Why do large corporations outsource to India?

Their customer service is terrible. I can't understand that accent and they can't understand me. I would think that this would CAUSE them to lose customers, and not save them money in payroll....you DO get what you pay for.

You are certainly correct. It is almost useless to contact any support service any more as it's impossible to understand their English. Please please please bring support back to the US.

Not only because it's cheaper...but also because the US only gives them a 35% break on their taxes...India gives them much, much more. So why pay the US a lot of money when you don't have and when you can get cheaper labor along with the cheaper taxes? Especially when WE the consumer continue to buy the product even when they have cheapened the product and reduced it's value and still charge us the same amount!!!!
Peace & Love :)

One reason, and one reason only: IT'S CHEAP.

In the short run, they make money, but in the long run, they lose LOTS of customers, because people like to complain to their friends who tell their friends and so on...

It's cheaper for companies to outsource and as long as we the consumer keep spending they'll make money. I agree. . . customer service is awful and I never understand what they're saying. I have changed plans in some instances because of it but most companies outsource to other countries.

Because they are too cheap to care about their customers. What we can spend on a meal pays a monthly wage in India.
If like me you value service just leave a complaint with their customer disservice department then find another company who gives personal service.

Before I deal with a new company I usually call their service department to check them out.

India has a huge population of workers that are young, educated, and eager to work. The education system is high quality, there is little moral corruption such as drugs, partying, and they are very dedicated to their work and less to the social aspects of todays young workforce. The companies utilize their captal equipment to its maximum and the although the quality may be below par right now just wait it will not continue. Here is a real example from my experience.

I run a mold building shop.
We compete on building with other shops around the world.
I contract with a shop in India to do mold designs.

In my shop I pay a designer $40.00 / hr and benefits are 30% OR $52
My designers will only work days, they will not work afternoons midnites and only weekends on their conditions at exorbitant rates. Overtime raises my cost and unless someone monitors the designers their efficiencies are sub standard on O.T.Therefore my CAD stations stay idle 60% of the time or more. A station with software licensing, mtce. etc, etc, is about $60 Gs / Yr. I have 10.A typical design under these circumastances takes my shop and average of 8 weeks.

Now- I subcontract my design to India, where they work 3 shifts on the CAD stations and typically 6 days a week. They pay less, $20/Hr and the quality may not be there just yet but I get my design back in 3 weeks and then have my skilled designer review and proof for another week and then send to machining.By reducing my lead time I reduce my costs.

So reducing costs is the key. If I did not do this my shop would be closed, and I employ 10 designers and about 50 moldmakers as well as an additional 15 support staff.

BTW I am now looking at design in India mold construction in China and then only fine tuning when I get it back. Its the only way to survive in todays market. My options are few.

Money.

India has a surplus of people, supply and demand means that they cost less than American workers. Also, the cost of living there is less, so they can live on less, be paid less, etc.

Also, Indian workers are relatively well skilled. But mostly it makes economic sense.

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