Top 10 Things to Consider when Outsourcing to India

What Small Business Owners Should Consider When Outsourcing to India


As we detailed in our previous blog post, outsourcing to India has many advantages. However, in some cases, outsourcing may not be the way to go for your small business. Here are the top things you need to consider before you make the decision as to whether or not you outsource to India.

Underdeveloped infrastructure

Even though Indian outsourcing providers tend to have excellent IT infrastructure, the condition of roads and other physical infrastructure in the country is still less than desirable. If the nature of your outsourced tasks requires frequent personal visits to India, you need to factor in where your business partner is located and how long it will take you to travel there. Also, due to how densely populated the cities are, traffic is quite congested which makes getting around even harder.

Staff turnover

Indian outsource providers tend to have a high staff turnover. While that doesn’t directly affect you, constantly training new employees slows the operation of your service provider down which might result in delays while completing your tasks.

Different business culture

Working with people from a different business culture is always a challenge. If you plan to outsource time-sensitive tasks, make sure to give ample time for your providers to complete them, since you may need to allow time for extra communication.

Different time zone

Depending on your location in the US, there might be even 15 hours of time difference between you and your service provider (Hawaii – New Delhi is 15:30, while New York – New Delhi is 10:30). If your outsourced tasks require close daily cooperation, this might prove to be a challenge.

Hidden costs

When negotiating your contract, pay attention to the small script as it might include hidden costs associated with outsourcing.

Loss of sensitive data

Depending on the tasks you choose to outsource, you may have to share some data with your outsourcing provider. If that is the case, make sure you have a strong confidentiality agreement with regular checks in place to protect your data. Keep in mind that your service provider may work for other companies who might be considered your competitors.

Don’t outsource key tasks

While outsourcing non-sensitive tasks is a great idea to help your business grow, you must bear in mind that your outsource provider is not your employee. Avoid being overly dependent on your provider; keep your key functions within your business to protect yourself as well as your interests.


Since your outsourcing provider most likely works for other companies as well, some delays might be expected depending on their workload.

Losing management control over some tasks

If you outsource tasks from your company, you won’t be able to manage how those tasks are completed. Make sure to outline all your quality requirements and deadlines in your outsourcing contract to avoid problems.

India is not the only location

Over the past decade, many other countries entered the outsourcing market and have now become equal competitors to India. Locations like Latin-America, Eastern Europe, the Middle East, Asia or the Caribbean offer competitive outsourcing services. Why not have a look around and choose the best outsourcing partner for your needs? And while doing that, keep in mind that through Veem, paying your supplier is fast, secure, low-cost, and as easy as sending an email.

Country content

You need 7 tools to master international trade. Find out what they are.

* This blog provides general information and discussion about global business payments and related subjects. The content provided in this blog ("Content”), should not be construed as and is not intended to constitute financial, legal or tax advice. You should seek the advice of professionals prior to acting upon any information contained in the Content. All Content is provided strictly “as is” and we make no warranty or representation of any kind regarding the Content.