In this edge of globalization, the spread of companies has rafted like never before. Such expansions have created many small and local companies into Multinational Companies. As the MNCs got expensed, they started shifting their operational activities to emerging countries like India for quality services and affordable labour rates. When it comes to accounting the outsourcing become essential for them hence the quality of Indian accounting professional is unmatchable. We at Meru Accounting as a leading accounting firm giving you more insight about why companies prefer to outsource accounting operation to India.
Offshoring operational activity to India has helped them saving on costs and stay ahead in the competition with peers. India has become the top destination for operational outsourcing. As per a recent report, 80 percent of the firms in the U.S and U.K offshore their operational activities, IT work and various business processes to India. They have ranked India on the top for their outsourcing destination amongst other countries. In addition to that, 70 percent of the total consumer support of the world is also handled by India, most of which are from the U.S including companies like Cisco, American Express, General Electronics and more.
India has built such goodwill in the market that more and more MNCs are showing confidence in India for its quality performance and experienced and well trained talents. As reported by The National Association of Software & Service Companies (NASSCOM), almost half of the Fortune 500 companies outsource their operations to Indian outsourcing firms. The reason behind it stands new and digital technology that has been core for the whole process. There was a time when only cheap processes and outsourcing work were sent to India, but now as India has got good hands on various technologies like Blockchain, robotics, Internet of Things (IoT), artificial intelligence and machine learning; it has attracted big MNCs for higher opportunities to prosper their businesses.
India is the second most populated nation in the world with a population of 1.2 billion, and the average age of the population just being 29. Along with that 65 percent of the country’s population is under 35 years, which makes India a young country. As a result, India also has the largest technical and professional talent pool. There are many people choosing competitive sectors like Information Technology, and the industry is also growing at the rate of 25-30 percent annually. India has students graduated with high ranks and niche knowledge which makes it stand out as a destination for the best outsourcing.
As stated earlier, India offers very affordable labor rate. India has got many tough competitors like China, Mexico, Ireland and the Philippines, but still, Indian rates for outsourcing is very cheap. For i.e., outsourcing of software development would cost a U.S company around $50 to $80 per hour at anywhere, while India offers a good developer just for $15 per hour. So, in other terms, India means a huge destination for cost-saving!
Though economically China is ahead of India, but in terms of providing highly skilled human resource, availability of the human resource, wages, cost consideration, taxes, infrastructure costs, etc. India does beat China. India offers quality services at a very pocket-friendly rate. Reducing cost for their operations remains the main aim for the MNCs to outsource the services to India rather than any other country. That’s also the reason why India holds 65 percent of the international offshore BPO market and an IT hub for many companies.
Unlike the old decades, India has adopted a vast range of technologies and has developed a state of the art facilities. India offers the latest software technology for various industries such as e-commerce, business process, accounting outsourcing and more. India has also got improved and advanced communication sources like fiber optical networks, satellite connectivity, and high-speed bandwidth connectivity. Such infrastructure and technology make India very lucrative for outsourcing services.
Apart from these facilities, India has got great government stability and good policy framework compared to the other countries. The focus of the Indian Government is to grow and globalize India by providing compatible infrastructure, modern amenities and transparent and easy establishment policies. India has got many special zones and industrial parks to develop itself as the best destination to do business. The Indian Government also provides with various benefits including tax benefits that prove to be more beneficial for MNCs.
Last but not least, Indian time zone advances India to provide its clients from various countries like the U.S and U.K with 24*7 services. For i.e. the time difference between India and the U.S is 12 hours, that provides the MNCs in the U.S to get its work completed on time and also various other tasks can be given to get done without any worry of the backlog. At the end, all these facilities and best services are what make India the best place to outsource operational activities for MNCs.
Over a period of time, India became a hub for accounting activity and hence many small and big companies are choosing to outsource accounting operation to India. To know more about Meru Accounting and its hourly rates feel free to contact us anytime.