India has been the primary outsourcing choice for companies worldwide. Almost two decades ago stepped into IT services on the UK and US market, before the Y2K.

India’s outsourcing has been skyrocketing ever since.

Despite the many advantages. Some major drawbacks to the country’s outsourcing model have also emerged.

What are the positive sides of the Indian outsourcing model?

1. The concentration of international business services outsourcing in India. Has turned many unskilled workers into a more experienced staff. The presence of big companies like HP, IBM etc, has improved the expertise of hired workers. It has prepared them for an array of industry specific tasks. India has built a reputation of a tech savvy country with a lot of IT specialists. It has a clear advantage if you are outsourcing not only business processes but also IT tasks.

2.Outsourcing those sides of your business that you can not deal with. First of all it frees company resources for pursuing other business objectives. It lets you focus on what you do best and outsource the rest to companies who focus on other key work areas.

3. Outsourcing gives you a lot of flexibility. you can scale up and down on the staff you need. For a variety of tasks without having to hire or let go of your core company staff. Combined with the cheaper hourly rate offered by Indian outsourcing companies. The above mentioned factors can help you cut down your costs. And become more flexible and efficient.

Drawbacks and negative tendencies

The core advantages listed above form an ideal outsourcing model. It’s not always the reality which companies experience. There are many drawbacks involved in the working process. These have compromised India’s image as a top outsourcing destination.

1.The quality offered by Indian companies is often sub-par due to several reasons. The so called “Yes, Sir” culture in India dominates. Local staff who are so willing to please customers. They agree on taking on tasks. Even when they haven’t the right resources or knowledge. They can not provide the necessary quality.

2.Despite their positive influence. There have also been negative sides to the general improvement. Skills and experience from outsourcing jobs in the past decade and a half. The growing Indian middle class is now unwilling to work for the low prices from the past. The most skilled workers are looking for better paid jobs within India. Or moving to other countries to receive more adequate payment and career opportunities. This has caused both an increase in general outsourcing prices and a stir in the labor force.

3.There are also other hidden drawbacks. Such as issues with handing work tasks with classified information. Or trademark sensitive content to companies that do not adhere to your work ethics. Outsourcing piracy is also difficult to detect. Especially when your business tasks become shared between several companies.

Time zone differences which are not taken into account for. Deadlines and communication issues. These also contribute to a lot of misunderstanding and frustration. India is by far the only country with these challenges. It’s used as an example.

The Indian outsourcing model