Negative Effects of Outsourcing to India

by Grace Ferguson; Updated September 26, 2017

Outsourcing is becoming increasingly popular. Many companies find it a satisfactory alternative to meeting their IT, software and web content needs. Many of these jobs are outsourced to India, which has the most developed international outsourcing community. Still, it is not without its problems.

Indefinite Proof

Although there is never any guarantee that a company will remain in business long enough to finish your project, it is even more difficult to prove when the company is in another country. Credentials may be harder to verify unless other domestic companies have used them and can vouch for them.

Cultural Differences

When outsourcing to India, cultural differences may arise. If there are language barriers, or if both parties have different perspectives on how the work should be performed, misunderstanding can develop. India also operates in a different time zone. If this is overlooked, it can interfere with work schedules and deadlines.

Hard to Track

It is very difficult to know if the individual you outsource your work to in India is acting in an ethical manner. Should issues arise, it is much harder to locate a perpetrator who is living in a different country.

Susceptible to Hackers

Especially in the IT world, companies run the risk of outsourcing to hackers who often have access to the company’s computer system and information.

Piracy

The issue of piracy exists when outsourcing to India because an individual can take another person’s material and claim it as his own; he can sell it and profit from it. Because he is so far away, it is hard to find him, let alone penalize him.

About the Author

Grace Ferguson has been writing professionally since 2009. With 10 years of experience in employee benefits and payroll administration, Ferguson has written extensively on topics relating to employment and finance. A research writer as well, she has been published in The Sage Encyclopedia and Mission Bell Media.