Your guide to outsourcing your IT operations in India from Canada

If you’ve ever thought about getting help for your IT operations in Canada, India is a place ripe with affordable talent. Especially if you’re a scaling business, it could be a smart and strategic move.

We’ll be talking about what IT outsourcing options you have in India and what you need to know before making the jump. We’ll also cover how the Wise Business Account can help you pay your employees or contractors while reducing cross-currency costs between Canada and India and be used to streamline your accounting processes!

IT Outsourcing Options in India

There are two general ways to outsource to India: by hiring an independent contractor on your own or hiring through IT outsourcing companies in India. Independent contractors are popular among businesses for their flexibility, cost-effectiveness, and talent. But since they differ from regular employees, you’ll need to understand the legal implications according to Indian Laws.

The Contract Labour Act in India¹¹ regulates contract labour employment to make sure these workers have rights and that they work under appropriate conditions. While employees are typically more involved with a business and are entitled to benefits, contractors operate on their own and are responsible for their own.

To find these independent workers, you can search marketplaces like Fiverr, Upwork, and freelancer.in, which can also help you bypass the complications of hiring a freelancer. There are also traditional job boards like Naukri.com and Indeed or networking platforms like LinkedIn that can help you connect with the right contractor.

If you’re not ready to venture out into the hiring process on your own, outsourcing companies can act as that link and lessen the burden of compliance. These companies can manage all aspects of hiring for you, from the search and interview process to staying compliant with tax laws and payroll processes.

Outsourcing Your IT operations to Tata Consultancy Services

Tata Consultancy Services provides a wide range of services relating to IT, including consulting, software development, and cybersecurity. They specialize in creating a variety of solutions to streamline IT operations for businesses, such as an AI-driven workforce management solution, an omnichannel retail commerce platform, and other enterprise tools. With 50+ years of experience and a presence in 55 countries, they have a robust understanding of the Indian market.¹

Trustpilot Rating: 2.6/5²

Outsourcing Your IT operations to Wipro

Wipro is another company that operates globally, with over 1,400 active clients all around the world.³ While they do have strong capabilities in IT, they cover all bases with design, engineering, and operations services for a wide-reaching number of industries – education, healthcare, retail, and more. These include a suite of advanced tools backed with modern technologies such as machine learning and automation.

Trustpilot Rating: 2.3/5⁴

Outsourcing Your IT operations to Infosys

Infosys is another big name in the realm of IT outsourcing. Their IT services cater to every need, whether technology consulting, bespoke software development, or cybersecurity solutions. Dealing with clients in 56+ countries, they have the competence and confidence to handle projects of any size or complexity.⁵ Certified as a Globally Certified Top Employer three years running, employers can feel confident placing their trust in Infosys.

Trustpilot Rating: 2.2/5⁶

Outsourcing Your IT operations to Tech Mahindra

Another useful outsourcing company for businesses looking to hire Indian workers is Tech Mahindra. Their presence in 90+ countries means that global enterprises can take advantage of their consulting, re-engineering, digital transformation, and conventional IT services.⁷ They boast next-gen technology that encompasses big data, cloud consulting, and AI.

Trustpilot Rating: 1.9/5⁸

Outsourcing your IT operations to HCL Technologies

HCLTech was one of the original tech startups launched in 1976.⁹ Today, it’s a pioneer among tech firms, offering IoT, AI, Cloud, and other digital services. Their host of tailored solutions can help improve the efficiency of any business, and their worldwide network of Innovation Labs and Delivery Centers makes sure their global clientele reap the benefits of their trailblazing technology.

Trustpilot Rating: 2/5¹⁰

Things to Note Before Outsourcing Work to India

While outsourcing comes with a load of perks, there are several intricacies relating to compliance and operational standards to note before you partner with your new contractor.

Cultural Differences

Although cultural differences can often be an afterthought, they play a much larger role in a cross-border partnership than we give it credit for. Especially since India and Canada are strikingly different, you and your contractor or employee may have to navigate differing language patterns, work ethics, communication styles, and cultural differences. Making an effort to bridge these gaps can go a long way in building a long-term partnership.

Time Zone Differences

Particularly in such varying time zones as Canada and India, outsourcing comes with the challenge of time zone differences. With anywhere between an 8.5 and 12.5-hour time difference depending on where your business is located in Canada, this can likely cause issues when it comes to communication and project deadlines. On the positive side, operations can continue over a 24-hour period, given that you and your contractor will essentially be working at opposite times of the day. With enough planning and mutual understanding, you can craft a schedule that improves productivity rather than hinders it.

Compliance with Legal Requirements

One thing you want to avoid when outsourcing is any legal trouble or issues with non-compliance. If you choose to outsource your IT solutions, you need to have a good understanding of both local and international rules. Everything from data protection laws to contract stipulations and labour standards will make outsourcing a lot smoother. Using freelancing platforms or outsourcing through a company may help you with compliance, as they often have built-in policies and features to navigate that.

Payment Cycle for Indian Employees

Employees in India typically get paid at the end of each month. Contractors, on the other hand, may want to have more flexibility with weekly or bimonthly payment cycles, but it depends on your individual contract. There also may be compliance rules that require an employer to pay before or after a certain day in the month, depending on the worker classification, so be sure to pay attention to these rules.

Labour Laws for Outsourcing Work to Indian Employees

Part of compliance involves complying with India’s labour laws. As mentioned, the Contract Labour Act is the official document that outlines the rights and regulations that protect contractors and provide guidelines for employers. Employers need to abide by these rules when hiring any sort of Indian employee, as well as act in accordance with the Minimum Wages Act – which details the lowest possible compensation allowed.

Currency Conversion When Paying Salaries from CAD to INR

Keeping up with local payroll is tedious enough, but adding the complexities of currency conversion and paying international employees and you’ve got more to worry about. Banks and money transfer services typically promise low or even zero fees only to offer marked-up exchange rates and hidden costs. These rates often have a tacked-on margin that simply serves to boost their revenue. Intermediary banks in the SWIFT networks usually add to those expenses with even more fees.

The Wise Business Account lets you bypass these expensive charges and allows you to pay your employees in INR at the mid-market exchange rate – no markups involved. While you protect your pocket, you can also take advantage of easy digital invoicing tools and batch payments to pay up to 1000 contacts at a time.

With just a one-time fee of 42 CAD to get started and minimal charges on transfers after that, you can use this cost-effective payment system to conduct regular payroll. To make things even more enticing, security features like two-factor authentication, 3D secure online payments, biometric recognition, and dedicated anti-fraud teams make sure your transactions are conducted safely.

Pay your employees and clients abroad with Wise

To sum it up

Want to stay ahead of the competition? Struggling to keep up with demand? Outsourcing your IT solutions to India is useful when you want to access skilled professionals and find a cost-effective solution for your business. While it’s true that the journey might involve care and compliance, learning the ropes can unlock opportunities such as round-the-clock productivity and novel technologies.

Sources verified on 22 March 2024