If you have decided to outsource a business project, then your next move is to determine where you will outsource? Choosing the right country that offers the most offshoring advantages is a tough decision to make. India vs the Philippines is one the toughest choices to make amongst the top countries when it comes to outsourcing or offshoring.
According to a recent outsourcing stat, by the end of 2021, the total value of outsourced IT services will cross $413.72 billion. This will definitely include website development outsourcing.
Outsourcing of IT services, including web development, is no longer limited to large companies only. Hence, this article discusses which is the preferred location to outsource web development projects – India vs. Philippines.
This guide will compare them based on their pool of talent, cost-effectiveness, language, culture, developer’s rate, and many other factors. So, here we go.
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Why Should You Choose Web Development Outsourcing?
Outsourcing is a practice that allows organizations to contract out their business processes and functions to third-party service providers. Before making any decision, you must consider the pros and cons of outsourcing.
There are many reasons that favor choosing outsourcing web app development, thus making it a preferred option. The main reasons are as follows:
1. Better Affordability
Outsourcing product development is far more economical than employing in-house developers. This is because of the difference between the economies of developed and developing countries.
The cost of living in countries like India is much lower than in countries like the United States and the UK. So the money you can save by outsourcing to India can be invested in the growth of your core business.
2. Easy Access To Global Talent
It requires highly skilled and expert professionals to build a robust and visually appealing website or app that provides a rich and engaging user experience.
By opting for outsourcing, you get a chance to select developers and designers who best suit your project requirements from a vast pool of talent spread across the globe.
3. Complete Focus On Business Growth
Web development, when done in-house, requires a lot of attention on your part. You have to monitor the project carefully, make sure best coding practices are being followed, quality standards are being met, and finally, you have to test it and fix all the bugs.
While an outsourcing service provider is creating the project, you can focus on marketing campaigns to have a grand launch of your product.
4. Save Time And Increase Efficiency
By outsourcing your web development project, you save a lot of time that would otherwise have been spent on building an in-house team and completing the project. In addition, working with an offshore web development company is relatively straightforward.
5. High Quality
If you employ an in-house team of web developers and designers, you may have issues with the quality of the product.
When you opt for outsourcing, your project is handled by experienced professionals. They have a lot of expertise and skills to do things in the best possible way to ensure high quality.
India vs Philippines for Outsourcing: Let the Battle Begin
Let us compare India and the Philippines based on several factors. These factors are based on critical reasons cited by other companies that influenced their decision to move their operations offshore to one of these countries. Here we go.
#1. India vs Philippines: Talent Availability
The availability of web developers with the necessary skills is one of the critical factors you’ll consider when offshoring to India or the Philippines. So let’s compare the talent availability for offshoring that India and the Philippines can offer.
When it comes to India’s talent pool of trained IT professionals, it is estimated that over 120,000 trained IT professionals are added to the collection every year, with around 62% of this workforce having more than four years of experience.
According to a survey by Deloitte, nearly 60% of the world’s companies outsource their projects to India, especially for software and web development.
There is no shortage of graduates for the Philippine talent pool. Major web developing companies based in the Philippines hire candidates with a college degree and proven experience in their respective fields.
But the Philippines can’t match India in the sheer volume of IT professionals.
#2. India vs Philippines: Cost Effectiveness
The cost of hiring an offshore web developer will prove to be comparatively less than what you would pay to your in-house developers. And this is the core reason why most companies prefer to outsource their web development and cut operating costs by up to 60%.
Clutch provides the following information on hourly rates for web development outsourcing in 2019:
In contrast, the hourly rates for web development services in Asian countries varied between US$18-40 in 2019. Therefore, it is natural that Asia remains the leading destination for offshore web development.
As far as the cost factor is concerned, India is considered the top web development outsourcing country for web development projects.
Indian firms work on customized, cost-effective strategies that take advantage of readily available skilled developers, thus giving the country an edge over similar countries. This means better control of your budget and access to highly skilled developers at lower prices for enterprises.
The Philippines ranks 8th on the list but is marked as a particular case. This is because outsourcing in this country is growing at a rate of 46%. This makes it one of the strongest emerging countries in outsourcing. It’s not IT-specific, though.
#3. India vs Philippines for Outsourcing: English Language Skills
Being a universal language, English is the medium of communication in the IT industry. When dealing with foreign clients, English is the language of communication in most cases. Therefore, poor English speaking skills result in difficult conversations, frustrated customers, and business loss.
India is the second-largest English-speaking country in the world. And this makes it a preferred choice for employers across the globe interested in outsourcing web development projects.
American colonization for nearly 50 years has made the Philippines one of the most English proficient countries in the world. According to the EF English Proficiency Index, the Philippines ranks third out of 20 countries in Asia and 15th out of 80 countries in the world for English proficiency.
#4 India vs. Philippines: Industry Growth
India’s IT outsourcing market is taking the lead with 3 million developers focused on C++, Java, and web development. In addition, machine learning, AI, and robotics are of equal interest in the country.
It also has the latest technologies to provide the most advanced web development services. The availability of enormous talent is an important reason why countries choose to outsource web development to India.
Apart from having a stable economy, the IT sector is one of the Philippines’ fastest growing and dynamic industries. Many companies specialize in web app development and various aspects of emerging technologies such as blockchain and AI.
#5 India vs Philippines for Outsourcing: Time Zone Differences
It is crucial to consider time zone differences when collaborating based on an outsourcing model. However, employers work in a team with a manager who facilitates communication with the rest of the team.
Maintaining communication is an effective practice for successful collaboration at any stage of project development and development.
The advantage of outsourcing is that you can work in multiple time zones. In addition, productivity and overall efficiency increase significantly when you operate 24/7.
A great example here would be US-based companies that can utilize their internal teams during the day and move their operations to India at night to provide always-available customer support.
Filipinos are highly flexible individuals who are open to working night and morning shifts. This means that companies looking for outsourcing to the Philippines need not worry about the time difference.
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India vs Philippines for Outsourcing Web Development Project: Who Wins This Race?
The discussion clarifies that in terms of outsourcing web development services, it will take some time for the Philippines to develop as a competitor to India.
Another way to look at the preferred outsourcing destination, India or the Philippines, is not to compare them but to look at both destinations as potential places to outsource.
However, India’s offshoring business of around US$118 billion is much larger than that of the Philippines, which stands at around US$15 billion, clearly indicating that the global clientele is considering offshoring to India as a better option.
Hence, if you plan to outsource a web development project, you can get in touch with the best web development company in India to get your project delivered with a given budget constraint.