It is well known that outsourcing programming to India is growing day by day. The companies which have researched on India in terms of its economy, infrastructure, cost-effectiveness, level of English language, have already set up their companies in India and this has led many other US companies in outsourcing their businesses to India. Even the companies of UK are following the footsteps of US companies and have outsourced their business to India. As per the foreign experts the companies will need to outsource work to India in order to receive benefits of efficient labor at a low cost.



The reason for why India is a hot destination for outsourcing programming is it helps companies to cut costs in specific areas. The savings generated from offshore outsourcing programming work could be reinvested in developing services for high-value market segments. When the overseas companies provide offshore outsourcing programming work to Indian companies, they do not have to bother about the cost of office paraphernalia like office Space, equipments, employee recruitment cost and training. These expenses are to be borne by the companies to which the work is outsourced. However, some of the US and UK based companies have also established their branches in several metro cities of India considering the currency exchange value of USA and UK with India which has helped a lot in reducing their company costs compared to that of their home country’s.

If you look at the statistics of salary, if a US or UK company is paying an employee the salary of average $500 and £300 per week respectively for working in the general 8am-4pm shift in their home country, they need to pay a one and a half or double salary to the employees working in 4pm-12am and 12am-8am shift if the company is a 24x7 service provider. This calculates to $750/1000 and £450/600 for working in evening and night shifts respectively. So the companies in US pay the total salary of $2250 and those of UK pay the salary of £1350 approximately per week for 3 employees each working in different shifts, which goes to $9000 and £5400 per month for 3 employees. So the average per employee salary comes to $3000 and £1800 respectively per month. If converted these currencies to Indian currency the amount goes to Rs.135,000 per month for US employee and 144,000 approximately for UK employee. If the same work is done in India, even if the same companies pay average salary of Rs.15000 to one employee per month, the US companies save the amount of 120,000 and those of UK save the amount of Rs.129,000 per month per employee, which is equivalent to $2600 and £1800. Apart from the salary, the companies can also save the money on other infrastructures and overhead costs.

India, being an economical country in terms of labour, electricity, land, office apparatus and several other costs, it has attracted numerous US and UK companies to outsource their programming work therein by qualified and quality English proficient professionals.