Outsourcing Software Development to India - World's No.1 Software Outsourcing Destination!

World's no. 1 outsourcing destination. 8 min.   |   15th Feb., '19
“In India, we offer value and quality for the money.” - Codigion

India is one of the most favorite destinations for outsourcing software development work with 75% of global technologically skilled professional and 55% global market share. Despite the emerging competition, India still remains as a most preferred outsourcing destination for software development because of its outnumbered talent pool, English language advantage, cost-competitiveness, and favorable time-zone. It’s more than 2 decades that companies from all around the globe have been outsourcing software development to India with vivid success and five-fold growth in FY17-18.

Technology has evolved rapidly in the past few decades and so did the increased demand for software services and products demanding technological revolution. However, India has persistently represented itself as a big player in the global market of IT and Software demands with the finest growing economy offering world-class software services and products opening new verticals.

Today, India is the biggest outsourcing center with an enormous population of IT qualification, diverse niche specialization, exquisite infrastructure, favorable government policies and superior work ethics compounding 60% annually by serving more than 95 countries all around the globe.

Why India is the best outsourcing destination for software development?

  • India offers a large pool of qualified developers for required software development work at lower cost and international standard quality service.
  • India offers a wide range of software development service ranging from the software application, system integration, business process management, business intelligence, and consulting and database management.
  • Indians are aggressive at adapting to emerging technologies trends in the market.
  • India offers you flexible hiring options, be it - part time, full time, hourly or contractual such that you will pay for the service you use.
  • Indian companies have always competed in quality to sustain in global market competition to deliver effective, secure and robust software solution.
  • India have been well known for its maintenance and support service to retain consumer relationship.
  • Indian companies are backed by government initiatives to attract and promote outsourcing opportunities in the country with infrastructure and networks.
  • Indian IT outsourcing industry employs about 3 million skilled professionals with 200k engineers joining every year.

Thus, we can see that India is a pioneer offshore location for software development outsourcing for 4 major reasons: cost-effectiveness, skilled professionals, innovation and market size offering great competition to other emerging nation in terms of market penetration and talent pool.

How to outsource software development to India?

Before outsourcing software development work, one must prepare the following:

  • You need to do deep requirement analysis of your software need and document everything for a clear picture.
  • Define proper milestone, deliverables and set achievable deadline, if required take help from software professionals.
  • Set your budget and prepare a win-win agreement with clear guidelines.

Once you have aligned your software requirement, request a quote from a software company of your choice and negotiate your agreement, and without further due, kick-start your software development project.

Key points to know when outsourcing software development to India

  • Things can always go wrong, therefore, it is always better to have a backup plan.
  • The signing-agreement must define all terms and condition along with every other minute details concerning the project for the project success.
  • Clear define deliverables and stay as connected as possible to log every step of the development process throughout the development cycle. Take help from software professionals, if required.
  • Ensure that milestones and deadline are met along with a quality assurance from proper testing of software features and functionalities.
  • Don’t forget to add documentation to your contract, both – Code and User documentation for future extensibility, readability, and re-usability.
  • Security is a necessity – ensure the highest level of security for your software application.
  • Be in touch with a support team for unscrupulous times which are inevitable, as anything can go wrong anytime.
  • Focus on strategic values for business application over cost.
  • Have a clear communication channel for deliverables, milestones, and deadlines.
  • Ensure standard software development methodologies like Agile and Scrum to focus on technical excellence and productivity.

Apart from all of the above keynote, and no wonder how skilled and experience your software vendor is – your software product requires your 100% involvement.

Pros and Cons of outsourcing software development to India


  • India has the largest pool of young and experienced software developers with the right skill set, education and market exposure.
  • Indian IT companies are continuously updating oneself with evolving trends of tools and technologies in the market at a blistering pace with added support from government initiative and financial firms offering investment opportunities.
  • Indian software developer wage is low as compared to other countries, thus, offers great cost-competitiveness.


  • Despite the fact that India stands as the second largest English speaking nation increased the number of issues has been reported for language barrier creating misinterpretation between client and developer.
  • India has a large number of outsourcing software solution provider companies with not most of them offering quality work.

Common mistakes when outsourcing software development

Outsourcing does not mean you toss the project to your offshore partner and it’s done. There are mistakes that can cause project failures:

  • No clear or confused project requirement. Requirement analysis is a crucial step for the success of the software development project while many fail to communicate and clarify - documenting your project requirement with wireframes, illustrators, and mockups to comprehend clear requirement is the key.
  • Software development project requires engagement, however, due to the lack in communication gap between client and developer the quality of the software has to suffer. Constant management of development work is required from your side to ensure that the project does not go out of control.
  • Clarify certain questionnaires before getting started:

    • How to communicate with the team for project logs and updates?
    • Who is the project manager and what is his background?
    • Get in touch with every individual involved in your software development to analyze experience and expertise for your project requirement.
  • Do not set an unreasonable milestone as proper software development accounts to a reasonable timeline for bugs and extra development needs.
  • Ensure that your offshore partner is up-to-date with modern trends for adapting to new solutions and challenges can be dealt with the latest technologies.
  • Underestimating the need for quality assurance can cause catastrophic project failure, therefore, ensure appropriate ticketing system for bug reporting.
  • Many cases have been reported leading to catastrophic failure because of the cultural difference between client and vendor company.
  • Ensure that you have someone in-house that is tech-savvy who understands how software development works and can lead the development project.
  • Use project management tools to monitor and organize tasks and processes.

Summary and Conclusion – No. 1 Outsourcing Destination

There are significant improvement and optimization in Indian software outsourcing sector with emerging IT and software startup companies offering a wide range of quality software services and products offering services to more than 95 countries all around the globe.

Today, India has more than 5000 startups to support global IT and software outsourcing needs summarizing to the following:

  • India is an ideal destination for fortune 500 companies for all IT and software solutions.
  • Outsourcing is a highly productive option in term of software development as it allows companies to focus on core business values and efficiency.
  • Outsourcing to India is cost-effective and facilitates business evolution.
  • Stats show that outsourcing companies are saving 90% of labor cost with offshore Indian vendors.
  • India offers great flexibility towards hiring based on wages and skills, therefore, outsourcing to India cuts on recruitment and training cost with greater efficiency.
  • India is aggressively competitive to emerging market technologies to offer greater competitiveness to other emerging outsourcing destinations.
  • India’s largest pool of IT professional caters all type of software development requirement.
  • If software development is not your core competency, then it is always best to outsource it to India for world-class software solutions.
  • Of all, outsourcing software development work to India is easy and fast.


Where to look for outsourcing your software development in India?

Codigion is a pioneer offshoring partner from India to outsource your software development. Since inception, we have been serving the software needs of our global clients across multiple industries to deliver value with our IT, Software and Solution services.

Why choose Codigion:

We have been serving for years now and we do understand all if’s and but’s to ensure client-service provider relationship and successful deployment of quality software products and services. On top of that, we offer:

  • Competitive hourly development rate.
  • Enough skilled professionals with years of experience in multiple technologies to tackle complex project requirements.
  • We are always updated with the latest market trends in technologies – learning is growing and fun.
  • Our project managers are highly qualified professionals to superlatively support your software development with high engagement, reporting, and transparency.
  • We implement agile methodologies to track production, cognize nature of the project, goals to be achieved and accelerate development iteratively.
  • We also support on-site and off-site development for decisive requirements.

Most importantly, Software! That is all we do and the best we do.

If you need our service, let us guide you!

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