers, scientists and financial specialists, MBAs, reporters, virtual assistants, and many others with exceptional skills. Many talented people are in IT, programming, web, and app development. While other countries were experiencing a shortage of highly trained labor, India filled that gap.
Saving Money
Money saving is the most basic reason for outsourcing. If you only want to compare prices, India has the best options. Creating your website might cost several hundred dollars. Mobile applications have a similar price range based on their complexity. By outsourcing the same project to an IT company in India, you can get the job done for nearly half the cost.
Laser Focus
One of the major advantages of outsourcing is that companies can easily focus on their core business. They gain time through outsourcing to focus on other critical business tasks. You can also allow your employees to focus on what they excel at while leaving everything else, especially tech matters, in the hands of experts. Outsourcing works great, particularly when it comes to IT companies.
Security
Outsourcing allows you access to services such as network management and online controls to ensure your network is in good working order. Because network failure causes more downtime and lowers overall productivity compared to in-house operations, outsourcing provides desired quality and security from the start.
Cons
Now that we’ve covered the benefits let's focus on the potential drawbacks of working with the wrong IT company. Here are four of them.
Data Privacy
No software outsourcing vendor can handle your project without having access to your private data. If the outsourced service provider does not take the necessary security precautions, there is a danger of sensitive data loss or abuse. As a result, you must be vigilant and conduct extensive research while selecting a service provider.
Unexpected Costs
Undoubtedly, outsourcing has gained popularity owing to its cost-effective features, but working with an inappropriate service provider can cost you more money. Among other things, you may expect hidden costs and even loss of business due to inefficient services.
Less Control
When you outsource, you rely on the service provider's specialized tech equipment and systems. As a result, you lose control over the outsourced part of your organization. In this case, you need to start looking for the ideal provider that uses the most advanced tools and technologies to meet the needs of your business.
Scalability Issues
It may take a while to get used to having a remote coworker. It's always a pleasant experience to see and talk to your colleagues when they are sitting across the room having a drink after work. But, for remote workers, the only way to contact others is through a video call or software like Zoom.
Bottom Line
Outsourcing a software project is an important task and understanding the pros and cons of IT outsourcing can definitely help narrow down your search. One of the great things about Indian companies is that most of them will give you these advantages, but not all have those disadvantages.
In other words, if you find the right partner, you can reap all the benefits of IT outsourcing without having to put up with the drawbacks. Luckily, you don’t have to look very far as we at The One Technologies check off all the boxes. All you need is just contact us and let us provide you with our affordable, tailored IT solutions.
