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Why is Google outsourcing IT functions to India?



why is google outsourcing it functions to india

Why is Google outsourcing IT functions to India?

As businesses evolve and adapt, many companies adopt outsourcing strategies to help control expenses, stay in front of competition, and propose innovative solutions without sacrificing quality. India has become a worldwide hub for offshore back-office services as large companies in the U.S, Europe and Australia are increasingly shifting their call centre operations, IT services, and other business procedures to India.

Over the past few months’ tech giant Google, has stepped up its outsourcing plan and has been allocating more processes to companies such Cognizant, which presently has a majority of its personnel in India. The concept of outsourcing is not anything original for Google, the business has been sending out software maintenance and development projects to third-party technology vendors for years. However, what’s different now is that Google is outsourcing non-core aspects of its work like IT infrastructure management, software development and maintenance to IT services firms.     

"Outsourcing is not something that's new to Google it has always given out small amounts of work to third-party service providers. Now what has happened though is that Google sees greater value in outsourcing non-core parts of the business, as it is more cost effective," said a top US-based executive at a multinational technology services firm, which currently manages software projects for Google.

Companies like Apple have been outsourcing core and non-core functions to countries like India for some time now, but now other major players like Barnes and Nobles, Google, Bank of America and General Electric are all taking advantage of the benefits of outsourcing.

This development illustrates that if outsourcing can be applied to large MNC’s like Google, then surely it can also be utilised by SME’s that want to keep costs to a minimum while still expanding their business. At QX Corporate Advisors we specialise in de-risking business set up in countries like India for companies ranging from IT to architecture; we have experience in setting up new and existing businesses all over India.  Our parent company, QX Ltd, just happens to be one of the leading outsourcing companies in India too.

We ensure that all permissions required by regulatory bodies are attained as quickly as possible.  We can provide customised services for business entity setup, approvals, legislative registrations and all of their post registration compliances. If the Indian IT sector is of interest to you at this exciting time of investment, then please contact us on contact@qxadvisors.com or call us on 0845 838 2672



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