Outsourced Software Development Services- India vs. Other Countries

Posted by Congruent on February 28th, 2014

Outsourcing is a term in business which usually states an idea of contracting a third party to do a specific task. Software development outsourcing is nothing but contracting a third party or another company to develop the required software.

Outsourcing in India

Recently in a report by AT Kearney on the attractiveness of different countries for outsourcing and offshoring, India has been ranked no. 1 with a rate of 7.12 which is followed by china in rank 2 with 5.61 and Malaysia in rank 3 with 5.59. Hence it clears the fact that India is the most attractive country when it comes to outsourcing.

Factors of attraction

India has varied factors for attracting outsourcing towards it. Some of them are

• Education of human resources

• Availability of human resources

• Wages

• Cost considerations

• Taxes

• Infrastructure costs

• Intellectual right security

• Overall political stability

How India is better than other countries in outsourcing

India provides a better environment for outsourcing than any other country in the world. This became possible by few major factors in which India leads the role such as

• India has a large labor pool than any other countries

• Outsourcing in India has a higher quality

• India provides a very fine business and political environment

• The support given by the Indian government for outsourcing is good

• The education system of India is an another major factor that any other country doesn’t have

• The English proficiency in India acts better to support outsourcing from US, UK, Australia and even Canada.

Advantages of outsourcing to India

• Researches show that error rates in accounting were drastically reduced to 60% when the work was outsourced to India

• Indians work at a wage lower than that in the US or Europe, thereby cutting the company’s cost of labor

• Under section 10A and 10B, the Indian government offers various tax benefits to IT enabled services

• A 12 hour time difference between India and US provides a continuous 24 hours of business processing without any backlogs

• Infrastructure cost in India is much lower, hence the company can reduce its capital

By outsourcing to India, a company can gain a lot, than outsourcing to any other country. To locate the best data or project software development outsourcing companies in India, one can do a simple online research to locate the best outsourcing firms in India. By visiting the official website of the outsourcing companies and also by getting an idea of their previous projects, one can instantly avail the services of these companies online.

About The Author:

Headquartered in Seattle, WA, Congruent, Microsoft Gold certified partner has been providing software development services to its global clients since 1994. The operations are supported by our large offshore software development centre in Chennai, India. Congruent customers include a wide range of companies, from a Start-up solution provider, ISV's to enterprise clients like 3M, Premera Blue Cross, and Council on Foreign Relations, Glasstech, Maldives Airport and many more.