India has become one of the most sought-after offshoring destinations in the world, even outranking some countries in Latin America and Eastern Europe.
For some companies, offshoring to India is a strategic necessity for cost savings. For others, it is a ticket to expand their overseas operations.
In this article, we will explore why offshoring to India is increasingly popular and highlight five major companies engaged in the practice. We will also discuss the major advantages and challenges of offshoring to India.
What is Offshoring to India?
Offshoring to India is when a foreign company moves its business operations to India, usually to benefit from cost savings. For example, if you run a firm based out of Germany or the United States, you could shift some of your business processes to India.
Most companies move their operations to India to benefit from the country’s lower cost of living, skilled talent pool, and favorable government policies. (More on this later.)
Now, you can take two approaches when offshoring to India:
Hire an external service provider in India to perform your tasks or projects. This is known as offshore outsourcing.
Set up a company in India and hire your own in-house team to manage operations.