The world has become a truly global marketplace and many companies both large and small have been taking advantage of this fact to invest in businesses far away from home. One of the hottest countries to invest in is India. They are the world’s second most populated country and growing larger everyday, and so is their economy.
The Trend
Many companies in the United States and around the globe have been outsourcing customer support for years, companies like Sprint, IBM, American Express and Delta Airlines recognize that this is a great way to cut costs while still providing great service. India is usually the country of choice because of the large number of qualified workers and low labor costs. The average salary in India is roughly $75 USD per month, employees working for a foreign company doing customer service work are able to make more than twice that. Not only are companies cutting costs by hiring Indian workers, they are also helping to fuel the growth of the Indian economy.
The Process
When companies in the United States are looking to outsource they usually will contract with a foreign company to perform the work for them for a negotiated fee. Entrepreneurs looking to start their own customer support business in India usually go in with a partner who is a native to India. This way the partner can show them the ropes of how business is conducted in India and help them with learning the local customs.
The Rewards
The potential for a creating a successful customer support business in India is great. India has a large pool of intelligent and hardworking individuals who also speak fluent English. These employees will accept a salary of around $200 USD per month to provide high quality customer support, which is well above-average for Indians, but much cheaper than an American worker. The lower salary allows the customer support company to earn contracts with companies around the globe by offering quality work at lower rates than they could reasonably expect to find locally. Combine lower labor costs with the lower cost of office space, supplies, and utilities in India and a sharp businessman will see plenty of opportunity for profit.
The Risks
The biggest reason that customer support businesses fail is not because of lack of financing or trouble finding clients, it is because of poor performance. A company must be sure to properly train its Indian staff. Many Indians do not fully understand American culture and because of this will sometimes have difficulty communicating with customers. Customers become frustrated and complain to the client about poor customer service and the client oftentimes will end up looking for a new source of customer support rather than risk losing customers. By working with a partner who is native to India potential entrepreneurs will have a better chance of bridging the culture gap between east and west and ensuring that their staff is able to interact effectively with American callers, allowing the company to succeed long-term.
