Struggling with the software development process?

Managing a software development team while focusing on running your business can be challenging. In such cases, outsourcing software development is a great option.

You can consider outsourcing software development to India to lessen the workload of your IT staff. According to Statista, the Indian IT outsourcing market is anticipated to generate $20.09 billion in sales by 2028.

With highly skilled developers and a thriving tech community, India is an ideal location for high-quality software development services.

In this blog, we have covered all these reasons to help you understand why outsourcing software development to India can be beneficial.

outsourcing software development to India

Key Statistics of Outsourcing Software Development to India

Outsourcing software development to India has proved to be beneficial for various reasons. Here are some statistics to justify this statement:

statistics software development outsourcing to india

  • The IT outsourcing market is anticipated to generate $512.50 billion in revenue by 2024.
  • It is anticipated that revenue will expand at a 10.99% annual rate (CAGR 2024-2028), reaching a market volume of US$777.70 billion by 2028.
  • In the IT outsourcing market, the average spend per employee is expected to reach US$146.10 in 2024.
  • When compared globally, the United States will produce the most revenue ($185.50 billion in 2024).

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Reasons for Outsourcing Software Development to India

India is a powerhouse of software development. The web development outsourcing companies in India are well-known worldwide for its low costs and high-quality software services.

Now, let’s understand why outsourcing software programming to India is the most innovative option.

software outsourcing india

1. Vast Talent Pool

India boasts the world’s largest skill pool, which is what attracts businesses to the country. Every year, around 0.5 million software graduates are employed by Indian IT organizations, resulting in 98% of young and skilled developers in the 18-35 age bracket.

software outsourcing stats

It has a large number of exceptionally talented and capable programmers. With such a large talent pool, catering to the software development requirements becomes simple. Such a young IT staff has several significant advantages, including:

  • Ability to quickly adapt to disruptive technology
  • Provide a variety of specializations
  • At all costs, meet deadlines

These benefits allow the web development outsourcing companies in India to address the needs of a wide range of industries. India has focused on developing skill sets such as AI, Big Data, IoT, Cloud, and Mobility because of its varied pool of software engineers.

2. The English Language Advantage

You would not face any language or communication hurdles in India because it is one of the world’s major English-speaking countries. India is the world’s second-largest English-speaking country, after the United States, which gives you an idea of the country’s language proficiency.

The fact that Indians are fluent in the English language encourages outsourcers to select India as their outsourcing location. The EF English Proficiency Index recently rated India second in English proficiency.

As the IT business operates in a single language worldwide, companies are looking for developers who speak and write in both spoken and written English.

Several corporations have already begun to use India as an outsourcing partner without facing communication barriers.

This level of mastery and application of a foreign language in a country is extraordinary, so India has long been seen as a one-stop-shop for global outsourcing issues, particularly software development.

3. Cost Advantage

India has cheaper software development costs than any other country globally. Until a few years ago, this was the only justification to outsource software development to India.

Now, the ratio of cost to quality holds equal significance. So, how much does outsourcing to India cost? The hourly rate starts from $20.

The fact that wages in India are far lower than those in the US or Europe accounts for the low development expenses. It is partially explained by mixed development. The concept of blended development involves organizing developers into hierarchical tiers according to their experience and skill sets.

For example, let’s suppose that a project using PHP needs four developers. A company may use 2 senior developers, 1 junior developer and 1 software intern based on the complexity.
It controls wages while guaranteeing quality as senior developers tackle the most difficult project components while junior developers handle the regular components.

This cost-cutting measure also gives businesses that outsource software development to India a competitive edge due to economies of scale.

Also Read: Everything You Need to Know About IT Consulting Hourly Rates In 2024

4. Time Zone Advantage

When you outsource to Indian software development companies, you benefit from working in several time zones. Operating at many locations worldwide 24 hours a day, seven days a week boosts productivity.

Working across multiple time zones also means that client service may be delivered 24 hours a day, seven days a week, 365 days a year.

Even when it comes to geography, web development outsourcing companies in India has a competitive advantage over countries wanting to outsource software development projects. The difference in time is:

India is 3 hours and 30 minutes ahead of Eastern Europe and 9 hours and 30 minutes ahead of the United States.
Singapore is 2 hours 30 minutes ahead of India in time.
Australia is 4 hours 30 minutes ahead of India

Due to the time zone difference, Indian firms can give round-the-clock support and quick turnaround times for project development requirements.

Time, like cost, is crucial and can be a competitive advantage for businesses that work around the clock and require sync-ups and conference calls.

It’s also beneficial for firms looking for both an in-house and an offshore workforce to collaborate in situations where time is critical.

5. Quality

Companies may be drawn in by the low cost of development, but they are drawn in by the quality of the final product. That’s what keeps India in the global outsourcing game.

According to recent statistics, web development outsourcing companies in India has surpassed China as one of the most attractive investment destinations in the IT industry, with a 55 percent share of outsourcing.

Despite fierce competition within India and beyond, India’s top software development companies continuously deliver high-quality software solutions. 

All of this is feasible thanks to India’s large talent pool. It has an ever-increasing appetite for learning and experimenting with new technology.

India also has the largest number of ISO-certified companies, ensuring that quality is never compromised! So, if you’re looking for the best price and the best quality, you can contact software outsourcing companies in India.

6. Next-gen Technologies

outsource IT services to India

India has skilled professionals in all next-generation technologies, including blockchain, IoT, AI, Machine Learning, and analytics advancements. You can find professional web development outsourcing companies in India, including IoT and AI companies.

Software developers can be found all over the world. It would be a great error to be overly enthused and quickly choose a software outsourcing company. You must select India’s right software development outsourcing company to achieve corporate goals.

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Factors to Consider While Outsourcing Software Development to India

The top-notch services it offers and the dependable work it has delivered in the past are two of the important reasons why India is the most famous and approved software outsourcing destination for enterprises.

The software outsourcing ideology has now achieved its pinnacle. Most organizations consider outsourcing to supplement their business offerings.

Before hiring best software development company in India, you should constantly evaluate what to choose for your software development outsourcing. These are a few considerations any business should make before outsourcing:

  • Only after you’ve double-checked your business KPIs with the service offers should you outsource.
  • Delegate time-consuming tasks that make your business inefficient owing to a lack of knowledge.
  • Never outsource something in which you are an expert.
  • Choose a service provider based on their portfolio rather than the price they are willing to offer.
  • Protect the developed applications as well as the IP address.
  • Having your in-house team planning strategies for a new business is usually a good idea.

Also Read: The Better Choice: In-House Development vs. Software Outsourcing?

How to Select an Outsourcing Firm in India?

Choosing the best software development company to outsource your work to is important. A poorly designed product can cost much more than one that doesn’t succeed in the marketplace. Therefore, using a team is essential from a financial perspective as they can assist you in achieving strategic business goals.

To help you shortlist and select the best firm to outsource software development in India, we have included some crucial elements to help you in that:

Ways to Choose an Outsourcing Company in India

1. Great History

Since even outsourcing companies have to start somewhere, someone has to handle their initial projects. Avoid taking on an outsourcing partner’s initial project unless the outsourced software development company meets additional selection criteria.

You must look for a supplier with a successful track record. Consider the below points when discussing numbers:

  • The quantity of finished projects
  • Types of projects completed
  • The number of recurring clients
  • Previous clients
  • Particular industrial background
  • Wide technology portfolio

2. Appropriate Skills

What is the first thing you look for in a new hiring for your software development team? It is the resume of the potential employee.

Similarly, when you outsource software development to India, the portfolio counts. By looking through the outsourced software development company’s portfolio, you should be able to respond to some of the following questions:

  • Which skills does the developer outsource offer?
  • Who are the other customers? (to check the market)
  • Does this provider have a wide range of skills?
  • Does this supplier provide development across a range of technologies?

You can process if you can provide affirmative answers to these queries in light of the portfolio. If not, it could be time to go on to the following list item in the outsourcing developer list.

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3. Proper Processes and Workflows

Each step in the software development process adds to the final product’s strength. Here are the following questions in relevance to development processes:

  • Do they hire a successful software development methodology?
  • Are these procedures or methods compatible for the work you do?

First, rather than being comparable, the procedures should be compatible. It is due to the potential that the software development outsourcing company makes use of a superior model. So, it should be consistent with your work.

The most crucial part is to use right approach. The waterfall method is outdated and does not work now. Agile and scrum methods are preferable as they are less strict and increase your project participation.

4. Enhanced Communication

Agile and scrum approaches entail you being part of the project. However, this involvement does not imply that you are present on the property. In reality, you might be on a different continent given the nature of outsourced software development.

Consequently, having a reliable and smooth communication line is crucial. It would be difficult to keep project development transparent without communication.

If you have the right technology, there are the following ways to accomplish appropriate communication.

  • Establish a streamline structure for the effective communication within the outsourcing team to facilitate prompt issue resolution.
  • Seek out service providers who can give direct access to teams that specialize in things like quality control.
  • Schedule virtual or in-person meeting to stay informed and keep the project moving forward.

Summing Up

In India, every organization, from start-ups to large enterprises, has a strong proneness for software outsourcing services. You now understand why companies outsource to India.

Obviously, to maximize corporate earnings and reinforce the basic business foundation by leveraging cutting-edge technologies and skilled personnel.

So, you should empower your company with the help of these modern software outsourcing companies in India, which have dominated the global tech market with their top-notch services and global skills.

Good Luck!

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