Big MNCs Outsourcing their Accounting Operations to India:
In this edge of globalization, the spread of companies has rafted like never before. Many small and local companies have grown into multinational companies because of such expansions. As the MNCs expanded, 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 into companies prefer to outsource accounting operations to India.
India’s Stand on Outsourcing Bookkeeping in the World
Offshoring operational activity to India helps them save on costs and stay ahead in competition with peers. India has become the top destination for operational outsourcing. As per a recent report, 80 per cent of the firms in the U. S and the 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, India handles 70 per cent of the total consumer support of the world. Most of this population 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 the core of the whole process. There was a time when only cheap processes and outsourcing work were sent to India. However now as India has got good hands-on various technologies like Blockchain, robotics, Internet of Things (IoT), machine learning; it has attracted big MNCs for higher opportunities to prosper their businesses.
Quality, Experienced and Affordable Human Resource
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 per cent 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 25-30 per cent 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 a very affordable labour rate. India has many tough competitors like China, Mexico, Ireland and the Philippines, but still, Indian rates for outsourcing are 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, 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 costs 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 per cent 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 art facilities. India offers the latest software technology for various industries such as e-commerce, business processes, accounting outsourcing and more. India has also improved and advanced communication sources like fibre optical networks, satellite connectivity, and high-speed bandwidth connectivity. Such infrastructure and technology make India very lucrative for outsourcing services.
Smooth Government Policies
Apart from these facilities, India has got great government stability and a good policy framework compared to 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 many special zones and industrial parks to develop itself as the best destination to do business. The Indian Government also provides various benefits including tax benefits that prove to be more beneficial for MNCs.
The Benefit of Time-Zone
Last but not least, the Indian time zone advances India to provide its clients from various countries like the U. S and the U. K with 24*7 services. For i.e. the time difference between India and the U. S is 12 hours. This provides the MNCs in the U. S to get its work completed on time. They can also give various other tasks for completion with no worry of the backlog. In the end, all these facilities and best services make India the best place to outsource operational activities for MNCs.
Over time, India became a hub for accounting activity, and hence many small and big companies are choosing to outsource accounting operations to India. To know more about Meru Accounting and its hourly rates contact us anytime.