Outsourcing Software Development Services to India

Software outsourcing to India is increasingly being seen as the silver bullet to solving key business challenges. With rapidly expanding knowledge worker skills, India is now widely considered a preferred destination for outsourcing development work. This article discusses some of the issues associated with software offshoring to India, and currently accepted practices in managing offshore resources.

Indian outsourcing companies offer cost-competitive pricing, and deliver high-quality software development services by providing greater engineering productivity compared to US or European companies of similar size. India has a competitive advantage in certain areas of IT & IT Enabled Services (ITeS). In the areas where India excels at, such as call centers, software development, and healthcare related services, the US can’t come close to matching India’s cost structure.

IT Industry in India

The information technology sector is expected to account for 8% of India’s GDP in 2020. Exports from the Indian IT industry are anticipated to grow by 1.9 percent to US $150 billion in FY 2021. In 2020, the IT business added 138,000 new employees.

Most IT service providers are subsidiaries of multinational corporations (MNCs). Currently the largest markets for Indian software and service providers are the US, Europe, Japan, Australia and Singapore. In recent years India has been gaining significant ground in the domestic market as well by capturing a major share of outsourcing from local IT companies.

According to STPI (Software Technology Park of India), software exports by its registered firms increased 7% year over year to Rs 5 lakh crore (US $67.40 billion) in FY21, from Rs 4.66 lakh crore (US$62.82 billion) in FY20, owing to rapid digitization and the IT industry’s timely response to the changing business dynamics.

The Indian domestic market for IT services is poised to touch US $63 billion by 2020, registering a CAGR of 26% over the next five years, according to Nasscom (National Association of Software & Services Companies) report titled ‘India Sourcing Outlook 2022’.


Frequently Asked Questions

If your business is planning to outsource the development of an enterprise resource planning (ERP) system, web application or mobile app, you can be certain that there are several advantages. For example, software outsourcing allows companies to benefit from cost savings and quality improvements; however, it’s important to know what makes this solution effective.

Software development outsourcing is the practice of hiring a third-party firm or developer to create software for you. It’s done by many businesses, especially those that produce complicated systems and need them developed quickly. The outsourcing company handles all aspects of the project, including design, web development, coding and testing.

If you’re a foreign company looking to expand into a new market, software development outsourcing can help you quickly install the infrastructure that’s needed to do business in that area.

For those companies looking for cost-effective ways to create websites and applications, hiring an outsourcing company is a solution that makes sense. The flexibility of using offshore resources also helps bring down development costs compared with projects developed domestically.

Offshore software development is popular in India! The Indian IT sector is well-known throughout the world for its low cost and high-quality software services. As a result, Indian software companies have been able to capture a significant share of the global IT services market.

The cost of outsourcing may vary from country to country but more often than not, it is actually cheaper to outsource certain software development tasks to India compared with other countries such as Russia or China. Thus, organizations usually choose Indian offshore providers for relatively low-cost development work.

Not only do Indian software companies offer lower prices than other outsourcers, but they also typically provide higher levels of productivity and quality. Many companies still consider software outsourcing to India as the least riskiest option when it comes to finding an offshore partner. While some organizations are concerned about the possible pitfalls of doing business overseas, many organizations perceive India as a safe option.

Indian outsourcers have been able to gain a significant share of the global market due to several reasons:

An abundance of technical talent: India has a deep pool of talented programmers and techies, which is growing at a rapid pace. This enables Indian firms to provide a large number of software professionals to work on offshore projects.

A large numbers of technical graduates: The number of engineering and technology graduates in India is approximately 1.5 million per year, many of whom are IT professionals. This large talent pool enables Indian software companies to staff offshore projects quickly and cost-effectively.

Availability of English-speaking professionals: While outsourcing requires a great deal of communication between the two parties, most Indian software professionals are fluent in English which is considered to be the international language of business. This factor helps Indian companies to match client’s requirements quickly and effectively.

Corporate presence: Many big-name US companies outsource some or all of their IT projects to India due to its proximity to the United States. For example, India has become an important part of the supply chains for several large US corporations. This proximity makes it easy to oversee Indian software projects, which is another advantage over other outsourcers.

Larger customer base: With approximately 2 million people employed in the outsourcing sector, Indian companies have a larger pool of potential customers than their competitors in countries like China and Russia. This ensures a steady stream of projects for Indian outsourcers, which in turn enables them to provide quality software development services at affordable prices.

In addition, Indian companies have been focusing on improving their business processes and utilizing new technologies such as social media to attract more clients. These factors allow Indian IT firms to remain competitive in the marketplace and capture a large share of the outsourcing sector.

India-based software outsourcing allows you to employ high-quality coders at a fraction of the cost of US-based professionals. An Indian coder has the same level of expertise and understanding as a developer from the United States or Europe, but he or she costs much less.

Choosing an offshore software outsourcing company might be tricky, but when you through us, you can be certain that you’ll get the same high-quality products and service as before.