October 3, 2023

Why should Korean Tech Companies plan to build business units like Software Development, Sales/Marketing & Client Support Teams in India?


Establishing business operations in India, such as offshore development centers, R&D centers, sales and marketing teams, and client support teams, can be very advantageous for Korean technology companies looking to expand internationally.

Here are a few key reasons for how this strategic approach may accelerate their expansion and success:

  • Access to a large talent pool: India is well-known for having an abundance of highly qualified IT experts. Korean IT businesses can leverage this talent pool by setting up offshore development and R&D centers in India, where they can access a wide range of experience and specialized talents at a relatively reduced cost compared to other countries. As a result, they can expand their operations, quicken the development of new products, and maintain their lead in a competitive marketplace.
  • Cost-effectiveness: For Korean tech companies, operating in India can result in significant cost savings. India’s relatively economic employee wages enable more effective resource allocation and lower operating costs. This cost-effectiveness extends to sectors like infrastructure, facilities, and support services, allowing Korean businesses to strategically allocate resources and optimize their budgetary plans.
  • Time zone advantages: India has a distinct edge due to its different time zones from important international markets like the US and Europe. Establishing sales and marketing teams in India allows Korean businesses to successfully serve customers in several time zones by offering round-the-clock customer service and coverage. This guarantees prompt responses to client inquiries, expedited problem-solving, and increased satisfaction with clients.
  • Market proximity and cultural familiarity: India serves as a doorway to the hugely profitable South Asian market. Korean tech businesses can acquire market proximity and a deeper understanding of regional culture, preferences, and business practices by creating local presences. This makes it easier to enter the market successfully, customize products locally, and develop marketing plans that are specifically geared toward the demands of clients in India and Western nations.
  • Partnerships and collaborations: The startup and IT ecosystems in India are booming. Korean tech businesses can create strategic connections and cooperation with regional startups, tech corporations, and research institutes by setting up business operations there. These partnerships may result in shared innovation, access to cutting-edge technologies, and market insights, which will help their efforts to expand internationally.
  • Government support and an excellent business environment: The Indian government aggressively encourages foreign investment and provides a range of advantages to businesses located here. These incentives could be grants, tax reductions, or favorable legislation that encourages innovation and research. For Korean tech companies to set up offshore development centers, R&D centers, and other operations throughout India, a supportive business environment is easily available.
  • Agility and scalability: India’s technology landscape and infrastructure are well-developed, allowing Korean IT companies to scale their operations efficiently and rapidly. Cloud-based technologies, fast internet connectivity, and a solid IT infrastructure make it possible to collaborate and work remotely with ease, which makes governing and expanding operations in India easy.
  • Protection of intellectual property rights: India’s intellectual property laws have been strengthened, and the country now provides a strong legal framework. This guarantees that Korean IT companies may protect their inventions, patents, and trade secrets, giving them the protection and assurance they need to operate a business and invest in India.
  • Globally adept sales and marketing professionals: Having a marketing and sales team in India may be a great idea for Korean businesses seeking entry into the US and European markets. In terms of language proficiency, cultural familiarity, and cost, India has an array of advantages. The English-speaking workforce and cultural familiarity of India can be used by Korean companies with a presence there to engage and connect with potential customers in the USA and Europe. Additionally, because of their lower costs, Indian enterprises are able to employ resources more efficiently, which enables Korean companies to maintain competitive pricing in these markets. In conclusion, Korean enterprises can get a competitive edge while attempting to reach out to the USA and Europe by employing sales and marketing personnel in India.
  • Cost-Effective Client Success Team: For several reasons, having a support center in India might be an excellent strategy for Korean companies. India has a sizable pool of educated English-speaking experts who can offer efficient and inexpensive customer support services. Due to the time zone difference, consumers in various countries will always receive swift assistance. The existing IT infrastructure in India and the accommodating working environment improve the support operations even further. Indian support facilities can also serve a global clientele, extending the market reach of Korean businesses. Overall, operating a support center in India allows Korean businesses to maximize operational expenses while providing great customer service.
For Korean IT businesses looking to expand internationally, setting up business operations in India, including offshore development centers, R&D centers, sales and marketing teams, and client support teams, can be an excellent strategic decision. India is an appealing option due to its access to a large talent pool, cost-effectiveness, time zone benefits, market proximity government support, scalability, and intellectual property protection. Using these advantages, Korean technology firms may boost their competitiveness, expand into new markets, and accelerate their growth—all of which will help them in their aspirations to expand internationally.