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Why Businesses Hire Indian Companies for Software Development?

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In today’s technology-driven world, companies are always looking at deploying new and innovative software. In order to be the best in the industry, various companies across the globe are looking to outsource to a reliable software development company.

The reason is, outsourcing is a budget-friendly approach that helps businesses focus on their core competencies and let them stay on top of the game and scale their businesses.

According to, application development is one of the most frequently outsourced IT functions in 2021. It is said that more than 60% of tech companies outsource at least a part of their application development.

The moment businesses and entrepreneurs decide to choose an outsourcing partner, the first query that comes to their mind is:

Which is the best country to hire developers with technical expertise at an affordable cost?

Well, the quick answer is India. Out of all the countries worldwide, India is considered one of the best software development outsourcing destinations. Hiring Indian developers help improve the efficiency of your business work process, which increases your revenue with only a minimal amount of investment.

According to a recent survey, 80% of the US and European outsourcing firms ranked India as their most preferred spot. According to The National Association of Software & Services Companies (NASSCOM) report, almost half of all Fortune 500 companies choose to outsource to Indian software outsourcing companies.

According to a recent survey, 80% of the US and European outsourcing firms ranked India as their most preferred spot. According to The National Association of Software & Services Companies (NASSCOM) report, almost half of all Fortune 500 companies choose to outsource to Indian software outsourcing companies.

Even though many other countries such as China, Ireland, Mexico, and the Philippines have emerged as major competitors, India has still managed to come out as the top outsourcing terminus.

Checkout our blog to understand the 7 Vital Steps to Finding a Trustworthy Partner to Outsource Web Development.

So, Why Choose Indian Software Developers?

India has a lot of talent in all kinds of fields. Especially in the IT field, great talents are waiting to expose their ability to the world. Many US and European companies are consistently looking to hire a pool of Indian developers (who have experience) as it helps to enhance the software technology to the next level.

Also, the lack of experienced and talented experts on the west side has made companies go with software development outsourcing in India. This offshore outsourcing helps many companies stay highly competitive and boost their ability to enlarge their market into different countries.

That said, I am going to list out the other reasons why outsourcing to Indian software development companies is effective:

More time to focus on core business

When you outsource software development to Indian companies, you can utilise your time and resources to focus on your core business activities like sales, accounting, marketing, etc. All you have to do is conduct proper research and find the right team to suit your business needs. It helps you to streamline your processes and increase efficiency and productivity.

For instance, if you are a startup, you may lack resources and fight hard to grow your business. In this scenario, outsourcing web development or mobile app development to India will allow you to focus on your core business, and you can utilise your scarce resources for business growth.

Low-Labour cost

Compared to other outsourcing locations, the labour cost in India is much lower. But, it doesn’t mean the quality of work is poor. India has the highest ISO certified firms  so, the quality is nowhere compromised.

For instance, in the US, hiring an in-house developer can cost around $80 per hour; at the same time, an Indian developer can avail a similar quality of work at maybe $ 15 per hour. This means, outsourcing to India is one of the cost-effective solutions for businesses in the developed countries.



While the cost factor plays a considerable role in outsourcing, the consistent delivery of high-quality work provided by Indian outsourcing companies allows India to remain as the top outsourcing destination. Quality and proper time management are what it takes for a brand to make customers loyal and satisfied.

World-class IT infrastructure and expert, dedicated and experienced professionals make sure that they do timely delivery of high-quality products.

According to The National Outsourcing Association (NOA), international companies prefer to outsource to Indian companies because of the reduced costs and the consistency and time factor.

English-speaking programmers

When choosing an offshore software development company to work with, language compatibility is a significant concern. As a nation, India puts significant importance on education for its people, including language teaching. That’s why India holds the second-largest position in English speaking after The United States of America.

So, hiring Indian developers guarantees not only skills but also the command of the English language. A lot of companies worry about language and cultural barriers when offshoring. But with top developers, this is not an issue.

Also, if you are working with a reliable Indian outsourcing company, you can expect frequent project updates, reports, and suggestions. All of this will help build trust in your team and make a better offshore collaboration.

Hiring Indian programmers means hiring skilled, focused engineers who will provide you the expected results. And the best part is the work is at par with the industry standards.

World-class IT infrastructure and the latest technology

India is one of the fastest-growing economies in the world. The mobile and Internet networks are well developed in India. The web and mobile app development outsourcing companies in India have state-of-the-art IT infrastructure and use the latest technologies.

It helps them deliver high-quality solutions such as software development solutions, web development solutions, mobile app development solutions, etc.

Abundant workforce

Abundant Workforce

India remained incomparable when it comes to its vast pool of skilled and talented human resources. With a 1.2 billion Indian population, 3.1 million students are being added to the workforce each year.

It has compelled IT giants such as Google to develop its new Research and Development Center in this country. Billion-dollar companies like Oracle, CISCO, HP are choosing India for outsourcing because of the ease in availing talented resources and yielding expected results in quick turnaround times.

According to software research conducted in 2018, it is clearly reported that around 45% of employers are finding it tough to fill IT positions. The primary reason for this was due to lack of skilled applicants. Especially in western countries, hiring the right developer with the right skills has become difficult.

This is why there is an increase in the number of companies considering offshoring outsourcing to improve their software development. When they outsource to India, they are able to concentrate on organic growth. Indian developers are not only talented but also creative and innovative. Thus, India offers the perfect recipe for attracting business across the globe to outsource software development, mobile app development, etc.

Improve time to market

Businesses need their projects to be completed regularly before the turnaround time because it enables them to have enough time for marketing and promotions. Access to an already experienced team, enables, quick and fast development of ideas into concepts, and also helps in faster delivery of your product.

Faster time to market implies companies can leverage competitive advantage.

Stable government and supportive policies

Supportive It Policies for Growth

India is a politically and economically stable country. This stable pro-IT government supports the Indian outsourcing industry. Their policies on the economy, taxation, power, GDP growth, telecom, industrial parks, and special zones have helped improve infrastructure and communication systems.

IT is regarded as one of India’s top five priority industries, so the IT policies that the Indian government offers are highly favourable for outsourcing to India. The government also offers various tax-related and other benefits to support the growth of the IT industry.

The IT Act acknowledges electronic contracts, and the Indian cyber law controls cybercrime. Therefore Indian companies can deliver smooth services to global customers.

A disciplined and systematic work ethic

Indian developers are famous for having a strong technical knowledge. Thanks to the rock-solid Indian Education system which is responsible for the core foundation of every student. They also approach your work with passion, dedication, and sincerity.

These developers are hard-working and also work smart to handle all kinds of complex projects efficiently and ensure their completion within the deadline.  They make sure that they innovate and give something more in the software development cycle. When this attitude is found in developers, companies that are hiring will be in a most profitable position.

India produces more than 1.5 million engineers every year.  So, it can be somewhat challenging to find out the best from them. But, when you approach a reliable software development company, your difficulty in finding the right talents vanishes into thin air. It is because they will already have a team of engineers with strong technical knowledge, a great attitude, and a nature towards their work.

Experts in a multitude of technologies

In India, there are software developers offering a wide range of services for their clients. You can find developers who specialise in various fields like Mobile application development, React Native Development, Flutter Development, Artificial Intelligence, Machine Learning, etc.

Suggested Read: Top 10 Reasons Outsourcing Product Development Fails and How to Avoid Them.


So, now you know why companies prefer India as the best destination for outsourcing software development. It is to witness remarkable growth in business productivity and profits. And they gain a competitive edge over their competitors. It will help position their business at the top of the market.