eDesk HUB GCC Survey – Willingness to Hire Indian Vs. Local Companies

edesk-hub-gcc-survey-–-willingness-to-hire-indian-vs-local-companies

23Mar
2017

How are small businesses and enterprises adapting to the concept of offshore outsourcing? South Asia, particularly India is becoming a hot spot for Middle East IT industry to outsource their business projects. eDesk HUB, a Middle East industry research and review platform conducted a comprehensive survey on the “Willingness to Hire Indian Vs. Local Companies”.

The survey sheds light on hiring and outsourcing trends in the GCC market for high end IT projects. How the Middle East is warming up to Indian service providers for fulfilling their project needs rather than going for local companies.

Saudi Arabia: Powerhouse of the Middle East

More than half of the IT companies have their operations centered in Saudi Arabia as compared to Kuwait, UAE and Oman. Being called the powerhouse of the Middle East, Saudi Arabia has a robust economy that is increasingly contributing to its accelerated growth and development; positioning it as a global force to reckon with. 

A large number of SMBs and enterprises are coming up in the Saudi Arabia region with an average strength of approximately 500 employees.

Around 55% IT companies in Middle East have their operations in Saudi Arabia

Around 55% IT companies in Middle East have their operations in Saudi Arabia

When we talk about geographical penetration of business across the Middle East, we see that:

  • A substantial 55% of respondents said that they have their company operations in Saudi Arabia;
  • Of the businesses that said 33% of them run businesses from UAE;
  • Only 6% of respondents have their company operations located in Oman and Kuwait respectively

Through the survey, we can see that majority of the respondents have their company operations centered in Saudi Arabia. Being the hub of knowledge based industries like healthcare, education and IT that are crucial drivers of sustainable advantage; Saudi Arabia is certainly a popular business location for the Middle Eastern business community.

Size of Company Operations

The survey respondents included company owners having the average strength of 1-499 employees. This means that small businesses and agencies are more than likely to outsource their business projects rather than organizations having an employee base of over 1000 or more. 

With a shortage of talented professionals, small businesses and enterprises are looking to offshore their project needs to more trusted talent pools like Asia, particularly India. With the level of commitment required, agency leaders are weighing their options more than ever before.

Survey shows the average strength of IT companies in Middle East is 1-499 employees

Survey shows the average strength of IT companies in Middle East is 1-499 employees

Talking about size of company operations, the survey tells us that: 

  • Of the businesses that said they would like to outsource their IT projects, 47% of respondents have the employee strength of 1-499
  • 33% of the respondents falling under the bracket of 500-4999 employees are less likely and
  • Furthermore, 20% of the companies with more than 5000+ employees are less likely to outsource their IT projects

 The survey clearly tells us that SMBs and small enterprises are more likely to look for outsource their business projects. 

Related: Best Practices for Managing Outsourced Projects 

The Indian Advantage

Middle East organizations have a high likelihood of hiring Indian companies as their IT outsourcing partners with a percentage of more than 50% in favor as compared to local companies that has fewer takers. With globalization already flattening the world, it has become almost a practice for several companies to go for offshore outsourcing for better productivity and cost saving.

More than 50% Middle East organizations are willing to hire Indian companies than the Local IT outsourcing partners

More than 50% Middle East organizations are willing to hire Indian companies than the Local IT outsourcing partners

IT services and web development services are being outsourced now more than ever before with Asian countries taking the lead in providing the best combination of quality and low cost with India being the preferred choice across many.

Depending upon your project requirement and nature of business, Middle Eastern companies have the shared belief of outsourcing IT projects to offshore professionals. In fact, there could be several important reasons as to why you should go for outsourcing, especially if you are a new business operating online.

Salary is Expensive: Depending upon the level of experience that you are looking for, monthly compensation will be expensive for you. In case the experience requirement is high, the job posting could turn out to be very expensive.

Employment Costs: Including costs like recruitment and training, taxes, insurance, benefits etc. hiring of full time employees becomes all the more expensive for a new business.

Full Time Employment (Recurring Expenditure): If you have fixed staff in your organization, you have to pay them salaries whether all of them are involved in every project or not. For majority of the times, you would be better off outsourcing your project.

Outsourcing is Cost Efficient: Outsourcing enables you to get specialized services at a fraction of the cost of hiring a full time employee.

The survey findings show that Indian companies have a definite advantage:

  • There is a noticeable difference of 55% Middle East respondents definitely want to hire Indian companies over local companies
  • A similar amount of 41% respondents depend on certain factors to outsource their projects to Indian companies, while only a measly 4% said that their company unlikely to hire any Indian companies for their IT projects.

Indian Companies vs. Local Companies  

One of the most pertinent questions that companies could ask before they decide on hiring any company for their project is ‘whether they can deliver quality work’.

Quality is more important than Price and Experience

Quality is more important than Price and Experience

India is a global pool of talent that has embraced and adapted to new and improvised technology. Indians are increasingly providing incredible value to customers on a consistent basis, which is focused at web development and application development.

When making the hiring decision in favor of Indian companies, the most important factors to be considered were:

  • Comparing the three categories, quality of work has the most important factor, 53% of middle east companies would love to work with & hire Indian companies,
  • Furthermore, 27% of middle east companies said they majorly focused on price before hiring any Indian company,
  • A similar amount of 20% respondents said they more likely consider work of experience while hiring an Indian firm for their IT projects.

India has had a remarkable run across the world where it has shown its project management skills, timely delivery and excellent quality of service. Since it is home to over 60% of the world’s CMM level 5 companies and a large pool of technical and managerial talent, it is no wonder that India is the most preferred choice for outsourcing.

Quality Rules in Hiring Indian Companies

There is no compromise on quality in India. Here service providers are well equipped and use the very latest in technology, software and infrastructure in order to provide services that are equivalent to international industry standards. 

There are researches, which prove that Indian companies are technically performers and focus more on quality as compared to their counterparts. Many global companies choose India as their outsourcing destination as they get access to a workforce that is not only skilled and experienced but also proficient in communicating well.

Quality Rules in Hiring Indian Companies

Quality Rules in Hiring Indian Companies

According to eDesk HUB Middle East Survey Statistics:

  • The results show that India is the most favorable destination to outsource IT projects to for Middle East companies, as 92% of respondents either currently working with or have worked with the Indian companies vs local companies
  • However, only 8% stated that they have never hired an Indian service provider for their IT projects.

The above statistics are testament to the quality of services that India offers. When you decide to choose India as your favored geography for your IT project, you get to work with professionals who are highly skilled and experts in their field.

Indian developers offer their best to deliver high quality products at minimal rates. A majority of companies choose Indian professional services as their outsourcing partner as they get access to more productivity and quality with a professional partner. 

Satisfaction with Indian Companies 

Furthermore, the survey stated that there is a likelihood of business consumers choosing Indian companies for their IT projects.

Satisfaction with Indian Companies

Satisfaction with Indian Companies

The survey suggests that the rate of quality of services offered by Indian companies is certainly better than local ones. 

  • 72% of the respondents we surveyed said that quality of service provided by Indian companies is significantly high
  • 26% conveyed that quality of the services is neither low nor high
  • Only 2% of the respondents say that Indian companies offer low quality

 When you outsource your project to India, you can expect to get more productivity and quality at a fraction of cost without the tedious part of recruitment or training.

Related: How to Choose the Right IT Company for your Project 

Why Choose Indian Companies

When you decide to outsource your project to India, you get to work with professionals who are highly skilled and experts in their field. 

Outsourcing your IT project to Indian companies can help you unburden your workload and give you access to more specialized skillset as and when you need. Whether you require more or less specialized resources, outsourcing can help your organization with a certain level of scalability. 

Business Consumers in the Middle East are Likely to Hire Indian Companies Again

Business Consumers in the Middle East are Likely to Hire Indian Companies Again

The survey states that the business consumers in the Middle East are likely to hire Indian companies again:

  • 72% of the respondents are extremely likely to hire an Indian company again for their IT project
  • 24% of the business consumers are somewhat likely to hire an Indian company again
  • 3% of the businesses said they are unlikely to hire an Indian company again for their project

 Outsourcing your IT projects to India is a wise proposition due to its dynamic and growing economy.

There are a few reasons why India is such a favored nation for outsourcers: 

  • Quality is the Rule: Indian service providers leave nothing to chance when it comes to delivering quality work. They use the latest in technology and software to provide services that are at par with international standards.
  • Time Zone: Indian service providers follow strict professional ethics and follow 24x7 responsive services to clients. More so, owing to the flexible collaboration tools, Indian companies are able to communicate better in terms of project requirements as and when desired by clients.
  • Stable Governance: The Indian government has always given priority to the IT sector and hence IT Ministry streamlines the regulatory processes and is quick to approve execution of projects. Over the past decade, India has been able to build and develop several hi-tech IT hubs across many cities that are equipped with high-end technology and best of infrastructure.
  • Preferred Outsourcing destination: Research surveys have proved repeatedly that India is the most preferred destination for outsourcing among multinational conglomerates and the likes.

 Conclusion

In a Global economy where competition for market share is getting fierce and profitability is dependent upon operational efficiency, businesses are increasingly embracing the idea of IT outsourcing to stay ahead of the competition.

Middle East market is rapidly changing and expanding. SMBs and enterprises who are on a lookout for high value IT service providers need a reliable and robust platform to find guidance as well as a sound selection framework that gives them the right fit.

eDesk HUB research surveys have proved time and again that India is the most preferred destination for outsourcing among multinational conglomerates and the likes.

Outsourcing your IT projects to India is a wise proposition owing to its dynamic and growing economy. India has the potential to give a competitive advantage to your business leading you towards better services, profits and revenue.

The eDesk HUB platform offers a robust process to filter the selection criteria and help companies choose the best service provider.

Survey Respondents

eDesk HUB collected this survey data from small business owners or managers distributed across the Middle East. There were 177 surveys completed across GCC Countries from which the survey findings were compiled. The largest respondent group is made up of companies with less than 500 employees.

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