Pros and Cons of Outsourcing Software Development to India

Pros and Cons of Outsourcing Software Development to India

Lots of modern businesses are taking advantage of outsourcing various services that are out of their core competencies to offshore companies. There is a great number of reasons why companies prefer outsourcing to hiring in-house specialists.

Among the services that can be outsourced, software development tops the list. Along with the ever-growing popularity of outsourcing, offshore destinations are emerging as well. But still, when you utter the software development world, there is one word that associates with outsourcing - India.

Destinations to Outsource Software Development Services

India is one of the most popular destinations for software development outsourcing. However, there are lots of other countries like Ukraine, Belarus, Romania, and Poland that pose real threats to the Indian outsourcing world.

Moreover, lots of US and Canadian companies choose the countries of Latin America like Mexico, Argentina, Peru, Venezuela, Bolivia, and Costa-Rica to outsource services. This way US and Canadian companies avoid significant time zone differences. Even though there are software agencies that work around the clock in India, the countries of Latin America take a lion’s share of American and Canadian companies.

Pros and Cons of Outsourcing Software Development to India

Pros of Outsourcing to India

1) Biggest Outsourcing Hub

India has one of the largest pool of software developers with required skill sets. Not to mention that India has one of the largest population all over the world. So there are quite high chances to find a software developer.

When compared to Eastern European countries where outsourcing is only gaining momentum, India has been carrying it out for years. However, Ukraine is becoming a serious counterpart of India. Ukrainian developers are offering decent prices and top-notch quality.

2) Widest Choice of Specializations

Did you know that a new startup emerges every day in India? That’s true. And it leads to creating the favorable environment for IT startups. In order to get more clients, Indian IT companies are getting new skills and adapting modern technologies at a blistering pace.

Indian developers are constantly learning to get some new knowledge, skills, and tools to deliver better software solutions across all spheres. Thus, they can easily build an app for any industry and business niche.

Ecommerce and gaming remain the most popular industries for Indian developers. And their Ukrainian counterparts are second-to-none in terms of business software. So everything depends on what app you’re going to build.

Large Pool of Developers

As we have already mentioned above, India has the largest pool of software developers all over the world. And that means that India can provide a large number of software developers to tackle any task with a custom app.

Moreover, lots of the world’s giants like Google, Microsoft, and IBM have already opened India and even opened their labs there.

1) Cost-Effective Software Development Outsourcing

India has low living standards resulting in low rates for software development outsourcing. Hence, you can get a quality product at a low price.

According to the latest studies, India provides software development services at the lowest price. For example, US developers charge $100-200 per hour, and Indian developers charge only $12-$25 that is around 3 times cheaper.

Pros and Cons of Outsourcing Software Development to India

Cons of Outsourcing to India

1) Language Barriers

Most of Indian can speak English but still, there may be some issues. Often writing skills surpass their speaking skills and when messages are conveyed through Skype calls or regular telephone calls, certain words could be misinterpreted. The pronunciation, tone, and intonation vary from the way Americans speak. However hard you try, it is not easy for an Indian to speak like a Westerner.

2) Poor Quality

If you look at the number of outsourcing companies in India, you will have your head reeling. There are too many of them, while only a few of them provide quality work. If the quality of work must be at par with your expectations and business goals, don’t simply go by what their websites say.

Ensure you give work to companies with a workforce who has undergone excellent training. Be wary of people who jump at your offer and look eager to please. And make sure you don’t give anyone tight deadlines at first because this could be a major hindrance to the quality of apps.

3) Piracy

There are high chances to get a copied code. Sometimes outsourced projects can be copied and sold again and again. And no one can ensure you that it’ll be kept secured and nor sold. Actually, it’s a serious issue regarding copyright and licensing. And it’s better to sign an NDA agreement with your outsourcing partner.


India is one of the cheapest destinations to outsource software development services. To ensure you secure only advantages while outsourcing to India, make sure you do your research well. It is always advantageous to seek references from people who have already done similar projects. It is also important to check out reviews before you actually outsource work.

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