Outsourcing to India isn't just about saving money anymore. It's about access to skills, to speed, and to systems that work. Over the last few years, global companies have started partnering not just with India’s tech giants, but also with its small businesses that are the MSMEs. They are agile, focused, and surprisingly good at what they do.
Here’s why that shift matters.
India Still Leads — But the Game Has Changed
For years, India has topped the global outsourcing charts. According to Kearney’s Global Services Location Index, it’s the most attractive destination for outsourcing. The reasons are obvious: strong digital infrastructure, English fluency, and a giant pool of skilled workers.
But what’s different in 2025 is the kind of work being outsourced.
It’s no longer just call centers or backend IT. Global firms are now outsourcing finance, legal, creative, customer support, and accounting tasks. Even “pre-accounting”, like invoice sorting, reconciliation, and data entry, is being offloaded to Indian firms.
What Kind of Work Is Being Outsourced Today?
Outsourcing is no longer just about tech support. In 2025, here’s what global companies are shipping to Indian teams:
Bookkeeping & financial ops – invoice entry, GST reconciliation, expense categorization
Software development – full-stack dev, mobile apps, cloud migration
Customer support – omnichannel helpdesks, email/chat resolution
Marketing ops – ad performance tracking, content writing, social media execution
Data services – data cleaning, enrichment, and analytics
Creative & design – motion graphics, video editing, UI prototyping
A lot of these tasks are not massive, year-long projects. They’re small, repeatable, and perfect for Indian MSMEs to handle. That’s where the real momentum is.
MSMEs Are in the Picture — Finally
It’s not just the TCSs and Wipros that are getting the contracts anymore. There’s a noticeable shift toward smaller firms.
Why? Because global companies are looking for:
Niche skills
Faster turnarounds
More flexibility
MSMEs are checking all the boxes. They’re more focused, leaner, and in many cases, better at handling very specific tasks that don’t need an enterprise-sized team.
Even big names are betting on them. Amazon’s Global Selling Program, for instance, is expected to generate $5 billion in exports in 2025 through 150,000+ Indian small businesses.
India’s MSMEs Aren’t Playing Small
India has over 63 million MSMEs. They contribute nearly 30% of the national GDP and are becoming part of global value chains, not just local vendors.
What used to be a fragmented, informal sector is now:
Working with global SaaS tools
Delivering ISO-certified services
Handling financial compliance for clients in Europe and North America
In other words, small businesses are no longer doing “small” work. They're delivering real outcomes across time zones.
How Indian MSMEs Can Become the 'Chosen One'
The opportunity is real. But global companies won’t pick Indian MSMEs out of goodwill. They’ll pick the ready ones. That means being more than affordable. It means being reliable, structured, and easy to work with. Here’s what makes the difference:
Act like a partner, not a vendor: Own deliverables. Offer insights. Build trust by taking initiative, not just following instructions.
Get your systems in place: From timely invoicing to clear documentation, professionalism builds confidence.
Use global tools: Know your way around Zoom, Google Workspace, Slack, Trello and more. It’s not about being tech-savvy, it’s about being easy to work with.
Build proof: Case studies, testimonials, portfolios, even simple ones, go a long way.
Show up consistently: Reliability beats brilliance. Clients want someone who shows up, delivers, and communicates clearly.
If Indian MSMEs can get these basics right, they won't just ride the wave of global outsourcing, they'll lead it.
The Numbers Don’t Lie
India’s outsourcing sector is growing fast:
The IT and BPO market in India are expected to add over $214 billion in revenue between 2024 and 2029.
The finance and accounting outsourcing market alone could hit $4.88 billion by 2030.
Global Capability Centers (GCCs) — essentially offshore arms of global companies — are projected to grow to $99–105 billion by 2030, employing up to 2.8 million people in India.
So, What’s Driving All This?
Specialization: Businesses don’t want generalists anymore. They want specialists who can handle things like order-to-cash, balance reconciliation, or GST-related filings. MSMEs in India are increasingly stepping up.
Tech Adoption: With tools like AI and cloud software, even small firms can deliver big value. Platforms like Accomation.io, for example, help these firms automate the grunt work, making them more scalable and dependable.
Remote Work: The remote/hybrid model has made companies comfortable working with offshore partners, even tiny ones. It’s no longer about geography. It’s about reliability.
The Strategic Move Isn’t Just Offshore, It’s India
Let’s be clear: companies aren’t just chasing costs anymore. They’re chasing results, resilience, and resourcefulness. India, and more importantly, its MSMEs, are delivering on all three fronts.
If you're a global business looking to scale smart, the question isn’t if you should outsource to India. It’s what you’re waiting for.
Sources:
Kearney Global Services Location Index
Research and Markets
Reuters
Grand View Research
Technavio
Forbes
VAR India
MSME Annual Report 2023-24
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