India’s outsourcing story began way back in 1985, when Texas Instruments opened its office in Bengaluru, according to a report by PwC. Thanks to its buoyant economy, the country has maintained its dominance in outsourcing since then. Offering a wide number of services – IT, KPO, BPO, etc., across a spectrum of industries, India has acquired a foothold in the international market. Registering high revenues, the outsourcing landscape of the country is at an all time high. A lucrative destination for large as well as small-scale companies, India, is still at the top of the preference list of companies, when it comes to outsourcing, despite facing challenges from new entrants.
If we talk specifically about software development, companies are well aware of the fact that assigning the process of developing and testing software to a specialized firm, is a wise business strategy that is bound to give impeccable results. The ground-breaking developments in the technology sector have led companies to embrace outsourcing with open arms, in order to get maximum returns at minimal cost.
Know what makes India one of the most popular outsourcing destination. Listing below some of the reasons that will give businesses a sneak-peek into the Indian outsourcing ecosystem.
Tech talent pool – The large pool of tech mavens in the country is unrivaled. India’s population stands at a whopping 1.32 billion, a major chunk of which is young graduates. Out of these, a large number of students are from the engineering background. This shows the inclination of denizens towards technology. Indians being adept at technology coupled with their ability to communicate fluently in English makes them the most preferred IT professionals for companies across geographies.
Guaranteed cost-efficiency – Businesses can save their cost by enormous numbers, by outsourcing to India. There is a huge gap between the cost of IT resources in India and that in developed countries like The United States. According to Payscale, a Software Developer in the US is paid an average annual salary of $69,083, and that in India, the figure amounts to $6063, approximately. As can be seen, the salaries given to Indian IT professionals is just a fraction of what is paid to their US counterparts. By leveraging this pricing flexibility, companies are able to earn a humongous amount of profit. This is another major reason why corporate giants consider India as the ideal outsourcing destination.
Quality not compromised – The one thing that Indian outsourcing companies assure its partners is high quality. Firms here are particular about hiring graduates possessing relevant experience, in-depth subject knowledge and degrees from some of the most recognized and renowned universities of the country. This keeps their partners unperturbed as they know that their work is in the right hands. Employees here are committed and dedicated and go extra miles to meet the clients’ requirements. Outsourcing firms in India operate in two shifts – day and night, to compensate for the time difference between the two countries. This explains why companies across the globe confide in the Indian outsourcing network. Also, they make sure, that the deadly deadlines are met, and work is delivered on time.
Stable Government – Even in situations of global economic turmoil, India’s economy has remained safe and resilient, thanks to its stable government. The country is an outpost of scores of opportunities and is a ray of hope even in gloomy global scenarios. Its unmatched contribution to the IT landscape is commendable, as can be seen with Gartner’s recent report forecasting that the Indian government will spend $7.8 billion USD on IT sector in 2017, an increase of 9.5% from last year. Out of this, the software segment is predicted to grow 15.7% in the current year to reach $1 billion USD.
English speaking population – According to India’s National Association of Software and Service Companies (NASSCOM), the country’s abundant English-speaking resources is one of the major reasons, why companies prefer deploying their IT work to India. In fact, the section of the country’s citizens that can communicate flawlessly in English is larger than that of US and UK combined. The Indian outsourcing industry boasts of its skilled resources as they are acquainted with the language and are competent enough to bridge the communication as well as cultural gaps, without much of trouble. Thanks to its colonial legacy, English has become an integral part of India’s corporate sector, giving the country an edge over its outsourcing competitors.
According to CBRE’s 2017 Asia Pacific Occupier Survey Report, India is one of the most preferred outsourcing destination for companies worldwide. Due to the surging popularity of the country’s outsourcing landscape, 82% of the offshoring firms in India are projected to escalate their workforce in the coming three years, as per the report. The prospering outsourcing ecosystem of India is driving hordes of companies to partner with Indian outsourcing agencies and take benefit of the scores of perks, like the ones mentioned above. Usage of modern technology, superlative service quality, low operating costs are the added advantages of outsourcing software development work to India. Home to over 125 crore people, the country is developing rapidly and is taking huge leaps to get itself in the list of developed countries, by the year 2020. No doubt why India has become a hotspot for outsourcing in a short period of time.