Education System Gives India a Competitive Edge

Education System Gives India a Competitive Edge

India Grabs 65% of the Jobs Shipped by Western Firms

Whenever one speaks of outsourcing, the first country that comes to mind is India. Why has India become the 'place to be' for outsourcing? Why do a majority of Fortune 500 organizations have outsourcing operations in India? What is the reason behind India's 65% share of the global outsourcing industry?

The numero uno reason is India's reputable education system that churns out around 2.5 million employable graduates every year. These graduates possess specialization degrees and many of them go for master's degrees or post graduate courses to enhance their domain specific knowledge. This chunk of qualified, English-speaking youth forms the backbone of India's outsourcing services industry.

A solid higher education system-the cornerstone of India's tremendous growth

India has hundreds of tier one colleges and universities that impart excellent global-standard education. The worth of students passing out of the IITs (Indian Institute of Technology), IIMs (Indian Institute of Management), ISB (International School of Business), and BITS (Birla Institute of Technology and Science) is recognized all over the world. And that is not all-India has over 300 universities with around 17,000 thousand government and private colleges, offering quality education to its millions of students. The regional engineering colleges and medical colleges are famous for training world-class engineers and doctors. The success of the Indian education system is not a surprise. If we look at the historical background of the country, we find that India has a deep-rooted culture of education. Since the time of Vedas, Buddha, Nalanda, and Aryabhatta, Indians have always recognized the value of good education.

Today, India is renowned as a world leader in education. Thousands of foreign students are coming to India for higher education, primarily from South Asia, South-East Asia, Central Asia, Africa, and Europe.

Brain drain-a reflection of India's bright minds

The western world continues to face dearth of qualified technical talent. Indians migrating to countries like the US, UK, and Western Europe are offering their talents and establishing the value of Indian education. In 2007-2008, immigration from India to the US was at its highest level in history. Of all the national origin groups in the United States, Indian Americans have the highest educational qualifications. Almost 40% of all Indians have a master's, doctorate, or other professional degree, which is five times the US national average (source: The Indian American Centre for Political Awareness). Such a high level of education has made Indian Americans become the most productive segment of the immigrant American population, with 72.3% participating in the US workforce, of which 57.7% are employed in managerial and professional specialties. Indians are nine times more likely to be doctors in the US than the average US citizens are. This proves the strength of the Indian education system and thus why so many US companies choose India as it's outsourcing destination.

India-the natural no.1 outsourcing destination

There is absolutely no need for skepticism when outsourcing to India. Indian workers are undoubtedly amongst the most qualified, talented, globally experienced, dedicated, and ethical. India is emerging as the outsourcing super power and 80% of US organizations have ranked India as their first choice for outsourcing IT related services. Thousands of multinational organizations have made Indian service providers their preferred outsourcing partners. All this has been possible only due to India's enormous talent pool that stands on par with any other country.


The scale of brain drain from India to the US and Europe is testimony to India's education system. It proves that India has talent and on a large scale. It is thus hardly surprising that US companies are outsourcing to India in such large numbers. Outsourcing to India, helps US companies fill a skill shortage and tap into some of the most brightest and talented minds in the world. Accordingly we are likely to witness for years to come a strong outsourcing relationship between the US and India.