4 Reasons Why Indian Software Developers Win The Offshore Game

by The Scalers Offshore Development Teams In India

Countries across the West are facing an increasingly hard time finding the talent they need. For instance, according to a recent Manpower Group survey, almost a quarter of employers in the UK are unable to fulfill their hiring needs as opposed to only 9% in 2008.

And yes, you read that right.

This massive talent shortage has led to a classic case of more demand vs. less supply, leaving tech vacancies unfilled for months. This, in turn, has led businesses in the West to have no option but to outsource or offshore their IT processes to other countries. Even though countries like China, Mexico, and The Philippines have, in the past, been some of the most famous offshoring destinations, India has quickly risen to the top of that list today.

Indian software developers — adept, affordable, and abundant, are busy pushing the world’s tech industry eastward. But what differentiating factors make India the perfect offshoring destination in 2020? Why is the Indian IT offshoring industry experiencing an average growth rate of 25% every year? Let’s find out!

1. An IT ecosystem geared for success

India is one of the fastest-growing IT ecosystems in the world today, and the proof is in the pudding.

India is home to the third-largest number of startups, right behind the US and China. In 2019 alone, the country saw the establishment of over 1300 startups, out of which 7 became unicorns within the year. This proves, beyond a sliver of doubt, that the IT ecosystem in the country not only supports the emergence of start-ups but also provides support to sustain, nurture, and grow them.

And who makes that possible?

Indian software developers. India generates over 1.5 million engineers year after year, a number that is exponentially increasing. These engineers are a young population of digital natives who possess the business acumen and innovative vigour that differentiates them from others across the globe. They are not only technically skilled and fluent in the English-language but also hold a certain thirst for knowledge and an entrepreneurial mindset, leading to some of the best innovations in technology in recent times.

2. Supportive Government Policies

Over the last few years, the Indian Prime Minister Narendra Modi has kicked off many campaigns to fuel India’s already explosive tech industry.

For instance, to increase the number of IT organizations in the country, the Indian government launched Startup India in 2016, which acts as a monetary aid for startups to secure their branding, IP protection, and attract the right talent. Initiatives like Startup India are the forces behind India’s shift from the world’s IT back office to a nation at the forefront of innovation. As a result, top-tier talents abroad are starting to return home to participate in this lavish tech boom.

Another such initiative is the Make In India movement that was launched in 2014 and covered 25 sectors of the Indian economy. The movement was aimed at encouraging companies to manufacture their own products in India. After the movement was launched, India gave investment commitments worth ₹16.40 lakh crore to emerge as the top destination globally in 2015 for foreign direct investment (FDI), surpassing the United States and China.

3. When The Penny Drops

For years now, one of the primary reasons why offshoring to India seemed attractive to companies in the West was the lower cost of hiring developers. With paychecks that are almost 50% lower than their Western counterparts’, Indian software developers have made cities like Bangalore, Chennai, and Hyderabad offshore hotspots.

For instance, the living costs in India are easily a third of the price of living in a city like London. This allows businesses to hire Indian developers for rates as low as $15-20/hour as compared to the UK, where the average price of hiring a developer is anywhere between $50-60/hour.

Combined with unique skill sets and technological sophistication, this explains why startups and conglomerates alike are queuing to capitalize on these skillful young developers. And it’s not just payroll that businesses save on. Recruitment fees, employee-centric benefits, rent, internet – they’re all drops in the ocean.

Discover more to know about how Indian software developers win the offshore game.