What Makes Bangalore The Ideal IT Offshoring Destination?

by The Scalers Offshore Development Teams In India

Over recent years, more and more companies are building offshore development teams in Asia and Eastern Europe. These teams become an extension of their existing workforce, perfectly aligned with the greater goals of the business.

Cities in countries like India provide the perfect ecosystem for technology entrepreneurship and are attracting the attention of stakeholders from companies all across the globe. In the US and Western Europe - where there is an acute shortage of engineering talent but a surplus of tech companies - offshoring is particularly popular.

Bangalore is one such city. It is today recognised as a hub of technological expertise. Affectionately dubbed “The Silicon Valley of Asia”, it is the home of IT for many multinational corporations.

These companies are, in turn, creating millions of jobs for engineers all across India. So what’s the secret?

What makes Bangalore the ideal destination for offshore development?

How It All Began

The fledgeling IT industry in Bangalore started to grow in the 1980s around two firms - the domestic tech start-up Infosys, and another tech company Wipro. However, the city's global foray really began in 1984, when Texas Instruments opened its facility in Bangalore.

The economic liberalisation in the 90s further accelerated the software export industry. More and more companies began to leverage the abundant English-speaking, highly-educated workforce at a fraction of the cost as compared to the West. Bulk hiring became a common practice, and within no time, companies were employing hundreds and thousands of engineers every year - this time, in the Silicon Valley of Asia.

The Present

From its humble tech beginnings in the 1980s, Bangalore has become a thriving IT hub, the technological home of some of the world’s most powerful and cutting-edge companies.

Thanks to a committed education system, over a million people in the city are software developers. Premium engineering colleges offering graduate courses in software development are springing up like mushrooms, further growing the already-abundant talent pool.

Companies in Bangalore are moving higher up the value chain to become global powerhouses of ideas, innovation, talent, and technology. For example, SAP - the German business software firm - set up its first R&D centre in Bangalore in 1998. Today, the company proudly says that there is a bit of Bangalore in every SAP product ever built, all across the globe.

But it’s not just SAP. IT giants like Google, Microsoft, IBM, and Cisco have successfully established their R&D centres in Bangalore, and now generate over $17bn in revenue every year.

Why Offshore To Bangalore?

Quality trumps everything

While offshoring was always looked at as a way to cut costs, those days are long gone. Today, software developers in Bangalore provide high-quality work consistently, easily on par with their Western counterparts.