5 Biggest US Companies That Outsource to India
As business realities change, a number of companies are adopting outsourcing strategies to help control costs, stay ahead of competition, and offer innovative solutions without compromising on quality. India has become a global hub for offshore back-office services as big companies in the U.S and Europe increasingly shift their call center operations, IT services, and other business processes to India. A recent survey indicated that 80% of outsourcing firms in the US and Europe ranked India as their top outsourcing destination. According to a recent survey, 70% of consumer support outsourcing in the world is handled in India and global statistics indicate that about 56% of outsourcing partnerships to India comes from companies in the US. From the financial sector to healthcare providers to software developers, and the manufacturing industry, companies are eager to leverage the benefits of outsourcing.
India has gained global confidence with major players opting to outsource to India because they are confident of gaining access to quality results, superior talent, low costs, and fast turnaround times. India is also believed to be the ICT sector hub. It also holds 65% of the international offshore outsourcing BPO market, making it the leading country in providing inbound call center outsourcing services.
Here are 5 Largest US Companies that outsourced call center operations to India:
Ford Motor Company (FMC)
Ford Motor Company is a renowned American automobile giant. FMC outsources software development, IT & customer support to India. Initially, the company only outsourced back-office work such as accounting to India. As Ford Motor Company was pleased with the high level of quality and reliable services in India, it also set up a software development center to manage its e-commerce solutions. One of the directors at Ford stated that Ford was extremely pleased with the fast and efficient services handled by Indian professionals.
In the last two years, FMC has invested more than $5 million in setting up an information technology project. On a yearly basis, Ford Motors Company will be spending a large sum of money into the IT enterprise in India. Ford’s IT venture in India handles all the company’s IT tasks from manufacturing bases spread across the world to meeting the company’s e-business solutions. Apart from outsourcing IT to India, Ford also moved its entire call center to India, to give clients access to reliable 24/7 customer support. The company offers phone support services, live chat support services, and email support services.
The famous networking giant company invested over $150 million in structuring and expanding its technology development enterprise in India. Cisco also set up its 2nd largest research and development facility in Bangalore, India, which houses more than 1500 Indian technical professional. Cisco’s Research and Development Bangalore center was developed to help the company to deploy fast products and solutions, develop new technologies as well as successfully meet customers’ demand through providing technical support. Cisco also has plans to make more investments in India and leverage the skills of the Indian networking professionals. The kind of support offered is live support services and Email support services.
The services in the research and development center include:
- 24-hour monitoring and response
- Technical support for all Cisco technologies
- SLOs for mean time to notify, isolate and to resolve incidents
- Collaboration with Cisco IT Tier 3 organization
This investment has helped CISCO to integrate channels and customer facing processes resulting in higher customer satisfaction and a more profitable growth.
American Express (Amex)
American Express (American Multinational Financial Corporation) is one of the pioneers of back-office operations outsourcing to India. American Express opened its Financial Center East in New Delhi in 1994. American Express also practices business process outsourcing when it comes to customer service duties. It partnered with outsourcing companies from India and Philippines to take care of customer service. Among the outsourcing outfits working out of India included Spectramind, which is owned by Wipro, an Indian IT services firm.
Amex also partnered with multinational Information technology companies in India like Infosys Ltd, and Tata Consultancy services where it outsources IT services, application development, and maintenance, and technical support. These outsourcing companies offer Amex customers live chat support services and phone support services.
General Electronics (GE)
General Electric invested about $130 million in setting up a big, state-of-the-art research and development center in Bangalore, India. This center is the General Electronics’2nd largest research and development center in the world and is staffed with skilled Indian professionals. The center is equipped with the latest engineering tools and technology and is responsible for interacting with GE’s customers, suppliers, branches, partners, and other technology centers across the world.
General Electronics also has a technology center in India that employs over 2,200 engineers and scientists with chemical engineering, mechanical engineering, polymer science expertise and new synthetic materials. GE also opened up an e-knowledge center in India to disseminate knowledge and technology developments to its business centers. Clients get phone support services, email services as well as live chat support services.
Microsoft in 2010 signed a three-year deal with Indian outsourcer Infosys Technologies to manage significant parts of its worldwide internal IT operations. The agreement included specific services such as technical assistance, management of databases, software applications, and devices. The agreement covered over 450 locations through 104 countries.
Located in Bangalore, India, Infosys had already partnered with Microsoft in certain areas but this particular deal further extended that relationship. Infosys also partnered with Unisys Corporation in Pennsylvania to provide service-desk and desk-side technical support to Microsoft employees. This deal saw Infosys enhancing their capabilities to help other customers leverage Microsoft innovations and adopt new technologies. Clients get technical support via live chat support services and Email support services.
Reasons why India has become the ultimate outsourcing destination for big companies
- India has the largest professional and technical talent pool in the world and an immensely talented workforce
- India offers flexible pricing options for services
- India provides consistent premium quality services
- India boasts of the best in technological Infrastructure and capabilities
- The Indian Government is very stable and offers attractive IT strategies
- Indian outsourcing companies provide the quickest turnaround time (time-to-market)
- Unique time zone advantage making it easy to provide 24/7 services (Indian time zone is 5.5hours ahead of GTM and 10.5 hours ahead of the EST)
The future of outsourcing services to India
Analysts believe that India is still a vital destination for outsourcing, and its annual GDP is expected to grow at 8–10% for the next decade. Additionally, outsourcing efforts to India are held up as an efficient solution for concerns about both the government policy and labor force issues, such as intensifying costs and labor shortages.