Outsourcing to India? Read on Pros and Cons of Outsourcing to India

Outsourcing: What is it?

Today, more companies are choosing outsourcing as a viable alternative for meeting their software, IT, and web content needs. In return, this has created many questions regarding the pros and cons of outsourcing, specifically, outsourcing to India. Outsourcing is the act of hiring or procuring services from an outside manufacturer or supplier. Outsourcing has many benefits however, there are also many risks to outsourcing, and some people feel that the risks greatly outweigh the benefits.

The Pros and Cons: Outsourcing

There are many benefits to outsourcing. First, there is no question that a company can save money by outsourcing. India has become the leader of international outsourcing. Many workers in India are extremely knowledgeable regarding technology, science, mathematics, and they are often above their global peers in the arena of computer IT, programming, and Internet Communications. Workers from India are often underpaid, and appreciate the international global economic appeal.

Through outsourcing, it appears that it is a “win/win” situation for all involved. American and other western nations can have their technical business needs and services provided for them at a discount, while workers in India can reach a global market and improve their economic status.

However, as time has shown, the grass isn’t always greener on the other side, and when it comes to outsourcing their may be more risks involved when hiring international then there are benefits.

Outsourcing has its risks. First, when you hire a company from India to handle your business needs, you have no definite proof that the company will stay in business for the duration of your project. You will also need to take into consideration that there will be cultural differences, and possible barriers when you outsource your work.

Sometimes, these differences can lead to misunderstandings and may cause a rift in the working relationship. Also, there are different time schedules when outsourcing to India, so you will need to take that into consideration. Finally, what may be considered the biggest risk to think about, when outsourcing to India, is the concern regarding piracy.

Make Sure you don’t Get Scammed

When dealing with outsourcing companies in India, you will need to take steps to prevent yourself from becoming victimized. It is also important to realize that it may take more time to check out the credentials of the company that you are outsourcing to, but you should always make sure that you thoroughly check out a company before choosing to conduct business with them.

India is leading the way when it comes to outsourcing, however they are also leading the way with lax government Intellectual Property laws. For companies that are dealing with trademarks, or classified information, they may be surprised to learn that outsourcing to India may put their work and confidentiality in jeopardy. Outsourcing may save you money, however if you must sacrifice privacy, you may feel the risk cancels out the benefits.

Protect Yourself From Outsourcing Piracy

When you outsource work to India, you can never be 100% sure that the people who are handling your business needs are acting in an ethical manner. This is the same in any company, however when working on an international scale, it can be very difficult to track down the perpetrator.

Companies also run the risk of working with hackers, who will have access to the main company’s computer system and data. This can prove to be disastrous for a start up company that initially, just wanted to save a few dollars and advance their company forward.

Tips for Safe Outsourcing

• If you are going to outsource to India, look for a company that will adhere to your security terms and conditions.

• Research the company thoroughly, and make sure they understand Intellectual Property laws.

• If you can, travel and visit the company first hand. Though this may not be applicable to smaller companies, it is a necessity for larger companies that have a lot vested in their outsourcing company.


Finally, it is important to realize that outsourcing has it benefits as well as its risks, and every company needs to determine for themselves, which is greater. By taking the time to diligently research an outsourcing company, you can lower your chance of being scammed and enjoy the benefits that outsourcing provides.

Author: Steve Arun

Founder of VA4Business.com, passionate about SEO and Internet Marketing. I'm a dad and a husband, Food-O-Holic and a chronic entrepreneur.

10 Responses to “Outsourcing to India? Read on Pros and Cons of Outsourcing to India”

  1. Data ExpertOS says:

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  2. Om Data Entry India says:

    The information you provided is very important but will not happen every time with every India company. There many companies who are providing the professional data entry services. Outsourcing to India is the best option for the growth of your business

  3. Amrita says:

    I want to do outsourcing in GIS(Geographical Information System).I have all computer assistance and manpower.If any one interested to provide us GIS works specially digitization i will be thankfull.

  4. NEERAJ NAYAN says:

    Outsourcing ,nodoubt can be consider as both ” bane or boon” for the Indian economic point of view.The underlying factor is our requirement.

  5. Data Entry Outsourcing India says:

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  6. Ally says:

    Can anyone advise me on reliable Indian outsourcing companies that do civil/structural design and detailing work, in metric? Please respond via email, if possible. Thanks.

  7. rajeshkumar bind says:

    I worked for an bpo industry for outsourcing jobs like data entry, chemical categorization, doing summary for the comprehension, searching msds, data entry for msds which contains 33 headers.etc.,As being B.sc with chemistry i am proficient in doing chemical categorization as per client’s sop.

    Looking forward with all details including pay with positive attitude

  8. confidential says:

    As a highly educated and experienced American journalist and freelance copyright, I have to say in all honesty, I am completely mortified at the level of qulity and pay of indian ‘writer’-don’t misunderstand; I am intrigued by the Indian culture (especially the family system)As well as I have certainly done my homework on the country. That being said, I am disguisted that I, and other qualified writers, must compete with the poor wages of the majority of cut and paste artists who come from India, claim to know the written and spoken English language and only plagarize another established writers work, changing only a few words and claiming it as thier own.Indians have the monopoly on freelancing and outsourcing jobs. In a country where IT is taught at grade school level- why must indians also take the monopoly on the writing industry? I mean, I personally studied in the University of south Florida for 4 years for my journalism degree- which now my degree is only a worthless piece of paper with no value. I also studied an additional 2 years for a degree in communications, can’t get a job to save my life, have had to resort to freelance writing from my home, and with the low rates and competition of 3rd world non-english speaking countries i am lucky to afford a gallon of gas these days (no joke)
    Good luck to all Indians who are making an attempt to be successful entrepreneurs via outsourcing/freelancing; but come on…If you REALLY want to earn good money- charge reasonable rates- not $1 for a 500 word piece worth $25, and try using your English (both American and british english)comprehension to create your own work.Most of all, may I suggest you take some pride in your country, culture, and language(s) and rather than corrupt and unethical writing practices for extremely low wages, try improving your own countries writing needs- Insource to India:)respectfully, some of the most intelligent people i know are Indians. It’s just a shame that most Indians are not dedicated to improving thier own country’s economy.

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  10. ian fernandes says:

    Hi ,
    I have many friends in India and working for Bpo’s in Mumbai and Delhi. They visited the website to get satisfactory jobs. Outsourcing to India is the best for commercial value and growth