Why Global Brands Prefer Indian Talent for Offshore Development

Pandemic has maximized the opportunities to work remotely. Along with that, it has also expanded the idea of outsourcing services to get most of the benefits. Today various countries like India, China, and the Philippines have become hubs for outsourcing major IT services.

64% of outsourced services are related to software application development

Since various businesses are tightly packed into Western Europe and North American cities, the cost of doing business is always rising and the competition is fierce. Offshore Development Services have inevitably risen as a solution for Western businesses looking for custom solutions.

Today, India has been at the top of various listings for the best companies offering remote software development services. I totally believe that cost-effectiveness is the top-most reason. But other than that, there are many more factors contributing towards Indian Offshoring Services. Organizations can certainly ride the wave of digital transformation and gain technical advancements with the support of Indian experts.

Before going on to the details of why Global Brands are preferring Indian talent for Offshore Development, let me share some of the interesting stats:

  • According to Capital Counselor, by 2025, the global IT outsourcing market will be worth $397.6 billion.
  • 57% of companies outsourced work to increase productivity according to What to Become.
  • Also as What to Become says, over 14 million jobs are outsourced from the US.
  • Fortunly states that 78% of businesses all over the world feel positive about their outsourcing partners.

What are Offshore Development Services?

My simple definition of an offshore development centre is that it’s an integrated, extended and dedicated office which is located in another country. It is specifically a branch or a subsidiary of a company existing in another country. Generally, businesses prefer to pick a country where the cost of living is significantly lower in comparison to their native country.

The main reason behind Offshore Development Services is enterprises can get the same skill-set and high-quality work at a much lower rate which directly contributes to magnifying profits.

Bangalore, the Silicon Valley of Asia has become a tech hub to find and recruit the best engineers for software development. Various IT giants like Google, Apple, Microsoft, and SAP are already establishing their R&D centers in Bangalore!

Why Global Brands Prefer Indian Talent?

Today, India has managed to outwit all other countries like China, Philippines, Ireland, etc.,and loom as the top offshoring harbor. Moving towards software development services is a big decision and needs complete understanding but the benefits are immense. Let me share some of the top reasons why companies choose Indian Talent across the globe.

Low Cost

The top reason for outsourcing (70%) is cost reduction

Most of the software companies are based in extremely expensive cities. Hence, the cost of living also increases. On average, a decent developer will cost around $60-150 per hour and the employers also need to look for employee-centric benefits like health insurance and travel. If a company chooses a recruitment agency, they need to pay an extra amount.

The cost of living in India is, on average, 64.60% lower than in the United States

The cost of living in India is very little as compared to the west. Even in tech-focused cities like Bangalore, the average developer salary is significantly lower when compared to other countries of the world. There is a huge difference in the amount while considering the cost of rent, travel, bonuses, as well as, health insurance. I definitely feel that tying up with the right offshore development agency can be much advantageous for your business. Typically the revenue will grow and expenses will fall, so there will be a direct shoot-up in your profits.

Pool of Talent

India, the world’s second most populated country, has a huge pool of young and technically sound trained professionals. India offers one of the largest talent pools in the world.

According to C SharpCorner,

By 2023 India will become the largest hub of software developers in the world

Most of the Indian developers are well equipped with the required KSAs and can help companies achieve their business objectives. In fact, India will add approximately 110 million resources to its workforce in the next couple of decades.

India will overtake the US’s number of software developers by 2023

Since India puts significant emphasis on English education and IT services, Indian developers are far more capable of filling the talent scarcity. A company can have the benefit of a 5x talent pool and can choose from the bunch with quality offshoring.


The easy availability and abundance of dedicated resources enable India to tick better and faster when it comes to offering a large and intricate solution in time. These resources work on advanced solutions using the latest technologies. I would say, India leads the wagon of offshoring and outsourcing as it stays up to date with the latest trends and it practices technologies.

Reliability and High-Quality Standards

High-quality is another thing that’s guaranteed when Offshoring in India. International standards are maintained while working on the project.

According to NASSCOM,

Over the upcoming five years, 40% of India’s workforce is expected to amplify their skills to meet the advanced requirements

India is amongst the countries that have the highest number of ISO-9000 certified companies and thus quality is never compromised. Hence offshoring services in India bring a bunch of benefits where the quality of the work is the top priority.

Over 75% of the world’s CMM Level 5 certified companies are in India.

Recently, The National Outsourcing Association (NOA), in its Annual Offshore Outsourcing Conference, revealed the reason behind why International companies are choosing India as their preferred destination,

Cost reduction was only part of the reason that companies were considering offshore outsourcing, there were benefits to be had in time-to-market and quality, leading to an adage that companies initially chose India to save costs but stayed for the speed and quality!

As per my experience working with the Indian Companies, their resources never compromise on quality. India is a reliable source to offshore when you need quality results at a much lower price.

Easy Communication

I consider good communication to be the foundation of any project. It is the key to initiating, maintaining, and growing a positive relationship with any company. I would also add that communication guarantees expected results and resolved issues.

India is one of the largest English-speaking countries in the world. In fact, it has more English speakers than the UK and US. Hence language is not a barrier when it comes to communication. Indian developers are fluent in communication and it encourages major companies to Offshore IT Services in India. Employees are keenly available on Skype, Hangouts, and Teams for a face-to-face conversation as per the convenience of the company.

According to a survey, approximately 350 million people speak English in India. Hence, a company’s journey of offshoring in India can be a comfortable one. Indian resources pride its reliable communication that assists good connectivity with the rest of the world and therefore, there are no connection hurdles.

Utilization of Time-Zone Difference

The time differences between India and other countries can offer plentiful opportunities for work to be completed earlier than predicted, leading to better efficiency, enhanced productivity, and more time to work on other crucial accountabilities. So, as per my opinion, India can easily serve 24/7 to various countries. Offshoring to India gives companies an option to quickly time-to-market due to time zone differences.

The time zone difference makes India a great option for enterprises who want to outsource various service-related options like 24X7 Customer Support and Helpdesk services, as well as, software development services.

Support from Indian Government

IT is one of the top 5 priority industries in India. I would also add that the government has framed friendly-policies to gain maximum benefit from IT outsourcing/offshoring to India.

Being one of the largest sectors of the Indian economy, the IT sector provides employment to the majority of the young workforce in India. The government has provided various tax-related and other benefits by enacting the Information Technology Act. Ranging from GDP growth, taxation, power, telecom, industrial parks, to special zones, the government policies have helped to enhance infrastructure and communications systems.

Wrapping Up

In this tech-driven world, Indian offshore development centers have managed to comply with demanding situations while managing tasks efficiently. Email, audio-video conferencing, chat support, project management tools, etc. have contributed to the smoother collaboration of employees and companies. Moreover, some of the biggest companies like Cognizant, Accenture, IBM, TCS, Dell, Infosys, TCS, Wipro have Offshore Development Centers in India.

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