Why American Small Business Continue to Outsource to India

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Rise of Remote Work in the COVID-19

Rise of Remote Work in the COVID-19 Pandemic: Why American Small Businesses Continue to Outsource to India in 2023?

What if we told you that remote staffing is one sure-shot way of reviving your pandemic-hit business? Would you believe us, or would it feel like just another drab sales pitch to you? That, too, one about such an action, which, if we are being honest, has not garnered a good reputation for itself. For all the wrong reasons, though, we will come to that in a bit. 


It is highly likely that you or anyone else you know might have suffered on the business-front due to the COVID-19 pandemic. In that case, before we begin, we would like to extend our sincerest sympathies for your losses. Understanding how small and new businesses were particularly hit by the worldwide lockdowns, we are irresolute in our mission to get them running back up. 

Positioning India on the Pandemic Map 

India, like the rest of the world, was hit hard by the COVID-19 pandemic. However, despite the challenges, she stood out in her efforts, through various initiatives and policies, to provide aid and support to businesses globally, both large and small, especially in the first world nations. 

The most notable contribution was made by her pharmaceutical industry, ensuring that people and businesses across the world had access to life-saving drugs during the pandemic. Similarly, through its IT sector, India helped ease the transformation of on-site businesses by adapting remote resources

Rise of Remote Work during COVID-19 

Even though the ‘work from home’ model had been around for a while, it was limited to certain industries, designations, and areas. For instance, certain high positions of software engineers in the Silicon Valley could access it as premium perks. 

As the pandemic forced businesses to shift to remote work, to contain the transmission of the virus, did it really begin to gain popularity. The earlier myths surrounding management and operations of and by virtual teams started getting dispelled. 

Why Small Businesses Around the World are Turning to India? 

India has been a favorite destination for outsourcing of many multinational corporations for decades. It is only recently that the small and medium sized businesses have jumped on the same bandwagon. About time, though, we’d say! 

So, let us walk you through the reasons SMBs worldwide are turning to hiring remotely

Benefits Gain by Outsourcing to Remote Indian Talent
Benefits Gain by Outsourcing to Remote Indian Talent

Huge Cost Benefits: 

Unlike, premier US colleges which are mostly privately controlled, the best universities in India are public institutions. This means that the tuition fees paid by students to learn top in-demand marketable skills are considerably lower than their American counterparts. Thus, the deficiency of huge debts in the form of student loans, currently plaguing the USA, make Indian talent free of financial liabilities. 

Couple that with the prevailing international currency conversion rates (USD 1= INR 82.6, approximately) and the lower cost of living in a developing nation. This opens a window for you to hire the best Indian talent at almost less than half of your budget for an average locally available resource, while ensuring fair compensation of your remote resource. Now, compare that with a top-of-the-line local resource! The math is pretty simple. 

Additionally, taking your business remote allows you to save money by cutting expenses on hardware and software, on-site staff salaries, maintenance of a physical office, and office equipment. 

Accessibility to a Wider Pool of Talent: 

It is no secret that the West is currently under the stronghold of a gaping talent shortage. In fact, the deficit of skilled labour is expected to only increase by leaps and bounds in the years to come, according to various credible sources. The reasons for the same are varied- ranging from a decline in the population owing to higher mortality and lower fertility rates, to people’s skills not being tech-friendly. 

By going beyond local hires, your small business is opened up to the possibility of tapping into a global pool of talent. This presents them with a unique opportunity to hire professionals from anywhere in the world, thereby addressing the talent shortage issue. And what better a place than India for the deed. Why you ask? 

Well, to begin with, it is the second-most populated country in the world, with a population of over a billion people. Not only does it boast of a higher fertility rate, but also a voluminous young employable population. That makes the availability of talented resources plentiful. This enables you to hire people with the exact set of skills you require. Because if you do not find what you are looking for on the first go, you can afford to look twice. 

Afford Scalability in Business Requirements: 

Following from the previous argument, delegating peripheral tasks to remote staff empowers you to scale up or down according to your business necessities. This flexibility, along with the abundant availability of labour with a varied skillset, empowers you to meet remote staffing demands more efficiently. 

When you hire professionals on the basis of short-term projects that require specific expertise, you can keep worries about the cost of training and development at bay. Besides, that relieves you from long-term commitment hassles. 

You would be further enabled to easily add or remove resources as per your requirements. This comes in handy if you own a startup or a small-medium sized business that might not currently have the resources to hire full-time employees. 

Increased Business Expansion and Brand Loyalty: 

Brand loyalty, unlike popular views, is not just built through a broad customer base that keeps coming back. Happy employees are an equally important prerequisite for the success of businesses, especially small or new ones. In fact, they are the ones that ensure a happy clientele. So, what can you do to keep your employees happy? 

More data from studies reveal that a huge number of skilled workers today are willing to turn down employment offers if the workplaces do not let them have flexible work options. In this case, you stand to only benefit from your remote employees as their flexible work mode would imply a lesser turnover for you. 

It is estimated that over 56% of US businesses are remote work compatible by Global Workplace Analytics. The same study also found that IBM saved over $50 million by going remote.  Both these data put together makes a compelling argument for how your small or new business can rapidly expand by preserving resources- human or financial. 

Improved Work Quality: 

Finally, the rallying argument in favor of remote work has been the record increase in employee efficiency and productivity. That has led to improved quality of work, helping maximize business output. The ability to work remotely improves the chances of employers to complete projects faster and with greater efficiency than if they relied solely on their in-house staff. 

When it comes to Indian talent, they are known worldwide for their exceptional work ethic. That explains the increasing number of Indian professionals in positions of power across industries. A surface level look at the names of CEOs of the leading tech companies globally can serve as a good example. So, allowing them their flexibility only ensures a greater quality of work output for your small business. 

In conclusion, do not find yourself on the flailing end of the wage-war over skilled global talent, if you own a small business. Multinational companies have grown because of outsourcing to remote Indian staff, too. So, instead of looking at it as a threat to growing enterprises, embrace the myriad benefits it offers you. Unlike MNCs that offshore peripheral tasks to offices in developing nations, if you hire remotely, you get to save big on establishment costs while ensuring premium talent. All this while ensuring that your limited budget still compensates them fairly because of currency differences. And if you find yourself struggling with the nitty-gritties of it all, remember that help is only a click away. 

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