Outsourcing is one of the important outcomes of the Globalization process. In outsourcing, a company hires regular services from external sources, mostly from other countries. Many of the services such as voice-based business processes, record advice, etc are being outsourced by companies in developed countries to India. Therefore, outsourcing has proved to be good for India in the following manner. 


The advantages which make it a favorite Outsourcing destination are : 

  • Easy availability of cheap labor. As the wage rates in India are comparatively lower than that of the developed countries. 

  • Skills – Indians have a reasonable degree of skills and techniques and knowledge of International language, English. 

  • Stable Political Environment: The democratic political environment in India provides a stable and secured environment to the MNC’s to expand and grow. 

  • Availability of raw material at cheaper rate India is well downed in natural resources. This ensures the MNC’s cheap availability of raw material and undisturbed and perennial supply of raw materials. This enables proper and smooth operation of MNCs.

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