Most multinational corporations, and even small companies, are outsourcing their services to India as India has the following advantages.
1. Availability of Cheap Labour:
India is a country with a large population and thus abundant supply of labour. Due to this reason, labour in India is available at low wage rates. This helps foreign companies in reducing cost of operation by outsourcing their business processes of India.
2. Skill and Accuracy:
India has a wide pool of talent in the form of educated and trained youth who have the required skill and can work with accuracy in the business processes such as accounting, record keeping, I.T. consultancy, etc. Here outsourcing plays a vital role, it gives a platform to the people so that they can use and enhance their skills and secondly they need low training period and thus, low cost of training.
3. Continuity and Risk Management:
Periods of high employee turnover will add uncertainty to the operations. Outsourcing those functions become cheaper and convenient to use.
