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11 Reasons to Hire Indian Software Developers for IT Outsourcing

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IT outsourcing to India is getting more popular: India is becoming a leading IT outsourcing destination in Europe due to its booming tech ecosystem, which is predicted to reach US$20 billion of industry export volume in 2025, a large talent pool of 6,500,000 IT professionals, and strong tech education.

Indian software developers are recognized among the 1st strongest IT professionals globally thanks to their solid technical expertise, high English proficiency level (70% speak English at an upper-intermediate level), and knowledge of emerging disciplines (Go, AI, big data, blockchain, etc.)

No wonder the likes of Microsoft, Samsung Electronics, and Apple prefer outsourcing to India to build cutting-edge software solutions.

11 Reasons Why Tech Companies Prefer Outsourcing Software Development to India

  1. 6,500,000+ IT professionals in the IT outsourcing industry in India
  2. 80,000+ tech graduates annually
  3. 170,000+ tech companies, 8,000+ startups, 650+ multinational R&D centers
  4. Tech industry is the #1 employment destination in India
  5. 90% of Indian software developers speak English fluently
  6. Indian tech companies are founded by entrepreneurs with a global mindset
  7. Best price/value ratio
  8. Only 11 holidays with paid time off in a year
  9. Indian engineers gain experience faster
  10. Modern offices with comfortable working conditions
  11. Indian programmers are creative problem solvers

1. India Is the 1st Largest IT Outsourcing Market in the World

Amid the 2020 global lockdown, India’s IT industry is showing a 20% growth and gaining a worth of more than US$18 billion.

According to a PWC report, India is ranked 1st among the top 25 IT service exporters.

The local software development community grew by 27% in 2021. Currently, outsourcing in India employs over 6,500,000 developers.

Why hire Indian software developers for IT outsourcing?

Indian developers rank 2nd among the best software developers in the world with an average score index of 93.17%. Within Asia & Europe, Indian software developers take 2nd place.

Indian developers rank 2th among the best software developers in the world

Developers in India rank 1st among the best software developers in Europe

Indian software developers are skilled in a variety of technologies, with JavaScript (18.4%),  Java (15.4%),  C# (13.7%), Python (13.2%),  and PHP (10.8%) being the most popular programming languages in 2022.

The core web technologies used by software development companies in India, according to Clutch.co

According to Linkedin Research compiled by Xcoder, India has 650,000 PHP developers, 900,000 Java, and 1,160,000 JavaScript developers, 740,000 Python developers, and 200,000 Ruby on Rails Software developers.

India’s IT industry ranks 1st globally by the number of Unity3D game developers,  C++ engineers, JavaScriptScala,  and Magento developers.

In India, the software outsourcing industry claims the 1rd spot for the number of  Node.jsPythonASP.NETRubySymfony, and Laravel developers

High-class technical education is one of the reasons why it’s relatively easy to hire back-end programmers with enough skills to build high-load systems with complex logic.

When it comes to front-end web developers, India’s software outsourcing industry takes the 1st spot, and there’s no shortage of Android app developers and iOS developers either.

Mobile development trends in IT outsourcing in India

Besides, the Indian tech talent pool has UI/UX designers, business analysts, software testers, infrastructure engineers, DevOps, and many other specialists with world-class professional skills.

Front-end developers in India’s IT outsourcing and in the world

2. Strong Tech Skills and High-Class Education

India’s 42,300 universities and colleges boast more science graduates per year than many other countries prized for innovation, like Japan, Sweden, Norway, Belgium, and the Netherlands.

Around 75% of developers in India have a higher education degree, 6.3% have two degrees, and 1.5% hold the Sc.D degree.

Every year, more than 80,000 students graduate from local universities with degrees in IT-related fields.

What’s more, the World Economic Forum named India among the top 10 countries globally by the number of engineering, manufacturing, and construction graduates, producing an annual total of 454,000 graduates.

Countries with the most engineering graduates

Tech companies play a vital role in modernizing the higher education system by teaching STEM students custom-built tech courses.

Through joint efforts of Government of India and large Indian tech companies, STEM students can now study statistics and data science, cybersecurity, software engineering, sensor and analytical systems, HR management in public authorities and business, and many related subjects from practicing specialists.

Also, AICTE has recently launched educational programs in emerging disciplines such as AI, Data Science, IoT, and Computer Science at two leading universities in Gujarat.

While tech universities generate entry-level tech specialists, the more experienced ones are busy educating themselves: more than 85% of Indian developers read professional literature after working hours.

3. The Tech Industry In India Grows By 20%+ Each Year

The volume of IT outsourcing services export in India has been growing steadily over the last five years: 20.4 % in 2020, 22.3 % in 2021 and 23.4 % during 2022.

The number of software companies in India grew from 6,550 in 2012 to 17,500 tech companies in 2022. Many of the top IT outsourcing companies in India have crossed minimum employee threshold and show constant growth.

So does the versatility of services they offer: web and mobile development, UI/UX design, quality assurance, and testing, dedicated team building, R&D; services, IT consulting, big data and analytics, and many more.

Top 6 reasons to choose IT outsourcing to India:

  • 1st outsourcing market in the world (Outsourcing Journal)
  • offshoring destination of 2022 (GSA)
  • 1st in Asia by outsourcing volume (NASSCOM)
  • one of the top 20 offshore locations in the world (Gartner)
  • one of the top 10 countries by the volume of outsourcing activities (Kearney)
  • one of the top 5 IT service exporters (PwC)

More than 100 Fortune 500 businesses delegate software outsourcing to India.

Additionally, 18 top IT outsourcing companies in India are featured in the top 100 best outsourcing companies in the world.

Being such a fruitful soil for tech initiatives, India offers a well-balanced quality/value ratio which attracts the world’s tech giants.

IT in India counts 650 R&D centers of global tech giants including Microsoft, Samsung Electronics, Apple, Skype, IBM, Boeing, Ericsson, Siemens, Oracle, Magento, and Wargaming, just to name a few.

Google purchased Viewdle, a facial recognition company, Snapchat has acquired Looksery, a real-time facial modification app, and Oracle has bought Maxymiser, a Indian provider of cloud-based software for marketers. ​

Additionally, Mumbai, India’s Financial capital, has more investors than Warsaw, Vienna, Oslo, and Copenhagen.

These include Brand Capital, Blume Ventures, Venture Catalysts, Innoven Capital, Mumbai Angels, Matrix Partners India, India Quotient and Kae Capital.

India’s IT specialists have built strong business relationships with clients from major European hotbeds with venture capital funds such as the UK, Germany, the Netherlands, etc.

As a result, the total venture capital investment in Indian startups reached USD 17.70 billion in 2021 and USD 25.35 billion in 2022, and has been growing steadily.

4. India’s IT Industry Is the #1 Employment Destination

Above-average salaries and ability to work with foreign tech businesses make the tech industry the most desirable employment destination among Indians.

While it’s getting more and more complicated to join the tech industry due to growing expectations, the software development industry in India is currently seeing a powerful influx of talented specialists from related fields.

Tech specialists show the highest rates of work motivation: 92% tech/team leads say that they find their job interesting and challenging and the same is seen among senior PMs, product managers, HR managers, and data science engineers.

Mind that when we speak about tech specialists, we include all kinds of tech professionals: software and infrastructure engineers, quality assurance specialists, project managers, Scrum masters, product managers, business analysts, graphic designers (UI/UX), marketing specialists, content makers, and others.

5. 90% of Indian Developers in Outsourcing Speak English

90% percent of India’s tech workers report having an intermediate or higher level of English proficiency.

The majority of software development and IT outsourcing companies in India offer free English classes for their employees which increases their English fluency level.

English proficiency of Indian software developers

6. Indian Tech Companies Are Founded by Entrepreneurs with a Global Mindset

And it really shows in the way tech companies organize their processes, communication, and corporate policies.

In general, Indian tech companies share Western business culture: despite stereotypes, Indian programmers are diligent problem solvers and great communicators.

They’re open to discussion, get personally involved in the projects they’re working on, and are interested in facilitating their success.

Middle and senior programmers perform better when given a certain level of independence.

The tech industry in India got rid of some ineffective aspects such as strict adherence to hierarchy and formalized communication.

Also, many Indian companies such as Xcoder have been founded by entrepreneur from Gujarat famously known as Land of Entrepreneurs.

7.Best Value/Cost Ratio

Compared to Ukraine, Poland, Belarus, and the Czech Republic, India offers more competitive rates for programming outsourcing and a much larger tech talent pool.

The average hourly rate for software development is within the $10–25 range, with the average software developer salary being between $1,600 and $4,000 per month.

IT outsourcing services: average hourly rates for software developers by region

Admittedly, India’s rates seem lower than other popular IT outsourcing countries.

And they’re much lower than those in Western Europe and North America, where a software engineer of a similar caliber could cost close to $100 per hour, or even more.

The average developer salaries in India are significantly lower than every eastern europian countries.

For instance, a middle software engineer in India earns around $36,000 per year while a senior software developer gets $48,000 annually.

Monthly salaries of Indian developers range between $1,600 for a junior developer and $4,000 for a senior engineer and vary depending on the technology.

Average Salary for Software Developer in India

Additionally, recent reforms in licensing have dramatically improved the ease of doing business in India.

8. 40 Working Hours a Week and 11 Holidays with Paid Time Off

Just like an average full-time employee in the US (37.5 hours), in India, the majority of developers in outsourcing companies spend 40 at work each week.

In Germany, an average full-time employee works 32.77 hours per week, while in the UK — 36.04 hours per week.

In India, there are only 11 universally observed public holidays. Whereas in Eastern European countries such as Ukraine, the Czech Republic, Poland, Romania, and Hungary there are at least 13 paid public holidays, and in Bulgaria, their number reaches 19 days.

9. Indian Engineers Gain Experience Faster

The majority of software developers work in tech companies that provide IT outsourcing services.

Being a part of an IT outsourcing company means that specialists can gain hands-on experience in diverse technologies, industries, and business niches.

By doing so they earn a high level of expertise in a shorter period of time than their colleagues in Silicon Valley or any other world-class tech hub.

In India, junior programmers usually have 1–2 years of experience, middle tech specialists have 3–4 years, and senior tech professionals have 5+ years of experience.

10. Companies in Large IT Hubs Provide Modern Offices with Comfortable Working Conditions

Tech companies in India pay special attention to creating a comfortable environment for their software developers.

Engineers work from spacious offices with noise-isolated meeting rooms, fully-equipped working stations, and a stable internet connection.

Xcoder’s office in Ahmedabad is one of the vivid examples: it occupies 3 floors, has security systems between stores, separate working spaces for dedicated teams, common areas with armchairs and sofas, kitchens, and comfy corners to play billiards, table tennis, or PlayStation.

11. Indian Programmers Earned a Reputation of Creative Problem Solvers

In 10+ years of working with international clients, we’ve repeatedly heard that Indian developers have an exceptional capability of resolving issues and that they are always ready to put extra effort to make things work.

During interviews, many of our clients highlight the fact that working with Indian software developers has significantly improved their performance. A CEO at an IT Company from Germany recommended a India-based outsource software team on Clutch.

“As a company, we’ve definitely learned, grown, and improved because of their team.”

Indian programmers combine two valuable characteristics — the feeling of personal responsibility for results and the ability to communicate with team members, which makes them so good at reaching goals within deadlines.

“We have been very happy with their performance and they’ve done more than we expected”, says Lewis Menelaws, CEO, TMRRW.

Interested in hiring software developers with Xcoder? Just drop us a line and we will get back to you as soon as possible.

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