Why is Outsourcing Software Development to India better than Outsourcing to NearShore?

When it comes to IT exports, few countries can match up to India’s might. Today, India houses R&D centres & headquarters some of the biggest technology companies, and its stature in the fiercely competitive IT landscape keeps getting bigger and better.

In tracing back India’s journey of becoming a global outsourcing powerhouse, one cannot undermine the role of government policies in ensuring a conducive environment of growth and innovation for the IT sector. The liberalization of the Indian economy in 1991 and the introduction of the IT Action Plan at the turn of the millennium proved to be a significant catalyst in India’s meteoric rise within a short period.


In this blog, we unearth some of the key reasons that make India the preferred outsourcing countries for global enterprises of all scale and size. We also get to learn the main reason why companies still prefer India over nearby outsourcing nations like Mexico.


1. The Attractiveness Factor:

Kearney’s report on the attractiveness of different countries for outsourcing and offshoring puts India at the very top of the rankings. With an attractiveness rating point of 7.12, India is well above its immediate competitor, China, which has an attractiveness rating point of 5.61. Attractiveness ratings are based on a couple of factors including:

  • Quality of Human Resource.
  • Infrastructure.
  • Data Security.
  • Geo-Political Stability.
  • Intellectual Rights.

In all the above factors, India outscores its immediate competitors by some margin. The other countries that follow India in the attractiveness ranking include China, Malaysia, Czech Republic, and Singapore.

2. Efficient Communication:

Communication, i.e., proficiency in English is one of the major reasons why India overshadows China in IT outsourcing. India has an education system that emphasizes on English writing and communication skills. This helps across more than a few fronts, including:

  • Evaluating project scopes better.
  • Stronger collaborations.
  • Faster resolution of a difference of opinion
  • Better compatibility among project associates and partners

3. Enormous Talent Pool

The average age of the Indian population is 29 years. This makes India the youngest country in the world right now. It has a wide pool of extremely talented and competent developers. Such a young IT workforce offers a few very important advantages like:

  • Ability to adapt to disruptive technology faster.
  • Offer diverse specialization.
  • Meet deadlines at all costs.

These advantages enable the IT industry to meet diverse demands from diverse industries. India. The diverse pool set of software engineers has enabled India to focus on emerging skill sets like AI, Big Data, Internet of Things (IoT), Cloud, and Mobility. India currently accounts for more than 50% of the global outsourcing market last. The trend is expected to continue in coming years too.

4. Cost and Time Zone Advantage

In the IT industry, two primary factors of product success are cost and time. Of lately, enterprises have tried to opt for nearshore development options like Mexico for culture and time zone benefits. However, nearshore development has failed to match the affordability of Indian IT solution providers. Indian companies offer both affordability and time zone benefits.

India enjoys a time-zone advantage, unlike any other country. With Europe and the UK, India is approximately 5 hours ahead, and with America, it is ahead by 9 and a half hours. This allows Indian companies to offer 24*7 customer service to its offshore clients. The time zone advantage, coupled with justified development costs makes India the ideal offshore development partner.

5. A Guarantee of ROI

It is a universal fact that Indian companies put customer their first and foremost priority. For Indian companies, the software product is the beginning of a longstanding business relationship. To ensure competitive advantage and maximum ROI for the client, India companies offer onsite workforce training, dedicated teams for 24*7 maintenance, and support.

While affordability may be the reason why companies are attracted in the first place, it is the consistency in quality of work and customer service that has forced companies to come back for more to Indian IT companies. This is just the beginning of India’s dominance as the centre of IT-BPM outsourcing in the world. Pratham, one of the top Offshore software development companies in India, houses an incredibly talented team of software developers, designers, and end-to-end project managers. We abide by strict corporate standards and believe in delivering a solution at the best price-quality ratio.