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India and its Dominance as Global Software Development Outsourcing Destination: A Comparative Analysis

With tech talent in abundance and competitive hiring costs, India takes the lead as the most preferred destination to outsource software development across the globe. Countries like the United States, specifically, find it difficult to access talent locally and affordably. 

Despite big-ticket external disruptions, like Trump’s election as the US President and European Union Brexit that could have hobbled growth, Indian Outsourcing isn’t bullied and hasn’t lost its luster.

Here are a few facts and figures, emblematic of India’s ever-dominant control over Software Development Outsourcing worldwide. 

Fact Sheet

Talent Pool

India has an immense talent with over 1 million techies graduating every year, as per Gartner reports.


India is favored over other contenders in the business owing to its expertise in Digital Marketing, Cloud, Analysis, Programming, and Software Development.


According to the National Association of Software and Services Companies (NASSCOM), there are 500 companies in India offering outsourcing services to over 66 countries. India’s outsourcing industry was $150 billion strong in FY2017. 

Global Spending

Global spending in the software industry in India is estimated to be around $5.75 billion by the end of 2018, reports Statista.


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Startups Boost to MNCs

A strong and progressive startup ecosystem in India, comprising about 3000 companies, helps in fostering a growth environment for establishing MNCs in India.



4 Primary Reasons Why you Should Outsource Software Development to India 

1.  Cost-Efficiency 

One of the key reasons why outsourcing software development to India looks promising is its affordable hourly rates. Hiring a development partner is relatively cheaper in India and the incurring expenses are far less than anywhere in the world. Despite having a cost-effective pricing structure, there are no compromises made in the software quality. Outsourcers get exactly what they’re promised—quality, quality, and exceptional quality. 

2.  Required Skill-Sets

India has the largest strength of IT developers with the required skill-sets. Contrary to its constructive talent force, other market rivals, say Eastern Europe and Africa have only a few hundred people working in the IT development space. The number is short of the headcount to justify large-scale development requirements of businesses if ever they come.  

3.  Market Size

The IT and software development industry continues to expand with startup companies emerging on the horizon. They have the potential to bring an extraordinary change similar to the one Bloomberg terminal brought to the trading desk. 

According to the recent Global Outsourcing survey by Deloitte, a majority of respondents are planning to increase their current outsourcing levels in future.

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As the Indian IT footprint grows, there will be a need to increase the scale of infrastructure to meet the ever-transformative, diverse requirements of the business niches. Additionally, developers are constantly learning new skills and tools to boost their domain knowledge, so that they can efficiently tackle the most complicated needs with little fuss and cry. This brings another advantage, called niche expertise, to Indian Outsourcing, giving it an easy leg-up over the competition. 

4.  Stringent Security Regulations and Flexible Law Body 

There is a noticeable improvement and optimism around Brand India for allowing friendlier and more flexible environment for work collaborations. In 2017, India, for the first time ever, entered the club of 100 nations in terms of ease of doing business ranking by the World Bank. There have been sustained efforts by the government in improving the business reforms, outsourcing space, and law bodies to embolden India’s positioning on the world map and leverage its credibility as the preferred destination for outsourcing. A non-compromising approach towards strengthening IT and security laws with an aim to prevent data theft and leaks are also attributable to India’s growing stature as the best outsourcing partner and its changing fortunes. 

Outsourcing Software Development to India Stands Tall, Holding its Ground Strong
A Comparative Analysis between India, Asia-Pacific, and Eastern European Countries

Now that we have discussed why India holds the crown for the preferred destination in software development, here’s a comparison chart illustrating why India enjoys the largest piece of the outsourcing pie over its arch-rivals. 

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While India gives a tough beating to rivals, like China and Philippines in terms of cost and labor, there’s absolutely no vying for its maturity growth, which is based on a mix of factors, including infrastructure, security and privacy, education system, government control and autonomy, language, and cultural plurality. 

India, truly, is an innovation leader in the space of software development solutions and its outsourcing services.  

Kellton Tech as Your Outsourcing Partner

Kellton Tech is a successful outsourcing partner to a number of offshore clients in the United States, the United Kingdom, and Europe. We focus on building fast and effective software development solutions with just the kind of optimization one would need. Our team builds high-performance software platforms for our clients that help them accelerate operations, reduce cost overheads, minimize go-to-market time, and maximize customer experience. And if we enter an outsourcing contract, we leave no stone unturned to meet your vision of a product and extend value offerings that take the hassle out of your day-to-day operations.

If you’re looking to outsource software development to India, kindly take a tour of our portfolio of services and decide for yourself.