While offshore outsourcing is being increases service industries can also benefits from offshore outsourcing to India. You can see that some instances, cost and complexity is reduces while customer is getting batter services due to high competition. Even though there are some challenges in the process. There are number of problems arising during process but some of them obstacles are language and communication, expectation of batter quality work, and main thing is culture difference. Here I would like to concentrate on India as an outsource location for service sector firm. India immerse as a best outsourcing place in the world and getting more and more work from European countries.



People who are working in Indian service sector companies are typically English speaking, technically sound and stable which makes a best fit for US, UK or Canada based software companies. India-based employees have proven a good fit for help desk and call center support for complicated software products. India having large labor pool with compare to US. Same work cost more in US with compare to India and people providing offshore outsourcing services are providing best support at less prices. This economy gap is closing, but now cost saving can be huge if you are a small firm.

Additional benefits of HR outsourcing is time zone, the U.S. based firm work as per their business hours, which is basically the middle of the night in India. They can outsource their pending work to India and at next morning they can get it done.

Many U.S. based service sector firms have been reluctant to outsource. This is true because of a fear of the unfamiliar. This could be the perceived lack of control, cultural issues, fear of what customers will think, fear of the unknown, and the cost of starting up an outsourcing program.