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Why do Businesses Outsource IT Services to India?


IT outsourcing is a very popular business practice accepted and implemented by organizations across the globe. Software outsourcing has brought several organizations in the US, Europe and Canada the opportunities to cut business cost, focus on core competencies, reduce the time to market, and have an edge over the competition.

Now, when we are talking about software development outsourcing, it’s very important to mention that India by far is the most preferred outsourcing destination for software development. This blog explores why India is the world leader in software outsourcing business. 

Why is India the Biggest Software Outsourcing Hub?

  • Biggest Pool of Talented Professionals 

India is known to have the biggest talent pool of IT professionals, with nearly 3.1 million graduates adding to the workforce each year. The vast and highly skilled talent pool in India comes from the finest universities in the country and scores very high in problem-solving and timely project delivery. 

  • English-speaking Manpower

India has the second largest English speaking population in the world, which gives enough confidence to English speaking nations that there would be no communication barrier if they decided to outsource to India. As a matter of fact, India has over 100 million English-speaking people. Well, this could be easily attributed to British colonial rule, as English is still being taught in India as one of the main subjects in schools.

  • Low Labour Cost

Low labor cost is at the core of all reasons why businesses outsource software development, or any other service for that matter, to India. For example, a software developer in the US and UK costs 80$-200$ and 50$-150$ respectively, whereas a software developer in India costs 12$-25$. However, low labor cost does not mean low quality as international best practices are followed for quality assurance.

  • Adaptability to Latest Technologies

Indian IT professionals are well known to quickly adapt to changes. So, when new technologies come into the market, Indian software professionals quickly learn them to keep pace with the changing demands. For example, India has already covered latest technologies including AI, AR & VR, IoT, Blockchain and Cloud, thereby keeping up very well with latest trends. Such an ability has made Indian software developers the most sought after ones worldwide.

  • Wide Range of Software Services

India offers all sorts of software services from software application development to Quality Assurance (QA), database management, systems integration and software consulting. With an Indian outsourcing provider taking care of all the tech requirements, businesses can free themselves to focus on their core business activities, like sales, marketing, accounting, etc. and generate high ROI.

  • Best in Infrastructure and Technology 

India is a developing country and all of its major towns and cities are well equipped with latest technologies, ISP and cellular networks. High-speed bandwidth via satellite connectivity, submarine cables, and fiber optic networks enable Indian outsourcing companies to maintain uninterrupted communication channels with all the clients sitting in different parts of the world. So, nothing less than the best is what businesses get from India as far as software technology is concerned.

  • Stable Government and Attractive IT Outsourcing Policies

The Indian government offers high-level support to software outsourcing and this shows in its framing of outsourcing-friendly policies. In fact, the Indian government has placed IT sector in one of its top five priorities. The government offers relief in tax benefits, low service charges at different levels and other benefits to promote software development outsourcing. It also makes investments, like $110bn in 2017, to build networks and infrastructure for the growth of the IT sector.

The government has also enacted the Information Technology Act to recognize electronic contracts, have stringent cyber laws in place and to support e-filing. Without a doubt, the Indian government has turned India into a utopia for IT outsourcing business - a win-win situation for both the clients and the vendors.

Having been the champion for more than two decades in software development outsourcing, India has become a mature market in terms of business delivery. An English speaking, digital-ready and highly talented population certainly makes India the go-to place for software development outsourcing. However, despite all the virtues, software outsourcing has its own risks associated with it. And, it’s very important to understand and mitigate them to successfully achieve your business goals.

Evon Technologies, based in Dehradun, India, is one of the best software development companies in India and has demonstrable experience of over a decade in providing quality IT outsourcing services to various happy clients across the globe. Evon carefully considers all the risks linked to IT outsourcing and lays out an effective mitigation strategy to ensure a timely and quality product delivery, resulting into establishing a good client-vendor relationship as well. You can also ask for Evon case studies to see yourself how Evon has helped various organizations successfully fulfill their different sorts of IT services requirements and market them fast.

You can also Contact Us for your IT services outsourcing requirements, and we promise to get back to you shortly to get you started on a path that leads to success.

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About Us

Evon is a Software Consultancy based in India. We are a 250+ people company. We primarily service clients who want to either completely outsource a new idea or are looking to build an offshore team


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