Outsourcing to India – What are the Pros and Cons?

outsourcing pros cons

The Scope of Outsourcing in India

Being a top business trend, the question may come in your mind that what is the scope of outsourcing in a country like India?… Well, India has managed itself as a major hub for outsourcing business at the global level. Today many international companies, as well as Indian brands, prefer to go for outsourcing in India for better customer services.

With the growth of outsourcing day by day more and more companies rely upon this sector. But just like any other business, this also involves some pros as well as cons. Especially when you outsource to India, you need to check the advantages and disadvantages of this industry to stay yourself ahead of the competitors. So in this article, check what are these:-

What are the Pros?

Indian workers are most fit in international global economic appeal. But the cost is not the only factor for which companies outsource their business to India. Let’s check the other benefits:-


As I said above, Indian labor is more cost friendly than other global players. On the other hand, an in-house team is costlier than hiring staff from an external agency. So, businesses can save costs on infrastructure, salary, and other facilities with outsourcing. Indian market is famous for the result-oriented customer services at easy-cost.


Outsourcing helps to save enough time and resources to focus on your business’s core tasks as support functions are taken care of by the experienced staff of the external agency. Hence, you can emphasize on strengthening the core processes and meet your customers’ needs more efficiently.

Expert Handling

India offers expertise by delivering services to multiple companies of the same niche. Also, outsourcing vendors have access to specific equipment and technical knowledge to deliver the right services to end-users. Moreover, the country has a large number of English speaking people. This factor attracts international businesses to hire India to handle their customer support services effectively.

Improved Productivity

When you handed over your support services to the third party, you focus on the core components of your organization. As a result, the outcome of the organization improves on both the core and non-core aspects. Thus, outsourcing boost your business’s productivity as well as revenues.

Round-the-Clock Availability

With offshore outsourcing to India, companies can take the benefit of different time zones for round-the-clock availability. This allows businesses to serve their clients with flexible business hours, attracting more customers.

What are the Cons?

Apart from the pros of outsourcing discussed above, choosing a wrong partner can create more difficulties than benefits for your business. Let’s check what are these:-

Harm to your Data

When you outsource your services, you need to share access to confidential data with the outsourcing vendor. This may create the risks of sensitive data leakage or misuse, in case the outsourcing service provider doesn’t follow the essential security measures. So, you must be alert and need deep research while choosing your service partner.

Regional & Communication Differences

Outsourcing to an offshore partner can cause certain difficulties on various grounds like culture, geographical area, and language differences. Your company will need to adjust to and accommodate the social & cultural practices of the vendor. Along with this, the difference in time zones and speaking accent causes communication difficulties among businesses & service providers.

Hidden Expenses

No doubt outsourcing practice has gained grounds due to its cost-effective benefits, but partnering with a wrong service provider can add up more money. You might need to bear hidden expenses as well as loss of business due to inappropriate services, and others.

Lack of Control

Outsourcing your technical support means you will rely on the specific technology systems and products used by the service provider. As a result, you end up with losing control of managing the outsourced part of your business. So, in such case, you need to look for the right vendor using latest tools and technologies to meet up your business needs.


Now, you are aware of both the benefits and drawbacks of outsourcing when you choose India. So, if you are looking to outsource find a reliable partner in order to tackle difficulties and minimize the number of disadvantages. The right partner will enhance your business and take it to the new heights. It is very important before you decide to outsource that you consider the goals and the objectives of your company while choosing an outsourcing partner.

Original Source: https://www.theoctopustech.com/outsourcing-to-india-what-are-the-pros-and-cons/

How Call Centers help Reduce Operating Costs of Business

While looking to grow or expand your business, hiring a dedicated call center to contract out your customer support service can give your business the very edge it needs to move ahead of the competition. The business industry already understands this fact well enough that companies who outsource gain much in terms of reduced costs and a larger workforce. Some of the other reasons why businesses love outsourcing includes-

a) Calls centers have the capacity to run your company’s operations such as entering into the new market or increasing reach.

b) Can easily scale your business up and down according to current marketing needs.

c) Help acquire additional skills.

d) Extend businesses multilingual capabilities.

And many more…

As we can see, opting to outsource your customer support service can help you avail many such benefits for both your company and customers. But what of its cost-effectiveness? No business cannot operate for long without money. To answer this, I have mentioned below 3 important reasons in order to explain how hiring call centers can help improve the cost-effectiveness or, in other words, reduce the operating costs for your business apart from making profits.

1) No Extra Office Space-

It doesn’t matter whatever city you are operating from, extra office space always takes away a huge chunk of money from your pocket. Even if you are thinking about expanding your in-house customer support department, it’s still going to cost you a hefty sum.

But if you plan to outsource your call center services to countries such as India, Philippines, Ukraine etc. you won’t ever have to worry about spending another dime on renting office space.

2) No Loss of Business Outside Office Hours-

We all know how frustrating it can get when we are unable to contact a business whenever we wish to. It’s just that every time some issue arises, the customer’s calling time seem to match the time you are offline and customer frustration can ultimately lead to loss of business.

Wouldn’t it be better if this could somehow be avoided? Well, as it turned out, hiring a call center will render round-the-clock support service which will keep your customers happy and your revenue stream steady.

3) No Employee Management Salaries-

Though businesses love to be a source of jobs, it’s a bitter truth that employees are expensive. Just employing the in-house call center managers can easily set you back up to $5,000 a month and this doesn’t even include the cost of recruiting, training and managing the team members.

But if you hire an outsourcing firm, you can save all this money simply because call centers come already equipped with managers, employees, CTOs, CFOs etc. so you don’t have to worry about paying them from your pocket.

4) No More Employee Call-Outs-

No matter how responsible and reliable employees work for you, nobody can make it to work every day. They all have their personal lives which will sometimes lead to last minute days off from work. And you will be left spending valuable time trying to find replacements.

So, if you are outsourcing your customer support service to a call center, worrying about last minute employee call outs is yet another thing you can tick off from your checklist.

5) No More Employee Benefits-

As a business owner, have you ever noticed how much you pay every month for employee benefits and compensation for facilities such as insurance plans, paid vacations, retirement plans, maternity leaves etc.

By offshoring your call center, you can easily and effectively deviate all those expensive employee benefits to that third-party outsourcing firm you hired in the first place and, as a result, save loads of money in the process.

Closing Thoughts:

Finally, in the end, your decision to outsource shouldn’t be a complicated one. Apart from all the money-saving ways I mentioned above through which you can easily reduce your business’s operational costs, you also get skilled expertise to work for you at a reasonable rate, not to mention the improvements you will get regarding the business operations.

Original Source: https://www.theoctopustech.com/how-call-centers-help-reduce-operating-costs-of-business/