Software development is a $755 billion industry that thrives on enterprise applications, ERP, CRM and mobile applications (Statista). With the growing need to keep enterprise data private, information personal and vulnerabilities a hundred miles away, businesses are seeking software solutions for desktop, mobile and the web.

software development revenue

If you are planning to deliver a software solution for your business, creating it with an in-house team can take time and effort. You need to plan for the infrastructure, resources and money to develop the application. This can add to your costs, and breaking it even before reaching profits can go a long way.

Instead, you can think of outsourcing software development. Several companies offer software development outsourcing. The IT services’ global spending on software development outsourcing is estimated at $1283 billion in 2022 (Statista).

Choosing the right outsourcing approach, country and engagement model is crucial. In this guide, we will discuss why your business should consider India as an option for software outsourcing.

Why Consider Software Development Outsourcing to India?

Businesses can overcome geographical boundaries to move beyond their countries to meet unique software development requirements. Several businesses have preferred the offshore model as it provides them with reliable resources.

India is one of the hottest markets for outsourcing. Let’s check out the reasons why businesses consider India for outsourcing.

Better Communication

There are a lot of English-speaking people in the country. You will notice that most developers can communicate in English, which is an obvious advantage for businesses considering outsourcing. This means you can communicate with them in the language that works best for your team.

Communication isn’t limited to the language here. You can communicate with them using pre-defined protocols, which means seamless connectivity. So, whether you have a doubt or they have one, you can connect through the project management software, real-time messengers or virtual video calls.

When communication is great, it can lead to better collaboration and successful outcomes.

Accelerated time to market

You save a lot of development time as you outsource your mobile app development to another company well-versed in the niche.

For example, if you are an eCommerce business like Etsy or Amazon, you have a lot of groundwork to get done. It includes getting the customer base ready, preparing the catalogs, connecting with sellers, providing them with the vision and identifying strategies to increase sales. Development can pause your flow and even curb your movements. Your productivity will go low, and managing everything can cause delays.

However, when you outsource to a country like India, the developers have already delivered several solutions like yours. As a result, it can increase development speed and accelerate your time to market. You can get your product out before the competition.

Access the pool of experts

The developers or development companies in countries like India have an incredible understanding of the mobile app solutions that your business requires. They have created several apps in this niche and would be able to identify the tech stack you need. The teams would have the exact knowledge of the frameworks to be used, the technologies that need to be incorporated and the designs that work.

As there are several mobile app developers in the Indian markets, finding one to fit your needs is easy. You won’t take long to recruit and start your work. As most development companies have a talent pool in all the frameworks and technologies, you get the finest variety at your disposal. This makes things easier for you and will lower your cost of recruitment.

Cost-effective development

The first thing that strikes you when you opt for software development outsourcing to India is cost-efficient resource availability. The hourly rates for Indian developers are lower and cost-saving than in most countries. This ensures you don’t have to pay much money to develop your application.

Similarly, the cost of recruitment is lower in this country. When you outsource to developers in India, the time spent on development is relatively lower. Eventually, you save a lot of time and money on software project development.

Infrastructure and Tools

You don’t need to invest in infrastructure or tools for software development. The software development company will have the suitable infrastructure and tools to enable the developers to create your product.

For example, if you are planning a Python development for your website/application, you can connect with Python experts. They would have the development and GUI frameworks that enable fast Python development. You don’t need to pay to use the tools or infrastructure. You will pay for the developer’s service alone. This makes outsourcing easy for the business.

We have seen why businesses consider outsourcing partners to Indian markets. Let’s discuss what it takes to outsource software development hassle-free.

How to Plan Outsourcing to a Company in India?

When you plan software development outsourcing to India, you should ensure that your company is ready to share the work. You need to fulfill several prerequisites to make outsourcing smooth and hassle-free.

Step#1: Check for outsourcing readiness

Is your business ready to outsource software development? Have you checked if IT outsourcing will align with your business goals? Do you have a parameter to help identify whether the outsourcing will add value?

When you are checking for outsourcing readiness, you should check whether your in-house resources are capable. If you have resources and they are available, outsourcing may not be for you.

During the outsourcing readiness stage, you should know what resource capacity you need to meet the software development requirements. At the same time, you should also check if outsourcing is the only way to meet your unique requirements. It is possible you can avoid outsourcing and think of a retainer model or engaging a freelancer to get the job done.

Step#2: Define the outsourcing goals

You should define the outsourcing goals for business software development. Ask yourself the question- why should you outsource the development? Understand what you want to achieve from the outsourcing model.

For example, seamless collaboration and timely delivery could be your goal for outsourcing to India. Similarly, you might want to leverage the different time zones by outsourcing to India. These are things that can help you achieve the defined value from outsourcing. The goals will help you identify and plan the outsourcing and identify the budget.

Step#3: Plan the right technology

This is an important step for outsourcing projects. This will help determine the tasks you wish to outsource to your mobile app development partner.

If you are planning a mobile application, you should know if you want native or cross-platform app development. Do you wish to use a native app development approach for multiple platforms? Are you willing to choose a cross-platform framework?

You can work with your stakeholders (consultants, developers, and business analysts) to check what tech stack would work best for the software solution you are planning. You might want to check the resources available for the tech stack and the aspects you need to outsource.

Step#4: Determine the Tasks to be Outsourced

When outsourcing to a software development company in India, you may outsource the entire development. In some cases, you might outsource a part of the development. Knowing what aspects of the project you plan to outsource are important. This will help determine the things you want to deliver in-house.

For example, if you have Android experts on your software development team, you might want to outsource Android app development. This will mean identifying the tasks for iOS development and then hiring a skilled iOS development company.

Step#5: Select the outsourcing engagement model

Once you have defined the tasks to be outsourced and the tech stack for your business software, you need to look at the engagement models that can work best for you. By this time, you would have devised an app development strategy. This will include the budget for developing the solution.

You need to choose an outsourcing engagement model that fits your cost definition. For example, you can hire a single developer if the budget is limited. If the budget allows you to hire dedicated software developers, you can go with that model.

Step#6: Determine and mitigate the outsourcing risks

You might experience several risks when you opt for custom software development outsourcing. For example, delays in the development processes can lead to a delayed launch. Similarly, losing control or visibility into software development can be a huge risk. This means you aren’t aware of whether the product is ready.

You aren’t even aware of when the product will be ready for release. This can lead to frustration and discontented development.

You can mitigate the risks by following this checklist:

  • Identify the best process for collaboration so that it becomes a transparent process
  • Set clear goals and expectations for the development company
  • Choose metrics that can help know whether the project is moving on time or not
  • Select the team with relevant knowledge and look for proficiency in the technology stack.

Step#7: Find the Right Development Partner

Your software development outsourcing still needs a suitable partner. You are stalling the development progress if you don’t have the right company or developer on board.

It is very important to conduct thorough research before you find the development company that can help achieve your vision. To build a mobile app development for your Fintech startup, you should choose a company with the requisite proficiency.

Similarly, if you want to build an eCommerce mobile application, you need a developer that has created marketplaces and mCommerce solutions.

A quick checklist to help find the right development partner:

  • Conduct a thorough background check to determine the experience, merits, and qualifications
  • Check their portfolio to see their expertise and development style
  • Look at the ratings and reviews from customers they have worked with.

Step#8: Identify Metrics to Determine Outsourcing Success

Having opted for software development outsourcing, you should check the progress. The pre-determined metrics can help identify if the project is progressing as per the defined timelines. For example, if you have set milestones for particular project phases, you should have metrics to see if they have been achieved.

An average response time for your query could be identified as a metric for development outsourcing.

Determining the metrics can help determine if you will complete your project on time. You will get an idea of the exact delay you will experience with the project.


Software development outsourcing to India is a great way to build a cost-effective software solution for your business. With greater resource accessibility, experiential designs, world-class infrastructure, and pre-determined communication protocols, the Indian market is an excellent choice for businesses considering outsourcing.

Best Remote Team helps hire the right team for your business requirements. You can hire a dedicated team or developer from our business to accelerate your development processes and progress without concerns. Connect with our team to hire a dedicated software developer for your business needs.


Jatin Savaliya

Content Marketing Specialist

I'm working with Best Remote Team, which is an India-based company that provides dedicated remote developers on an hourly and monthly basis. I'm a tech enthusiast and write content to give readers the lowdown on different technologies and their related trends.

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