7 benefits of outsourcing software development to India

7 benefits of outsourcing software development to India

Posted On November 11, 2022

More and more Western-based companies are outsourcing their IT development to India. But is it something you should consider? Here are seven amazing benefits of outsourcing to India.

The most commonly cited reason for outsourcing software development is the potential for cost savings. While this is true, it is far from the only benefit of outsourcing.

Outsourcing has many benefits, including offering a more flexible hiring process, saving you the high costs of hiring permanent employees, and introducing an element of scalability.

Excellent developers, programmers and engineers can be found the world over. But we recommend hiring Indian software engineers specifically. Why? Well, working with Indian programmers has additional advantages. In truth, no other country can compete with everything India has to offer!

What is an offshore team?

An offshore team is one built externally to your head office. These are located ‘offshore’ or overseas.

When building an offshore development team, developers are hired directly by the company or through an offshore management company, such as WeAssemble. These companies manage the process from sourcing talent to ongoing account management.

These vetted developers work on a flexible basis, working directly with the company’s project managers to support their evolving needs, with tasks either delegated based on the current project’s requirements or on an ad-hoc basis.

There are many roles that can make up an offshore development team, from front-end developers to UX designers.

Why you should build a remote team

A wide range of Indian developers is available for hire, which makes it an incredibly popular offshoring destination. Yet, there are many other reasons businesses outsource their software development to India.

7 reasons to hire Indian software developers when outsourcing IT work

Here are seven reasons why you should consider outsourcing your software development to programmers from India:

Reduced costs associated with hiring

Every business can benefit from cost efficiencies. This is a huge draw for companies looking to outsource their IT development.

Building an in-house team is hugely expensive, with large budgets needed to cover the rent and utility fees for office space, the competitive salaries in your local area, and additional employee benefits, such as sick pay and health insurance.

Offshore teams have much associated fewer costs by comparison. While you still need to pay a fair wage, you only pay for the time used. What’s more, the average annual income of a software developer in India is around five lakhs ($6,000), according to AmbitionBox, compared to the annual salary of at least $90,000 plus a bonus expected by workers in the USA.

A larger pool of resource (which is set to grow)

When hiring from your local talent pool, your options are greatly reduced. The most intelligent, creative developers are likely already employed elsewhere, and if their employers know their worth, they’ll be doing everything they can to retain their best talent.

Comparatively, India is the largest provider of IT outsourcing worldwide, with an incredibly high number of graduates leaving college with engineering degrees each year. The market is in a period of growth, with over a million talented and motivated computer scientists entering the job market each year. It is estimated that over 15 lakh (1.5 million) Indian students graduate with engineering degrees each year.

And this is only set to grow. India has a young population, with over 50% of its inhabitants under the age of 25, so this pool of enthusiastic and innovative talent can only be expected to expand.

The Indian government favours the IT industry

India’s government is a huge supporter of the IT industry, with IT listed as one of its high-priority industries. It regularly improves its policies to benefit the industry’s growth and encourage the outsourcing of software development to talent based in India.

From exemptions on IT investments to tax benefits, the Indian government is taking huge measures to promote new investment in the sector, guaranteeing its continued growth and securing the future of the Indian software industry. In fact, India’s IT sector is growing at close to twice the rate of its economy, with the tech industry crossing the $200bn revenue line in early 2022.

The government is also aware of the potential downsides of offshore outsourcing and is actively tackling these. For example, data security is a risk when completing any work online or via the Cloud. In 2022 it was reported that the government had proposed to replace the Information Technology Act with an updated act that would do more to combat cybercrime.

India is leading in the software development market

The increase in the number of graduates and active support of the government means one important thing for the Indian software development industry: it is set to become the international superpower in software development.

According to recent projections, India is set to overtake the USA as the home to the world’s largest number of app developers by 2024, with further growth expected across all areas of IT development. While the USA will have 4.4 million developers, India will have a huge 5.2 million developers.

Plus, with five megacities around the country, home to many of India’s 4,500 startups recognised in the internet of things (IoT), robotics, artificial intelligence and analytics sectors, India is setting itself up for massive success.

High level of proficiency in programming languages

Indian software developers have an extremely high level of proficiency in popular programming languages, including Python, Java, C/C++, C#, and PHP, according to the PYPL Index.

In Coursera’s latest Global Skills Report, it was noted that Indian users over-indexed on programming languages and mobile development skills.

Leader of global innovation

In 2020, India was also ranked number two in a list of countries that show “the most promise for developing globally impactful disruptive technologies,” coming behind the USA and drawing with China.

In terms of specific industry growth, the country’s FinTech market is the third largest in the world, valued at $31bn in 2021.

Operate with a global mindset

Lastly, Indian software development teams operate with a global mindset. As physical geographical barriers are becoming less of an issue in the world of cloud-based working, Indian developers are ready to play on the global stage.

With over 125 million English speakers nationwide, India is a fantastic place to recruit developers for those wishing to build an English-speaking offshore team. This limits the risk of communication breakdowns and ensures a faster onboarding process.

Plus, there is a willingness to provide services 24/7, rendering working across time zones irrelevant. These talented developers are willing to meet companies in the middle, flexing their working hours around your availability and adapting their ways of working depending on your company culture and standard operating procedures.

How do I hire an Indian developer?

Sold on the benefits of outsourcing software development to India? WeAssemble is here to help you.

We assemble intelligent and flexible offshore teams made up of the best talent in India, all based on your company’s specific needs and ways of working. A new type of offshoring company, we take a unique approach by offering a range of flexible services that allow you to scale your development team quickly and efficiently while achieving fantastic results.

Working with WeAssemble means:

  • Help building a new offshore development team or augmenting your in-house team
  • Support through each step of the process, including hiring software engineers in India, onboarding talent and ongoing project management
  • Access to our Filtered Talent process, targeting the top 3% of developers in India
  • A dedicated Europe-based Account Manager
  • Money saved — we’re proud to say our partners can optimise costs by up to 50%

We assemble the best software development team for your business. Get in touch today to flexibly build your offshore development team with the best developers and specialists in India.