There is no doubt in the fact that outsourcing is the future.

Today for small businesses as well as big businesses, outsourcing is a savior. As in this competitive world, where operational costs are rising day by day, where the customer is a king, it has become crucial for companies to outsource.

Due to these benefits, the outsourcing industry is growing exponentially and over the years, India has gained its reputation for being one of the best outsourcing hubs in the world. A survey confirmed that 80% of European and US companies consider India as the best outsourcing destination.

Since, India has a large pool of multiple-skilled people like Engineers, Doctors, MBAs, Lawyers, etc. which aids India to retain its position in the outsourcing Industry. India is preferred due to its manpower availability, reliability, and knowledge services.

Future opportunities and trends in Outsourcing Industry:-

  1. Small businesses and start-ups will prefer outsourcing to reduce operational costs and increase efficiency.
  2. Rising transportation, raw material cost and other operational costs will make companies and organizations shift to outsourcing.
  3. As India has a low labour cost, manufacturing and pharma companies may shift to India for outsourcing.
  4. Research and development outsourcing will have vast potential.
  5. Indian IT outsourcing industry has a vast potential market providing a wide range of Information Technology services like IT security, application software.

There is no doubt the future of outsourcing is wide but with opportunities, there are few challenges for the outsourcing industry in India.

Challenges for Indian Outsourcing Industry:-

  1. To address the rapid growth in the outsourcing industry, India requires better infrastructure.
  2. Increasing labour cost and high attrition rate in India is a major concern.
  3. South-East Asian Countries like Indonesia, Malaysia, Singapore are improving their infrastructure and positioning, creating a big challenge and competition for India.
  4. Outsourcing has helped companies to save a lot of time and effort, furthermore providing specialized knowledge and skills.