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    25 Replies Latest reply on Jul 28, 2011 10:28 AM by Bugun IT

    Should American's Outsource to India?

    gigpreneur Wayfarer

      Is it a good idea to outsource to India for your Internet marketing and copywriting? What are the advantages and disadvantages?
        • Re: Should American's Outsource to India?
          The_USA_Champ Wayfarer
          1. Cost advantage.
          2. Comparable quality of work

          1. Time zone difference
          2. Communication overhead (Since the team is away, good communication is the key for the success).
          3. Requires more follow-up (at least in the beginning) to keep project on track.

          1. Not everything can be outsourced.
          2. Beginning phase is very difficult as you adjust to time and cultural difference.
          3. Start slowly by outsourcing little, and easy stuff that require less communication and where there are less chances of your communication being mis-interpreted.

          These are true not just with outsourcing to India but to any place that is remote from the work headquarters!

          I have executed tons of projects from the US as well as worked with teams spread across the globe. If you need more information, provide your email.

          • Re: Should American's Outsource to India?
            amabaie Newbie
            That depends. Some things are easier to outsource to India than others. The majority of Indian firms are teaming with talented programmers and designers. They are trained to follow specific steps. Tasks that fall into this description can be outsources easily to India (or elsewhere, but India happens to have a lot of firms thast fit this description). Other tasks that require creativity and strategy are harder to outsource to India or to anyone else. If you do want to outsource things like that, best to find a talented freelancer rather than a firm set up for outsourcing (in India or anywhere else). There is simply a different mindset...and it makes all the difference.
            • Re: Should American's Outsource to India?
              amspcs Ranger
              I'll speak from the point of view of an American consumer, not an American businessman.

              First, I tend to frown on American businesses that knock American workers out of jobs. I have nothing against Indians (or any other nationality), but American companies should provide jobs for Americans first and foremost.

              Secondly, I think companies who oursource to those who speak little or no understandable English do themselves a tremendous disservice. I know of one major computer company who will never see another dime of my money
              simple because their support is useless. There's plenty of it, and it's easy to get ahold of. The problem is: I can't understand a word of it!

              As an American businessman, I understand reduced cost and expense advantages.'s not really less expensive if it costs you customers and goodwill.

              • Re: Should American's Outsource to India?
                phanio Pioneer
                Better question - should India outsource to Amercia?
                  • Re: Should American's Outsource to India?
                    The_USA_Champ Wayfarer
                    Well, India has been outsourcing to America for a while now. Take the case of defense, nuclear energy, technology collaboration, etc.

                    Traditionally, India outsourcing to America has been high end while America outsourcing to India has been low end. But the equation in the America outsourcing to India has changed rapidly in the last decade or so where more of mid segment and some of high end work is outsourced from India.

                    So, to conclude, India is already outsourcing to America, what segment of the work, is what the question really is, correct?
                  • Should American's Outsource to India?

                    India’s BPO industry has evolved and matured to present higher-end services that require judgment-based analysis and domain expertise, rather than function-specific, rules-based performance parameters alone. As service providers strive to offer end-to-end services, we see BPO falling into different segments. At one end of the spectrum is the traditional rules-based transactional outsourcing; while at the other end is judgment-based transaction processing and full-service business process outsourcing.


                    India has won its spurs as the world’s outsourcing destination of choice. Currently the country has a commanding share of the global outsourcing market.

                    India is undoubtedly the most favored IT/BPO destination of the world. This raises the question why most of the big MNCs are interested in outsourcing their operations to BPOs in India. The answer is very simple- India is home to large and skilled human resources. India has inherent strengths, which have made it a major success as an outsourcing destination. India produces the largest number of graduates in the world. The name of India has become synonymous with that of BPOs and IT industry hence the name BPO India.


                    Besides being technically sound, the work force is proficient in English and work at lower wages in comparison to other developed countries of the world. India also has a distinct advantage of being in a different time zone that gives it flexibility in working hours. All these factors make the Indian BPOs more efficient and cost effective. In order to meet the growing international demand for lucrative, customer-interaction centers, many organizations worldwide are looking to BPO India.



                      • Should American's Outsource to India?
                        BPOISOLUTIONS Newbie

                        The customer thinks it is staffed by India, as well as are the largest in BPO, likewise the management capacity is not the best people to run there is high business demandprojection on the question is where is my business outsource when I'm in anothercountry where they have no vision for the future only made machines to meet a servicewhere is the strategy and innovation in India is very difficult to have business vision

                      • Should American's Outsource to India?
                        Bugun IT Wayfarer

                        Indian companies lack quality in software development, project management, and QA practices.  Significant percentage of projects fail due to outsourcing to India.  This fact is already accepted by Wall Street.  Outsourcing to India is not saving companies more than 5-10%, consequently publicly traded companies' stock rating is not affected by outsourcing anymore. 


                        Large and small corporations are in the verge of outsourcing to US based technology firms, this is the only initiative that can help them to compete in the global market.


                        Quality and proximity to business does matter!



                        • Should American's Outsource to India?
                          cireelectric Newbie

                          What is wrong with the old saying.


                          Buy American the next Job you save may be yours.

                            • Should American's Outsource to India?
                              Morecustomers Wayfarer

                              I would have to agree with cireelectric. We can make a significant difference in our economy if everyone re-directed dollars spent in America instead of the other way around.

                                • Should American's Outsource to India?
                                  ArcSine Scout

                                  Yes, Morecustomers, it would make a significant diff in our economy to discontinue outsourcing....a detrimental difference.


                                  When an economy produces a particular good or service internally, rather than acquiring it externally from an economy which has a competitive advantage in such good, the net effect is negative.


                                  Short-run there are always winners and losers from rational outsourcing, but the net effect is positive for the economy. As we re-allocate our resources to those production activities in which we have the competitive advantage, and away from those activities in which the comp ad lies elsewhere, our overall economy gains, long run.


                                  I'll agree it seems counterintuitive, until one looks at the underlying economic fundamentals. Folks who bluntly champion the "Buy American" mantra without any fine-tuning for economic logic, are probably well-intentioned, but nevertheless are inadvertently arguing in favor of a detrimental policy.

                              • Should American's Outsource to India?
                                BPOISOLUTIONS Newbie

                                Outsourcing services in India is a risky business and investment cost not only in the implementation stage but also in monitoring and control of the campaign the time zone, culture, service, so there are other possibilities in regional and comprehensive services in outsourcing, South America, Central America are already on par with powers such as India Philippines Thailand Vietnam among others is a good region to do so at present I have worked in this business for 15 years and give good results if they have been shared good human resource technology and development of each business.


                                By BPOISOLUTIONS LTDA

                                • Should American's Outsource to India?
                                  Tim Jacquet Adventurer

                                  I hate companies sending our resources to India to save money. We as consumers and businesses buy their product and our economincally to be able to invent the money, this does not give us the option. Dell really got on my nerves over this when they did it. Non only did you send all call there, after 25 years the computers are beginning to suck.

                                  • Re: Should American's Outsource to India?
                                    Bugun IT Wayfarer

                                    This is the second time my posts are deleted from this conversation.  Is anyone else having the same issue?

                                    • Re: Should American's Outsource to India?
                                      WebSquirrel Newbie

                                      Some of responses here are very good but seem to have little to do with small business. Maybe small/medium enterprise at best.


                                      I had been looking for a web design firm to work for my IT company as a sub-contractor.
                                      I have tried several local and national US web design companies. I had to expend a great deal of effort and time to find them and then wait for them to call back, an average of two weeks later!

                                      Essentially, I handed business to them. No strings other than not stealing my client. They could charge me whatever rate they want.

                                      Easy money for them, a service for my clients and a small profit for me.

                                      While I've seen some talent, none of them were reliable. Few could spell properly.
                                      Flaky, irresponsible, and entitled. Dear Lord, the entitlement!
                                      I couldn't put up with it anymore so I stopped offering the service.


                                      I've been getting requests for web design work from multiple web design firms in India.
                                      Why shouldn't I consider outsourcing to India, to people who actually want to work?

                                      I would never consider doing business with communist China, by why not India?

                                      They like us, they speak English, they want the work and they are well-educated.

                                      My experience with my fellow Americans has been so bad that I might be willing to

                                      put up with the time zone differences and QA issues.

                                        • Re: Should American's Outsource to India?
                                          Bugun IT Wayfarer

                                          I am not sure how many web designers are in the picture of your story, but I can tell you one thing for sure: There are Ethics Laws in the USA. 

                                          Stealing trade secrets is a federal violation in the U.S. and is punishable by law.


                                          You don't get this protection anywhere else in the world.


                                          There are over 54,000 web designers in the USA, you have a choice.  Be proud of your choice!

                                        • Re: Should American's Outsource to India?
                                          Moderator Jim Ranger

                                          Awesome answers so far on this!


                                          Is patriotism a factor when deciding to outsource at all?



                                            • Re: Should American's Outsource to India?
                                              Bugun IT Wayfarer

                                              Patriotism is nothing to do with business or during business decision making process.  Unless the businessman is in flag business.


                                              Many of us are concerned about uncontroled outsourcing model.  Great minds (U.S. Citizens, Greencard holders, H1s, etc.) here in the United States sit at home waiting for a call for work while tens of thousands of projects are being sent overseas.  Businesses expect to gain 20%-30% from cost savings while suffering quality and competition power in the global markets.  By the way, cost savings of outsourcing never reach to 30%.  Cost of ownership of offshore projects always exceed the onshore ones.  Carnegie Mellon U. has a study on this topic, you can read it at their site.


                                              If this trend contiues, neither Indian nor American techies will be able to keep up with the changing economics in the IT sector.  Watch out for Far Asian and Pacific countries who already lowered IT labor fees to penetrate the US market.


                                              Next trend will be outsourcing VP jobs.  Then, corporates will meet their cost saving expectations!


                                              Good luck.

                                            • Re: Should American's Outsource to India?
                                              Rainbowrite Adventurer

                                              Wow, this thread's definitely an eye-opener. I like the drastically different feedback, though I am noticing a trend in the responses.


                                              As a freelance writer in California, I've seen many US companies outsource their copywriting and whatnot to workers in other countries (mainly India, yes). They justify the choice as being nearly 80% cheaper with comparable quality. I've noted that they always say "comparable". Not "better", not "exactly the same" - they essentially mean "it's good enough". When sales, conversion and desired customer action are on the line, I believe investing for quality out the gate makes more sense. It's a better return for your money, etc.


                                              Now, I'm not saying all outsourced workers deliver poor quality. I know there are quite a few who are very competant, intellegent and well versed with Western business customs and culture. However, that is another complaint I hear a lot. For example, I have a few designer friends who work for a large company in New York, and they once outsourced some projects to India to ease workload. Unfortunately, the quality and results were so poor they had to re-do them in house. I've also heard many nightmare stories of businesses getting dinged by Google and lost sales because their outsource workers used un-edited PLR articles, left poor grammar and spelling mistakes or scraped content from other sites.


                                              I've seen so many businesses claim outsourcing is just so much better overall that I sometimes become discouraged with my own marketing attempts. I can't compare to their rates, and thus lose out on gigs I know I'd excel in. I can't blame them though - money is what runs the business, and if you can save a few bucks outsourcing, then why not?


                                              In the end, it's a constant battle to get the gig and show that you're the right choice, even if you do cost more.