The impact of Brexit on Indian Outsourcing scenario


Even though Brexit caused an initial slowdown in the business sector of UK, the market has been seeing a positive impact as far as outsourcing is concerned. Since the movements inside of UK is affected, companies are considering an offshoring data entry outsourcing company to make sure their data entry and processing jobs are not affected adversely. India being one of the most prominent investor in the UK, so far a significant slowdown or negative impact has not been resulted in outsourcing these processes to the country. Even though some experts suggest that there could be a positive impact on outsourcing more to offshore, this is rather unlikely because of the mature outsourcing policies UK already has in place. However, the general expectation is a temporary slowdown in outsourcing, especially the more valued types of outsourcing which is likely to get better once the uncertainties are settled.

According to one survey done by the National Outsourcing Association (NOA) more than 70% of the outsourcing partners did not favor Brexit citing that EU was more favorable for UK’s progression. However, it is understood that no drastic changes would occur in the outsourcing sector overnight and whatever changes occur, will happen slowly over a long period of time. The uncertainties regarding renewal of agreements, tax variations, currency etc will settle over a few months’ time. In spite of these confusions and slowdowns, Data Entry Company India would still be a strong competitor to outsourcing partners from other countries as the language, skills and education level of UK is closely related to those in the Indian sub-continent.

India and UK share a close bilateral relationship in terms of education, legalities, investments etc. This relationship will definitely prove to be positive for an Indian BPO Company to continue to service the UK industries for data entry and management even if there are strong competitors from other parts of the world. The more familiar systems and processes followed in the Indian companies and the liberal laws for outsourcing prevailing in India would mean that more UK companies would prefer to choose Indian outsourcing partners which would benefit them from lower costs at a time of uncertainties and economic slowdown.

Lower costs and better talents will remain the major reasons for UK to continue considering offshore data entry outsourcing services to an Indian company. India definitely has more talented resources that follow the same UK English pattern for education and legal purposes. Indian resources offer their valued services at a much lesser cost which would help the UK companies to survive during the economic slowdown immediately followed by Brexit.

The outsourcing partners in the UK will no more enjoy tax-free outsourcing once they exit the EU. This would mean more opportunities for Indian and other outsourcing partner countries. Since a majority of the investors in the UK are Indians and considering the historic ties shared by Indian and UK, it is more likely that Indian outsourcing companies will get a preference over the other competitors.

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