There are many reasons why outsourcing software and other IT projects to India. It is not the simple matter of wages, but many further aspects are coming into the picture when project outsourcing firms consider Indian service providers from across the globe. Let’s further discuss the present scenario in Indian outsourcing sector and the future directives.

The primary objective of this discussion is to assess the current advantages and future scope of software development outsourcing to India, but before discussing it in details, it will be undoubtedly beneficial for the outsourcing aspirants to be aware of a few challenges too to be more insightful about it.

Challenges faced by the outsourcing service sector

  • Compromised infrastructure – Even though the changing governments are trying to promote IT outsourcing to the country, they are not so keen on developing the overall infrastructure and employee-friendly policies in the desired way.
  • Brain drain – It is a trend that many of the educated work class in India are now trying to migrate to other top-tier countries as US, UK, Australia, or Canada.

Factors contributing to growth of outsourcing to India

Even though there are some challenges out there, there is no doubt that the outsourcing sector in India is growing year by year and many new providers are coming into this. Further, let’s discuss some of the factors contributing to the expected growth in Indian outsourcing service sector in the forthcoming years.

  • Many strong companies – Unlike the competitors in outsourced markets like Philippines and China, India features a far matured IT industry and also is home to a bunch of industry leaders in IT consulting. Majority of the existing Indian competitors are largely fragmented and pose a competitive pressure on others.
  • Smart hacks are Indian habit – Without clever hacks, it is difficult for any Indian to survive in this country. For example, you need to be a smart driver to pack a maximum number of people per each square meter of Indian roads. Such life hacks are turning out to be an ideal warm-up for entrepreneurship, especially in IT. As handling outsourcing becomes more complicated in future, these street-trained entrepreneurs are all set to manage global service industry.
  • Tacking extreme ambiguity – As per outsourcing insight official website, one fantastic thing to be noted is that Indians are already trained to manage a high degree of complexity in everyday life. As the world of software development projects are also increasingly ambiguous and getting more and more complex, Indian workforce will surely be able to outperform in it with their natural strengths. This ambiguity tackling skill may not be perfect for the manufacturing sector as it requires more discipline and precision, but in the service sector, the capacity to deal with a high ambiguity level is undoubtedly advantageous.
  • Accommodating diversity – Indians are thoroughly trained to cope up with diversity and find unity. It plays a crucial role in the modern global economy. Globalization reflected in IT has mandated the need to handle various tongues and the ability to accept different kinds of people. Most of the educated workforce in Indian can handle at least 3+ multiple languages and also have numerous adapted skills. All these contribute not only to deal with local diversity but also easily adapt to the global diversity in various sectors. It is one area where the workforce of many other countries like China, Japan, and Germany become incompetent.
  • A large number of educated youth – At any given time, India has a significant potential of untapped labor. As the education system is getting stronger day by day, there are a large number of professional graduates coming out of institutions and getting added to the workforce. With a massive population of 1.2 billion citizens, no doubt that Indian will remain as one of the strongest workforces in the world with a diverse skill-set on offers.
  • High-quality services – India always remained the best in terms of quality of delivery in outsourced services. Quick adoption of the latest technology and infrastructure is an Indian standard which contributes towards ensuring top-notch standards.
  • Most favorable time zone – Time is the most precious asset for any IT business. The time zone in India is ideal for most of the developed nations to get things done much faster, which is the most advantageous factor favoring Indian outsourcing. Indian workforce is also ready to serve on a 24/7 basis.

However, one should be very diligent and knowledgeable about the outsourcing process and also assess the capabilities of the outsource service provider before hiring one. With a lot of outsourced service providers in the Indian marketer, unfortunately, a few of them being fraudulent, it is essential for the IT project outsourcing firms to do a thorough groundwork to identify the most reliable and expert service provider in your specialty to sign a deal.