Outsourcing is a sector that has consistently grown over the last three decades. The statistics and guidance provided by companies indicate that this growth will only get stronger. India has been a hub for outsourcing right from the beginning. IT services and software development provided by Indian engineers are still unparalleled. Skill and services are affordable and accessible in India. That's why more and more companies are now outsourcing to India. In order to tap into the full potential of such an engagement, it is imperative to implement suitable models of outsourcing. To ensure appreciation for these models, it is vital that the benefits of outsourcing work to India are at the forefront of your thought.

The Benefits Of Outsourcing Work to India 

India is a hub of skilled human resources. The nation has prospered through its ability to train its citizens in relevant skills. This includes soft skills and language proficiency. The scope for outsourcing in India is evident from a few vital facts. These facts also reaffirm the benefits you should expect from your outsourcing venture.

Lower Costs Means Higher Profit  

The benefit of working with an offshore team is that you get all the talent at an affordable price. Nowhere is this price benefit more evident than in India. Facts clearly point in that direction. Every Forbes 500 company has a back office in India because of these perks.

Vital Statistic 

Google Ad Words project was completely outsourced to India, and it generated $110 billion in revenue in 2017. It was the highest-earning project for Google that year.

Outsourcing services to India can be profitable for you as well. Since the services are priced to your benefit, you can pick the best team that suits your needs.  

Diversity of Skills  

Since the creation of the modern nation-state of India, it has focused highly on technical education. Indian churns out more engineering graduates annually than Latin America, US, and Western Europe combined. The country is wealthy in terms of human resources. This richness has made outsourcing work to India a norm. The nation's wealth in terms of skilled labor is evident in its education statistics.

Vital Statistics  

• 1.3 million students graduate as engineers annually. Currently, approximately 135 million Indians are proficient in the English language.

This presents you with a wide array of choices. You can now select employees with a suitable set of resources for your project. To make matters easier, as per the law, you can upscale your operations or downsize them with ease.

Systems Aligned To Outsourcing  

The laws, the logistics, the institutions, and the individuals all have poised themselves to simplify IT outsourcing for you. Offshoring isn't just profitable for you in your country but also for those you hire offshore. Outsourcing has become a major sector of the economy, and even the government keeps regulations to a minimum to boost this sector.     

Vital Statistics  

• Outsourcing accounts for 8% of India's GDP and generated $156.7 billion in revenue during the FY 2021-22.
  

The revenue generated by these services alone tells you why the government takes this sector seriously. However, to garner true profitability from your offshore outsourcing to India, it is vital to understand the various outsourcing models companies in India offer. Getting the outsourcing model right ensures greater profitability and flexibility. We have listed the commonly used models below.

Price-based models for outsourcing to India 

Variable Rates

In this model, you pay for the resources and time you use. Of course, there is a basic retainer for your outsourcing company. However, beyond that, you only pay for the services you're using. This is a great model to follow if you're working with a new outsourcing partner. You can see if the services provided meet your standards and are delivering the product you need. You can then figure out a more long-term commitment.

Fixed Rates 

This model allows you to hire a fixed number of resources for a set timeframe, and you have to pay the negotiated price for these resources. Upscaling or downsizing your team is very difficult in this model. It is best suited for stand-alone, singular projects.

Pay Per Unit  

In this model, you pay as per the units of service being delivered. This is a highly flexible model and allows you to scale your operations with ease.

Performance-Based  

Here you pay your outsourcing partner beyond the retainer on the basis of the performance delivered. This model incentivizes smart work and is revenue-oriented. It creates a strong partnership between the offshore team and the core team. Select this model only with outsourcing vendors you trust.

Cost Plus Profit 

This model instills a sense of ownership in your offshore team. Sharing profits puts the onus of generating them on those working on your product. It is a result-oriented incentive, given beyond the monthly retainer. It directly involves your outsourcing partner in the success of the project. 

Risk Rewards Model  

Your outsourcing team is now completely involved in product development. This kind of involvement requires a lot of trust between the parties involved.

Packaged Pricing Model  

This pricing is offered by an outsourcing company when you use their multiple services. These services are then lumped together and presented as a package with a considerable discount.      

Relationship-based models for outsourcing to India 

Dedicated Team Model  

This model is used when you want full-time resources for your company. In such a case, the outsourcing partner builds a team that works like an extension of your staff. This model is implemented when there is a major resource gap in your core team. This model is also used to cut costs. 

Staff Augmentation Model  

This model is used when you need flexibility in adding or downsizing resources to your outsourced team. Your vendor allocates his resources for your work as per your needs. This flexibility works to your advantage as you can now have the best resources working for you without you committing to hire them long-term.

Project-Based Model  

If you have a project that lies outside your core team's competency, then you can get it completed in a cost-effective manner using outsourcing.  

Cloud-based models for outsourcing to India 

These types of models are used when a client wants online service deliveries. These are subscription-based models. So this form of outsourcing is very efficient as your responsibility would be only to subscribe. There are four models that fall within this category.  

Software as a service (SAAS) 

The outsourcing partner provides the essential software support you need over the Internet.

Platform as a service (PAAS)  

There are certain platforms required to test and run products by software companies. Access to such platforms is provided by the vendor.

Infrastructure as a service (IAAS)  

Access to vital infrastructure like servers or desktops is given by the vendor online. 

In all the models mentioned above, you are not liable to manage the resources being shared online. This makes your tasks very easy. Management in this form of outsourcing is easy and minimal.  

Things to keep in mind while outsourcing work to India

Getting all the benefits of outsourcing depends on your understanding of your needs. Outsourcing works seamlessly if the right combination of resources is hired with the appropriate model. Keeping your scope of work in mind at all times is very important for success. Growth is the core motivator for outsourcing, and in India, you will find the right team aligned with your core motivation. The key is to build relationships and nurture these resources to forward your vision. There is no limit to the success you can achieve with outsourcing.