Do you want to outsource work from USA to India to save cost? If YES, here is a complete guide on how to outsource work from USA to India and how much it cost.
The population, economies of scale, rapidly growing workforce and of course cheap and affordable labor are some of the attractions that make corporations and investors from the United States of America to outsource their production or service facilities to India.
Why Outsource your Business Process to India?
The truth is that if you own a business in the United States and you are thinking of ways to cut cost, you might want to consider outsourcing some of your jobs. It is a fact that you can get cheaper labour in countries like India, China and Philippines compared to what you might get in the United States.
Most of the large corporations in the United States now prefer to outsource their service based businesses and even software design and development projects to places like India, China and even the Philippines because government laws and taxation favors them, and also these countries can boast of young talented and competent workforce that can deliver excellent services at cheaper rates.
Take for example, the Indian Government is mindful of the growth of the outsourcing industry in the country, and as such, they are providing all the backing they can like lower interest rates, fewer foreign exchange restrictions and the development of IT enclaves, which have helped the outsourcing industry, along with the encouragement of foreign direct investment into the country. With the Rupee now being fully convertible, Indian businesses are free to invest anywhere.
Indians are leveraging on this trend because they have standard facilities that can deliver world class services. All that is required of you would be to pay the agreed fee required to get your job done, so you can concentrate on other things.
Despite the fact that some economists in the US are against jobs being outsourced, they cannot deny the fact that when US companies outsource their jobs to countries like China, India, or even the Philippines, it enables them reduce the cost of production of their goods and gives them the advantage to compete in the global market. Here are proven steps you need to follow if you want to outsource your work from the United States to India.
How to Outsource Work from USA to India and How Much It Cost
- The First Step is to Check Up with The Existing Law as Regards Outsourcing
The first port of call when it comes to venturing into any business is to check the existing law as it relates to the business, and outsourcing jobs from the United States to other countries is not an exemption. As a matter of fact, no country would want to do business with other nations if the business to the disadvantage of the home country.
The trade agreement between both countries is usually the determining factor when it comes to outsourcing jobs from one country to another. So, all you have to do to get the process started is to make inquiries from the department of foreign trades and investments.
There, you will be able to know the products and services that are allowed by the law to be outsourced from the United States, the countries that have trade agreements with the United States, the terms and conditions and a host of other guidelines.
- The Second Step Is to Define the Services and Products That You Want to Outsource
Come to think of it, no one embarks on a journey without clearly defining his or her destination hence the need to define the services or products you want to outsource to India from the United States of America. The fact that outsourcing ensures that you cut cost on production and running your business doesn’t mean that you can outsource all jobs to any country.
There are some types of jobs that can be outsourced, while there are some that cannot. If your job is the type that doesn’t require your workers to interface with your client physically, such as call centre jobs or even product manufacturing, then you can consider outsourcing the jobs. The first thing you are expected to do is to define the services and products you intend outsourcing before going into the details and intricacies of outsourcing.
- The Third Step is to carry out a Comprehensive Feasibility Studies and Market Survey
If you have clearly defined the products or services you want to outsource from the United States to India, then the next step to take is to carry out a comprehensive feasibility studies and market survey. The truth is that you cannot successfully outsource your jobs to other countries without conducting feasibility studies.
The truth is that if you carry out diligent feasibility studies and market survey, you would be able to compare a lot of indices, and with the result you get, you can do your comparison to know if it may be profitable to outsource your job, and to know the region in India that might be the most suitable for the nature of the goods and services you want to outsource.
- The Fourth Step is to Advertise and Welcome Proposals from as many Companies as Possible
During the process of conducting feasibility studies and market survey, you would have come across a couple of companies that you can do business with hence the need to advertise and welcome proposals from as many eligible companies as possible.
One of the best ways to get good and cheaper deals is to advertise for companies from India to bid on your jobs. Be sure to get lots of proposals. When you welcome loads of proposals, it gives you the advantage to explore your options and you will be able to make a good and well – informed choice.
- The Fifth Step to Take is to Compare and Screen Your Options
The next thing to do when you have received proposals from various companies of India is to inaugurate a competent committee that would help you compare and screen the proposals. After the screening has been done, then you may invite the top 5 contenders to come do a presentation before you eventually make your final choice.
This is so that you settle for the very best bidder. Trust me; no matter the services and products you want to outsource to India, you are going to get more than enough companies who are willing to do job excellently well and at an affordable rate.
- The Sixth Step is to Travel to India to Inspect the Facility to Be Used for Your Job
The next step to take after you must have evaluated all your options from the presentations they have done is to travel down to India to inspect the facility that will be used to carry out your job. It is very important to ensure that this is carried out before signing any deal.
Aside from inspecting the facilities, you should also get firsthand information on laws and regulations guiding the running of your kind of business in India. You can get such information by visiting the required government agency to request for it and you can be rest assured that they will freely oblige you with the information.
- The Seventh Step is to Train the Key Frontline Workforce (Train the Trainers)
After the deal has been signed and sealed, the next reasonable thing to do is to train the key frontline workforce or manager or team lead as the case maybe. Even if you might not be required to train the entire workforce, it is very important that you take the responsibility to train the key frontline workforce. You should be able to instill in them the corporate culture of your company, your vision and mission et al.
It is important you also focus on training them so that they can in turn train other people that will be working on your outsourced job. For example, if you are outsourcing your call center job to India, part of the training that you should deploy are pronunciations, customer services excellence, telephone etiquette, amongst others.
- The Eight Step is to Establish a Channel for Continuous Update and Communication
Another important factor that you must put in place to ensure smooth working relationship with the company you outsourced your job to is to ensure that you establish a channel for continuous updates and communication. At least for the first phase of your dealing with the company you outsourced you job to, you must ensure that you monitor the activities of the company daily.
You might have to do this for at least a period of 6 months before you are able to ascertain whether they can meet up with your standard and expectations. With effective and continuous communications, there will be room for feedback and corrections before things veer off tangent. You can do this via email, Webcast, Conference calls, et al.
These are some of the basic steps you should consider before outsourcing your jobs to India. Adhering to all these steps means that you are headed in the right direction.
How Much It Will Cost You to Outsource Jobs from USA to India
The cost analysis as it relates to outsourcing jobs from the United States of America to India to a large extent depends on the nature of the jobs to be outsourced and of course the agreement between both parties.
In some outsourcing agreements, the company bidding to carry out the outsourced job may be required to provide the facility, machine, raw materials, labor and other stuffs. All the contracting company needs is to ensure that they get the finished goods while the host company ensures that factory runs seamlessly.
At the end of the day, the contracting company provides the resources (finance) and in some instances expertise and guidance, while the host company provides the finished goods. Some outsourcing agreements would require that the contracting company build the infrastructure and machines to be used and the host company provides the labor to run the production facility.
In view of that, the cost for outsourcing jobs may differ, the truth is that cost for outsourcing a call center or any service based job from the United States of America to India will be different from the cost of outsourcing the production of pharmaceutical products (drugs).
Please note that there is no fixed amount required to outsource jobs from the United States of America to India.
Jobs That Can Be Outsourced from USA to India
There are a host of jobs that can be outsourced from the United States of America to India and top amongst them are;
- Call Centre Jobs (Providing telephone answering services, providing contract or fee-basis telemarketing services, providing wakeup call services, providing voice mailbox services, providing telephone solicitation services, providing message services, Providing customer service via call centers, Technical support services and Debt collection services)
- Digital Marketing
- Software Apps Development
- Account Services
- Clothes Manufacturing
- Footwear Manufacturing
- Data Entry and Data Mining Service
- Drugs Production (Pharmaceutical Products)
- Computer Components/Parts
- Herbal Products Manufacturing
- Stationery Production
- Children’s Toys Production
- Chemical Production
- Diamond Cutting and Polishing Services
- Production of Hair Extensions
- Production of Hookah