8 Reasons Why IT Outsourcing in India is the Best Decision [2023]

Why Outsourcing to India

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For years, India has been the go-to destination for IT Outsourcing. Providing cost-effective yet quality services, India has now become a support system for most of the software companies in the western world. 

Even the top tech giants like Microsoft, Google, Ford Motor Company (FMC), CISCO, and American Express (AMEX), outsourcing IT services to India. And the reason is quite simple, India has the required resources to fulfill the growing demands of the software industry.

The main reason why companies Outsource to India is cost-effectiveness. Outsourcing in India can significantly reduce labor and operational costs while maintaining high-quality services and access to a skilled and educated workforce.

Let’s dive deep into the blog post to find out the top reasons to choose software outsourcing companies in India. But before that, let’s have a quick overview of why businesses choose to hire software development outsourcing companies.

Working with one of the leading software outsourcing companies in India will help businesses find solutions to the following concerns:

  • How to reduce fixed costs.
  • How to speed up/scale your development team.
  • How to find skilled developers fast.
  • How to lower time-to-market.

Overall, software development outsourcing is an external SaaS tool to grow the technology behind your business.

Also, read In-House vs. Outsourcing – Everything You Need to Know.

Why IT Outsourcing in India is the Best Decision


Top 8 Reasons Why Outsourcing in India is the Best Decision

Let’s dive deep into the post to learn about the eight benefits of IT outsourcing in India for businesses of all sizes across industries.

1. Talent Pool of Professionals

The availability of a talent pool of skilled professionals is one of the popular reasons why businesses want to outsource to Indian service providers. 

 C SharpCorner report states that by 2023, India will become the world’s largest IT hub of software developers. Most of these developers are well-equipped with the required KSAs and can help you achieve your business objectives.

The abundance and easy availability of dedicated offshore developers makes India tick faster and better when it comes to offering a large and intricate solution in time.

Besides, it helps countries provide solutions in various value brackets that suit their business needs. Moreover, virtual teams have a high potential to adopt new technologies and maturely grasp them to create better solutions.

They work on the latest technologies and advanced solutions which are otherwise challenging to apply. As a result, India leads the wagon of outsourcing as it practices technologies and stays updated with the latest trends.

2. Cost-Effectiveness

Achieving reliability and cost-effectiveness are a few primary reasons why businesses across the countries prefer software outsourcing to India. India’s web and mobile app development costs are nearly 30-35% lesser than those of American and European countries.

The average hourly salary of developers in India ranges from $20 – $40/hour. It is significantly lower compared to the salary of developers in western countries ($100 – $150/hour).

Most of the offshore development centers in India offer their clients per hour or fixed monthly prices so they can choose at their convenience. As a result, hiring Indian software developers save 65% on operational expenses, increasing the company’s profit.

Do you think that’s vague? No worries, we will allow you to see this difference yourself. Just use our outsourcing ROI calculator & evaluate the difference between the average expense of insourcing vs. outsourcing.

3. High-Quality Services

While having a talented workforce is one thing, delivering high-quality service is another, and India needs to deliver on this end. Software developers in India have access to advanced technology, software, and infrastructure and are well-versed in using these tools to leverage advantages.

The Indian outsourcing companies follow the best international standard practices, including

  • The Capability Maturing Model (CMM) can assess the capability of an organization’s processes to implement a project.
  • The International Standard Organization (ISO 9000) assures quality in design, development, production, and installation.
  • Total Quality Management (TQM)
  • Six Sigma Quality certification
  • Customer Operations Performance Center (COPC) guarantees to deliver quality software within the deadline.

Over 75% of the world’s CMM Level 5 certified companies are in India. The highest number of ISO-9000-certified software outsourcing companies is in India.

In short, the above standards & certification ensures that Indian software companies promise quality and have the potential to furnish various services perfectly. Hence, if you choose to outsource to India, you can ensure high-quality services.

4. Communication is the Key

Communication is the root of the beginning, maintaining, and growing a positive relationship with the firm. Also, good communication guarantees expected results and resolved issues. 

Therefore, seamless communication is another reason these countries prefer India more than any other country. Indians are popular for speaking English better than their Chinese or Filipino counterparts.

 India prides its reliable communication, which facilitates good band connectivity with the rest of the world, so there are no connection hurdles. That’s why communication is no barrier, and your journey for software outsourcing in India will be comfortable.

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5. Utilization of Time-Zone Difference

Outsourcing in India is like you are working 24/7. The difference in time zone starts at -5:30 (GMT) through to -12:30 (PDT), allowing enterprises to maximize accomplishments in a normal work day than getting the work done locally.

Additionally, IT outsourcing in India gives you an option to quickly time-to-market due to the advantages gained by time zone differences.

The 12-hour time difference between India and the USA provides companies with numerous opportunities for work to be completed earlier than expected, leading to greater efficiency, increased productivity, and more time to focus on other crucial tasks.

6. Support from the Indian Government

India’s government has supported the IT field to a great extent. The government added the IT sector to its top 5 priorities. In addition, they have implemented the National IT Task Force, a group committed to elevating IT in India.

If we go with the numbers, India’s IT outsourcing industry will reach a CAGR growth of 7.25% by 2025. The statistics prove that while India’s policies are considered favorable for outsourcing, the availability of skilled resources at a lower price, on the other hand, makes India an attractive option for software outsourcing.

7. Focus on the Core Business Competencies

Business growth demands continuous focus on increasing the customer base or researching and testing new products while maintaining the current growth rate. Entirely depending on in-house may take your focus away from core business activities.

Outsourcing to India lets you delegate noncore activities while continuously managing the business functions that make you thrive in the competitive ecosystem. India is a wider outsourcing location where you can effortlessly find a service provider for any business activity you would prefer to outsource.

8. Unparalleled IT Workforce

The outsourcing business in India is booming and creating the largest IT hubs in India with new technology and reliable web customization, navigation, solutions, and development. As a result, the Indian IT workforce is staying on top of emerging trends and enabling businesses to meet their goals and advance their skills. 

How to Find a Good Outsourcing Company in India?

4 key points to Find a Good Outsourcing Company in India

Hiring an outsourcing software development company requires your business to do research. There are four major steps to be followed to see if the chosen company is apt or not.

1. Define Your Project Requirements

Before you search for the ideal IT outsourcing partner, draft your outline of where you want to go and what you want to achieve. Once you define your goals and have a decent idea of your project requirements, you can have the type of partner you need. In addition, you will have a clear idea of whether you require a partner or if an advisor or assistance will suffice.

2. Check For Proven Track Records

Maintaining track of the company’s growth statistics is the second most important factor to consider. Analyze the outsource software development company over the last few years to evaluate their performance and progress in recent times.

Discover the kind of customers they have served and provided software development services and the number of projects completed.

3. Online Marketplaces

Thorough research for offshore software outsourcing partners enables you to find the most renowned and credible sources to deliver the best possible results. Several readily available internet markets provide offshore IT outsourcing services providers in one click. 

These online marketplaces connect organizations to hundreds of vendors worldwide and ensure the most relevant matchmaking and optimal outcomes for fundamental project management requirements. 

You can search for your outsourcing partner by filtering talents, regions, categories, services, and reviews.

4. Protect Your Data and Intellectual Property

Signing an NDA is a proven solution for businesses to protect and safeguard business and client confidential data. With this, one can ensure that both parties can seal the sensitive data under this agreement. 

Several other pieces of information are easily covered under the NDA, from intellectual property rights to code details.

Also read: How to Outsource to India? (Easy Way to Save Thousands)


Several benefits comes with outsourcing in India, and it’s easy to see why companies would choose India as their first choice in outsourcing, considering all the valuable advantages. While the IT field prevails as India’s most valuable source of expertise, other areas of business benefit from outsourcing in India.

No matter what is the size, scope, and requirements of your project, hire an offshore development team that will deliver the end product before time. This is important for your business to choose a dedicated offshore development center because of the reliability and scalability that an ODC offers. 

Get in touch with our experts to discover more about how your business can accomplish remarkable growth from our IT outsourcing services in India. Just contact us and discuss your requirements for free.

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Frequently Asked Questions (FAQs)

Q: What are the main reasons for outsourcing IT services to India?

Cost savings, access to a highly skilled workforce, and access to a large pool of English-speaking professionals are some of the main reasons for outsourcing IT services to India.

Q: How does outsourcing IT services to India lead to cost savings?

Outsourcing IT services to India can lead to cost savings due to the lower cost of labor in India compared to other countries, as well as the lower cost of operating a business in India.

Q: What type of IT services can be outsourced to India?

A wide range of IT services can be outsourced to India, including software development, web development, data analytics, and IT support.

Q: How can companies mitigate risks associated with outsourcing IT services to India?

Companies can mitigate risks associated with outsourcing IT services to India by thoroughly researching potential outsourcing partners, clearly communicating expectations, and establishing a strong system of project management and quality control.

Q: Is IT worth outsourcing to India?

Outsourcing IT services to India can be a valuable option for many companies due to the cost savings, access to a highly skilled workforce, and access to a large pool of English-speaking professionals. However, it’s important to conduct thorough research and carefully consider factors such as cultural differences, time zone differences, and potential language barriers before outsourcing IT services. Ultimately, whether outsourcing IT services to India is worth it for a particular company will depend on their specific needs and goals.

Neha Malhotra

Neha Malhotra is a technical writer and author by profession. With a profound experience in IT, she writes about new disruptive technologies and innovations. She has authored blogs on various digital platforms.

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