Why Outsourcing Software Development to India?

 

An increasing no of enterprises and startups consider India as a primary destination for software outsourcing. Outsourcing software development to India means lower costs, higher software quality, no communication barriers, and a huge talent pool. We, in this article, mention 5 reasons why India is the leading country for software development outsourcing.

 

According to Statista, global spending on software is estimated to reach 738 billion U.S. dollars in 2019. Outsourcing is growing popular on a day-to-day basis because it spells profit for businesses.

Why companies outsource? Software outsourcing is equivalent to a reduction in costs and investments in capital expenditures. It also eliminates recruiting in-house staffs. Most importantly, it means the ability of the company to focus on its core competencies.(Get a complete 360 degree overview of Software Development Outsourcing here.)

 

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When it comes to outsourcing software development, there are multitudinous offshore software development companies all over the world. So, how do we categorize them? The destinations are mostly categorized by geography. And then judged by other characteristics like qualification, cost, quality, time-zone, culture, etc. Let’s have a quick look at top offshore custom software development destinations :

Asia: India, China, Japan

Eastern Europe: Ukraine, Poland, Belarus

Latin America: Mexico, Argentina, Chile

Every software outsourcing destination has its advantages and disadvantages. We, in this article, specifically talk about outsourcing software to India!

We have been featured as "Top outsourcing companies in India" on Time doctor. 

 

Why are Companies Outsourcing to India?

India is a leading destination for offshore software development! Indian IT industry is known all over the globe for its cost competitiveness and its high-quality software services.

According to OurStockPick, In 2018, India’s high market share in the global services sourcing industry stands at 56%. This was the highest in the world.

 

 

Indian IT industry aims to touch USD 350 Billion in revenue by 2025 from the present USD 150+Billion. Also, India still leads in terms of software developer base and has the fastest growing concentration of software developers in the world.

The above stats make it explicit why India rules when it comes to custom software development! We now in details analyze why outsourcing software development to India in 2019 is the best decision you’ll ever make! Also, how exactly India gained momentum as an attractive destination for custom software development?

 

 

[1] Enormous Talent Pool

India’s humongous talent pool makes India the biggest outsourcing hub and has been instrumental in its dominance in custom software development. When it comes to education, India has a pretty high percentage of developers who have a Bachelor’s as well as a master’s degree.

Around 3.1 million students are added to the workforce each year in India. India is also home to the youngest development cohort in the world. More than 95% of the developers are aged with 18-35 years. And, almost 200,000 software graduates are employed by the IT industry every year. Because of this huge talent pool, any development challenges that are thrown across to them are tackled with utmost accuracy.

India also offers a wide choice of diverse specializations. They are technologically competent and industrially experienced. They are constantly accumulating new and improved skills on a daily basis to deliver quality software solutions across all industry verticals.

Not only development, but India also excels when it comes to project management. The top-notch software development outsourcing companies in India has the ability to manage projects end-to-end. That is, you get experienced designers and developers, efficient project managers and capable QA testers, all in one.  

When you outsource software development to India, you are signing up for this unmatchable talent pool to develop your software.

[2] No Communication Barrier

The world has become an interconnected global village where ideas and beliefs are shared on a daily basis. To communicate effectively in this interconnected world, there is no medium apart from English.

India is home to almost 125 million English-speaking people, making it the world's second-largest English-speaking country, only second to the United States. Also, India ranks third in Asia on English proficiency according to the EF English Proficiency Index.

When outsourcing software development, Communication still is the number one priority as well as the leading challenge. Outsourcing to India means an IT sector where almost everyone speaks fluent English. Software development in India dissolves the language barrier to communication on its own. This language skill has been instrumental in transforming the perception of India when it comes to software development.

 

[3] Lower Costs

This is a fact - Software development costs are lower in India compared to the rest of the world. This was the sole reason for outsourcing software to India up until a few years ago. Today the price-quality ratio is equivalently important. We’ll talk about the price-quality ratio later in this article.

So, how much does it cost to outsource to India? Hourly rates start from as low as $20.

The low development costs arise from the fact that wages in India are much lower than it’s US or European counterparts. This somewhat can be attributed to blended development. What blended development is that there are hierarchical layers of developers based on their skills and experience.

Say, a PHP based project requires 4 developers. Based on the difficulty level, a firm might utilize 2 senior developers, one junior developer, and one software intern. This keeps the wages in check and also ensures quality as the toughest components of the project are handled by Senior Developers and the usual regular components are handled by junior developers.

This reduction in costs also helps companies that are outsourcing software development to India gain a comparative advantage with economies of scale.  

Read more: How to reduce custom software development costs?

 

[4] Time Zone Advantage

India is 9 hours and 30 minutes ahead of the USA.

India is 3 hours and 30 minutes ahead of Europe.

India is 4 hours and 30 minutes ahead of United Kingdom.  

Australia is 4 hours and 30 minutes ahead of India.

This time difference allows round the clock working conditions for Indian software development companies and boosts their productivity. Also, this round the clock working hours mean faster turn around. With businesses globally recognizing the need for speed, this means a decrease in the time to market. Thus, this faster time to market can be used to leverage competitive advantage.

Even when working with a company from the US, it is very easy for Indian companies to arrange sync-ups and calls during the sufficient overlap period of both the countries. For Europe, Australia, UK the difference is even lesser and dealing with a time zone difference, even easier.

Also, if you decide to run both in-house development and outsource at the same time, it’s a win-win for you too. Your business runs 24x7. When your in-house developers are resting, your offshore team in India is managing the show.

Read more: In-house development or outsourcing? What to choose?

 

[5] Quality

Maybe the low price of development is what attracts the companies but the quality of the final product is what makes them stay. This is what holds India’s position in global outsourcing. Recent stats show India has become one of the topmost investment destinations in the IT industry with a 55% share in outsourcing.

With the cut-throat competition within the country and overseas, the top software development firms in India consistently provide top quality software solutions. This is all possible because of the huge talent pool in India that has an ever-increasing thirst for learning and experimenting with new technologies.

India also has the highest ISO certified firms, so, no compromise on quality! So, if you are interested not only in the best price but also in the highest quality, you can blindfoldedly outsource your software development to India.

 

Best Software Development Companies in India

The pandemic may have halted the growth of several industries but it certainly accelerated the rate of outsourcing and outstaffing software development work to countries like India. As an increasing number of companies are adopting flexible work models, it’s becoming more acceptable to collaborate with external partners who can deliver high-quality services at a much more efficient rate! 

Now that you know why outsourcing software development to India is a good idea let’s have a look at the best software development companies here. We have divided the list into two subcategories based on your company and your requirements: 

 

[1] 5 Well-known Software Development Companies 

These are large companies that are very well established in the industry. If you are a big multinational company with a substantial budget and your requirements are wide-ranging and you care a lot about different industry certifications then we would recommend you to consider these companies.

1. Tata Consultancy Services
2. HCL Technologies
3. Infosys
4. Wipro
5. Tech Mahindra

 

[2] 5 Upcoming Software Development Companies  

These are medium to small size companies that can be equally competent but usually have a comparatively smaller team. They are best suited if you need top management to directly take care of your project, customize processes to match your need, be slightly tight on your budget but still don’t want to compromise on development quality, etc. 

1. BinaryFolks
2. Fingent
3. Chetu
4. Tatvasoft
5. Experion Technologies

 

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Let’s Summarize!

India has evolved as the epitome of software outsourcing hubs in the world because of its hugely talented and specialized labor pool, price-quality ratio, and strong corporate standards.

Apart from these, their capability to manage projects end-to-end and speak fluent English also sets them apart.

Another advantage is India has ample software development companies in every city. So, when choosing your outsourcing partner, you have sufficient options to choose the best out of them. You can also read this article to know the best software outsourcing model which will be beneficial for your business.

Check out : Our full list of reasons to outsource

Being a leading software outsourcing company in India for over 10 years now, we came up with some questions you need to ask your potential software firm to know if they can legitimately deliver quality software to you in time. Take a read and I’m sure it will help.

 

 

Read more : 7 Software Outsourcing Success Stories from Biggies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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