India has accounted for a lions share of the global outsourcing booty. May it be Americans or Britons or Australians all preferred Indian outsourcing firms to others in the field. The major competition was from Chinese counterparts. Indian firms have managed to woo foreign investors and outsourced jobs for the last 5 years. Some of the most prominent business houses in India are today in this position because of the outsourced projects and services pouring into India.

Some of our readers may not be exactly aware what is outsourcing and how does it benefit anyone. Another question often asked is does the country that outsources a job loose of gain form it? I will try to answer the questions right way with an example. Say you are the owner of an American company that makes and sales softwares. You have 200 employees. You are good at your work and your reputation is good in the market. Say you have received 20 projects this year. Your workforce and infrastructure can only guarentee the delivery of 15 of those projects this year. But the 5 remaining clients cannot wait till the next year. You are not in a condition to hire more workers. Then what do you do? Let the business go? This will bring a bad name to the Company. So what you do is find another reputed company, say in India. A software professional in India charges less than a quarter of money charged by an American counterpart. To maintain the customer goodwill and to increase the revenue what you will do is give the 5 remaining projects to one or more software firms in India. You pay a part of the software cost to them and sell the final product as your own to the client. Final scenario is that your customer is happy; you are happy and the company in India is happy. So this is an almost win win situation. This process is what we call Outsourcing and you saw how people gain form it.

It would come as a pleasant surprise to you that last year a popular university in United Kingdom of Great Britain decided to outsource the job of correcting the English papers to an Indian university. There was an uproar in press about this. But when is comes to business the authorities at the British University could clearly see that the same job could be done by Indian Professors satisfactorily at a much nominal cost. Yes, we do agree that English language came to us from the British. But one must agree to the fact that there are probably more English speaker in India that there are in UK. And to me there is no point sticking to this false pride and let your business down in this age of competition.

Many Indian companies are outsourcing manpower to companies in foreign countries. Some call this body shopping. Most of our reknowned IT firms have made their name from this particular trade.