Contact Us

Why should you consider IT outsourcing to India or hiring Indian software engineers?

  1. Home
  3. Blog
  5. Why should you consider IT outsourcing to India or hiring Indian software engineers?

India has been the hot spot of revolution for decades. Be it population, diversification, religion, or IT outsourcing, India has emerged as one of the key players in every segment throughout the globe. In a recent survey, India was ranked as the first preference for outsourcing by almost 80% of the US and European outsourcing firms. What’s more, half of the fortune 500 tech giants also consider outsourcing to India as revealed by NASSCOM in one of its releases. Many countries like China, the Philippines, etc. have tried to compete with outsourcing companies in India in this sector.

But, India on the other-hand overcame all such competitors and has emerged as the number one destination for outsourcing. This is because it is fairly easier to outsource to India. As many registered outsourcing companies in India work on par with other such agencies across the world.

Meaning of Outsourcing:

When a particular service or work assigned to one person is transferred to a third-party it is known as out-sourcing. In the current IT sector if a company wants to outsource its work it can include many operations. It can be a complete project, or a part of it like disaster recovery, software development, network-related services, or simple QA testing.

There are three options for outsourcing.

  • Onshore: Here companies outsource works to companies within their country.
  • Nearshore: This outsourcing involves companies of neighboring countries which are in a similar time-zone.
  • Offshore: Sending works to a distant region with a different time-zone is offshore outsourcing.

In general practices, nearshore and offshore outsourcing models have been in greater demand. This is because it not only saves time but also saves a huge chunk of money as services in countries whose economic value is less or is cheaper.

Why should you consider IT outsourcing to India?

RPA implementation comes with three main steps:
India has been the pillar of the IT outsourcing market for many years. And has the highest number of IT outsourcing projects from all over the world? You might be thinking what is the reason for such popularity? Well to answer that curiosity, let’s see some of the reasons why you should consider outsourcing to India:

● A leader in Outsourcing Industry:
India has a history of dominating the Global market of outsourcing. It provides cost-effective solutions to large enterprises, that not only save money but also deliver quality. You might be shocked to know; India has already become a pillar of support to most of the renowned western software companies. In a report generated in 2018, India dominated the Global market where a study revealed 67% of outsourcing works were outsourced to India.

● Preferred by the best in the Market:
Top Giants of the Tech industry also consider India as their go-to outsourcing partner. Companies like Google, Microsoft, Ford, AMEX, CISCO, and a lot more, all outsource to India. This itself proves that India has slowly but steadily become a renowned IT hub for outsourcing services.

● Fastest Growing Market:
The current value of the Indian IT industry is close to $150 Billion which is one of the highest in the world. That’s not all. India also has the fastest growing IT industry which has a growth of 10-15% per year, which is a feat of its own.

● Quality Standards:
A past survey revealed that out of the World’s CMM level-5 certified service providers, 75% are from India. This means out of 10 CMM-5 Certified companies at least 7 are from India. Not only that, Outsourcing to India is never a compromise to quality. The Indian IT companies follow strict quality standards acknowledged even in the US. Capability Maturing Model, ISO 9000 standards, Six Sigma Certification for quality, and COPC certification are some of the many quality standards maintained by Indian outsourcing companies.

● Vast Pool of Talent:
As you might already know, India is the 2nd largest populated country in the world. But are you aware that in the coming 5 years, close to 40% of the Indian workforce is expected to grow their skills? I don’t think you do; India already has a massive pool of talented workforce who are also technically proficient in their profession. And this segment is only going to grow. Because being a mobile app maker or web developer is one of the most sought-after career options for a young Indian kid.

A report generated by C SharpCornet also reveals that by the end of 2023 India is expected to be the largest IT hub with the greatest number of software developers. Not to forget, these developers will be well trained, with the required KSAs you want in your next hire.

● Budget-Friendly:
India is one of the few cheap yet quality assured service providers in every sector. It is also the biggest reason why IT companies from Europe and the US want to outsource to India. Research reveals that when you compare the cost of development of India from such countries. You will notice that the cost in India is 35% lower than that of the US or Europe.

Many factors cause such a decrease. The average salary of an Indian developer is only $20-$50/hour which is $100-$150/hour in other developed countries. This is also a very big reason for such low-cost development. Even at lower costs, the Indian IT-BPO accounted for the revenue of close to $160 Billion in 2017.

Thoughts about outsourcing companies in India?

Asia is the biggest outsourcing hub of the Global market. Most of the companies prefer Asians to be perfect for outsourcing services related to IT, Communication, etc. It delivers good quality, costs less, and has a skilled workforce who are also proficient in the English language. India and the Philippines are two of the most influential players in this market, where India out-performs the Philippines by a large margin.

The work outsourcing to India is increasing day by day, but so is its populated workforce. With over 485 Million employable people at the age of 25 to 54, the Indian players have an edge over every other service provider in this sector.

With that being said, even NASSCOM appraises outsourcing companies in India. In a recent interview by Achyuta Ghosh, head of research at NASSCOM, he mentions that “the Indian IT sector is a very good example of big getting bigger.” Even in such highly competitive scenarios, the Indian IT-BPM is unstoppable. They have already doubled their exports in a time frame of only six years. He says that the driving force behind this is India’s innovative digital technologies, its blooming start-up industry, and its adaptive nature which adopts any suitable business model.

Advantages of Outsourcing to India:

A report generated by GSLI country ranking revealed that the Asian countries are once again dominating the outsourcing index. Among which Malaysia, China, and India hold the top positions even after changes were made to the indexing methodology. India leads the pack by being the top leader in the global service value chain. This proves how much the Indian outsourcing companies have grown in recent times. There are many other advantages of outsourcing to India which are mentioned below:

  • India offers world-class IT Infrastructure and uses the latest technologies to deliver services.
  • The Indian outsourcing industry is fully supported by its Pro-IT government, which works in favor of exporting such services to other nations.
  • Most Indian software engineers are extremely talented with a unique trait to deliver quality services.
  • Another advantage of outsourcing to India is its work-around time. India operates 10 hours ahead of the US which is perfect for companies as the Indian service providers can complete their deliveries before the market opens in the US.
  • India ranks at the 5th position in English proficiency among the rest of the nations in Asia. Which makes it fairly easier for big companies to work with them. That’s not all, you might not know this but, after the USA, India is the 2nd largest English-speaking nation in the world.

How to Outsource to India in a Nutshell:

Outsourcing to India is very simple all you have to do is follow the steps below:

● Choosing your Domain:
Start by choosing your Domain and select what type of service providers you’re looking for.

● Short-list your preferred Reliable Service Provider
After this, you have to short-list some of the agencies that have attracted you with their work.

● Arrange a meeting with all the candidates
After this, you should consider organizing a one-on-one session with the selected candidates. And then allot your requirements to a company that you think is suitable for the job.

● Confirm Factors related to Price and Delivery
Finalizing the contract is very important. You should always consider confirming the method of payment and also on what grounds payments will be charged. You can select from multiple types of payment structures like:

  • Fixed price, which is used for predefined tasks.
  • Time and material price, which is best for IT outsourcing as you can pay as per billable hours.
  • Team Model price, where you make the complete payment to a team of developers and them, they divide it among others.

And that’s pretty much it, after this, you just have to check whether the deliverables satisfy your requirements or not. Record says that the Indian outsourcing agencies mostly deliver work that is on par with a costlier counterpart.

FAQs

RPA is something that will soon be common in its sector. Its uses are seemingly limitless, as are its benefits – especially when it comes to employee satisfaction, workload, data quality, and departmental focus. If scaled correctly, RPA will improve the workflow of a company whilst giving great ROI. With the promise of reduced running costs, improved workflow, and employee satisfaction, who wouldn’t want to use RPA software?

1. Outsourcing to India – Why is it a good idea?
Because India is the biggest software outsourcing service provider in the global market. And it is due to significant cost savings. There is a vast difference between personnel costs here in India and that of other developed countries.

2. What are the major fears about outsourcing to India?
People are mostly worried about quality and fraud, which was true a few years back. But now the Indian outsourcing agencies have evolved and there is nothing to fear about.

3. How much does it cost to outsource to India?
The estimated average payment made to an Indian developer is US $15 which is close to $80 in the USA.

4. Why do IT companies outsource to India?
There are many reasons, some of which are better quality at a bit less, cost efficiency, a larger workforce, more understanding, Government support, etcetera.

5. Is outsourcing to India legal?
Other countries count it as offshore work while outsourcing to India, which is completely legal.

Table of Content
Menu