Sunday, August 7, 2022

Why India is the Best Destination for Outsourcing IT Services

it services india

Outsourcing IT services by major companies banks, etc has been the new trend. To have this continued by companies, there should be regular reporting as well as a trusted source for the company to leverage its data. The major factors that mostly are considered before outsourcing a project to any outside company or country.

Factors that decide:

Cost savings

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This is a major deciding factor, as this determines the success of outsourcing. Whatever the work may be, that the company has outsourced, the bottom line is to get the work done through reduced cost. All the company has to look forward to is whether outsourcing will help reduce a significant amount of the capital in hiring employees and equipment.


As already discussed on cost cuttings by hiring talent in a low price tag is one of the most common factors why companies outsource. 

However getting the contract of the cheapest deal will not be a wise decision. We should also look forward on the benefits that are offered by other vendors. For example there are companies that offer additional support after the development as well with no extra charge.

If you want to hire someone for Programming Help or Software Development with a reasonable cost then Hiring Indian Developer could be a good Option.

Resource and Technology

Having the decision with the cost will not be wise. We should also consider the quality of the work done. The major two factors that decide on this are Resources and Technology.

The vendor should have the system up to date, with all new technologies for having the project handled in the best possible way. Along with this the resources should be updated and also capable of handling the new projects. 

Deadline Compliance

Meeting the work on time is more important than the cost savings. If a vendor fails to deliver on time, it may lead to major bottle necks in business. This alone will equalise the cost savings other wise.

We should ensure the the timelines are handled by the vendor along with quality as promised. 

Minimal Supervision

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When a project is selected to be outsourced, it is completely considered that the vendor will take care of the supervision, quality analysis and onetime delivery.

Sloppiness in these will not be tolerated.  Choosing a responsible vendor who will be in charge of the projects is a must have so that we do not have to supervise the work being done by the vendor.

This will help focus on the development of the business further.

Bunsiness Continuity

This is a major factor, as we should not end up loosing data or any importantly updated work due to any disaster. We should make sure the vendor has the ability to handle this and they have the backup in various locations to avoid the loss.

With these factors satisfied, a company can truly outsource its products.

Why India?

India is a big country with the worlds second largest population. It has a huge IT base established and is one of the largest IT exporters in the world.

  With 81% literacy rate of its whole population as on 2017 and the complete government support in encouragement of the IT development, There has been a huge growth in the IT market of the country. 

In a recent survey, 80% of outsourcing firms ranked India as best outsourcing destination. The National Association of Software & Service Companies reported that most of the companies choose to outsource software development to India. Even though many other countries (including Mexico, China, Ireland and the Philippines) have emerged as major competitors, India has managed to overtake all others and emerge as the top outsourcing destination. 

The stable government of India has supported the growth of IT industry in the country by favouring on the economy, taxation, GDP growth, power, telecom, industrial parks and special zones have been helpful in improving communications systems as well as infrastructure.

The Diagram below shows the market size of IT in India. This contributes to 7.7% of the countries GDP.  

The factors that we had discussed earlier in this article are completely satisfied by the IT sector of India. 

India – Flexible Pricing Options

Mainly because of the wide gap that exists between personnel cost in India and that of the developed countries. For example, a good Software developer in the developed countries, can cost anywhere from $50 to $80 for an hour. When compared the hourly cost of a developer in India is as low as $15 an hour. This low pricing allows companies the freedom and creativity in managing its budget and helps them reap large profits.

India – Consistent High-Quality Service

The National Outsourcing Association has gathered information from International companies and identified that most of them choose India as preferred outsourcing destination. Companies are not just choosing for cost reduction, there are benefits in time to market and quality, leading to an adage that companies initially chose India to save cost but stay for the speed and quality.

India – Best in Infrastructure and Technology

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India is well developed and offers many well established ISP, and cellular networks in all major cities and towns. Clients are offered with the latest Software technologies in market, including customised solutions for various applications such as business process re-engineering, e-commerce, system integration, legacy system maintenance, and much more. Companies that outsource also maintain continuous communication channels with clients through high speed bandwidth via submarine cables, satellite connectivity and fiber optic networks.

Indian Companies – Quickest Time to Market

The outsourcing companies in India are able to provide the quickest time to market due to the advantage gained by time zone difference. The time gap between India and the outsourcing countries provide with numerous opportunities on getting the task completed with zero time difference, leading to increased productivity, greater efficiency and more time to focus on crucial tasks essential for business developments.

India – Largest Technical and Professional Talent

India has more than 1.2 billion people and around 3.1 million graduates are added to the workforce each year. India is the largest English speaking nation in the world. Apart from the vast numbers, it is the quality of talent that attracts companies to outsource. There has always been no compromise with the skills on the Indian professionals. India has also made many alterations in their education systems for the future graduates to have their mark up to the world standards. 

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