Why Outsourcing Software Development to India is a Good Business Strategy?

Today, being digital is not an option, it is a necessity. As a business owner, you should know the importance of being digital in this competitive era. To get a competitive edge in this market, you must have a web and software which can turn web users into your prospective customers.

It can be built by hiring an in-house team of developers, but as the current market trends suggest, most the companies are opting for offshore outsourcing for software development for many notable reasons. When it comes to offshore outsourcing for software development, India has emerged as the first and foremost choice for business owners across the world. 

Here, we are going to discuss why India has been the frontrunner in offshore outsourcing for software development—

Biggest Outsourcing Hub 

India has a clear edge in terms of the number of IT professionals with the required skill set. As per recent data by Gartner, about 1 million technical graduates pass out every year. In addition to software development, India has a big pool of talent in technologies like cloud computing, analytics, and digital marketing. For example, two of the Indian software firms namely TCS and Infosys have a combined employee strength of approx 5 lakh IT professionals.


Going for software development services in western countries is comparatively high; thanks to their high labor rates. Hiring an in-house team is also a high-cost option. But when it comes to outsourcing software development services in India, professional software developers are available at a comparatively low-cost.

High-End Security Measures 

The process of software outsourcing development involves the exchange of critical and personal data at both ends. Indian IT infrastructure is equipped enough to tackle concerns like data security, privacy, intellectual property rights, data theft, and data breaching; thanks to the policies of government agencies. Here, IT firms follow strict guidelines and international standards in software development, which also ensures the highest quality software.

Quick Delivery 

Indian outsourcing software industry is a prominent one when it comes to deliver on time. Here, IT firms have been doing it to complete more projects in a short span and to reduce their overall expenditure. Here, the offshore clients can expect a fast turnaround time without any negotiation on quality

Easy communication

Most of the offshore clients are from developed nations like the US, Canada, European nations, and Australia and they have English as their first language. Fortunately, the substantial Indian population is English literate. So it is easy to communicate with Indian software outsourcing companies.  

Extended Support and Maintenance

Most offshore clients have concerns over maintenance after project completion. Here, Indian offshore software development companies are entrusted with complete maintenance and post-launch services to keep bugs under control.

Market size and adaptation of technologies 

The Indian software industry is destined to reach around 5.75 billion US dollars in 2018. It is also known for its quick adaptation of skills in technologies like UX design, Artificial intelligence (AI), Blockchain, Cloud. 

Time-zone benefits

Outsourcing back-office processes to India is like making your office work 24/7. The time-zone differences starting at -5:30 (GMT) through to -12:30 (PDT) enable companies to accomplish a lot more in a normal workday, than getting the work done locally.

Digitization & automation

Digital transformation backed by automation & robotic process automation (RPA) is the next milestone the Indian outsourcing industry is looking out to lay. By combining business process management tools and software with cognitive processing – efforts are being made to successfully eliminate human labor.

A leading commercial bank in Singapore partnered with an Indian outsourcing company to digitize and automate its loan approval process. It not only enabled them with single-click approval for faster processing but the bank also witnessed over 50% improvement in speed of operational processes, a 50% reduction in turnaround time, and a 26% reduction in human errors.

In spite of higher setup costs – a lot of Indian outsourcing service providers are willingly adopting RPA to lower costs for their clients – which eventually will help them in the longer run.

Automation has slowly, but steadily, started changing the competitiveness of the global outsourcing market.


However, countries like China, the Philippines, Vietnam, Malaysia, and some Eastern European Countries are striving hard to mark their presence in offshore app development, but India is still enjoying a lion’s share in the industry. So if you are really looking for offshore software development, the Indian IT industry has all in it to be your right development partner for the same.

You may also like