Outsourcing in India: The hub of IT Support, Talent & Innovation

Multinational firms’ need to reduce the overhead expenses associated with their company operations led to India’s development as a significant global outsourcing hub. Due to the availability of trained labour and expertise, businesses are becoming more and more interested in outsourcing their business operations to India.

Tasks, projects, and the demand for higher-skilled labour all develop as a business expands. Companies outsource their business operations to service providers across the world in an effort to stay competitive and maintain an effective workflow. And as of late, outsourcing has expanded into its own worldwide sector. 

Business Process Outsourcing (BPO), Outsource customer support, Infrastructure and Technology Outsourcing (ITO), and Software Outsourcing are the four general kinds of outsourcing that are most commonly used. Companies can either outsource the full business process or only a piece of it. For instance, the android application development company in USA have been outsourcing some workload to Indian freelancers and other service providers as it saves their time and generates better profit.

ITO sales were $246.6 billion globally in 2011, according to a recent Statista analysis. India continues to be the top destination for businesses to outsource their business processes among the many locales.

Industries Outsourcing to India

Outsourcing has evolved into a tool that businesses use to foster innovation, make money, and establish their brands internationally in today’s modern, digitalized world. By developing a framework that enables businesses to outsource their business activities, India has established a reputation as the global outsourcing powerhouse.


Globally, the manufacturing sector is sizable and widely dispersed. The mix of labour and technological expertise that India provides is essential for a sizable portion of manufacturing goods and services. 

Many factors influence why manufacturing businesses choose to outsource to India. Several examples include reduced labour expenses, prompt delivery, the availability of services, and indirect cost reductions.


In both China and India, the industrial sector is very noticeable. India attracts businesses because of its sizable workforce of qualified and unskilled workers, depending on the activity that needs to be done. India performs a variety of outsourcing tasks using both expert and unskilled labour, from assembling auto parts to producing leather shoes.

IT Sector 

The fifth-largest industry in India is IT, and the majority of its income comes from outsourcing firms. The IT industry made up 7.7% of India’s GDP in 2017, according to Statista research. Along with locally established businesses like Wipro and TCS, IBM and HP are some of the top IT service suppliers to India (Tata Consultancy Services).

The majority of the global outsourcing market share comes from India’s IT industry. India is reportedly the top provider of IT services globally, according to a Statista analysis.

Telecom Sector

The telecommunications industry is one of India’s most dynamic industries right now, both in terms of its size and its potential. Companies are investing more due to the constant increased demand for data bandwidth and improved communication quality. 

Since service providers are eager to implement new, cutting-edge technology like real-time data analytics, there has been advancement in the telecom industry.

For instance, RCOM (Reliance Communications) recently contracted with telecom industry stalwarts Ericsson and Alcatel-Lucent to outsource its network management operations. In a similar vein, IBM and Bharti Airtel collaborated to outsource IT management and services.

Call Centres

Call Centers and BPO Business Process Delegating back-office tasks to call centres for completion includes tasks linked to customers, human resources, accounting, and internal business processes. 

Outsourcing to India had grown in popularity since the 1990s, when globalisation first began. Companies choose India as the destination for their business process outsourcing because of the unique combination of technical breakthroughs and communication available there. 


India is the most sought-after nation when it comes to outsourcing healthcare services since it is technologically sophisticated and capable of meeting international healthcare standards. 

The two services that are typically outsourced in the healthcare sector are medical transcription and RCM. A Statista analysis states that the global healthcare outsourcing industry has increased to $50 billion over the previous five years.


One of the most prosperous industries in the world is the retail one. India has emerged as the top destination for retail businesses looking to outsource their commercial operations, particularly through captive centres. 

Large retailers are establishing captive centres and development centres in India, including Tesco, Target, and Supervalu. In Bangalore, India, Tesco opened a shared service facility known as the Hindustan Service Center.

By 2020, India is anticipated to overtake China as the fastest-growing retail market in the world, with a growth of up to $1200 billion.

The Bottom Line

Outsourcing to India has much more benefits than drawbacks. The ability of the Indian outsourcing sector to develop and endure during challenging times sets it distinct. Comparing it to its counterparts in other South East Asian countries, the Indian digital and technology sector is among those seeing the quickest growth. 

It is reasonable to assume that this is the market to watch out for, be it for outsourcing or any other business opportunity, in light of Google’s announcement of a $10 billion investment fund for furthering digitalization in India.
If you have an idea that you would want to turn into an app to benefit from this outsourcing revolution. Contact Code Craft Crew, we’re among the top android and app development companies in USA. We promise you won’t be left until completely satisfied.

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By kazim kabir

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