Question

"Indian economy has certain advantages, which have made it a favourite outsourcing destination." 

Do you agree with the given statement? Give valid reason in support of your answer. 

Answer 1

Because India offers the following benefits, most small and multinational businesses outsource their services to us.

1. Availability of Cheap Labour: India has a vast population and a plentiful supply of labour. Therefore, labour in India is available at low wages. Outsourcing their corporate operations to India aids international corporations in lowering operating costs.
2. Skill and Accuracy: India boasts a large pool of educated and skilled young people with the necessary skills who can work accurately in company procedures like accounting, record keeping, IT consulting, etc. In this case, outsourcing is essential because it provides a platform for individuals to improve their skills and, secondly, it requires little training time, which lowers training costs.
3. Continuity and Risk Management: Operations will become less predictable at times of significant staff turnover. Outsourcing will give the business some continuity and lower the danger of a poor level of operation.
4. Reduced Overhead: Although back office operations have very high overhead expenses, they are now more affordable and user-friendly due to numerous tasks being outsourced.