Outsourcing to India in 2023: What You Need to Know

 Outsourcing to India in 2023: What You Need to Know

Outsourcing has shown to be a profitable, win-win situation for both companies and their employees. It not only assists businesses in outsourcing repetitive tasks to a qualified offshore team, but it also helps employees in finding jobs that are perfectly matched to their skills and abilities.

India is perhaps the first country that springs to mind when it comes to outsourcing since it has established a name for itself in the industry. Despite being surrounded by other emerging outsourcing markets, India continues to stand out.

Stats and facts about outsourcing to India

India is a hotspot for tech companies. And businesses all over the world have put their trust in Indian IT outsourcing companies to meet their tech needs.

Here are some of the stats that prove India is the best when it comes to software development outsourcing.

  • The Indian IT outsourcing industry is expected to grow at a 7.25% CAGR, reaching INR 8,830 billion by 2025 from INR 5,649.47 billion in 2019.
  • According to the 2017 Asia Pacific Occupier Survey Report, 82% of Indian outsourcing companies expect to boost their tech staff in the coming years.
  • When compared to developed countries, the cost of outsourcing to India is significantly lower. In India, developers can be hired for an average of $25.
  • India ranked 35th out of 100 in the world in English Proficiency and fifth out of 25 countries in Asia.
    Over 40% of the Indian workforce is expected to enhance their skills and become more valuable assets in the development process by 2022.
  • India tops the list of nations with the most ISO-9000-certified software companies, and it also has more than 75% of the world’s CMM Level 5 certified companies.
  • According to a C SharpCorner report, India is expected to surpass the United States in terms of the number of software developers by 2023.
  • With over 75% CMM Level 5 Certified programmers, India ranks first in highly skilled and certified developers.
  • According to the Indian government’s Skill India Mission, 40 crore Indians will enhance their skills by 2022.

Benefits of outsourcing in India

In India, outsourcing offers several benefits, including –

Reduced costs

Rather than hiring in-house, companies can outsource their operations to India and enjoy the advantages of lower labor costs. This directly increases the ROI.


Many industries must scale operations by the seasonal business cycle. Outsourcing to India allows businesses to maintain a high level of scalability. Such businesses run lean operations and hire only what is requisite. Outsourcing allows them to increase their flexibility.

Smooth Communication

When compared to their counterparts in other Asian countries, the majority of Indians are educated and fluent in English. A seamless process of an outsourced business depends on communication. This is one of the key factors why many countries prefer India for outsourcing projects.

Skilled Workforce

India provides access to a pool of highly skilled workforce. The majority of Indians have vast domain exposure and expertise in handling critical projects. Every year, 3.1 million graduates pass out and enter the Indian workforce, thereby bringing the latest skills to the market.

Improved Customer Support

Many businesses must provide round-the-clock customer support. Outsourcing allows you to support customers at any time, regardless of time zone differences. Indians are well-trained and fluent in English, allowing them to provide support to customers from any location.

Updated Technology

Indian vendors invest in the latest technologies and train their workforce on a regular basis to keep them up to date on the latest technologies. Furthermore, all major cities and towns have excellent internet connectivity. This ensures that Indian companies can meet the technological challenges of any overseas projects.

Why Outsourcing to India?

India has the largest technical and professional talent pool in the world

When it comes to a large pool of skilled and talented human resources, India remains unmatched. With a population of more than 1.2 billion, the nation adds about 3.1 million graduates to the working population every year. India is also the world’s largest English-speaking country, larger even than the US and the UK combined. Apart from the sheer volume, the quality of talent is what attracts companies wishing to outsource.

India offers flexible pricing options

The number one reason why India remains a top outsourcing provider is due to the significant cost savings that companies can achieve. This is primarily due to the wide gap in personnel costs between India and the industrialized world.

India provides consistently high-quality services

While cost is an important factor in outsourcing, the consistently high quality delivered by Indian outsourcing firms has also enabled India to remain the top outsourcing destination. The National Outsourced Association (NOA) reflected on a common tendency among international companies and chose India as their preferred outsourcing location at its Annual Offshore Outsourcing Conference.

India boasts the best infrastructure and technology

Modern India is well-developed, with cutting-edge telecom, ISP, and cellular networks in all major cities and towns. Clients are provided with the latest up-to-date and best software technology, including customized solutions for a wide range of applications, including e-commerce, business process re-engineering, system migration, legacy system maintenance, system integration, and much more. Outsourcing firms also maintain communication lines open with clients by providing high-speed bandwidth via satellite connections, undersea cables, and fiber optic networks.

Indian Companies provide the quickest time to market

Because of time zone variations, Indian outsourcing companies can deliver the quickest time-to-market. The 12-hour time difference between India and the United States provides businesses with several opportunities to complete work ahead of schedule, resulting in increased efficiency, production, and more time to focus on other critical tasks. The time difference makes India an ideal option for companies seeking to outsource a variety of service-related options, such as 24X7 Customer Support and Helpdesk services.

The Indian government is stable and offers stable IT policies

The Indian outsourcing industry is supported by a stable pro-IT government whose economic, GDP growth, taxes, power, telecom, industrial parks, and special zones policies have helped in the development of infrastructure and communications systems. IT isone of India’s top five priority industries, and the government has enacted laws to maximize the benefits of IT outsourcing to India. The government has also provided support to the IT industry by enacting the Information Technology Act, which recognizes electronic contracts, bars cybercrime, and encourages document e-filing.

If you are also planning to outsource your IT operations, India is a leading destination for getting such services. Alternatively, you can hire the best developers from India through Synergent, the best staffing partner.

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