Developing software has been the trend that allows the company to put their step forward with top-class applications. But it requires expert hands and there can be no better choice than outsourcing the software development project. When it comes to software development outsourcing, India can be the perfect destination where you get the right balance of price and quality, delivering world-class software development.

According to reports, the IT outsourcing market is set to generate $11 billion by 2024. The market has a lot of growth surprises for businesses. From cost-effective approach, and flexible timing to experts at work, outsourcing software development to India is an ideal choice that will always put you in a win-win situation.

Here, we have prepared a blog that covers the benefits of choosing software development outsourcing in India.

Why Companies Choose India for Software Outsourcing?

Software development tasks for Indian IT companies bring endless benefits to the table. They bring the best to the company at an affordable price. Here, we have covered the leading reasons for outsourcing software development to India.

top reasons to choose india for software outsourcing

1. Economy of Budget

The main advantage of contracting out software development to India is cost-effectiveness. Indian software developers bill significantly less than those in North America and Europe. This cost advantage is given to India by its lower operating and living expenses. Companies can manage resources better if development costs are reduced by 40% to 60%.

2. High-Quality Talent Pool

Software developers with skills and education abound in India. Indian technical universities like the IITs and NITs produce millions of engineering graduates. These institutions turn out talented engineers because of their rigorous curriculum and stringent standards.

3. Knowledge of English

India is a major English-speaking nation. Because English is so widely used in business and education, companies from English-speaking countries may readily interact with Indian developers. Teamwork is enhanced, and misunderstandings are decreased when one speaks English well.

4. Advantage of Time Zone

You may leverage the time zone difference between India and the West to work around the clock. Reduced software product development cycle and time-to-market may result from the offshore team in India working while the Western in-house team ends their day.

5. Advanced Technology Skills

In AI, machine learning, blockchain, and other cutting-edge technologies, Indian software engineers are leaders. Several Indian firms use Agile and DevOps to increase the effectiveness and quality of software development.

Did you know United States will produce the most revenue $185.50 billion in 2024?

Top 5 Factors for Successful Software Development Outsourcing to India

While you take the decision to outsource your software development task to software development companies in India, make sure to consider various factors. Every business aspects to get the right balance of quality and price keeping in touch with the seamless communication. Here we have put together various factors to outsource software development companies in India:

key factors for successful software outsourcing to india

1. Quality of the Work

Though India is making economic gains, employment quality cannot be compromised. Businesses should choose outsourcing partners that have produced excellent software solutions in the past. Reviewing case studies, industry recognition, and client comments may help gauge the quality of the work.

2. Routes of Communication

Success with outsourcing is mostly dependent on effective communication. Procedures and channels of contact with the Indian development team must be made clear. Projects are kept on schedule, and communication gaps are filled in part via regular meetings, progress updates, and collaborative tools.

3. Security and Confidently

Confidentiality and data security are critical when contracting out software development. Businesses must ensure their outsourcing partner safeguards confidential data and adheres to stringent security procedures. Signing NDAs and understanding the partner’s data protection policies is important.

4. Technology Knowledge

The technical expertise of the outsourcing partner needs to correspond with project requirements. Assessing the team’s abilities, technological know-how, and intricate project management is vital. Partner competence may be ascertained via technical interviews, sample code reviews, and assessments.

People also read: How to Manage an Offshore Development Technical Team?

5. Managing Projects

Project management in software development initiatives must be excellent. The timetables, deliverables, risk management, and problem resolution of the outsourcing partner should be assessed by companies. Prior Agile or Scrum project management expertise is beneficial.

How to Choose Software Development Partner in India?

Choosing a software development company in India has always been a challenge for businesses as you need to be aware that they meet your needs. Here are ways to choose an outsourcing software development company in India:

1. Gather Your Requirements

You have to understand your project requirements before you can choose. Find out the scope, objectives, technical needs, and outcomes. When you interact with outsourcing partners, clarity may help you make sure they understand your needs.

2. Find and Choose Partners

Locating Indian outsourcing partners takes a lot of research. Compile a list of respectable, seasoned companies using internet resources, trade groups, and recommendations. Sort companies by experience, customer reviews, and case studies.

3. Evaluate Technical Competencies

Look into the portfolios of the selected companies and speak with technical specialists. Examine how well they understand the tools, frameworks, and technologies required. Their abilities might be evaluated via sample work or proof of concept.

4. Check References and Reviews

Ask former clients about their outsourcing partner experience and for referrals. Reading online reviews and ratings on Clutch, GoodFirms, and G2 may also help determine the performance and reliability of the organization.

5. Evaluate Communication Skills

Success in outsourcing is mostly dependent on effective communication. Talk in-depth about communication skills with the teams of potential partners. Evaluate their willingness to understand your demands and their responsiveness and clarity. Verify whether they follow communication rules.

6. Test Security

The development of outsourced software creates data security issues. Find out how potential partners protect your private information. Verify that they comply with international data protection laws and sign NDAs.

People also read: How to Choose Mobile App Development Partner in India?

Common Challenges in Outsourcing to India and Their Solutions

Outsourcing software development companies in India may hit you with various challenges. Therefore, it is essential to keep up with the common challenges and their solutions. Here, we have covered the range of challenges in outsourcing and solutions to address them:

common challenges in outsourcing to india and their solutions

1. Communicating Difficulties

Challenge: Even with the popular use of English, accents, idioms, and communication styles may still lead to communication issues.

Use collaborative tools, clear communication standards, and regular meetings to encourage effective communication. Communication could also be improved by both parties receiving cultural training.

2. Different Time Zones

Challenge: Varying time zones makes collaboration and communication more difficult.

Building a continuous development cycle, make use of time zone variations. To track developments and modifications asynchronously and to communicate in real-time, overlap working hours using project management software.

3. Data Security Concerns

Challenge: The difficulty is in safeguarding IP and sensitive data.

Check the outsourced partner’s encryption, access limitations, and data protection compliance. Review security often and sign NDAs.

4. Project Management Concerns

Challenge: Keeping an eye on things, setting deadlines, and handling problems might be tough with a remote team.

Using project management tools, track progress, set targets, and be open. Examine the progress of the project and usually address issues. Upgrade your project management using Agile or Scrum.

Future of Software Development Outsourcing to India

India holds lots of room for outsourcing software development tasks giving a great space for businesses to develop world class solutions for businesses. Here is what sets the future of Outsourcing development tasks for India:

Emerging Technology

India is using artificial intelligence, machine learning, blockchain, and the Internet of Things more and more. Since Indian developers are growing to be authorities in various domains, India is becoming a centre for cutting-edge technology.

Innovation Focus

Cost-cutting is not as important to Indian software companies as innovation. R&D and advanced technological capabilities are areas where many businesses are making investments. Innovation may strengthen the outsourcing industry in India.

Increased Demand for Skilled Talent

India needs more skilled software developers as digital transformation and creative technological solutions spread around the globe. Indian schools are reworking their curriculum and collaborating with industry to provide suitable training to meet this requirement.

Remote Work Trend

Due largely to the COVID-19 pandemic, businesses are increasingly outsourcing software development to remote teams. Certainly, this trend will lead to more outsourcing to India.

Focus on Cybersecurity

IT is giving sustainability first priority. India’s software companies are reducing their environmental impact by employing energy-efficient data centers and environmentally friendly development processes. Sustainability coexists with the global trend toward environmentally friendly business practices.


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 developers 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.

Stay informed and up-to-date on all the latest news from Best Remote Team.


The primary advantages of outsourcing to India include lower cost, strength in the labor force, quality, and improved fluency in spoken as well as written English observed in Indian professionals. There are also skilled software developers in India who can do the job, which may even prove to be cheaper in the long run than having the in-house teams in developed Western countries where purchasing a good team costs 40-60% more. The IT industry in India has a strong image as a fast-growing industry, providing stable and diverse software solutions of various types.
Significant discrepancies in cost have also been claimed in India for other major outsourcing destinations. As research has shown, the per-hour wage of a software developer differs, ranging from $18 to $40 if he/she is Indian, $25 to $60 if Eastern Europe specialists are to be hired, and $60 to $150 if an American employer is to pay one.
To decrease difficulties or risks brought about by data protection when outsourcing in India, it is suggested that companies carry out adequate scrutiny regarding the vendors they select, acquire information on the background checks of the vendors, and assess their security. This means that the standard statements concerning matters such as NDAs and protection clauses for IP should be used.
Another factor to consider while working with Indian teams is that the time difference will likely necessitate increased communication. When planning working hours for routine collaboration, invest more time into coordinating the working hours for synchronous communication. These are that information or communication should be established appropriately, that project management tools should be adopted, and that frequent meetings should be held within the working hours of the various teams involved.