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Is India following the trend of reverse outsourcing?

The reasons behind the growth of reverse outsourcing

Rise in wages

The reason why India started inclining towards reverse outsourcing is the increased rate of wages of Indian professionals and the constant fluctuations in the foreign exchange market. It has resulted as investment in reverse outsourcing. Indian companies get paid in dollar, but they pay their employees in rupees, which is why the employees are now demanding lucrative salary packages. This is the reason Indian BPO companies are hiring manpower/resources in place like Ohio, where professionals work for low wages.

Business in local

Most of the INCs prefer to carry on business with companies who have their establishment settled in nearest location or in its own soil . The Indian BPO and IT companies are setting up headquarters in famous foreign cities to work with those clients in close proximity and give them the feeling of reliability and providing them the best service.

Targeting foreign clients in their own soil

Top ranked Indian companies are setting up offices in a abroad to target international clients. A number of employees were sent abroad to work for a fixed tenure and come back. Expenses are increasing day by day to facilitate the employee for sending them in foreign nations which includes food, accommodation and travel related expenditures. Also the client’s don’t feel much secure to do business in this way. As a result, Indian companies are setting up offices in a abroad so that, foreign clients can work closely with the service provider and get instant feedback or solution which is otherwise not possible while there in overseas.

Hiring local resource for greater benefits

Two reasons why Indian companies are choosing foreign location are:

1. Unemployment rate lets them work at low wages.
2. Skilled labour. According to a report, Indian companies faced a loss of millions of rupees as their employees didn’t understand American accent. To improve the level acheter cialis en ligne of efficiency additional training has to be given to learn British or American accent, which adds to the company expenditure which directly affects the revenue of the company. Hiring a local resource in foreign countries would reduce such expenses.