Why Outsource to India?
India has long been a preferred outsourcing destination for software development for leading global companies across the world. While there has been increasing competition from other outsourcing hubs like China, Mexico, Ireland, Russia, Philippines, Malaysia & certain South American countries, India continues to be the most preferred destination as per majority of surveys done by leading global consulting firms. As per NASSCOM, national industry body for software outsourcing, Indian IT industry is expected to continue growing in early to mid teens for next few years considering the favorable economic and policy initiatives being taken by Indian Government.
In the blog, we will discuss some of the major differentiation that India has over the other fast growing out-sourcing hubs.
- Technical and professional talent pool
- Infrastructure and technological capabilities.
- Government Policies and stable political environment
- Consistent high quality services
- Consistent high quality services
- Fast time to market
- Last but not least, Cost benefit.
Technical and professional talent pool
India has the largest talent pool of technical and professional resources well conversant with the latest software and technology trends. The country with a population of over 1.3 billion people adds around 3.4 million graduates to the workforce each year. India also holds the distinction of being the largest English speaking nation in the world. Apart from the vast numbers, the quality of talent and inherent hard working attitude (to stretch beyond) attracts companies wanting to outsource.Infrastructure and technological capabilities
India is fast building on Infrastructure be it transport, electricity, telecom, water or housing infrastructure. All major cities and towns in India have a well-developed telecom, ISP and cellular network. Outsourcing companies maintain uninterrupted communication channels with clients by providing high-speed bandwidth. Some of the companies even go for high end uninterrupted connectivity via satellite connectivity, submarine cables and fiber optic networks for their global clients.
Further tier 2 and tier 3 cities in India are fast developing into software hubs as the cost of living is lower and that enables Indian companies to offer significant cost benefits to their global clients.
Indian software companies offer their clients the latest and best in software technology, including customized solutions for various applications such as e-commerce, business process re-engineering, system migration, mobile application, legacy system maintenance, system integration, and much more.
India has all major global software and IT companies having their development centers including biggies like Oracle, HP, Microsoft, Google, Capgemini et al. This clearly demonstrates confidence that global IT companies have on Indian Government and Policy framework, Infrastructure and talented workforce.Government Policies
India has one of the most stable political environments and progressive society. Indian software industry is well supported by friendly pro-Industry policies and is regarded as one of the top priority industries in India.Indian government has framed policies to offer maximum benefit for IT outsourcing Industry in form of various tax-exemptions and other benefits and by enacting the Information Technology Act, which recognizes electronic contracts, bars cybercrime, and supports e-filing of documents. Additionally, India has also enacted a strict IPR (Intellectual Property Rights) rules that fosters and enhances innovation as well as establishing Indians recognize their own IPs, as well as respect others’ IPs.Fast time-to-market
Indian outsourcing companies are able to provide the quickest time-to-market due to the advantages gained by time zone differences. The 12-hour time difference between India and the USA provides companies with numerous opportunities for work to be completed earlier than expected, leading to greater efficiency, increased productivity and more time to focus on other crucial tasks.
The time difference makes India an ideal option for clients who wish to outsource various service-related options, such as 24X7 Customer Support and Helpdesk services.Last but not the least “Cost Benefit”
One of the major benefits that India offers along with high technology capability is COST BENEFIT.
India offers significant benefits in terms of better cost savings to global companies due to better cost propositions. There exists a wide gap between personnel costs in India and that of the developed countries. Though the gap is gradually reducing, it is still significant which allows Outsourcing companies to pass on price benefit to their global clients.
For example, a software developer in the U.S. can cost anywhere from $50 to $80 an hour (for a full-time staffer depending on skills and experience). In comparison, the hourly cost of a similar developer in India can be negotiated down to as low as $15 – $45 per hour. This pricing flexibility allows companies the freedom and creativity in managing their budget and helps them reap large profits.
India has built an ecosystem of service providers ranging from big fours (TCS, Infosys, Wipro and Cognizant) to niche providers like Skystis Infotech that offer domain specific services. India continues to remain the world’s favourite when it comes to outsourcing. This is clearly demonstrated by leading global IT firms like Google, Microsoft, Hewlett Packard, Oracles all of them having their development centres in India and many other global companies having outsourcing partners in India.