Global Outsourcing Benefits in Terms of Employment

How Outsourcing in Global Level Beneficial to India in Terms of Employment

India emerged as a global outsourcing hub due to multinational corporations looking to cut off the overhead costs that come as a part of the business operations. Progressively, organizations have developed a lot of interest in India for outsourcing small business processes due to the abundance of skilled workers and talent.

Global Outsourcing Benefits in Terms of Employment
Global Business Outsourcing Benefits 2021 by

As a company grows, the projects and tasks and the need for skilled employees increases. In order to meet the needs and maintain an efficient workflow, organizations outsource their business processes to third parties across the globe. Today, outsourcing has become a global industry.

Usually, there are three major categories of outsourcing: Infrastructure and Technology Outsourcing (ITO), Business Process Outsourcing (BPO), and Software Outsourcing. Organizations usually outsource a portion of their business process or a complete business process itself. India is the leading location worldwide for outsourcing its business processes.

Outsourcing Examples: Companies That Outsourced to Fuel Growth

Industries Outsourcing to India

Nowadays, outsourcing has become a means for global companies to drive innovation and generate profits to build their brand value globally. India has emerged as the outsourcing hub globally by creating a platform that makes it reachable for companies to outsource their business processes. However, BPO and IT sectors take the lead, and many other industries have recognized India as the preferred destination to outsource their services.

IT Sector

The IT industry is one of the largest industries in India, and outsourcing companies generate a majority of the revenue. The IT sector of India contributes mainly to the global outsourcing market share. According to a report by Statista, India is the world’s largest IT services provider.

BPO/Call Centers

Business Process Outsourcing is the process of assigning back-office activities like HR, customer-related functions, internal functions, and accounting of an organization that can be passed on to call centers. Since the inception of globalization in the ’90s, outsourcing became widespread, and India became an ideal location for companies. India offers a diverse combination of communication and technological advancements that motivated companies for outsourcing their business processes to India.

The outsourcing market of India has grown by leaps and bounds over the years. The earliest companies in the Indian outsourcing market were American Express, Texas Instruments, British Airways, and General Electronics. Today, many companies outsource their customer support processes to India.

BPO Full Form - Tutorial And Example

Role of Global Outsourcing towards Employment in India

Highly Qualified and Skilled Manpower

India is the most preferred choice for outsourcing by global companies due to several reasons. India has been ranked highest among countries as a computer literate English-speaking population, making India ideal for outsourcing jobs. India nearly produces 2 million graduates every year from top-rated educational institutions. 

The availability of skilled and well-trained employees in India helps companies to outsource their business processes. There is a significant increase in efficiency and production of companies by outsourcing to India, and they are showing interest in outsourcing even the more complex jobs such as research and development.

Also, Read how to fix QuickBooks Error 12157

Conducive Business Environment

Employees of Indian companies keep a reputation of sincere workers and keeping good customer relationships. Indian professionals provide ease of communication to global companies, especially those interested in outsourcing service functions. Overall, Indian companies offer a contributive environment and help organizations promote themselves better with their services.

Differential Time Zone

Furthermore, India is the most preferred destination for outsourcing because of the time zone difference. It helps to provide an around-the-clock business advantage to global organizations. The difference in time zones helps to provide 24/7 working staff which is beneficial for companies to stay efficient and offer faster results. For example, data entry, customer support, and transcription are the most common services outsourced by organizations to India. 


Ever since companies started outsourcing their services in the ’90s, most of the outsourced business processes included data entry, customer support, transcription, and more. With the availability of improved knowledge and skills, companies have started to outsource more valuable workflow services like research and development. For example, companies like Walmart, Intuit, and Texas Instruments were the first few companies that established research centers in India. It is also helpful for the companies to reduce costs of setting up and installing new equipment and infrastructure costs.

India is slowly moving from back-office operations to research and product innovation as well as the scope for leadership and talent is developing steadily.

Leave a Comment