DEV Community

Cover image for Software Development Outsourcing To India: Is It Worth Every Penny?
Devesh Chauhan
Devesh Chauhan

Posted on

Software Development Outsourcing To India: Is It Worth Every Penny?

According to a recent Deloitte poll, 59% of interviewed firms already software outsourcing to India, with an additional 22% considering it or planning to go.

It's no secret that businesses are increasingly outsourcing their software development needs to India. The country has a well-deserved reputation for offering top-notch IT services at a fraction of the cost of western alternatives.

But is it worth it?

The answer depends on your specific needs and priorities. Software outsourcing to India can be an excellent way to reduce costs and speed up delivery times, but it's not always the best solution for every problem.

Before making a decision, you need to weigh the pros and cons of software development outsourcing to India.

Pros of Software Outsourcing To India:

1. Economically Affordable To Outsource Software Development India:

Outsourcing software development to India is cost-effective and beneficial for organizations to save costs and gain a competitive edge globally. India has the cheapest outsourcing labor with good expertise in software development.

For example, hiring offshore developers in India will cost you around $19–$40 per hour compared to $100–$200 per hour for onshore resources in the United States and Europe.

Image description

2. Access To India's Huge Resource Pool

Image description

Image Source

According to a recent study from DAXX, India is the leading Asian software development hub, with around 5 million overseas developers working there. The country represents approximately 60% of the total developers in Asia.

Revenue in the IT Services market is projected to reach US$17,060m in 2022.

The Indian government is committed to supporting innovation in robotics, nanotechnology, biotechnology, advanced computing systems, software development outsourcing, etc.

As a result, thousands of graduates and post-graduates in India are enrolled in technical universities specializing in different areas of software development. These professionals work very hard to get the best training possible and position themselves as strong candidates for future job markets.

3. Incredible Flexibility With Time Zones

The time zone difference is essential when it comes to outsourcing. India has an edge in this area. Web development businesses outsource software development in India due to the compatibility of time zone differences.

This enables good communication and workflow with the outsourced team. The offshore team can quickly address all your questions and concerns on time without affecting the core hours of work you set for your outsourcing partner.

In addition, Indian software outsourcing companies understand and respect your time zone and adhere to it for smooth and effective communication. That is what we see in a survey; companies outsource software development in India because Indian developer eliminates any communication challenges.

Image description

4. The Quality Standards Are High

India is a preferred outsourcing destination for various reasons, not the least of which is its cost-effectiveness.

Compared to other countries, Indian IT outsourcing services provide a high level of quality in coding and design with a focus on productivity and deadlines. You can expect your project to be delivered on time and within budget.

Image description

Image Source

Plus, you will receive professional offshore IT outsourcing services that are highly structured and documented according to the latest standards.

5. Technology Adoption Trends In India Is Fast

Indian software professionals quickly pick up new programming languages, development frameworks, and device platforms.

According to a Deloitte India Analytics and Intelligence survey released earlier this year, around 70% of Indian technology companies have adopted DevOps as their primary software development outsourcing model.

Thus, it has increased customer satisfaction, faster time-to-market, and overall business agility. Not only that, most Indian software companies are leveraging the latest IT trends like AI, machine learning, big data, etc.

6. Lenient Government Policies And Regulations

The Indian government offers several incentives to encourage foreign companies to invest in the country's technology sector. These incentives include a simplified tax regime, favorable capital gains taxes, tax exemptions on export profits, speedy registration procedures for new companies, etc.

Thus, it makes the country an attractive destination for foreign investment in IT outsourcing services and products.

7. Professional Work Ethics And Values

The fundamental reason Indian software outsourcing businesses are competitive and continue to expand is to promote a culture of professionalism and effort.

This is reflected in the work ethics and values, who are known to be hardworking, dedicated, and committed to delivering quality services.

They take their jobs seriously and respect deadlines. They believe in teamwork and, most importantly, offer a no-nonsense approach towards business transactions.

Quality service, flexibility, time zone compatibility, and a professional work ethic are all factors that set Indian software outsourcing companies apart from the competition.

Cons of Software Outsourcing To India:

1. Lack Of Personal Relations

There is no denying that Indian software outsourcing companies adopt a more formal approach towards business transactions. While this might work well for foreign businesses, it lacks warmth and personal relations.

India might not be the best option if you are looking for an emotional connection with your outsourced team. This can often lead to misunderstandings, miscommunication, and delays in project delivery.

2. Piracy and IP Issues

Another downside of outsourcing software development projects to India is that it's not easy to watch outsourced employees.

There have been cases where Indian outsourced employees sold the source code of products to their competitors or created a copy for themselves. This became possible due to loose data security laws and regulations in the country.

What Are The Things To Keep In Mind Before Signing A Contract With An Indian Software Development Company?

Once you're prepared to outsource your software development project, there are certain things you need to keep in mind. These include:

1. Understand the Scope of Work

Before signing a contract with an Indian outsourcing company, you need to understand the scope of work.
Do they have a team that can complete your project?
What is their experience in this domain?
What is the size of the project you're going to entrust them with?
How long do they plan on taking to complete this project?

When starting a new software development project, these questions may be on your mind. Before signing a contract, you need to consult the company and understand its rates and other charges.

2. The Type of Collaboration

In most cases, you may be required to provide your requirements in the form of documents. So, make sure you create the documents accurately to avoid misunderstandings or misinterpretations, as this could lead to delays in project completion and result in additional costs.

3. Time Frames

You can also discuss the estimated time frames with the company if you are ready to go ahead. Keep in mind that different companies work on different timeframes, so make sure you get an approximate timeframe based on their past experiences before making a final decision. Also, make sure they have contingency plans if they don't meet your desired timelines.

4. Check Previous Work

It's also essential to check out the company's previous work you're thinking of hiring. If they have some quality projects in their portfolio, then it means that they are capable enough to handle your project too. Every software outsourcing India company needs to get feedback from customers at regular intervals to improve their services and offer better solutions to their customers.

5. Ensure Quality

Last but not least, you need to ensure quality while outsourcing any software development project as you can't afford to take risks when your business is at stake. You would be spending thousands of dollars on this project, so hire only world-class companies that offer top-notch solutions for every type of problem and IT outsourcing services like mobile app development, web designing & development, etc.

Top 4 IT Outsourcing Companies in India

PixelCrayons: Founded in 2004, PixelCrayons is a leading custom IT outsourcing company. Also, it offers a range of IT outsourcing services such as custom software development, product engineering, design, mobile app development, cyber security solutions, etc. The company has serviced over 300+ mid-sized and big enterprises worldwide.

Maruti Techlabs: Maruti Techlabs is a leading IT outsourcing company. Plus, it offers a wide range of services like business intelligence, web designing & development, digital marketing, app development & testing, etc. The company is ISO-certified and has earned clients' trust worldwide by delivering top-notch software solutions on time and within budget.

ValueCoders: ValueCoders is an offshore agile development firm of high-quality experts from India. You may use our specialist engineers to address skill shortages in your team and expand your engineering efforts or give us complete product development projects.

Besides, if you are looking for mobile app developers, whiteboard or wireframe designers, digital marketing professionals, business analysts, etc., ValueCoders is the best offshore software development company.

Appventurez: Appventurez is a significant IT outsourcing company founded on the principle of providing end-to-end technology-oriented services to both large and small businesses, thereby enhancing their overall business lifecycle. The company, which employs over 200 people, offers a wide range of services, including mobile app development, cloud computing, web design and development, and more.

Now, you know the top 4 Indian software development companies to outsource your next project. But, before you sign a contract, there are a few things you need to keep in mind.


The process of choosing a third-party provider to assist with software development is a major one. You have to ensure that the company you choose can be relied on. The above-mentioned pros and cons give you a clear idea of having the right third-party development company within your budget.

Ensure the software firm you hire is capable of offering quality service. As mentioned earlier, it's a significant investment, so make sure you get the most out of it. Moreover, keep the points mentioned above in mind before signing a contract, and you'll have an excellent experience. Good Luck!

Top comments (0)