Why India is the Best Place for Offshore Development

Why India is the Best Place for Offshore Development
Sep 21,2016          Outsourcing          3 comments

Organizations outsource projects to offshore locations where they can have access to world-class professionals, at a reduced price and save time. Offshore outsourcing involves hiring any external provider or organization for a specific task or business activities. As per Duke University CIBER/Archstone Consulting Study, almost 73 percent Fortune 2000 companies consider offshoring an important part of the growth strategy. Optimum use of resources and reduction of operational cost are two major reasons for companies to opt for Offshore Development Center (ODC) model.

There are three categories of offshore outsourcing- software outsourcing technology and infrastructure and business process outsourcing. India has turned out to be the leading choice of for software offshore outsourcing. Indian software development industry has a prominent market presence in the global scenario. According to NASSCOM report, three important factors that have improved India’s value proposition for offshore outsourcing- quality, productivity and rate. The report also states that the majority of the Fortune 500 companies partner with Software development company in India for offshoring.

Outsourcing to the Indian companies saves almost 40 to 60 percent and helps in staying agile in the global economy. Offshore development in India dates back to 1985, when Texas Instruments had set its office in Bangalore. In 1990s, many technology and airline companies started operations in India. Over the years, the offshore development in India has evolved and caters to a wide clientele spread across the globe. The state-of-the-art Offshore Development Center ensures end-to-end solution that includes consultancy, requirement analysis, custom development, maintenance, migration, and quality assurance testing.

 India is the best for Offshore Development

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Why choose India for Offshore Outsourcing

Offshore outsourcing plays an important role in the global IT scenario. Few analysis forecasts that by 2020, almost 80 percent of world’s Business Process Outsourcing service will be catered by the Indian companies. There is a plethora of reasons for the leading companies to choose India for software outsourcing.

  1. Availability of talented and skilled human resource – India has a large pool of employees in the IT/ITES industry. There are skilled human resources who can support business across diverse verticals like retail, healthcare, banking and finance, government, utilities and manufacturing. Surveys indicate that almost 3.1 million graduates are added to the Indian workforce each year. It is expected that by 2020 India will have almost 2.2 million skilled IT professionals. The pool of these professionals is English speaking, which is a major boon.
  2. Price Flexibility – NASSCOM report states that outsourcing saves almost 60 percent of their cost. This is because of the cost difference between domestic market and other countries. Companies can save on recruitment, salary and benefits by outsourcing. This price flexibility helps the outsourcing companies to manage budget.
  3. Government policy – In India, there are stringent IT-related policies that support seamless operation and yields maximum benefit. There are policies about investment and taxations for the Offshore Development Center. Service tax exemption for the SEZ units and certain other benefits aim at promoting IT in the country. National IT Task Force implemented by the Government of India promotes growth of IT in the country.
  4. Privacy regulation and data security – Privacy protection and data security are two important factors for IT project implementation. The Information Technology Act, 2000 emphasizes on these two factors. As per the Act, if there is a breach of law it will result in financial penalty and imprisonment. NASSCOM has several measures in place that addresses issues related to data security.
  5. Infrastructural availability – India has a wide cellular network and state-of-the-art infrastructure in major cities. Indian outsourcing companies ensure that they have an uninterrupted communication channel with their clients.

Outsourcing the software development lets the companies concentrate on the other aspects of business. Many software companies in the country are now major players in the global scenario due to their pool of superior talent, fast turnaround time and low development cost.

Leveraging Offshore Development Center

Of the different offshore outsourcing models the preferred one is having an ODC. Offshore Development Center is an effective model that involves having a dedicated team for software development. It is like having an in-house IT personnel, but at a remote location. This model of outsourcing provides visibility of the software development process. A major benefit of this model is that there is a dedicated infrastructure, security policy and pre-defined HR practices that will meet the need of any software development process. There is also scope of scaling up the team as per the project need.

Software development has different stages- requirement analysis, define the requirement, develop methodology, design the software, implementation, QA testing and deployment. Usually, services catered by an Offshore Development Center (ODC) in India include all these steps – custom software development and testing services. The work process in ODC emphasizes on Agile development and the environment ensures maximum utilization of resources short time-to-market and fast turnaround. With a well-managed ODC, companies can save their cost by almost 40 to 80 percent. In short, companies can stay ahead of the competition.

iMorphois Offshore Development Center

iMorphosis has a state-of-the-art Offshore Development Center at Kolkata. Companies can outsource a dedicated team of business analysts, subject matter experts, developers and QA analysts. The company have a standardized methodology for different engagement models. In the Statement of Work (SOW) we define the different aspect of outsourcing like Business Model, Human resource requisites, Assumptions, Risks, Communication Models, Functional Specification and Escalation Matrix. Outsourcing iMorphosis will save both your time and money.

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to establish an ODC with us.