Outsourcing to India: In the global economy of change, businesses face numerous challenges, and one of the most critical is the talent gap. A talent gap is where employers fail to get workers with the relevant skills they want from the job market. It may restrain growth and innovation.
One of the best strategies that can help bridge this gap is partnering with Indian companies. Having a mass of skilled professionals in a system of good education, Indian firms are a viable solution to help bridge this gap.
In this blog, we’ll learn how such partnerships can be mutually beneficial and pave the way for sustained growth.
How Remote Work is Preferred After COVID-19?
Since the outbreak of COVID-19, the global industry has adopted remote work. Even after the normalization, many businesses have not switched back to the traditional physical work environment. Why? Because remote working environments have more pros than cons.
Remote work is not only cost-efficient but also increases the productivity of the team. Businesses prefer the remote work model to pull down the geographical barriers and build a team that works round the clock.
A study by Upwork predicts a significant increase in remote work in the United States. Their report suggests that by 2025, roughly 22% of the American workforce, or an estimated 32.6 million people, will be working remotely, an 87% percent increase from pre-pandemic levels.
After COVID-19 the changes are evident in terms of workspaces. Remote work saves infrastructural costs and with advanced technologies collaboration has also become smoother. Businesses are adopting remote workspaces for business continuity and resilience.
Why is India a Top Choice for Bridging the Talent Gap?
There are several factors that make India an international destination for professional talent in IT, engineering, and finance. Some of them are:
- Excellence in Education: India is home to some of the finest engineering and management colleges in the world, such as Indian Institutes of Technology (IITs) and Indian Institutes of Management (IIMs). All these institutes produce a high number of students who have updated knowledge and skills.
- Fluency in English: Indians can speak fluent English, making it easy to communicate with partners worldwide. Knowing English oversteps all communication problems and greatly enhances conversation.
- Cost-Effective: The cost of labor is way cheaper as compared to most Western countries. This helps businesses to hire very skilled professionals at a very affordable rate. This aspect makes outsourcing to India a highly attractive option.
- Technological Prowess: India has an emerging technology industry focusing on software development, data analytics, artificial intelligence, and others. Indian experts are well-versed in present technology and trends.
Benefits of Outsourcing to India to Address the Talent Gap
Outsourcing to India offers numerous benefits, from access to a diverse talent pool to cost savings and innovation. Here are some key advantages:
- Access to a Diverse Talent Pool
Indian businesses provide access to a vast talent pool with expertise in nearly every sector. India offers individuals with the necessary training and expertise in any field, including finance analysis, data science, and software development. This implies that you can locate the ideal talent for any project.
- Cost Savings
One of the most significant advantages of working with an Indian company is cost reduction. India has relatively cheap labor costs, which allows a business to save a significant portion of its operating costs. This kind of cost-effectiveness could be crucial for any small business, especially startups, looking to grow without incurring excessive expenses. Cost-effective outsourcing can be a game-changer for many businesses.
- Enhanced Innovation
Indian professionals are excellent problem solvers and innovators. You can get fresh insight and innovative solutions to your business problems by working with Indian enterprises. Developing cutting-edge products and services can be greatly facilitated by these relationships.
- Scalability
Your requirement for skill will expand as your business does. Indian businesses are able to quickly increase their resources to match your changing needs. Indian companies can help you grow, whether you need to increase production or diversify your services.
- Focus on Core Competencies
You can concentrate on your core skills by contracting with Indian businesses to handle non-essential duties. Tasks like customer service, software development, and administrative work can be delegated so you can focus on business-advancing strategic projects.
- Time Zone Advantage
You can take advantage of the time zone difference between India and the West. You can guarantee that your firm runs around the clock with a well-coordinated workflow. Your Indian partners can work during the downtime of your team, which will expedite project completion and boost production.
Also read: Cost-Effective Software Development: Benefits of Collaborating with Emerging Economies
Cost of Hiring Locally vs Outsourcing to India
When businesses evaluate the cost of hiring locally versus outsourcing, numerical data can provide a clearer picture of the potential savings and expenses involved.
Here’s a detailed comparative analysis with specific figures:
By outsourcing to India, businesses can save significantly on costs. The total annual cost of maintaining a team of 10 employees locally in the US is approximately $1,582,000, whereas outsourcing the same number of employees to India would cost about $452,500 annually. This represents a savings of around 71%, highlighting the substantial financial benefits of outsourcing.
Steps to Establish a Successful Partnership with Indian Firms to Bridge the Talent Gap
- Identify the Talent Gap: Identify specific skills and expertise your organization is missing and define the roles needed to fill those gaps.
- Find your Potential Partners: Identify Indian companies that have a successful record in areas of need and check their knowledge and customer feedback.
- Check Cultural Fit and Communication: Check that the potential partner is fluent in English and shares the same values and company culture.
- Check Technical Capability: Ensure that the people working in the Indian company have up-to-date certifications and have the skills of the necessary technology.
- Understand Legal and Regulatory Requirements: Study business laws in India to ensure you are complying with the laws and regulations of both nations.
- Set Clear Objectives and KPIs: Develop a common understanding by defining the partnership goals and KPIs.
- Develop a Comprehensive Contract: Draw up a comprehensive contract detailing roles, responsibilities, timelines, and payment terms, including confidentiality agreements.
- Establish Communication Channels: Use project management tools to track progress and establish frequent communication channels that ensure smooth collaboration
- Foster a Collaborative Environment: Arrange regular meetings and feedback sessions to encourage knowledge sharing and continuous learning.
- Monitor and Adapt: Track the performance of the partnership against set KPIs and make necessary changes to ensure continuous success.
Also read: How to select an outsourcing company?
Conclusion
Bridging the talent gap is a very important step for businesses that desire to excel in the competitive environment. The Indian company can be a strategic partner for their business in the need for a diversified pool of skilled professionals, cost-effective, and innovative. Outsourcing mobile app development and other IT services to Indian firms can unlock your business’s full potential. Leverage the capabilities of Indian firms to obtain the talent you need to drive sustainable growth. See how partnering with Indian companies can unlock your business’s full potential.
