Outsourcing Software Development Services to India- Reasons to Benefits
Software development outsourcing is a process that allows companies to use third-party or out-house professional workforce for a specific software component development, software development from scratch, or integrating emerging capabilities into a business system.
The process is crucial for companies that have running inadequacies like a lack of in-house or need specialized expertise on a specific technology like artificial intelligence, machine learning, or blockchain.
In recent years, India has emerged as a leading software development outsourcing region for cost-effective and high quality software development services. Factors accounting for India’s building popularity are fast economic growth, an English-based educational system, a vast talent pool, an open market, a large IT workforce, facilitative governmental policies, and a tech-driven environment.
Before outsourcing software development to India, in-depth R&D is crucial to understand what are the market trends and factors recently ongoing in the IT outsourcing market. A complete guide may decode the process of how to outsource software development.
India — Emerging Destination for High-Quality IT Services
India, due to various factors has emerged as an attractive country for large-scale foreign investments. Software development outsourcing is one such foreign investment that is generating high revenue and unlocking new avenues for many countries including India.
Furthermore, sturdy economic growth is a major factor in rapid tech development, giving rise to hundreds of IT service providers. According to Statista, India shows tremendous potential to grow a mark of $20 billion by 2028 with the Compound Annual Growth Rate (CAGR) of 17.92% for the forecast period of 2023–2028.
These stats demonstrate that India will outgrow other countries and share a substantial global IT outsourcing market share soon. Also, its cost-effective, competitive, and innovative solutions will accelerate the rate of its growth. The Ministry of Electronics & IT asserts that India aims to be a trillion-dollar digital economy and could employ approximately 60 to 65 million workforce by 2025–2026 in the wave of “India’s trillion-dollar digital opportunity.”
The NASSCOM estimated that the rising popularity of the IT industry will result in a requirement of 95 lakh by 2026. Of this, 55 lakh will have super-expertise in higher technology domains, such as cloud computing, artificial intelligence, big data analytics, and IoT.
Why India Is Emerging as a Growing Market for Software Development Outsourcing?
Amongst the major drivers of outsourcing opportunities in the South Asian country, the top reasons are elaborated briefly below.
Increased Inclination toward the tech market and software development
With more tech-driven education systems, and government-fostered IT policies, improved digitization, huge global investments, India is emerging as a global player in custom software development. The USA still maintains a strong presence in the outsourcing IT market. However, India has the potential to transform the global tech landscape completely.
Software development outsourcing in India is not limited to Silicon Valley, Bangalore, presently. The capacity is prominent nationwide today. This is giving rise to many global capability centers established in India. Continuous investments and an increase in the number of global capability centers (GCCs) have fueled innovation and increased talent pools. That’s how many GCCs ensure running operations through software development outsourcing services to India.
Increased Global Presence
Active relations with countries and increased collaboration for technology have forced India to adapt to the changing global dynamics. India has shown active participation in integrating emerging technologies into worldwide businesses. This has helped global companies gain access to highly cost-effective software solutions.
In the past, India has demonstrated its outsourcing talent by becoming one of the largest exporters of IT and BPO services globally. India’s services exports have risen by 14% in the last two decades to reach the $254.5 billion mark.
[Image credit-RBI]
Furthermore, India is positioned to leverage technology and innovate IT solutions for global talents. With the IT workforce employing approximately 5 million IT professionals, the multi-cultural country is the first choice for software outsourcing services.
Fast-Growing Economy
India is growing at a fast pace. Leaving major economies behind, India secures its place among the top 5 major economies in the world. The rapidly changing political and economic scenarios have convinced it to adopt innovative digital tendencies. Also, with the startup culture and businesses going online, India has been incredibly responding to the market and feeding user needs.
The World GDP Ranking 2023 list ranks India as the fifth-largest economy in the world. Its significant presence in the GDP list amongst influential countries like the USA, China, Germany, and Japan is also enticing the attention of global investors.
Large IT Workforce
A major student population confiding in coding and programming is equipping India comprises a large IT workforce. This enables the country to provide high-quality IT services, like artificial intelligence, robotics, and machine learning at highly cost-effective costs when compared to other major economies.
Comparatively Lower Living Standards
India, with lower living standards, is a profitable region for outsourcing software development. When compared with developed economies, the average software development charges for an hour in the USA, UK, Australia, Canada, and Dubai may be high. The software development may go up to $75- $125, for software development consultants and senior developers.
Favorable Government Policies
The Indian government is showing vigorous participation in the growth of the IT sector by drafting a 108-point action plan, “National IT Task Force.” Its goal is to promote the information technology domain and increase India’s presence in the global digital landscape. Also, the native government has outlined strict cyber laws and policies to ensure the developed software has a robust cyber security structure.
Benefits of Outsourcing IT Services to India
Wrapping Up
Outsourcing software development services to India can help global companies with multiple IT solutions. From getting cutting-edge technologies at cost-effective charges to gaining access to a vast talent pool, India is leveraging technology to be the global leader in software development outsourcing. The day is no longer farther when India will replace the USA to be the global leader in the software development outsourcing market.
