Organizations depend on IT teams' efficiency for smooth scaling and functioning; when faced with multiple tasks simultaneously, their efficiency decreases drastically; outsourcing software development is the perfect way to set an organization on an upward path. Outsourcing was once driven primarily by cost reduction. Although that remains one key driver today, outsourcing also serves many other vital purposes. This article covers all these elements in-depth, providing a guide for outsourcing software development services.
What Does It Mean To Outsource Software Development?
Outsourcing refers to hiring an outside agency or individual to complete tasks you cannot or are unwilling to undertake in-house, like the software development phase in India. Outsourcing involves engaging a developer based in India who will design, create, test, and develop your app/website/service as you require.
Choose your package carefully, and the developer will offer services based on that package, such as future support for scaling. You will also have access to any technical help your team may require. Organizations across the globe are turning increasingly towards outsourcing software development to India. There are numerous advantages associated with outsourcing software development services to India; their exact nature depends on your contract terms and what services are acquired - it covers much more ground than initially anticipated!
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The Most Effective Business Model For Software Development Outsourcing
Statista recently released data that estimated IT outsourcing at USD 66.5 Billion last year - representing an expansive industry that spans multiple functional disciplines and markets. Not only can we offer statistical information about outsourcing software development to India, but we can also offer valuable advice as to its potential advantages for you and your organization. Below we present six factors that contribute significantly to the effectiveness of software outsourcing development services.
Reduced Time
Your time equals money!
Imagine creating a product with 20 features in six months; can you meet its deadline based on this schedule? Task completion depends heavily on your team's capacity. Does the group have time for this project, or do other obligations come first? What other projects might have equal or even higher priority status than yours?
It will be challenging if you plan to hire an exclusive team for this task since your HR department needs time to search and hire suitable individuals; hiring can take several months, including orientation and training project requirements, thus pushing back deadlines further than planned. Outsourcing software development to India can be the optimal option, relieving you of any rush or deadline pressures; features in your software need not be sacrificed so that they meet development timelines.
The addition of resources can accelerate development when working in-house. Outsourced software development is helpful for projects that prove tedious or require extra help! Outsourced software companies already have teams ready and waiting for projects, making this step simple for you to hand off. Hand the project over, discuss deadlines, and use your internal team for more complex tasks without needing to hire and train new staff members.
Cost-Effectiveness
Outsourcing software development to India can be an affordable solution that delivers benefits according to what is discussed with each provider. Your budget can be effectively used by choosing one who provides what was discussed up-front and meets all your desired expectations.
Internal software development can be costly for various reasons:
Hire procedures, salaries, and bonuses of team members as well as costs related to software licensing, equipment costs, additional benefits provided to team members, training & development expenses, and costs associated with IT architecture as the key drivers, are all critical considerations. As well as these costs, companies typically offer office and accommodation space. Outsourced software development may prove more economical.
If your company doesn't already employ software developers in-house, hiring someone for one project alone won't add value. Outsourcing software development lowers these costs since you only pay for services delivered by third-party software development organizations, such as employing and training new engineers.
Improved Quality
Although it may be difficult to believe, it is possible! Imagine this: a medium or small-sized company hires a software development team of five members. However, due to tight timelines for an ambitious project with multiple features to develop and be tested simultaneously, each member must work on development and testing tasks simultaneously. Therefore, neither development nor testing receives the attention it requires - often neglecting to test entirely while the story continues, regardless of new features added as part of the project scope.
Do You Understand Outsourcing Software Development to India Mean Something Similar to You? Outsourcing software development means working with partners with dedicated teams for development and testing that may exceed what could be available within an organization. With sufficient resources, workflows become enhanced, and tasks are executed correctly. Furthermore, development and testing processes become equally essential to creating an improved and better product in the final stage.
Diverse knowledge is another factor that contributes to an outsourced team's efficiency, as it allows it to innovate when dealing with different clients - this innovativeness ultimately manifests in your software!
A Large Talent Pool
The Skillset of the team responsible for developing software products is an integral factor to its success, and outsourcing it to India can give your product an advantage over rival products. Your outsourced team should possess expertise in .NET and JavaScript programming as well as Machine Learning technologies; additionally, they will have the capacity to enhance the UX and UI development of your product. Outsourced software teams provide valuable solutions when you require an end-to-end product or solution.
Hire a service provider with technical capabilities; their technical staff could prove an asset for any entire project. But building an inclusive team doesn't come quickly: of course, you can. What prevents that, though? Time and money. Constructing an impressive group of scrum masters, full-stack developers, interaction designers, and info architects takes effort and costs money.
Enhanced Security
Knowledge, innovation, and efficient processes compromise when your team simultaneously works on multiple projects. Security risks for software products increase substantially when there's no team present from the outset.
Outsourced software partners will offer remote teams of software testers and additional developers specializing in security testing to meet your software and product development needs. Their product development teams ensure the software is coded without loopholes or gaps to increase product security.
Better Culture
"Culture" conjures images of workplaces and processes; for those developing software in-house, you will require the ideal culture. An influential digital culture that enhances software product development includes:
Reward an environment encouraging risk-taking and innovation by prioritizing rapid decisions using data-driven information with cross-functional environments featuring outstanding team collaboration. If external partnerships are essential to you, having an outward-looking mindset may also help facilitate your success. An environment fostering creativity while service offering solutions to identified problems is encouraged and provided for.
Customer-Focused Culture
Outsourcing software development services to India may be the perfect solution if your team doesn't meet customer-focused culture expectations. Acknowledging software's integral role in digital transformation goals and aligning products with that goal by cultivating appropriate culture are among the many reasons to do so.
This team can assist in upgrading business processes and models while creating an ideal development culture. Furthermore, their assistance includes upgrading methods as well as models. Finally, their service includes developing an appropriate development culture.
Why Do Companies Outsource To India?
India is one of the premier offshore software development destinations. The Indian IT sector is well-regarded for being project cost-competitive while providing quality software products. India held a 56% market share in the global services industry in 2018, according to reports, making India the global market leader in market shares for this industry sector.
By 2025, India aims for its IT industry to generate revenues of USD 350 billion from USD 150+ billion today - up from its current levels. India remains a top nation regarding software developer numbers and concentration.
India is undisputedly one of the premier software development destinations. We now explain why outsourcing software development work to India should be your top consideration in 2019. How has India become such a popular place for software development?
Massive Talent Pool
India has quickly emerged as a top outsourcing hub, and its talent pool is one of the primary contributors to India's dominance of custom software development. India boasts an abundance of programmers holding both bachelor's and master's degrees, an ability that India makes use of.
India welcomes approximately 3.1 Million students each year into the workforce and boasts the youngest pool of skilled developers worldwide, with 95% falling between 18-35 years of age. Each year, IT employs roughly 200,000 graduates specialized in software - providing this considerable talent pool the capability to address development issues accurately and precisely.
India provides an array of specializations. Indian software developers are highly-skilled professionals. Every day they develop new techniques and improve existing ones to deliver top-quality software across industries.
India stands as an industry leader when it comes to project management. India's premier outsourcing software companies excel in complex project oversight from start to finish; their top software outsourcing firms feature experienced designers, developers, project managers, and expert QA testers, giving clients everything they need for successful ventures. Outsourcing software production to India gives you access to an unmatched talent pool.
Communication Barrier
Business ideas and beliefs can be exchanged daily in an interconnected global village; English is the sole communication medium. India boasts nearly 125,000,000 English speakers, which makes it only second in size after the United States in terms of English proficiency. According to English Proficiency Index rankings, India was third among Asian nations for English proficiency.
Communication remains the top priority and challenge when outsourcing software development to India, where almost everyone speaks English fluently - eliminating language barriers through software development alone and improving the language skills of Indian software developers.
Lower costs
India offers much lower software development costs than most countries around the globe; this was one of the primary reasons why software outsourcing firms preferred India until recently. But price and quality should always go hand-in-hand, which we will cover later in this article. How much will outsourcing my business to India cost me? The hourly rate starts from $20 an hour.
India's lower development costs stem from lower wages than their European and American counterparts, in combination with blended development -- an approach where multiple layers of developers with differing skill sets work on a project simultaneously to complete it successfully.
Imagine this: your PHP project requires four developers; to keep wages down while ensuring Senior Developers handle its most difficult components while more routine or regular elements fall under Junior developers' care. Cost reduction allows companies to gain an economic edge through economies of scale when outsourcing software development services.
Advantage of Time Zones
India is nine hours and 30 minutes behind the USA.
India is three hours and 30 minutes behind Europe.
India is four hours and 30 minutes behind the United Kingdom.
Australia is four hours and 30 minutes behind India.
Time differences between India and the US allow software companies in India to maintain round-the-clock working hours that boost productivity, creating faster turnaround. Businesses worldwide understand that speed matters; with shorter market times coming through a quicker turnaround, businesses gain competitive advantages by cutting production timelines further down.
Establishing calls or syncs between US companies and European, Australian, or UK-based ones is straightforward when the time zones overlap sufficiently. Europe, Australia, and the UK all feature shorter time zone differences making development time management simpler.
You'll reap additional advantages by outsourcing and overseeing software development simultaneously. Your business will run seamlessly around the clock since an offshore team will take over when your developers in India take vacation leave.
High Quality
India stands out as an outsourcing leader globally due to the quality of products produced at an attractive cost point - 55% of India's IT market revenue comes from outsourcing services! India ranks at number three worldwide as an investment destination and ranks first globally in offshore development outsourcing services, with 55% invested therein.
India is home to some of the top software firms worldwide, and this competition between firms within and without allows them to consistently produce top-quality software due to a vast talent pool dedicated to constantly learning new technologies and being willing to experiment.
India boasts one of the highest concentrations of ISO-certified firms worldwide; therefore, there's no reason to compromise quality for price when outsourcing software development work to India. If you want the highest standards at affordable rates, then outsourcing should be on the table as a solution.
Read More: Popular Question: When To Outsource Software Development (Tip for SMEs)
India's Top Software Development Companies
Although the pandemic has reduced growth across specific industries, it has spurred software outsourcing to India and elsewhere. Businesses increasingly employ flexible working models which facilitate working with partners who offer top-quality service at efficient rates. Now that you understand the advantages of outsourcing software development to India let's examine some of its leading software firms.
5 software development firms
They are well-established large firms. These companies are recommended if you have a large budget, a wide range of custom software development requirements, and are concerned about industry certifications.
- Tata Consultancy Services
- HCL Technologies
- Infosys
- Wipro
- Tech Mahindra
What is the Best Software Development Company in India to Outsource Your Work?
Selecting an experienced software development team for your project is paramount since poorly created products could cost more than anticipated and be an economic drain on business operations. From an operational viewpoint, choosing an IT partner that can assist with meeting strategic goals can benefit you and your enterprise.
Here we have provided several factors to consider when outsourcing software development projects to another firm. So get exploring, and let the adventure begin!
Great History
Outsourcing companies all begin somewhere; someone needs to be their initial project. Avoid becoming theirs if their selection criteria do not align.
Look for a company with an impressive track record when they discuss numbers:
- Number of completed projects
- Projects completed by type
- Number of repeat clients
- Clients who have previously purchased from us
- User Experience in a particular industry
- Portfolio of wide-ranging Cutting-edge technologies
References must also be presented to verify these figures; past clients would make good references.
Acquiring Appropriate Skills
What should your initial steps when hiring new team members be? Are You Presenting the Resume to Potential Employers? The portfolio is also essential when outsourcing software development in India.
Looking at your company's portfolio will enable you to answer these questions:
- What are the skills offered by an outsourcing developer?
- What are your other clients? Check the Industry
- Is this service provider able to provide diverse skills?
- Is this company able to provide technology development across a range of technologies?
You should proceed if the answers provided for these questions are satisfactory; otherwise, it may be wise to move on to another developer in your list if none can answer these queries satisfactorily.
Outsourcing companies must also be open about their technical abilities, which include:
- Agile processes
- The UX capability
- Analysis of quality
- Business Analysts
- DevOps Implementation
- Machine Learning and similar domain expertise
Request information from the outsourcing firm regarding their software development team's experience, expressing any of your worries should they fail to reply appropriately. Please do not be shy to voice any objections you might have should their response not meet your needs.
Workflows and Processes
Every step in the software development process contributes to making an effective product. Here are some questions about development processes you might want to pose yourself.
Are they using a practical approach to software development? What processes and methodologies are you currently utilizing? At first, processes should not necessarily mirror each other; instead, they should complement one another - even if an outsourcer offers more sophisticated models compared to you, as long as these correspond with what work needs to be completed by both companies.
Next, it is crucial to consider the method employed carefully. Let's be honest: waterfall models no longer serve their intended purposes, making them outdated and out-of-sync with modern-day business practices. Use agile or scrum methods as they are more adaptable and encourage greater employee participation.
Communication channels
Agile or scrum methodologies bring you into your project in many different ways, not necessarily local to its location; you could even be developing software from another continent altogether! You are always an integral part of this house team effort!
Therefore, maintaining a clear and straightforward communication channel is vital if projects are to remain transparent and run efficiently. Without effective dialogue among participants involved, project transparency would likely suffer significantly.
Assuming you use appropriate technology, two approaches exist for effective communication: (1)
- Outsourcing seasoned developers provides an efficient structure. If you contact their manager about an issue with website design, they should respond within hours or days, perhaps because their internal communication has been swift.
- Software outsourcing providers often give extended access. When experiencing quality testing issues, for example, direct contact with their Quality Assurance (QA) department allows direct questions to be directed straight through, and answers are returned faster - often within minutes rather than hours!
- Regular meetings are an invaluable addition to both methods outlined above, whether virtual or physical, depending on the distance. At least one weekly meeting should occur to maintain team communication and keep everyone moving effectively and positively.
Time Zone
Use an organization based in another country to develop your product for global distribution, giving them unique insight into specific features. Coordinating faster time zones remains beneficial; your provider should be available to ensure communication when your team needs them.
The time zone of your partner outsourcing company becomes particularly relevant if using scrum or agile project management methodologies that require greater participation from team members.
Although being in the same time zone with them may help coordination efforts, what is essential is for team members to remain cooperative regardless of timezone differences. Any outsourced software development cycle firm without experience working with international clients should also be avoided.
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Conclusion:
Outsourcing custom software development services is ideal when your in-house resources don't allow it. Outsourcing will significantly enhance the quality of software produced when selecting an IT staffing firm with proven software development expertise and an impeccable track record in providing this service to its clients. When choosing which IT staffing firm to outsource, ensure they possess high-level skills, proven industry experience, and an impressive portfolio; communication channels must confirm timely receipt.
Assign product development progress to an organization capable of supporting you at every stage. Maruti Techlabs stands ready to help our clients at each step in product creation by following Agile, Lean, and DevOps practices for superior service delivery.
Our team has worked with companies all around the globe in developing software that has enhanced business growth through exceptional testing. Our services span Agile development methods with Lean methodologies as a focus.
