The Future Demand and Market Rise of Offshore Outsourcing

The Future Demand and Market Rise of Offshore Outsourcing

In recent times, information technology has gained a huge momentum, especially in the space of offshore outsourcing.

The term outsourcing, for many good reasons, has become the catchword used around the globe.

Business Process Outsourcing is what enormous tech companies rely on for their business growth. On a plus, BPO is a great way to scale a business effectively as it tends to outsource the talent pools from a new region, which saves both time and cost.

This way, you can reduce the overall cost of the staffing at a quite nominal price than your actual in-house staff hiring cost.

Offshore outsourcing is becoming essential as almost 80% of the European and U.S. outsourcing firms prefer India as the top priority destination for IT outsourcing. 

Here is what IT Outsourcing market revenue report projected to reach as per the Statista IT Outsourcing India revenue report stats. 

IT Outsourcing Revenue Report India


Revenue in the IT Outsourcing market is expected to reach US$10.51 bn in 2024.On the other hand, the revenue in Business Process Outsourcing (BPO India) is projected to reach US$7.12 bn in 2024 as per Statista BPO (India) revenue report.

Further, in this guide, we will walk you through to get more insights about IT offshore outsourcing, simplifying it more broadly.

Let’s start knowing it in-depth!

Let’s Understand, What Exactly is Offshore Outsourcing?

Offshore outsourcing often considers hiring staff located in the other region, which is generally situated overseas.

This type of offshoring is quite popular nowadays because there are no actual costs involved to hire a staff, staff retention, and still you get the tasks completed by highly skilled professionals.

Therefore, to take advantage of a talented pool from developing countries, companies hire experienced offshore staff and workers to reduce cost efficiencies and cut off their expenses. 

Differences Between Offshore, Onshore and Nearshore Outsourcing

Offshore Outsourcing: This is when a company delegates its business processes or services to a partner organization located in a different country, often to capitalize on lower labor costs, access a global talent pool, and achieve operational efficiencies across different time zones.

Onshore Outsourcing: This involves a company contracting out services or tasks to another company within the same country. It’s chosen for the benefits of easier communication, cultural alignment, and logistical convenience, often for projects requiring close collaboration.

Nearshore Outsourcing: Nearshore outsourcing refers to a company outsourcing its operations or services to organizations in neighboring countries.

Challenges of Onshore and Nearshore Outsourcing:

Higher Costs: Onshore and nearshore outsourcing often lead to higher expenses due to similar economic conditions and proximity. This can diminish the financial benefits of outsourcing, with nearshore options typically costing more than offshore but less than onshore.

Smaller Talent Pool: These outsourcing models offer access to a more limited range of skills compared to the vast global talent available offshore. Finding specialized or niche expertise locally or regionally can be more difficult.

Less Cost Savings: One of the main issues with onshore and nearshore outsourcing is the lack of significant cost savings. Without the major reductions in expenses provided by offshore outsourcing, justifying the investment becomes challenging.

Scalability Issues: Adjusting the size of your outsourced team is more complex and costly with onshore and nearshore outsourcing. The associated higher costs make it harder to quickly adapt to business demands.

Competitive Edge: Relying on onshore or nearshore outsourcing may place companies at a disadvantage against competitors who use offshore outsourcing. The latter’s benefits of lower costs and access to a wider talent pool can enhance a company’s innovation and market competitiveness.

So, as we compare the three options, isn’t it clear that offshore outsourcing stands out? It offers unparalleled cost savings and access to a vast global talent pool, positioning it as the most efficient and cost-effective solution for businesses looking to optimize their operations and expand their capabilities on a global scale.

Why Offshore Outsourcing to India?

India is a talent-rich country, and we all know there is a better future scope of getting every I.T. service work done effortlessly.

One reason behind it is that Indians are pretty much good in English and have a good commandment over the language. They actually have good fluency in the English language, so the outsourcing company does not have any language barrier.

In just a few years, India has captivated the outsourcing arena with a great hike. That said, India has one of the most talent pool-building capabilities globally.

Indians are good at perseverance.

Indians are highly skilled professionals and they are the youngest employable population with the highest number of IT graduates globally.

That being said, they are generally more committed to work than other countries’ talents.

With good commandment on IT skills and with nominal labor rates, they stand out from their foreign counterparts.

Benefits of Offshore Outsourcing to India

Cost Effective 

Offshore I.T. outsourcing of U.S. companies almost saves more than 50% than average onshore outsourcing.

The plus point of offshore outsourcing services is that it saves money by hiring the same skilled professionals due to the low labor cost of that particular country. 

Skilled Professionals

Skilled professionals are the real asset of any organization, and so is true about the talent pools of Indian companies.

They are not only cost-effective, but also the Indian talent pool works hard to achieve the desired results of the outsourcing company. 

Good in Multi Language Support

While outsourcing I.T. services, a major hindrance of multi-language support is always there. That is where the highly skilled Indian talent stands out because many of the experts are well-versed in providing multi-language support.

Provides 24/7 Support Round the Clock

What if an outsourcing company provides 24/7 support for its offshore staffing whenever required?

Well, there are plenty of Indian companies that support 7 days a week and 24 hours of support. 

Due to this, highly skilled Indian talents are in demand for offshore outsourcing services.

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Trending Business Processes That are In-demand and Outsourced at Vast Scale

Back Office Services

Back office support is one of the valuable aspects of the business process, which is why it acts as a backbone, because by outsourcing back office work, a company can tackle other core functions for business growth.

Data Entry Services

Various trending business processes have a higher potential in the outsourcing market globally. Among the services, data entry services are one of the in-demand IT services that has a great outsourcing market.

Outsourcing data entry services can be a wise decision for businesses looking to streamline their operations and improve efficiency. 

Hiring and training in-house staff can be expensive, especially considering additional costs such as salaries, benefits, and office space. 

Outsourcing allows businesses to pay only for the services they need without the overhead costs associated with an in-house team.

Web and Mobile App Development Services

In a world full of information technology, web development services, and mobile app development, demand has gained the most exposure and reached new heights.

Thanks to the coding language being kept as standard language globally which means companies can outsource their web and mobile app development requirements without any hassle of language barriers.

The Power of Offshore Outsourcing with Abacus Data Systems

Offshore outsourcing has a huge potential and an increased future demand in the market. That is why finding a reliable IT outsourcing solutions partner who meets your business needs is key. 

Abacus Data Systems can be your reliable outsourcing partner, providing highly experienced and skilled professionals backed with round-the-clock support.

By choosing us as your offshore outsourcing partner, you’re not just outsourcing tasks; you’re enhancing your company’s capacity for innovation, efficiency, and global competitiveness.

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