The Metamorphosis of the Software Development Outsourcing Industry in India

  • Posted on : October 7, 2015
  • Modified: November 5, 2020

  • Author : SPEC INDIA
  • Category : Custom Software

It is not every day that the Indian government is on an image-building spree. And it all started in May last year. With a visionary, dynamic prime minister holding the reigns firmly and the awe and aura that surrounds him; he projects India as the destination across the globe in his much-discussed visits abroad and insightful deliberations at home. This is not only a morale booster for the Indian image, but it is also yielding results in the correct direction too. The Indian Industries and along with it the software development outsourcing industry in India gains unprecedented momentum. And the new young government is not there to seek; instead it has offers to make both to other nationals and Indians settled abroad.

Indians at home and abroad wait in anticipation, because the moment has arrived for us all across the globe.

The software outsourcing industry in India contributes 40% of the country’s GDP and almost 35% of the export revenue to the Indian economy. Reputed world over because of the much-discussed edge it has over the other countries offering services in the software industry, the software development outsourcing industry in India comes of age. Moving on from its image of only offering BPO and services this platter flaunts newer ideas and concept

An unchallenged leader in the global outsource software development industry, India consistently maintains its dominance in spite of the many challenges posed by others in the race, especially Asian counterparts like China and the Philippines.

Software Outsourcing

Advantages Of Software Development Outsourcing To India

The much discussed advantages of delegating software development to India have maintained their relevance since the time it all began.

  • Availability of a large population of Software Engineers
    • Extremely well qualified
    • English Speaking
    • Young & Dynamic
  • The time zone advantage to cater to various parts of the world
  • Possibilities of flexibility in manpower utilization
  • Much lower labor costs as compared to developed nations
  • Partnerships to offer world-class services
  • Reduced or almost no investments
  • Expected savings of 50% to 60% of the project costs
  • The increase in the number of meaningful and refined policies for IT Sector by the government

A New Direction For The Software Outsourcing Industry In India

The new young Indian government formed in the summer of 2014, gives an impetus to innovation, technologies, and research. The welcome changes in policies and the growing comfort with the United States of America, the European Union, and Australia, promises ease of business ties with Indian Software Development companies by their counterparts in these economically powerful nations.

The Indian software outsourcing industry is also getting a new leash of life from the many Indians settled all over the world, especially the western world; setting up outsource software development centers in India for multinational software development companies, or better still, establishing stronger independent bases in India.

With the numerous engagement models like Fixed Cost or Time & Management through which these affiliations prosper; gone are the days when higher-level software development work was not delegated to the Indian Software companies who were forced to partner for IT Services only. The proficient IT Companies in India today associate for various overlooked possibilities within the Indian IT Industry and find them focusing on these. Newer models of engagements like the Captive Centers and others, like Global In-house Centres promoted by NASSCOM demonstrate the trust and confidence put into these companies by their associates and partners globally.

The rapid improvements in the infrastructure and the newly established transparencies in the government processes help in improving the scenario at a very fast pace.

The New Possibilities For Outsourcing Software Development To India

A lot is discussed about the services offered in the Indian software outsourcing industry for many decades now. Along with the fresh initiatives offered by the new government, the Indian software industry looks into the future with different ambitions.

  • From Services To Solutions & Products

The new breed of software companies in India boasts of highly skilled innovative manpower working for them. The confidence and exposure of this new generation companies propel them from aspiring for the age old service oriented jobs to product specific work for the software industry These companies are not only getting a break by winning higher level software development work like analysis and designing but are also proving their mettle by increasing their portfolio size in versatile domains.

  • From Monotony To Thinking Ahead

The software development companies in India now think beyond programming. The inclination for researching modern technologies like cloud computing, crowdsourcing, enterprise mobility, and consumption-based technologies, data science, and others are opening up the possibilities of partnering with global software development companies to offer software as a service to global clients.

  • The Predictions

Since the competition gets tough for software development in India, the outsourcing model metamorphoses self to turn into a major software development hub in the coming years by adapting in various ways.

  • Offer flexible Pricing
  • Focus on Quality and allow Pricing to follow
  • Increase operational efficiency
  • Demonstrate strict standards of Quality & integrate QA processes as a part of the cycles
  • Share common services with other associates for cost-effectiveness
  • Focus on newer technologies
  • Invest in Research & Development

Speculations run wild when it comes to the future of software outsourcing in India, but the odds are on India and the world is watching.


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