Outsourcing To India In 2022: Reasons To Outsource & Trends To Watch

Poland is another Eastern European country with one of the biggest IT markets for any software outsourcing service in Eastern Europe. But an Eastern European country like Ukraine benefits from a similar time zone to companies based in any other European country. India remains a top outsourcing destination for businesses across the world. In this article, we’ll explore the eight top countries for outsourcing your business activities. We’ll also discuss five key parameters that can help you pick the right outsourcing destination.

  • Fast forward, the 90s digital shift made India a go-to for tech solutions, especially during the Y2K bug frenzy.
  • China, the Philippines, and even Vietnam are known for being reliable partners.
  • Most businesses are now turning their business model into a digital one and will be increasing their spend to stay competitive in the digital-first era.
  • Outsourcing software development to India gives businesses access to cutting-edge technologies and expertise not available in their home country.
  • Also, Telstra is set to create a new Telstra innovation and capability center in Bangalore.

Read further to learn more about India’s remarkable standing in the global business process outsourcing and the IT offshoring landscape. We’ll cover relevant rankings, top IT hubs, pros and cons of outsourcing to India, and Indian talent’s most important facts. Indian companies are also known to be very accommodating and will deliver high-quality services even though the labor cost is low. This, in turn, translates to timely deliveries by your service provider. The Indian outsourcing industry caters to a large number of different businesses! If you don’t have a clear idea of how the industry functions, it can be difficult to outsource the work to an Indian service provider.

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That’s why the offer round-the-clock customer support services when you outsource your customer care tasks to this company. Others have a stronger need for a more customer service oriented firm. Software development companies in India that offer web, mobile and product development services have state-of-the-art development centers armed with the latest technologies. When it comes to outsourcing, there are many other Asian countries such as China and the Philippines that are being preferred. But India remains the top outsourcing destination – especially when it comes to outsourcing software development. For instance, countries like India, Poland, and Mexico are great picks if you want to offshore software development services.

  • They should also possess a company culture that fits in with your own.
  • One can proficiently communicate with the developers without any hassle.
  • That means, however, that they speak well according to their standards.
  • Often, with this firm, you can get access to professional bookkeeping services at just 40%-50% of the cost.

Some outsourcing tasks, such as customer support, require dedicated technology and infrastructure. The availability of skilled professionals is another reason why companies choose to outsource to Indian service providers. As it’s not a fairly technical task, you can hire call centers to attend to your customers’ needs. They’ll have all the dedicated staff and technology needed to provide round the clock support. This way, you’re free to focus on core business activities that really need your staff’s inputs.

Access to a large talent pool, lower salaries and support from the National Association of Software Service Companies (NASSCOM) are some reasons why companies prefer outsourcing to India. Typically, service providers are companies who have dedicated staff to perform the task. With 15,000+ articles, and 2,500+ firms, the platform covers all major outsourcing destinations, including the Philippines, India, Colombia, and others. According to Statista, the Indian information technology and business process management industry will employ around 5.4 million people in fiscal year 2023. When outsourcing, you might lack the assurance of how your service provider handles your data, which risks your data security. India provides state-of-the-art technology and cellular networks in all major cities and towns.

They should understand your company’s values, quality expectations, and business processes. They, in turn, can train the local staff, ensuring your standards are met. Effective training is essential for maintaining service quality and can involve on-site sessions, virtual training modules, or a combination of both.


Examples of these services include data management, data entry, data mining, data processing, and other types of back-office support. This is because they can pay experts in India at $17,000, compared with $100,000 for a senior I.T. Technical work like software development is sent to India with extremely low-skilled specialists and high turnover.


To avoid this, you can assign dedicated channels for different types of communication. For example, the in-house and Indian teams can use Slack for regular queries and Whatsapp when in need of urgent contact. Application development can be broadly categorized into mobile and web application development. This will prevent them from disclosing sensitive information related to your software project to a third party. India is geographically located such that there is a time difference of nine and a half hours with Washington D.C (USA) and three and a half hours with Brussels, Belgium. The average annual salary of a software engineer in the US according to salaryexplorer.com is USD 91,900, while in India, it’s around INR 366,000 (4,796 USD).

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However, the country still manages to be recognized as one favorite outsourcing destination of multinational companies across the globe. This is why businesses across the globe, and especially in the USA, find themselves calling up developers from India – for quality and affordable work. Once you have a shortlist, plan a site visit to India to inspect the facilities how to prepare a trial balance of the potential outsourcing partners. This will give you a better understanding of their operational capabilities and company culture. You also get to understand local business practices and ensure the company meets your standards and requirements. If necessary, set up a selection committee to evaluate and shortlist the most promising companies.

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As Ford received high-quality and reliable services in India, it also decided to offshore software development. Offshoring to India is when a foreign company moves its business operations to India, usually to benefit from cost savings. For example, if you run a firm based out of Germany or the United States, you could shift some of your business processes to India. Tata Consultancy Services (TCS) runs one of the biggest outsourcing firms in India.

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Offshoring needs a proficient workforce, and India is a suitable provider. The company now has seven offices in India, spread across major cities like Hyderabad and Mumbai. The deal also covered over 400 locations through 100+ countries — including Bangalore, one of the major IT hubs in India.

Swati Sharma, a writer by day and an avid reader by night, works with Classic Informatics, a leading web development company in India. Owing to her passion for her profession, she loves to stay updated about the current & emerging trends in the IT industry. Be it the latest technology like blockchain, artificial intelligence, virtual reality, data science, machine learning, or any other latest technology. Other Asian countries can also pick up a cue and build IT capability. “Companies may not move support, local and technology hubs from India to China, but they could create a hub of many countries like Bangladesh, Sri Lanka and a lot of Middle-Eastern countries. It’s just about them realising it and us taking too long to adjust ourselves.

The country’s tech expertise is partnered with its employees’ English fluency since fluent English is a standard for graduates. Mobile app development has become a crucial element of every organization these days. Apart from establishing a web presence, businesses with digital platforms are also required to be mobile-friendly. Indian outsourcing companies typically offer flexible pricing options. So, by outsourcing to India, you can pay by the hour, by the week, per month, or by project.

They might need a full team of developers at one time and just a single person at the other. Moreover, you might need technology experts for performing specific tasks in your project at times. They might need to scale the team up and down as per the project’s requirements. Developing the software in-house could mean hiring new people when required and finding work for them the project does not require them.

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