In a recent survey, U.S and European are the largest customers of outsourcing work who ranked India as number one and preferred destination for outsourcing work for their IT needs. Other major countries that outsource to India are Ireland, China, the Philippines, Mexico, etc.
Indian outsourcing Industry experienced 25-30 % growth rate every year, evidently, the great success of Indian outsourcing made Small and Medium Enterprises/ Small Medium Business (SME/SMB) to start opting for outsourcing. The current scenario shows India is leading offshore outsourcing country.
Some common outsourcing services include web development, mobile app development, finance and accounts, digital marketing, BPO services, retail, telecom, multimedia etc. Companies who are actively working onsite & offshore are Infosys, IBM, Hewlett-Packard, Genpact, Tech Mahindra, Wipro Technologies, Cambridge, HCL Technologies, HTMT Global Solutions, and Tata Consultancy Services.
Why Outsource Work To India?
India has become the best outsourcing industry globally because of it immensely talented workforce, favorable government policies, fast developing infrastructure, delivery of core competency to IT industries.
Key features of outsourcing to India
- Vast Manpower: With a huge population of over 1 billion and the ever-increasing majority of young-blood of India has matchless potential in the HRD (Human Resources Department) is rapidly expanding.
- 80% Cost saving: India offers many options to a company’s Chief financial officer (CFO) through major cost savings in terms of manpower, materials, and processes. Indian skilled IT professional ready to work for far fewer salaries when compared to western countries.
- High-Quality Services: Undoubtedly, India delivers standardized IT services that comply with global quality standards that boost ISO and SEI-CMM standard of companies worldwide.
- Art Communication Infrastructure: Indian IT companies offer high-speed bandwidth (network bandwidth, data bandwidth, or digital bandwidth) via optical fibre network, satellite connectivity, and submarine cables. Companies can have connectivity 24*7*365 of the year with clients and vendors
- Rapid Economic Growth: India is a leading IT industry in the world. Indian services sector growth is approximately 55% of the GDP because of which India has earned the position of second largest software exporter.
- Attractive Tax and non-tax Incentives: The Government of India has provided a number of tax and non-tax benefits to boost investment from IT companies by outsourcing work in India. The tax benefits include:-
- 10 years tax exemption to IT companies (infrastructure, construction, or maintenance)
- 10-year tax exemption to Special Economic Zones (SEZ) and IT parks and
- 5-year tax exemption for firms setting up a project in backward areas (district and state).
- Tax benefit on exports as the tax is deducted from profit for setting units on Software Technology Parks (STP), SEZ’s, and Electronic Processing Zones (EPZ).
- Tax benefits can also be availed on expenditure for R&D that includes 150% deduction on scientific research and 10-year tax exemption for scientific and industrial research for IT companies.
India is the best country to meet your IT needs at an affordable price within the specified time frame. So, don’t miss the opportunity to outsource from India to accelerate your business growth and also for whooping returns on your investment.