Outsourcing in India

Outsourcing in India: Empowering Global Businesses Outsourcing Human Resources, Marketing Services, Accounting Functions, Artificial Intelligence and Information Technology in India

The largest brands in the world are among those that are most interested in India’s outsourcing sector. A business can concentrate its time and resources on its core competencies by contracting out a few processes to a third party. India is prominent among many outsourcing services, but IT takes the cake. The country is a Silicon Valley in development. That can be seen as India currently holds 55% of the global IT outsourcing share. And that’s even more lucrative for multinational companies, as India is currently collaborating with companies in over 95 countries via collaboration.

This guide will tell why you should choose outsourcing in India by discussing its popular industries, reasons for growth, and case studies. So, let’s get started!

Outsourcing in India – An Overview

Outsourcing services have proven dependable and expanding in India by quickly creating a global presence and achieving the greatest client satisfaction. Most outsourcing firms in India employ a distinctive philosophy, mission, and process to provide precise and high-quality IT, accounting, AI, HR, and marketing services.

According to a recent survey, India is the location of choice for outsourcing by 80% of businesses in the US and Europe. According to a different analysis by Korn Ferry, India will have a talent surplus of 245 million competent professionals by 2030 and take the lead in various fields. That will occur at a time when many businesses will be struggling with a talent shortage.

Find 3 Reasons Why Outsourcing in India Is Becoming Popular

Here’s why outsourcing has become a top choice for businesses in India:

English Proficiency

India is ranked fifth among Asian nations for English proficiency in a 2019 research. The country boasts the second-largest English-speaking population in the world after the USA.

Indian experts who speak English are excellent at explaining complex ideas clearly and ensuring that knowledge is transferred effectively. Whether discussing project requirements, sharing updates, or addressing concerns, the proficiency of Indian service providers ensures that communication channels remain crystal clear.


Most businesses look to save money by outsourcing their labor to other countries. India’s cost of living is lower than many other wealthy countries. According to a survey, India is 81% less expensive than the USA.

A portion of what you would have to spend for a US employee would be spent on it. Although it should go without saying for any developing country, there are other reasons why companies decide to offshore to India.

Skilled Workforce

Another reason organizations want to outsource to Indian service providers is the accessibility of skilled professionals. India’s numerous colleges and universities produce many highly qualified professionals every year.

Most of them are knowledgeable with cutting-edge technologies and top-notch business methods to complete your assignments effectively. India currently ranks at 129th place with a 21.2% workforce and labor.

HR Outsourcing in India

Human Resources (HR) function is crucial in the complex game that is a modern business in India. It influences organizational success, cultivates talent, and shapes culture. The HR market in India is currently valued at $94.36 million. Additionally, it is expected to grow by 25% in the coming years!

Outsourcing HR

Benefits Of HR Outsourcing in India

Time Zone Advantage

India and Western nations are separated geographically, giving India a significant time zone advantage. Smoothly shifting duties from their home nation to India enables businesses to prolong their workdays. Companies may achieve stricter deadlines and increase overall efficiency thanks to this time zone advantage, which results in quicker project turnaround times.

Risk management

Since you are not establishing a business in India, there is less chance that you will need to halt those operations if something goes wrong. With HR outsourcing, you have the freedom to hire, pay, and onboard new staff whenever it is best for your company. That is why the HR market in India is expected to reach up to 347.75 Million by 2028.

Advanced HR Systems and Procedures

Companies can improve their HR systems and processes by outsourcing these tasks, ensuring uniformity and consistency throughout the firm. It may result in more employee engagement and satisfaction and increased organizational performance.

Marketing Outsourcing in India

Marketing is the art of promoting growth in the fast-paced world of business. Since this department is an integral part of companies, Indian outsourcing firms consider advertising crucial. That’s why the overall business revenue in India via outsourcing is $6.19 billion.

Outsourcing Marketing

Benefits of Marketing Outsourcing in India

Cultural Understanding

India’s rich cultural diversity and exposure to global markets have cultivated a unique cultural understanding. This factor equips Indian outsourcing professionals with the ability to empathize, communicate, and cater to the diverse needs of clients worldwide. This cultural sensitivity ensures that outsourcing relationships are built on mutual respect and effective collaboration.

Prioritize your core competencies.

Businesses can concentrate on their core capabilities and strategic ambitions by outsourcing digital marketing tasks. To stay ahead of the competition in digital marketing, it is necessary to pay continual attention to it, monitor it, and adapt to it. Companies can free up internal resources and concentrate on areas with a competitive edge by outsourcing specific duties. This organized strategy guarantees increased production and efficiency inside the company.

 Abled to solve capacity issues.

India is the second-most populous country in the world. It has many talented individuals with expertise in various fields. That is one of the reasons why India is an outsourcing hub. By outsourcing in India, you can quickly solve your capacity issues by availing the best quality marketing services.

IT Outsourcing in India

India is viewed as a top location for outsourcing IT services on a worldwide scale because of its capabilities in communication, technology, deliverables, and many other areas.

Its IT outsourcing revenue is expected to reach $8.8 billion by the end of 2023. Moreover, this number will project up to $20.1 billion by 2028, providing India is unparalleled in the IT sector.

Outsourcing IT

Benefits of IT Outsourcing in India

Data Security and Compliance

Data security and compliance have become top concerns for businesses worldwide in an increasingly data-driven environment. In response to these pressing needs, outsourcing to India has become a viable option that not only makes use of the nation’s competence but also places a high value on strict data security protocols and adherence to international compliance norms.

Continuous Support

Indian outsourcing firms offer 24/7 customer support, an invaluable asset for global businesses operating across different time zones. This constant availability ensures that client needs are met promptly, questions are addressed, and solutions are implemented in real-time, fostering seamless communication and collaboration.

Brand-new Technology

In the modern era, India has developed cutting-edge software and web technologies, fiber optic networks, cellular networks, satellite connections, and IoT in telecom. Every business in India, especially those in the IT industry, keeps up with the most recent innovations and productivity-enhancing equipment.

These are the reasons why even giant tech companies, like Microsoft and AT&T, are outsourcing their IT services in India.

Accounting Outsourcing in India

Accounting is the backbone that ensures financial health, compliance, and strategic decision-making. Indian accounting market has proven to stay updated with the latest standards of US and UK GAAP (Generally Accepted Accounting Principles). Additionally, their understanding of the complex work of the IRS is also pretty competitive in the modern market.

Outsourcing Accounting

Benefits of Accounting Outsourcing in India

Government Support

The Indian government has been a major supporter of outsourcing and attracting international capital. Businesses are encouraged to establish a presence in India via enticing policies and incentives.

The Indian government provides outsourcing companies with various tax breaks and incentives. These may include tax breaks, credits, and lowered tax rates. Such policies significantly reduce the financial burden on companies, making India a desirable outsourcing location economically.

Sustainable Outsourcing Relationships

The outsourcing partnerships forged with Indian companies often transcend transactional arrangements, evolving into long-term, sustainable relationships. That is made possible thanks to one of the highest literacy rates in India. The country has continued to produce a major number of Certified Public Accountants and Chartered Accountants working globally.

Advanced Technology and Tools

Numerous Indian outsourcing companies make investments in cutting-edge accounting software and tools. Businesses can access the newest tools and technology by collaborating with these suppliers without making substantial infrastructure investments.

AI Outsourcing in India

Following a period of fast technological advancement, artificial intelligence (AI) has emerged as a revolutionary force revolutionizing the industry of AI worldwide. In India AI is an emerging market, crossing $4 billion in 2021.

Outsourcing AI

Benefits of AI Outsourcing in India

Innovation and Research

According to Stanford University’s annual AI Index report, India saw the fifth most significant investments in businesses offering artificial intelligence (AI) based goods and services last year. Information technology (IT) and artificial intelligence (AI) are two examples of the technological innovation and research India is known for.

The country is home to talented professionals who continually push boundaries, creating groundbreaking solutions that resonate globally. It can be seen in the country’s emerging markets in which IT takes the top position.

Rapid Project Deployment

Companies can take advantage of market opportunities and stay ahead of the competition when they have access to a talented and readily available personnel pool. Indian outsourcing companies are skilled at quickly identifying and deploying appropriate project resources.

India currently houses over 416,000 people in its AI industry. But that’s not all. According to Nasscom’s estimates, the country demands 213,000 more workers in the market.


Q: What’s the most popular outsourcing country in Asia?

According to a GLSI ranking in 2021, India has the highest outsourcing rate. The country is followed by China, Indonesia, and Malaysia. India holds the GLSI ranking of 7.09, while its closest competitor is at 6.8. Thus, it is safe to say that outsourcing in India is a popular and growing industry.

Q: What are some companies that outsource services to India?

You might be surprised, but some of the biggest worldwide companies outsource their services to India. These include the likes of Microsoft, IBM, American Express, Dell, Ford Motors, CISCO, AT&T, Hewlett-Packard (HP), Amazon, and Google.

Q: Is Outsourcing a good option in India?

Yes, outsourcing is an excellent option in India, considering the rise of this industry. More than ever, outsourcing firms have become integral to many businesses’ success. That is why some of the biggest companies have invested in this industry in India.


Outsourcing to India is a sign of revolutionary potential in the complex world of global business, providing a wide range of advantages that cut across industries and change operating models. Even reliable and trusted sources, like Kearney, have concluded that India is the most attractive country for outsourcing.

Since the country is still in its development phase, you will see more markets growing rapidly. You can outsource your services today by hiring the right firm that suits all your needs!

Find more resources about outsourcing:

Outsourcing Human Resources

Outsourcing Marketing

Outsourcing Information Technology

Outsourcing Accounting

Outsourcing Artificial Intelligence

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