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Benefits of Offshore Outsourcing Model
Offshore Outsourcing Model offers businesses multiple benefits in terms of Cost,
Quality and Technical Excellence. Here are some of the noticeable benefits of Offshore
Outsourcing Model:
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Realistic cost savings of about 40% as compared to onshore or domestic markets.
(Source - Ventoro Research Report )
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Quality Product Delivery by offshore companies using their expertise, extensive
domain knowledge and implementation of Matured Execution Models in their processes.
(Source: NASSCOM)
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Technical Excellence offered to clients by capitalizing on quality Human Resource,
robust infrastructure and domain related Research and Development (R&D).
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Maximum time benefit by leveraging the time difference between service provider
and service requester.
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Reduced project cycle by implementing globally recognized Project Management systems
in their operational activities. Operational Flexibility by quickly adapting to
changes in business requirements.
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Better finance management through clearly defined financial obligation and reduced
cost.
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Improved competitiveness since offshore companies deliver quality services at affordable
rates.
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Renewed focus on company strategic plans by outsourcing certain non-core business
operations to offshore companies.
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Exposure to new markets by making alliances with offshore companies and taking business
to unexplored areas.
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India Advantages
It won't look surprising if we call India as "Mecca of Offshore and Outsourcing”.
According to a study conducted by Forrester in November, 2001, India's edge over
other competing nations in the IT outsourcing business is based on the country's
decade old experience in this area, fluency in the English language, supportive
Government policy, infrastructure, and high quality offerings. (Source: NASSCOM)
Below, we present you some reasons that justify why India is a preferred destination
for businesses to outsource their offshore-based activities:
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Large Human Resource with approximately 17 Million people available in IT industry
by 2008. (Source: NASSCOM)
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Maximum Cost Advantage. An independent report estimated that for every $1 invested
in India via Offshoring, the American Economy gained $1.14 in direct and indirect
benefits. (Source: NASSCOM)
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Incorporation of Quality Standards like globally recognized SEI-CMM, P-CMM Levels
and ISO 9000 Certification by Indian IT companies to ensure quality services for
their customers. As on 31st March 2002, India had 42 companies at SEI CMM Level
5 assessment and 316 companies who have already acquired quality certifications
worldwide.
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Friendly Government Policies towards Offshore Outsourcing by offering various tax
benefits and sops for IT and ITES industry.
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Address security concerns by introducing IT Act, 2000 that legalizes laws and policies
related to data security and data crimes.
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Better finance management through clearly defined financial obligation and reduced
cost.
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Quality Manpower with strong technical skills, good language command and eagerness
to accommodate Clients.
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Strong Education System that emphasizes on mathematics and science along with English
language proficiency.
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Decade old Experience in Offshore and Outsourcing justifies why India is considered
the best in this business.
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