The first question which comes to mind is what is offshore development? It is a process of contracting an offshore development company to develop the software applications you want. The offshore location is a location out of the company’s home or native location. Organizations prefer to outsource the projects to the offshore location to get access to world class professionals, at a lower price and less time. This involves hiring an external organization for a particular task or business activity. According to a study, more than 70 percent companies in fortune 200 believe in offshoring and consider it to be an important part of the growth strategy of the company.
India is one of the leading choices for your business’ offshore outsourcing. Indian IT industry has a prominent presence all over the globe. The main reason as per experts is productivity, quality and cost saving. The National Association of Software & Service Companies (NASSCOM) reported that majority of fortune 500 companies have India as their offshore software development partner. There are several reasons for India being the topmost choice for offshore development as discussed below:
- Skilled Human resource
India has a large pool of immensely talented human resources across diverse domains such as healthcare, banking, and finance, life sciences, manufacturing etc. Almost a million graduates get added to IT industry in India every year. In India, you get people who are highly educated, holding degrees from top universities across the world. So Outsourcing to India would result in better productivity and quality of work.
- Cost saving
Outsourcing to India can save much cost. The cost difference between India’s domestic market and foreign market is much so a company outsourcing its development to India can save on cost, salaries, recruitment, and infrastructure. This way pricing flexibility allows the firms to manage the budget and hence more revenue can be generated.
- Government policies
India has stringent IT policies which support seamless operation and generates maximum benefit. It is considered as one of the top priority industry in India and government has framed attractive and stable policies to obtain maximum benefit from IT outsourcing to India. The Indian government has provided various taxes related benefits and other benefits to IT industry.
- Privacy and data security
Data security and privacy laws in India attract the vendors and develop a relationship with trust. Policies in India like The Information Technology Act, 2000 emphasizes on data security and privacy protection. Any breach of law would result in a financial penalty and can also lead to imprisonment. NASSCOM takes care of the issues related to data security and has several measures for the same.
India offers latest and fast developing infrastructure to the clients. Modern equipment and latest technologies are installed at the development centers which help to develop world class solutions. Modern India offers ISP, cellular networks in all major cities and areas. Satellite and submarine communication links help in good band connectivity with other parts of the world. The companies can easily communicate with the vendors.
India is world’s number one choice when it comes to outsourcing and has gained global confidence because of the speed, productivity, quality and laws in the country.