Outsourcing your development offshore is no doubt an intelligent business decision, especially when looking at it from the perspective of ROI. That said, choosing the wrong location to do so can backfire in numerous ways.
Making the correct choice requires careful consideration as you have a myriad of countries to choose from. However, one country is the clear leader of the pack: India.
India has been at the forefront of offshore software development, and this blog will tell you why hiring dedicated developers from Indiais the right business decision.
A Walk Down Memory Lane: India And Offshore Development
India saw the inception of its first I.T. company, Tata Consultancy Services, way back in 1967. Nearly a decade later, a partnership with Burroughs, an American hardware manufacturer, began the saga of India exporting its I.T. services.
Fast-forward to 1996, General Electric opened up the first offshore development centre in the country. The rest is history.
As of 2023, India’s software Services Export Market size is a whopping USD 145.03 Billion, with a projected growth of USD 180.99 Billion by 2028.
Why Should India be at the Top of your List?
India has made a name for itself when it comes to software development, and there are a number of reasons why it should be the top choice for offshore software development. Here are the most compelling ones.
1. Access to an Ocean of Highly Skilled Developers
After the US, India has the largest percentage of software developers in terms of population. (18.33% and 12.61%, respectively). However, based on the current projections, India will have the largest software developers by population as early as 2024.
India also ranks on top in terms of the number of engineering institutions as well as in terms of the infrastructure to support them. As a result, it employs about 0.5 million fresh software graduates every year who undergo rigorous training for the first few months of employment.Therefore, hiring Indian programmers can be a cost-effective strategy for companies wanting to tap into the vast tech talent available in India.
India also holds 56% of the global services outsourcing industry market share, which again speaks in its favor.
2. Non-existent Language Barrier
English is the official language of the I.T. world, and India happens to have the world’s second-largest population of people (200 million) who speak English.
As far as outsourcing locations in the Asian sub-continent go, India ranks 6th in terms of English Proficiency. English is also one of the official languages of India.
The success of any project depends on the ability of the client and the offshore development teams being able to communicate effectively and efficiently. This makes a riveting case in itself to hire dedicated developers from India.
3. A Robust I.T. Infrastructure
India has a robust I.T. infrastructure that can sustain the offshore software development industry.
In terms of offshore software development, India has set a number of Special Economic Zones (SEZ) that have more liberal economic laws in comparison to the rest of the country. Other benefits include tax exemptions, duty-free imports, simplified customs procedures, single-window clearance, and a dedicated power supply.
As of 2023, India has 272 operational SEZs that provide world-class facilities for offshore development.
And finally, you have a host of globally recognized top-notch IT companies to partner up with. The likes of Accenture, Infosys, Tata Consultancy Services, Wipro, HCL, and Tech Mahindra, to name a few.
4. Favorable Government Policies
The Government of India has a number of policies in place that favor Tech firms looking to outsource their software development.
India’s Foreign Direct Investment policy allows for a 100% FDI when going via the Automatic Route. In addition, India also has a robust intellectual property rights (IPR) protection framework that safeguards the interests of Companies looking to outsource development to India.
India also understands the gravity of cybersecurity as a major Tech hub. In a collaborative effort to strengthen cyber security against ransomware attacks, the Indian Computer Emergency Response Team (CERT-In) and the Cyber Security Agency of Singapore (CSA) organized a successful exercise called Synergy in August 2022—an exercise involving 13 countries.
The Government of India has also approved the Next Generation Incubation Scheme (NGIS), a comprehensive program that aims to create a dynamic software product ecosystem in India.
The scheme has been developed to provide financial and technical assistance to startups working in the software product space, with the goal of driving growth, creating jobs, and increasing competitiveness in the IT industry.
5. India is a Technology Powerhouse
India ranks among the top five fastest-growing countries when it comes to A.I. talent. It also ranks among the top three countries when it comes to blockchain patients.
It is also in the top five List of countries that received the most V.C. funding for IoT startups. The other four are Germany, China, the U.K., and the United States.
Moreover, India is also embracing the metaverse – a virtual environment where people can interact with each other and digital content.
According to a survey by Accenture, almost 90% of Indian business leaders say that they are examining ways of working in the metaverse. This shows that India is at the forefront of innovation and technology in the global market.
6. Competitive Labor Rates
Reducing costs is one of the primary driving factors behind choosing to outsource software development. This is where India becomes a compelling choice when you consider the quality of skills vs. what you pay for them.
According to the latest statistics, when it comes to outsourcing, the global average spent per employee is US$16.95 in 2023.
Where you would spend an average of $38 per hour on a junior developer in the U.S., you can hire a dedicated developer from India for an average of $18. A mid to senior-level developer’s rates here range between $25-40 in comparison to the U.S., where it averages $63.
Wrapping it Up
India is a clear leader in the software development industry, and it checks all the boxes when it comes to narrowing down on an offshore development location, from a large pool of skilled developers to a robust I.T. infrastructure, all available at competitive labor rates.
If you are looking to outsource your software development, India is the best place to do it.