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Benefits of Offshoring software development and technology support to India

CategoriesBlog / General

Admin

February 18, 2019

Technology is no magic on its own. But Technology applied to a business in an appropriate way could create wonders! In today’s digital era, digital existence for any business is crucial. To have a rip-roaring quiddity in the digital space, the individual businesses need to have conspicuous knowledge and strong hands of technical professionals. Although having an in-house team might sound like a no-nonsense option, the recent global trends and advantages of offshore outsourcing advocate that offshoring software development and technology support is a way too profitable than building an in-house team. But to navigate through this complex journey of digital transformation, businesses should consider offshoring to a smart and experienced service provider.

According to the National Association of Software and Services Companies (Nasscom), India is the most preferred software development outsourcing destination globally.

India Outsourcing

Why India for offshoring?

Offshoring software development and technology support are beneficial in various ways. But Offshoring to India provides companies with a competitive edge over other companies. With economic reforms like GST and movements like Digital India, millennial India is becoming one of the most sought-after and profitable options to offshore the software development and technology support. There are various reasons to support this claim.

  • Time zone advantage:

Many of US and Europe companies prefer to implement a follow-the-sun model and leverage the benefits of time zone difference. India, being strategically located in mid longitudes, could unhesitatingly serve both the western world and the eastern world around the clock, 365 days a year. In this way, India could support the businesses in those counterparts, by saving their time, cost and by reducing their time-to-market.

  • Favorable government policies:

Information technology is considered as one among the top industries in India. With the release of “IT acts 2000” bill, India has been rated as an excellent investment potential destination of the world. Through this act, the Indian government has been playing a major role in providing tax-related and other benefits, along with recognizing the electronic contracts, barring cyber crime and supporting the e-filing of documents.

  • Indian Advantage:

There are various advantages that India could offer for the outsourcer – Cost effective services, English language advantage, access to the highly skilled pool of professionals, etc. More than 20 companies in India have attained the CMMI level. 65% of CMMI level 5 companies in the world are located in India alone. India even has the highest level of ISO-9000 software organizations.

  • Other Advantages:
  1. Regardless of the succession of government coalitions, the focus of Indian government continues to be on liberalizing certain markets which are beneficial to outsourcers.
  2. Availability of young and highly qualified technical professionals.
  3. India is a land of almost 400 universities and 1500 research institutes. The country produces 200,000 engineer graduates and 9000 doctoral graduates every year.
  4. Excellent knowledge and command on the English language.

Major Advantages of Offshoring Software Development and Technology Support to India:

Ever since Indian talented workers helped American companies with the issue of Y2K bug in the late 1990s, India has been declared as a top offshoring destination for multinational technology companies. However, there are various other reasons as well which could substantiate India as an unbeatable contender in the business of outsourcing.

Outsourcing to India Map

  • Cost advantage:

Opting software development or technical support team from western countries or having an in-house team could be a costly affair. But offshoring to India cuts down the cost without cutting down on corners. It provides the cost flexibility by reducing the employee-related costs such as recruitment, supervision, salary, and other benefits. It also reduces the cost of setting up new types of equipment and property depreciation. Statistically, it has been proved that offshoring the software development to India could reduce the cost up to 50%.

  • Quality:

The offshore software development team in India are normally experienced and would have collaborated with many other companies before. This helps them understand the requirements of the outsourcer and utilize the most appropriate adaptable technologies for that particular project to provide the finest results. With the basic knowledge intact, Indian companies also have the history of being very cooperative and satisfying the customer needs with top-notch quality services.

As per the National Outsourcing Association (NAO), India is a preferred offshore destination, not only for the cost-benefit but also for the other benefits such as excellent quality services with a “can do” attitude and reduced time-to-market.

  • Access to talented human resource:

An efficient software application development needs financial resources as well as a skilled workforce. Indian outsourcee companies could afford these talented pools of professionals who are well equipped and highly trained for any given project.

  • Clear communication:

Indian IT outsourcing companies have gained the reputation to remain in constant communication with the outsourcer. The progress of the project would be regularly updated to the outsourcer through the phone calls or Skype or emails. This would offer the outsourcer as well as outsourcee absolute contentment and peace of mind.

  • Timely Delivery:

Indian outsourcing companies are renowned for having a congruous plan for the project even before they start it. Hence, it is delivered on time as per the planning. The agile process plays a role in the timely delivery of the project.

  • Extended support and maintenance:

The Indian offshore software development companies offer complete support, maintenance, and post-launch services once the project is up and running. They help in fixing the bugs and keeping it updated.

  • English Language Advantage:

Being ruled by Britishers for almost two decades, India has attained a deep-rooted connection with the English language. In the present days, English is spoken, read and understood with ease by most of the Indians. Hence, it enables better communication and understanding between the offshorer and the Indian software developments teams. This facilitates smooth workflow.

  • Availability of more capital funds:

Offshoring of the software development and technical support to India could reduce the need to invest in non-core business competencies, thereby increasing the availability of capital funds for important core business functions.

  • Availability of state-of-art technology:

Being aware and keeping up with the cutting edge technology is a need of the day. In case of an in-house team, the companies need to spend time and money on employing the latest technology and training the personnel to get a competitive edge on others. By offshoring the same responsibilities to the best in the field companies, the outsourcer could be assured of receiving efficient services and the latest technological expertise.

  • Peace of mind and more focus on core competencies:

Offshoring the software development and technical support to the companies that are best in the field could provide peace of mind and let the offshorer focus on the core business activities.

In a nutshell…

India has attracted and gained the credence of global business giants such as Oracle, Hewlett-Packard, Cisco because of the numerous advantages it could offer. India is a connected economy with the digital-ready population. The benefits of offshoring the Software development and technology support to India is not just numerous but manifold. Apart from the short-term benefits, it could also offer long-term benefits such as increasing profits by letting the business focus on core business areas. However, it doesn’t mean that offshoring comes without any risks and challenges. Every prospective software development and technology support outsourcer should be shrewd to mitigate the risks by hiring the right offshore team and unsheathe the paramount benefits from the business.

 

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