India is the leading outsourcing destination across the world going by the numbers. India has approximately 55% of the market share valued at US$ 200-250 billion in 2019-2020 and accounted for 8% of GDP in 2020.

As outsourcing in India is very mature, businesses are confident to use outsourcing companies based there for core functions or highly specialised roles like data science and engineering services as well as traditional non-core tasks like data entry, customer service support and administration.

For India though, they are in particularly strong demand in the field of IT outsourcing. India’s IT and business services industry is anticipated to grow to $19.93 billion US dollars by 2025 and IT spending in India is expected to be close to $100 billion US dollars in 2022.

Why do businesses use outsourcing?

Let’s take a step back and look at why businesses use outsourcing in the first place.

Outsourcing allows businesses to concentrate on the activities that are critical to the success of their company and not get bogged down in repetitive or mundane tasks. It can free up talented onshore staff in a business’s home country to work on higher-value tasks that add much more value.

Furthermore, because most outsourcing service providers are headquartered in countries with lower labour costs, businesses can also save money.

Read more: Pros and Cons of Outsourcing to India