The American tech industry is facing stiff competition from Indian vendors much to the displeasure of the American service providers. However, this is a chance for Indian companies to up their value in the offshore market.
India vs. China: IT Services Competition
Though it is true that Americans should remain patriotic to their nation, it would not make complete economic sense to boycott anything that is ‘not American’. If all trade outside of America is boycotted, there would not be the kind of economy that is present here now.
Though I am an American in every sense of the word, I now utilize the services of firms in India to stick to project deadlines and manage my business. Having done this for some time now, I write down a few reasons why a business owner in America can outsource work to India in spite of other options that exist in Eastern Europe, Latin America and the Pacific Rim.
Reason #1: More with Less
The stressful condition that every business struggles with is more volumes to generate more revenue with staff that is available. However, when some of the work is outsourced, the staff members can be utilized to manage the outsourced projects. In such a case, the productivity of each staff member is improved and this action also serves to improve other factors such as work output and experience of the staff.
Reason #2: Easier Access to Skilled People
In no business is it possible to predict the state of affairs in the next instant. It is almost impossible to predict that a capable workforce will be present at a specific instant in time. Here is where outsourcing steps in. Outsourcing can contribute to the growth and scalability of a business if the staff that manages the outsourced projects is a capable team.
Reason #3: Focus on Core Business Needs
When the business is in the growth phase, there are many things to be taken care of: research, improve support infrastructure, expanding customer base, market demands, etc., being some of them. Outsourcing such requirements to a country like India will help to tackle the non-core activities while you the business owner can focus on core needs of the business.
Reason #4: Easier Contract Negotiation
Whereas the wages for an experienced American developer $ 50 to $80 per hour. This high rate is due to the cost of living, taxes, liability and health insurance, computers, et6c. However, in India, an experienced developer needs to be paid only as much as $15 per hour. It makes greater economic sense to outsource your projects to India.
Reason #5: Higher Staff Value
It is difficult to maintain optimum staff levels to meet business needs. Whereas with a high number there is the risk of lowered quality and with too few, the risk of not being able to meet deadlines always looms large. This can be well sorted out with outsourcing. It helps to maintain only the required staff levels. The utilization rate is maintained at a steady rate.
One of the other major advantages of outsourcing your projects to a country like India include highly educated workforce with good skill sets. With globalization taking over, it is as easy as ever to spot a good vendor from India and get the outsourcing work started. How to find a good vendor is outside the scope of this article.