Why Outsource Software Development to India?

Are you thinking of outsourcing software development services? Do you know outsourcing software development to India can give you several benefits? 

Well, in today’s business climate, more and more companies are turning to IT outsourcing services to save money and get the job done right.

In fact, as per a report, the outsourcing industry is expected to grow to $81.5 billion by 2023, with a 3.51% compound annual growth rate

But can you hire any random organization to get the job done? 

Of course, not. You need to find a reputable software development company that will give you the best possible service at a reasonable price.

No doubt, several companies claim to be the best in the business, but only a few live up to the hype. 

India has emerged as the leading destination for such services in recent years. It has grown into a large offshore software development center that can handle software application development, web app development, and mobile app development.

Hence, outsourcing software development services to India is the best decision you can make for your business.

You must be thinking why? To resolve all your doubts, I’ve come up with this blog. Here, I will take you through all the benefits that your business can reap by choosing India as your software development partner. So, let’s get started!


Statistics to Consider While Outsourcing Software Development to India

Here are the numbers that will prove that India is the best outsourcing destination in the world:

  • According to a recent Deloitte survey, 59% of businesses surveyed indicated that they were currently outsourcing to India, while another 22% said they were considering outsourcing to India.
  • India has a population of over 2 billion English speakers.
  • Every year, 1.5 million engineering graduates pass out from Indian engineering institutes.
  • Indian outsourcing market revenue is predicted to show a yearly growth rate (CAGR 2022-2027) of 11.80%, giving a market volume of US$12.47bn by 2027.

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  • More than 4 million IT experts work in Indian IT firms, with a further 10 million employed indirectly.
  • In India, over 200,000 IT graduates are recruited to the IT workforce each year, making it the world’s youngest employable population.
  • More than 40% of IT workers will be trained in the in-demand technological stack in the next four years to satisfy the industry’s advanced requirements.

Why Outsourcing Software Development to India is a Win-Win Situation for Companies?

India is a leading destination for outsourcing software development. The Indian IT industry is well-known around the world for its low costs and high-quality software services.

The Indian IT industry aspires to reach USD 350 billion in revenue by 2025. In addition, India continues to lead in terms of software developer base, with the world’s fastest-growing concentration of software developers.

The above statistics demonstrate why India is the leader in custom software development. Now, let’s understand why outsourcing software development to India is the most innovative option you’ll ever make in 2022!



#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.

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

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

These benefits allow the IT industry 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

Because the IT business operates in a single language worldwide, companies look for developers who are fluent 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, which is why India has long been seen as a one-stop-shop for global outsourcing issues, particularly software development.

#3 Cost Advantage

The enormous cost savings that organizations can gain are the number one reason why India remains a top outsourcing provider. This is primarily due to the significant disparity in personnel costs between India and developed countries.

For example, in the United States, a talented developer can charge anywhere from $50 to $80 per hour. In comparison, a developer’s hourly rate in India might be negotiated as low as $15 per hour.

This pricing flexibility gives businesses the freedom and creativity they need to manage their budgets while also making huge profits. 

This cost-cutting also aids enterprises outsourcing software development to India in gaining a competitive advantage through economies of scale.

Increased ROI is directly proportional to lower costs. Rather than recruiting in-house developers or freelancers from other countries, hire software developers in India is encouraged. 

They provide not just flexibility but also a significant decrease in capital expenditures on infrastructure and maintenance.

Also ReadEverything You Need to Know About IT Consulting Hourly Rates In 2022

#4 Time Zone Advantage

When you outsource software development, you receive the benefit of working in several time zones. Operating at many locations throughout the world 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, India has a competitive advantage over countries wanting to outsource software development projects. The difference in time is:

  • India is three hours and thirty minutes ahead of Eastern Europe and nine hours and thirty 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 round 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 it is the quality of the final product that keeps them. That’s what keeps India in the global outsourcing game. 

According to recent statistics, 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 most extensive number of ISO-certified companies, ensuring that quality is never compromised! So, if you’re looking for the most excellent price and the best quality, you can contact software outsourcing companies in India.

#6 Next-gen Technologies

India has skilled professionals in all next-generation technologies, including blockchain, IoT, AI, Machine Learning, and analytics advancements. You can find a professional software development companies including an IoT software development company, AI company, and other such companies in India. 

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


Things to Keep in Mind 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.

You should constantly evaluate what to choose for your software development outsourcing before hiring a service provider. 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.
  • It is usually a good idea to have your in-house team planning strategies for a new business.

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


How to Select an Outsourcing Firm in India? 

Here are some core tips on how to choose the right software development outsourcing company in India: 

  • Do your research: It is vital to do your research before selecting an outsourcing company. Always look for companies with a good reputation and a proven track record of delivering quality results. 
  • Consider your budget: When selecting an outsourcing company, you need to consider your budget and ensure you are getting value for money. There are many options available in India, and you should be able to find a company that fits your budget. 
  • Check their portfolio: A good way to assess an outsourcing company’s capabilities is by looking at its portfolio. This will give you an idea of the work they have done in the past and whether they can meet your requirements. 
  • Compare quotes: Once you have shortlisted a few companies, it is essential to compare their quotes before making a final decision. This will help you understand the pricing and ensure you get value for money. 
  • Negotiate terms: It is essential to negotiate terms with the outsourcing company before finalizing the contract. This includes things like payment terms, turnaround time, and scope of work. 

Summing Up 

In India, every organization, from start-ups to large enterprises, has a strong proneness for software outsourcing. 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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