Companies that outsource their services to India

Which companies outsource to India?

Many global companies outsource to India, including Microsoft, Ford, Cisco, Amazon, Google, IBM, American Express, Dell, HP, and AT&T. They do it for low costs, deep tech talent, and round-the-clock service.

• Companies that outsource to India can save up to 70% on labor costs.
• India offers a huge, skilled talent pool and 24/7 support.
• Big names span tech, finance, retail, and telecom.

More and more companies want to outsource work to India. As firms look for cheaper, smarter ways to run, many turn to outsourcing to cut operating costs.

India is one of the leading outsourcing destinations. This is due to low costs, 24/7 service, a skilled workforce, a vast talent pool, and steady government support.

Studies show that most Western firms already outsource to India. One earlier report even noted the trend was expected to increase due to the pandemic. In short, lower costs and business continuity drive the move.

Still, outsourcing brings both gains and risks. So many firms can learn from what these businesses did right and where they slipped.

Here are some of the top companies that outsource to India and benefit from it.

Companies that outsource to India

1. Microsoft

First, Microsoft is one of the largest tech firms in the world. So it uses outsourcing to save on labor costs. In 2004, it began sending software development and support work to India.

In 2010, it grew this effort further. For this, it partnered with one of India’s biggest firms, Infosys.

Microsoft later raised its cybersecurity spend in the country too. As a result, it aimed to make its outsourced processes safer.

2. Ford Motors

Ford started with back-office tasks. Then it grew its work in India for its low cost and steady service. To cut costs, Ford outsourced its software development, engineering, and IT. As a result, it ran its e-commerce store and gave 24/7 support worldwide.

Ford later deepened these ties. In fact, Ford signed a deal with Mahindra to handle much of its BPO work in the country. This fit its plan to build better and smarter vehicles.

3. CISCO

Cisco has long relied on outsourcing to the country for its work. It opened a manufacturing site in India and has continued to increase its investment over time.

Besides outsourcing software development, Cisco built one of its largest research and development centers there. It employs well over a thousand staff.

Cisco also gains from perks the Indian government gives foreign firms. So the value goes beyond low costs and strong service quality.

For example, it can train providers with ease by sending in-house staff on work visas.

4. Amazon

Amazon followed Microsoft’s lead in India. It started its outsourcing efforts to India by sending support work there. As a result, it saved a lot on labor and setup costs versus a US in-house team.

To grow further, Amazon also hired captive call centers in 2018. So it could serve more local and global customers and sellers.

This fits its focus on the customer. In short, it aims to give fast, easy support around the world.

5. Google

Google is the largest search engine firm. So it is no newbie to outsourcing, both in India and beyond.

It began by sending Ads phone and email support to providers worldwide, including India. Later, it expanded its IT outsourcing efforts to the country. For this, it signed a deal with Cognizant. Over time, it also sent out more non-core work like software development.

Google is also known for bringing outsourced work back in-house. In fact, it announced it would be hiring more employees in several countries, India among them.

6. IBM

Meanwhile, IBM keeps working with firms in India to make its processes easier. So its footprint there stays large.

It began sending back-office and tech work to the country and has grown ever since. Today, it is believed that the company has more workers in India (around 130,000) than in the United States.

However, IBM’s story holds a warning. Its service quality slipped when it chased low costs over real quality.

So IBM is a cautionary tale. Firms should weigh quality, not just price, before they hire any provider.

7. American Express

The finance world is no stranger to outsourcing. American Express, a major US financial firm, has done it since 1994.

It has long sent work to India and the Philippines. In fact, Infosys is one of its close outsourcing partners.

Because it started early, the risks were bigger and rules were thin. As a result, the firm, along with Bank of America, was sued for outsourcing customer support services to India.

The lawsuits claimed the work put customer data privacy at risk. So it became a lesson for providers to follow strict data rules and US practices.

8. Dell

Next, Dell was one of the earliest IT firms to try outsourcing to India. It started in Bangalore in 2001 and grew to Hyderabad in 2002.

It still sends support work there. However, it brought some functions back to the United States in 2004.

A cultural gap hurt its early work. As a result, customer complaints rose, and the India team struggled with call volume.

Still, there was a bright side. By working with a partner, Dell gained a large market of Indian consumers.

9. Hewlett Packard (HP)

Along with Microsoft, HP increased its outsourced services to India in 2004. After years of handling accounting and payroll, it also sent out back-office work like data entry.

The reason was simple. HP trusted that India’s vast talent pool would serve it and its customers well.

Through this work, HP saw steady business growth and profit. So it decided to expand their operations to meet rising client demand.

10. AT&T

Finally, telecom firm AT&T also has its share of this story. It shifted its in-house call centers to providers in top countries, India among them.

Despite drawing flak from the move, AT&T keeps growing its outsourced service centers. In turn, it aims to improve support for clients.

Why do companies outsource to India?

As shown above, firms share similar reasons to hire a provider in India. These include:

• Savings of up to 70% on labor costs
• The ability to give 24/7 service
• Highly experienced talent
• World-class technical supervision
• Strong government support

Many US firms also outsource to India rather than build a team from scratch. For example, its tech centers hold a vast pool of experts across many fields.

Most Indian providers offer more than back-office help. They also do software, web, and mobile development, plus data work, analytics, and other digital solutions for foreign clients.

Besides this, hiring Indian companies can lift a firm’s research and market reach, as it did for Cisco.

Still, outsourcing to India, or any hub, has risks too. In fact, some firms hit data security issues or weaker service when they hired just to cut costs.

So businesses must learn to dodge these risks. In turn, they can turn them into gains that pay off in the long run.

How do outsourcing companies in India stand out?

India has slowly become a top hub for large firms worldwide. In fact, some of the best providers were born there, such as Tata Consultancy Services and Infosys.

Its growing IT industry lifted India’s name in the global sector. As a result, its workforce is a relief for firms facing a shortage of tech talent.

Indian tech pros handle many tasks. For example, these span software, web, and app development, data entry, live chat, data management, payroll, and bookkeeping.

India has become a favorite hub for firms moving work offshore. Countries like the Philippines, China, Mexico, and Ireland are rising too. Still, India stays near the top.

So, is outsourcing to India right for your company?

Do you want great quality on a tight budget? If so, working with providers in India is a strong choice. In fact, the cost of outsourcing there is much lower than in many other countries.

The quality of solutions and the skills on offer are hard to match. So you can scale with ease and stay flexible.

India’s tech and finance hubs welcome clients from other countries and time zones. As a result, providers there are well trained to serve clients wherever they are.

Frequently asked questions about companies that outsource to India

Which companies outsource to India?

Microsoft, Ford, Cisco, Amazon, Google, IBM, and AT&T all do. So do American Express, Dell, and HP. In short, the list spans many sectors.

Why do companies outsource to India?

They outsource to India for low costs and deep talent. In addition, they gain 24/7 service. As a result, firms can save up to 70% on labor.

What services do companies outsource to India?

Firms send software, web, and app development there. They also outsource support, data entry, payroll, and bookkeeping. So the range is wide.

Is outsourcing to India safe?

It can be, with the right partner. Still, some firms have faced data security issues. So vet providers on quality, not just price.

How much can companies save by outsourcing to India?

Many firms save up to 70% on labor costs. In addition, they cut setup and training spend. As a result, the model stays popular.

Key takeaways

• Top firms that outsource to India include Microsoft, Ford, Cisco, Amazon, Google, IBM, and AT&T.
• The main draws are low costs, deep tech talent, and 24/7 service.
• Firms can save up to 70% on labor costs.
• India’s providers offer far more than back-office help, from software to data work.
• Quality matters most, so vet any provider with care before you sign.