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Why Overseas Clients Losing Interest In Outsourcing to India
Why Overseas Clients Losing Interest In Outsourcing to India

Why Overseas Clients Losing Interest In Outsourcing to India


Kumar Sunil

Dreamer & Enthusiast

Creative. One word says it all for Sunil. A engineer, an enthusiastic and conscientious Information Technology consultant by profession, Sunil shares a special interest with entrepreneurship and lifestyle.


This is true that overseas clients losing interest in outsourcing to Indian software companies. If you think, the topic makes no sense, then you should check with companies relying on outsourcing work.

Being an entrepreneur running a software business, I can tell you, this is really happening. Overseas software companies are now shifting their businesses to other countries like the Philippines. Undoubtedly, for many clients, it is always about hiring a cheap resource. However, when it is about working with brands, the only thing that matters the most is – quality. Sad, but true – most of us are lacking in the quality. Here, I am mentioning a few reasons, why overseas clients losing interest in outsourcing to Indian software companies and why a few of us are really struggling. These are going to be little harsh, but facts.


Most of us are completely unsystematic. I deal with many companies on regular basis, who are struggling with their clientele retention rates. No wonder, losing a client is painful and one of the easiest things to do.

After exploring their work process, in 7 out 10 cases, I discovered that they are doing things without any systematic approach.

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There are no project documentations, no requirement freezing, no written discussion about project scopes, completely flexible approach to the budget and billings, and on top of this, inexperienced technical professionals.

Most of the Indian Software companies are not serious about time and project management. Instead of investing in some project management tools, they are after hiring cheap resource and messing everything.

Missing a requirement could be a mistake for you. But, for overseas clients, it is purely an intentional way of billing him extra.

No offense, but most of the companies are doing this mistake and losing their foreign clients. Fix it! ASAP.

2No Attention To Details

This is another problem. Over the last few years, we have developed a habit of taking things for granted. Be it errors or poor quality standards, we are more concerned about deadlines.

Instead of fixing things on the initial level, we intentionally leave those errors unattended. Despite knowing, how big problems those little errors can cause, we give them a very casual treatment. These casual treatments mean an additional loss of time and money.

Who wants to hire such a team?

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3Lethargic And Dreamy Professionals

No doubt, most of us are now dreamy. Over the years, we had developed an attitude of not doing things unless we get a kick in the ass. As I mentioned, most of us start a project without any plan or flow chart in mind and in the middle of the project, we raise countless questions.

Instead of working out on the scope of the project, in the beginning, we start playing the blame game. The game starts with blaming team-mates and ends up at having a poor feedback from the client.

No client wants to waste his money and time because of your foolishness of lethargic attitude. This is why they prefer to hire an expensive resource than a cheap but unsystematic resource. Fix it! ASAP.


Righteously said that attitude is everything. However, attitude without expertise makes no sense. I am not saying that you are supposed to lick your client’s shoes. Your first priority should be working with dignity. But, if you are incompetent and still showing attitude, you are risking an opportunity.

I have seen many professionals who talk a lot about delivering awesome things, but when it comes to reality, they do like a confused frog. On top of this, when they are caught red-handed, they try to show attitude.

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Come on! Clients are not idiots. If they are paying you to do something, then they must be paying someone to check the quality of your work. Moreover, a person who is investing his money in a business, for sure he has a better idea of how things can move in real terms.

This is why, most of the foreign clients not preferring outsourcing nowadays, especially to Indian software companies.

5Poor Knowledge

No offense, but most of the Indian software companies are not taking the quality part seriously. Just because of the spam the pushing in the cloud, it is getting tougher for those who are doing quality work.

Well, everyone has a right to do what he thinks good. However, they should understand that no business can survive without quality. To deliver quality, you need a team of experts.

Can you imagine what one of my clients said to me the other day, “I had worked with many IT companies before starting with yours? However, code from India can be truly awful if you work with most companies.

I was confused. Whether I should take that as a praise or an insult.

6Real-Time Communication

This is a major problem. Due to the geographical difference, real-time communication sucks. Most of the companies don’t work with their time schedule. No client wants to wait whole night for a reply.

For foreign clients, not having a communication in a timely manner means a reduced sense of accountability, commitment, and partnership.

This is why they are now shifting their business to companies that can offer them real-time communication.

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7Frequently Changing Financial Scenarios

In last few years, we have seen many drastic changes in the financial scenarios as well. A lot of new taxes and penalties have been introduced. However, no proper homework was done on the after effects of these policies.

No wonder, our financial structure is becoming complex nowadays. I agree that this is for the betterment of the country, but who is going to compensate the loss caused by these unplanned changes?

Outsourcing companies are one among the other biggest source of FDI. But, these changes had forced them to look for other options.

These are a few reasons behind the deteriorating situation of Indian software companies that are totally relying on outsourcing business.

No doubt, there is nothing that can be done about the legal and financial changes. However, we can at least improve our approach.