The pandemic has maximized the opportunities for teleworking. Along with this, it has expanded the idea of outsourcing services to get the most benefits. Today, various countries such as India, China and the Philippines have become the main hubs for outsourcing IT services.
64% of outsourced services are related to software application development
As different companies are tightly packed into Western European and North American cities, business costs are always rising and competition is intense. Offshore development services have inevitably emerged as a solution for Western companies looking for customized solutions.
Today, India has been on the list of best companies to offer the best software remote development services. I fully believe that cost-effectiveness is the most important reason. But beyond that, there are many more factors to Indian offshore services. With the help of Indian experts, organizations can certainly go through a wave of digital transformation and benefit from technical progress.
Before we continue with the details of why global brands prefer Indian talent in offshore development, let me share some interesting statistics:
- According to the capital’s adviser, the global IT outsourcing market will be worth $ 397.6 billion by 2025.
- 57% of companies outsourced productivity to increase productivity.
- As the saying goes, more than 14 million jobs have been ordered from the United States.
- Fortunately, 78% of companies worldwide say they have a positive attitude towards their outsourcing partners.
What are offshore development services?
My simple definition of an offshore development center is that it is an integrated, expanded, and dedicated office located in another country. It is a branch or subsidiary of a company specifically operating in another country. In general, companies prefer to choose a country where the cost of living is significantly lower than in their home country.
The main reason Offshore development Services are companies that get a complete and high-quality job with the same skills at a much lower rate, which directly contributes to increasing profits.
Bangalore, Asia Silicon Valley, has become a technology hub to find and recruit the best software development engineers. Various IT giants like Google, Apple, Microsoft and SAP are already setting up their R&D centers in Bangalore!
Why do global brands prefer Indian talent?
To date, India has managed to outsmart all other countries, such as China, the Philippines, Ireland and others, and be a global sub-port. Moving to software development services is a big decision and requires full understanding, but the benefits are huge. Let me share some of the main reasons why companies choose Indian talent around the world.
The main reason for outsourcing (70%) is cost reduction
Most software companies are located in extremely expensive cities. Thus, the cost of living also increases. A decent developer costs an average of about $ 60-150 an hour, and employers also have to look for employee-centered benefits like health insurance and travel. If a company chooses a recruitment agency, they have to pay a premium.
The cost of living in India is on average 64.60% lower than in the US
The cost of living in India is very low compared to the West. Even in technology-focused cities like Bangalore, the average developer’s salary is significantly lower than in other parts of the world. Considering the costs of rent, travel, premiums and health insurance, there is a big difference in the amounts. I certainly feel this connection with the better offshore development agency can be of great benefit to your business. Usually, revenue increases and expenses decrease, so there is a direct increase in your profits.
A set of talents
India, the world’s second largest inhabited country, has a huge number of young and technically sound trained professionals. India offers one of the largest talent pools in the world.
Accordingly C SharpCorner,
By 2023, India will become the largest software development center in the world
Most Indian developers are well equipped with the necessary CSRs and can help companies achieve their business goals. In fact, India will add about 110 million resources to its workforce over the next few decades.
By 2023, India will surpass the number of US software developers
As India places significant emphasis on English education and IT services, Indian developers are much better able to meet the shortage of talent. A company can have five times the pool of talent as an advantage and can choose from a range with high quality outsourcing.
Easy access and abundance dedicated resources enable India to tick better and faster when it comes to delivering a large and complex solution in a timely manner. These resources work on advanced solutions using the latest technology. I would say that India manages outsourcing and outsourcing wagons because it is aware of the latest trends and practices technologies.
Reliability and high quality standards
Quality is another thing that is guaranteed in India during Offshoring. International standards are followed when working on the project.
According to NASSCOM
Over the next five years 40% of the Indian workforce expected to complement their skills to meet higher standards
India is one of the countries with the highest number of ISO-9000 certified companies and thus quality is never compromised. Thus, outsourcing services in India bring a number of benefits where the quality of the work is paramount.
Over 75% of the world’s CMM Level 5 certified companies are in India.
Recently National Outsourcing Association (NOA), discovered the reason why multinational companies choose India as their preferred destination at its annual offshore outsourcing conference,
Reducing costs was only part of the reason why companies considered outsourcing, there were benefits in terms of market access and quality, which led to the thinking that companies initially chose India to save costs, but still stayed for speed and quality!
In my experience working with Indian companies, their resources never compromise on quality. India is a reliable source for the high seas if you need quality results at a much lower price.
I consider good communication to be the basis of every project. This is the key to building, maintaining and growing positive relationships with any business. I would add that communication ensures the expected results and solved problems.
India is one of the largest English-speaking countries in the world. In fact, it speaks more English than the United Kingdom and the United States. Thus, language is not an obstacle to communication. Indian developers communicate seamlessly and this encourages larger companies to offer offshore IT services in India. Employees are eager to have face-to-face conversations on Skype, Hangouts and Teams for business convenience.
According to a study, about 350 million people in India speak English. Thus, moving a company to India can be convenient. India’s resources are proud of its reliable communication, which helps to connect well with the rest of the world and therefore there are no barriers to the community.
Using time zone difference
Time differences between India and other countries may offer numerous opportunities to complete work earlier than anticipated, leading to better efficiency, higher productivity, and more time to deal with other important responsibilities. So, in my opinion, India can easily serve different countries 24/7. The move to India gives companies the opportunity to bring to market quickly due to differences in time zones.
The time zone difference makes India a great opportunity for those who want to order various service-related features, such as 24X7 customer support and support services, as well as software development services.
Support from the Government of India
IT is one of the top five priority industries in India. I would add that the government has developed a friendly policy to get the most out of IT outsourcing / outsourcing to India.
As one of the largest sectors of the Indian economy, the IT sector provides employment for the majority of India’s young workforce. The government has offered various tax and other benefits with the introduction of the Information Technology Act. Government policies have helped to improve infrastructure and communication systems, from GDP growth, taxes, electricity, telecommunications, industrial parks to special zones.
In this technology-driven world, an Indian offshore development the centers have been able to cope with demanding situations while managing tasks effectively. E-mail, audio-video conferencing, chat support, project management tools, etc. have contributed to smoother collaboration between employees and companies. Moreover, some of the largest companies like Cognizant, Accenture, IBM, TCS, Dell, Infosys, TCS, Wipro have offshore development centers in India.