Should You Opt For Outsourcing Software Development To India?
We all live in the era of global digitalization that spreads across all industries resulting in the rapidly growing demand for high-quality software solutions. Of course, building an in-house IT department is a practical way out many companies opt for, however, it is quite costly and time-consuming. That's when outsourcing software development to India and other countries enters the game. Companies choose to outsource their software development to countries like India, Poland, and Ukraine due to a bunch of reasons. Not only does this approach allow them to cut costs greatly and get access to a larger pool of tech talent, but it also provides them with high-quality services and reduced time-to-market. Sounds pretty cool, huh? Yet, before you do anything rash, take a look at this post carefully. While software development in India is on a decent level, it doesn't mean that outsourcing your IT-related tasks to this particular country is an absolute win-win. Here’s why!
Why Has India Has Become Such a Popular Destination for Outsourcing Software Development Services?
If we take the global industry of outsourcing IT services as 100%, India’s market share will be 56% which is an impressive number. Speaking of the present revenue the IT industry of India makes, it is approximately $150 billion and keeps growing. To make matters better, the community of Indian software developers is among the fastest-growing ones in the world. Since India has two official languages Hindi and English, the latter makes it a very attractive destination for US and UK employers. It goes without saying, that all of the advantages listed above work for the benefit of the country that has made it to the most influential IT-related ratings.
Why Outsourcing to India is Worth It: Advantages
If there is demand, there will always be supply. In terms of software development, it is no different. There are quite a few software development companies in India, which means you, as a client, have got lots of options to choose from. So, if you are in two minds whether or not to outsource the development of software to India, get acquainted with the benefits and possible drawbacks of doing so.
A big number of software engineers
It won’t be an exaggeration to claim that India has got an enormous talent pool within the software development area. This makes the country one of the biggest outsourcing hubs. Speaking of education, most Indian software developers have either a Bachelor’s degree or a Master’s degree making them highly educated specialists. Annually, about 3.1 million students enter the workplace in India. Most of the Indian outsourcing companies consist of young employees that are aged between 18-35 years. On top of that, IT companies employ about 200K graduates each year. Thanks to a huge pool of talent and skills, any software development tasks are addressed accurately and timely. But it is not just the quantity but also quality and versatility of software developers who have hands-on experience in various technologies and industries.
No language barrier
As English is the internationally-spoken language within the IT crowd, high proficiency in it is a must for developers who want to hop on the outsourcing bandwagon. India being a bilingual country where English is a second spoken language after Hindi makes a great partner for companies who want to outsource web development. The decent English level guarantees that there won't be any miscommunication issues during the development process.
Costs
Truth to be told, this advantage should have come first in the list. As compared to the rest of the world, India holds the upper hand when it comes to low software development costs. And the good news is, in most cases, low pricing doesn’t mean the poor quality of the end product. According to the responses we got on Quora, the hourly rates of an Indian software developer range between $13-50 dollars. The low costs can be explained by the fact that Indian salaries are much lower than the ones of developed countries like the US or the UK. On top of that, a lot of software development vendors from India offer reductions in costs if clients hire the whole team.
No delays because of time zone differences
Being lucky enough with its geographical location, outsourcing companies in India address the time zone issues quite effectively by scheduling shifts so that they could work 24/7. Due to round-the-clock working conditions, even a huge time zone difference like the one with the USA (India is ahead of The US for about 9 hours) doesn’t slow down the development times. For those of you who think that time zone difference is not a big deal, you are partially right. Today’s technologies make it possible to communicate effectively even if you and your vendor are on opposite sides of the world. But here’s the thing, tighter cooperation during the software development process means faster turn-around and so more rapid time-to-market. Indian companies make sure that you get sync-ups and meeting calls during the most convenient time for both sides.
Disadvantages of Hiring IT Outsourcing Companies from India
Quality and management problems
Due to a great number of available software development firms in India, there is always a chance to stumble upon an unreliable vendor and subsequently get poor quality tech products. TO AVOID THIS, it is advisable to look for information about a particular service vendor on trusted and secure platforms like Clutch. Not only will get a general idea of who your potential partner is and what works they present, but you also will be able to check up on testimonials.
For instance, you can look at the account of Yojji on Clutch to see that we are a reliable company.
Infrastructure
No matter how attractive the low labor costs are, India has some big issues with the country's infrastructure one should take into account before outsourcing software engineering there. The light shutdowns aren't a rare case and this can happen several times a day. Of course, issues like this can lead to constant delays in product development and the whole project management becomes a problem.
Cultural differences
Since the language issues are off the table for companies that go with outsourcing to India, the cultural differences might stand in the way of flawless cooperation. India is unique due to its social norms, beliefs, and cultural traditions. This influences all aspects of the life of the Indian people, the working environment is no exception. What we are trying to say here is that if you want to outsource work to India, you need to be ready to adapt to a different work ethic and approaches.
Risks of data leaks
When you choose to outsource software development to India, the risks associated with the data breach as well as with copying your project for the purpose of selling it again are high. There are a lot of outsourcing projects that face large issues of copyright and licensing. As they say, you should be better safe than sorry. It is highly recommended to sign an NDA with your service contractor and mention all the important demands in a contract.
Outsourcing software development: India vs Ukraine
On a global scale, India isn't the only cheap destination for outsourcing web or app development. There are quite a few worthy players that can get ahead of India in terms of provided services. We'd like you to take a closer look at Ukraine.
Both Ukraine and India are considered to be the biggest IT outsourcing demanding regions worldwide. According to PentaBlog’s IT ranking of countries by tech skills, India ranks 35 while Ukraine holds 8th place in the global arena.
Thanks to the great attention to tech education on the part of the Ukrainian government, there are more than 200,000 software developers as of 2020. On top of that, the country supports tech events and conferences, so there more than 1,000 events take place in Ukraine annually. The number of different IT companies and R&D centers is also impressive. There are more than 4,000 tech firms and 110+ R&D departments.
The statistical data presented by HackerRank shows that Ukrainian developers gained an average score of 88.7% for all HackerRank challenges. For comparison, India has a score index of only 76.0. Even though the country doesn't speak English at the state level, the IT community shows a high level of proficiency in English. With Ukraine as your software development partner, you pay pretty much the same amount of money as with India, but get a product of a higher quality.All in all, Ukraine has proved to be one of the best countries to outsource software development. If you are in search of a trusted software development company from Ukraine, reach out to Yojji .
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