Offshoring To India Case Study

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GENPACT INC. – BUSINESS PROCESS OUTSOURCING TO INDIA

Offshoring and outsourcing are often used interchangeably. Are offshoring and outsourcing the same? If not, how do they differ?

Offshoring is different from outsourcing, as offshoring is defined as moving business operations to different part of the world. Offshoring helps companies to reduce the production cost and increase the profit. Offshoring operations are still monitored and controlled by the parent company. Offshoring is mainly used to gain different advantages such as low labour cost, expert employees for completion of the task also legal and political advantages. Offshoring operations are established by the parent company to perform the company’s business operations. It is possible that offshoring can be a part of outsourcing. Offshoring enables the company have more control
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The main advantage of outsourcing to India was cheap labour and high performance, as the IT service in US was about 60$ as compared to 6$ in india. The indian education was taught in english, which reduced the language barrier and also the majority of population is focused on engineering and scientific fields, which provided highly skilled workforce at a very low cost. The time difference of 12-13hrs allowed the operation to be performed 24hrs between India and North America. Fast pace advancement of technology in India allowed smooth transition for the parent company to hire vendor in India. 

The client company can get a good deal as there is competition among a large number of service provide and also get the best of the service providers at a very low cost. India ranked among top countries for outsourcing the business processes as Indian market provided less cultural barriers, timing issues, legal and political problems and effective management skills. Thus making India a reliable destination for outsourcing the business

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