Ever wondered why all the globally pioneering companies like Google and Microsoft are in the hands of powerful Indian leaders like Sundar Pichai and Satya Nadella. India has always portrayed superior results with a powerhouse of talent and has become the oldest and established destination for software development outsourcing compared to other countries around the globe.

The global software outsourcing market is exponentially growing. As per the stats, the projected value of the market is estimated to increase to $81.5 billion by 2023 which is rising at the rate of 3.51% CAGR. 

Table of Content

  1. What IT services are outsourced to India?
  2. How to find the best Software Outsourcing Company in India?
  3. Things to Keep in Mind While Outsourcing to India
  4. Benefits to Outsource to India your software development
  5. Final Takeaway

The continuous growth of this sector is because most of the businesses are looking to get help from external sources for the development of their own business. Globally, Outsourcing is considered the most convenient option for businesses to outsource their operational inefficiencies. Consider any size of company from small, medium to enterprise- they all have outsourced their business and were able to generate higher profitability with low-investment costs. With considerably good reasons for software outsourcing, all the industries from healthcare to manufacturing, or banking and finance to Logistics have gained advantages of outsourcing. Speaking specifically about the custom software development industry, the results are incredible and that’s why most of the businesses are more inclined towards software outsourcing their jobs to India. Read a complete guide related to software outsourcing here.

1. What IT services are outsourced to India?

As per the recent reports by NASSCOM- National Association of Software & Service Companies, more than 50% of International big firms consider Indian companies as their software outsourcing business partners. This has eventually grown with time and with several other countries emerging as tough competitors in this business such as China, Philippines, Mexico and Ireland are also preferable now for outsourcing.

But India is becoming the most favorable destination for Software development Outsourcing and has directly contributed to the continuous growth of business and countries individually. To traverse business models and develop cutting-edge software solutions, more and more businesses outsource their IT services. Businesses around the globe want to lead their business by developing modern applications and solutions. Now if you wonder what type of services business often outsources in software development outsourcing then the following are some of the major IT services that need expertise from specialists.

  • Web and Mobile Application development
  • Digital Transformation services
  • New-edge technology solution development like IoT, Blockchain AI and ML
  • Custom Software development
  • Front-end & Back-end development
  • Website development
  • Enterprise Solutions
  • Product Development
  • Digital Marketing Solutions

These are just to name a few, the list is just endless when it comes to software outsourcing in India. It all started years ago with call-centers services and now it has reached a point where India contributes tones in Software application development across the world.

2. How to find the best Software Outsourcing Company in India?

Considering the innumerable options available, it is challenging for businesses from a foreign country to select one company that matches their needs. There can be many companies striving to get attention and offer their services at much cheaper rates than normal. What should businesses do in such cases and how to find the perfect fit for tailored business needs. Make a checklist of what should be considered while selecting a vendor for a software outsourcing company and in case you don’t know what to consider, explore this quick checklist of which parameters should be considered in Software outsourcing.

After understanding the aspects of consideration in selecting a software outsourcing company, start with asking relevant questions. Questions that would bring conviction on whom should you outsource

  • Know what kind of services they offer?
  • Do they practice standard methods of quality assurance while developing apps?
  • Are they ready to sign an NDA?
  • Do they have experience of working with the same niche of projects?
  • What type of financial engagement models do they offer to clients?
  • Do the representatives of customer companies directly interact with the developers?

Businesses can frame their own set of questions and get answers to all these relevant questions for more clarity on which company to get associated with. For further understanding, we shall elaborate on the points of consideration while software outsourcing services to India in the section. As we know, partnering with custom software development companies in India is a cost-effective plan for businesses. Additionally, they are skilled and competent with the latest technologies and tools, resourceful employees, and proven track records of accelerating productivity for most of the businesses around the world.  

3. Things to Keep in Mind While Outsourcing to India

It is quite evident now that there are multitude of benefits in software outsourcing but between outsourcing your business and achieving fruitful outcomes, there comes a thin link between the two. This vital link is “the outsourcing company” you contract your services. So while there are numerous countries in mind, what makes India a good destination for custom software development outsourcing. 

Some of the essential reasons why India is the most renowned and accepted software outsourcing destination for businesses are the top-notch services it offers and the reliable work it has delivered in the past. Today the ideology of software outsourcing has reached a pinnacle. To augment business services, most businesses consider outsourcing. Before choosing the service provider you should always consider what to choose for your software development outsourcing. These are few points any business should examine before considering to outsource:

  • Delegate tasks that are time-consuming and makes business inefficient due to lack of expertise.
  • Always validate your business KPIs with the service offerings only then outsource.
  • Never outsource something, you hold expertise in.
  • Choose the service provider based on their portfolio and not the cost they offer.
  • Safeguard the developed apps and the IP address.
  • For new businesses, it is always advisable to keep your in-house team for strategizing plans.

4. Benefits to Outsource to India your software development

Increasing effectiveness and accelerating productivity is the basic reason for outsourcing any business process. Moreover, most companies now realize the value of outsourcing, especially those in the custom software development business. By software outsourcing services certain processes to high-skilled and cost-friendly companies ensure that the core idea of the business remains stagnant and with more investment of time and money they promise to expand business wider. You can learn more about the benefits of custom software development for your business from our recent blog post custom software development- A complete guide. Meanwhile, let’s understand why India is a good fit for businesses. Enlisted are a few points that may validate what benefits India offers to other businesses.

  • Talented workforce and new-edge IT companies
    A pool of brilliant and skilled workforce who understand technology to its core for offering business the best possible solution. They are the second-largest country with maximum English speaking people. And there are leading-edge fortune 500 companies like Cisco, Microsoft and Google contributing largely to the economy of the country.
  • Software Industry Size
    Major technology companies like Infosys, TCS and Wipro have massively expanded the software business with their skilled employees all over the world. They have developed their software outsourcing model and emerged out to be a leader in the software industry space. This is a clear depiction of why India is the most preferred choice for software outsourcing.

    India offers a broad array of custom software development services from software application, system integration, business process management, business intelligence, database management and consulting services.
  • 24*7 Consistent support
    The business started with call center services and has now progressed in leaps and bounds. Understanding different time zones all the executives work round to clock to support the needs of the business. Companies from different geographies prefer to partner with India because of the flexibility in the time and service they offer to their clients.
  • Supportive Indian government rules and Acts
    Cross-border trading is common in the custom software development business and thus every government massively supports this approach of doing business. The Indian government has been responsible and has created few acts in favor of cross-border business. Acts such as
  • Information Technology Act 2000 (IT Act)
  • Legal or Regulatory Restrictions on Data Processing
  • Regulatory and Legal Environment: Indian Contract Act, 1872
  • Cost-effectiveness
    Custom software development in India is affordable and that’s not just the reason for software outsourcing to India. Successful establishment of vanguards of technology companies like Microsoft and Google in thriving cities like Bangalore, Chennai, Hyderabad, Delhi-NCR, Mumbai, Pune, and Ahmedabad are just some of the names with state-of-art infrastructural facilities. The leading sectors like telecom, cellular and high-speed internet connectivity offer optimal feasibility for any business to manage their process at an economical rate.

5. Final Takeaway

Every business from start-ups to mature enterprises has a strong proneness towards software outsourcing in India. After reading this, you now know why businesses outsource to India? Obviously to leverage up-to-date technology, skilled professionals to maximize business profits and reinforce the core business foundation. So why not your business also get empowered with these modern software outsourcing companies from India who have captured the global tech market with their top-notch services and global expertise. Think and act.  

Itesh Sharma

Itesh Sharma is core member of Sales Department at TatvaSoft. He has got more than 6 years of experience in handling the task related to Customer Management and Project Management. Apart from his profession he also has keen interest in sharing the insight on different methodologies of software development.


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