In the last few years, IT Industries has attracted several foreign investors. India has seen the rapid growth in tech startups and businesses. It is one of the reasons that India is now becoming a preferred destination for IT projects outsourcing. Also, there are several other reasons, such as availability of resources, labor cost, economic reforms, and others, that we will discuss later in this blog. Before that, let's understand
What outsourcing software development is?
In simpler terms, software development outsourcing is hiring an external software development agency, onshore or offshore, to effectively perform all the tasks crucial for a software development project. In software development outsourcing, you outsource your all or part responsibilities of software development activities to a vendor.
If you reside in the USA, UK, or Europe, then Outsourcing software development to countries like India can be cost-effective and will reduce your capital expenditures. Most importantly, it enables companies to focus on their core competencies.
The breadth of services provided in recent years is over 7% steadily the annual average growth rate of any IT enterprise or business. India focused on the international market more than on the local environment, for software IT projects India adapted the various approaches to remote interaction. In 2018, India’s market share in IT project outsourcing was the highest in the world, at 56 percent.
According to data, Indian developers have built India as one of the world’s largest and fastest-growing IT project communities. Indian developers provide a wide range of services that are required in the IT project. Indian offshore investment will grow more than 250-300 billion US Dollars by 2021-2022 alone. If you are looking to hire dedicated developers for your IT project requirements, then India to be considered a serious player in the IT outsourcing market.
Why to outsource software development projects to India?
To make things clear and easy to understand, we have distributed them into points, let begin:
1. India's business ecosystem offers you a good mix of savings and value. There is the easy availability of resources i.e a skilled developer with around 4 to 5 years of experience can charge you around $30 to $50 which is very low as compared to North America and Europe. The lower development cost is now attracting many companies from across the globe.
Clients who are seeking better services for software development projects are satisfied with Indian companies as per their cost, quality, and timely completion of the development.
2. In India the second most spoken language is english. The country has now become the second-largest English-speaking population in the world that also fills the communication gap between the outsourced company and outsourcing company.
3. Indian developers and workforce are highly skilled and dedicated. The development team of an Indian company can remotely efficiently perform their development project and for them, it is more feasible to achieve the client requirements within the specified deadline. Remote working has also resolved the issue of time zone.
4. With time, Infrastructure is getting stronger and solid to attract more investors from North America and Europe . There are lots of companies who are already outsourcing for a long time and have built their names in the IT industry, for example, TCS, Infosys, and others.
5. India also has friendly outsourcing policies. For IT projects the developer's team is highly flexible and easily scaling their work to any level. The market share is high in software development outsourcing India. As well as it is a nearshore software development outsource hub across the USA and other countries.
Now you might be wondering how many companies are outsourcing their development projects to India today.
According to the latest survey, more than 45 percent of the companies from North America and Europe are outsourcing to India. And 30 percent of the companies would consider outsourcing to Indian companies In the future.
What traits every IT company should have:-
In India, every IT company must have an impressive portfolio. Experience to a large extent predicts future results. A company that works in IT projects has a piece of comprehensive knowledge about software development and these experiences may find them easy solutions.
2. Testimonial and references-
The most reliable source of reviews is testimonials, it is the most crucial piece of evidence in determining whether or not any future tech company will provide real value. Testimonials help build trust and credibility with social evidence.
3. Technical competency-
IT Project-based companies should be experts in the technology in software development because of the level of competency in the IT industry.
For any outsourcing company, the success of any IT projects depends communication between both the parties i.e. client and IT company. If communication between them regarding projects and its issues concerns, commitments, and requirements needed to be very clear. For that India is a best choise because developers are fluent with english speaking and ensure better understaning of clients requirements.
Advantages of Outsourcing
1. Global talent near to you
Pick up a category and browse as long as you don’t find the software development company of your choice. Outsourcing introduces you to a global talent pool. Any technology, any framework, you get ample choices when you take this approach from the experiences.
2. Sixty percent decrease in cost
for developing IT Project software outsourcing, especially when you are hiring offshore companies. The fascinating decrease in cost is mostly credited to the lower wages in the Asian countries where one outsources like India.
3. Focus on core expertise
In India for IT projects the Software development outsourcing will help companies focus on their core competencies and free up resources, thus increasing both workforce productivity and revenue.
4. Faster time to market
For IT projects it delegates the product to the market faster and asks politely depending on the resources for software development can scale up by the Indian IT-based companies.
Disadvantages of Outsourcing IT projects:
1. Lack of experiences
The fact is that relying on ultra-low rates, clients hope for high-quality work performed. Nevertheless, in practice, it turns out that the Indians simply copy and paste solutions created by someone earlier, making minimal changes to them.
2. Time differences:-
The fact is that the difference in time zones between India and the United States is approximately 12 hours, which is incredibly inconvenient for both a business client and contractors, even with advanced messengers that already significantly increase the convenience of communication by providing remote interaction.
3. Blended costs:-
This means that when you sign the contract. You all are told that the development team is made up of developers for development with various levels of experience. The arithmetic average sum of their rates per man-hour will be used to create the overall budget of the project.