Why Should You Outsource Your Product to India Today

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The Indian technology industry experienced a 15.5% growth rate and touched the $227 billion mark in the year 2021-22, as reported by NASSCOM in its Strategic Review 2022 report. The country is emerging as a global hub for tech talent with a massive tech talent pool and continuous addition to its IT Workforce. No wonder, it is playing a crucial role in catalyzing the trillion-dollar digital economy forecast.

Businesses are eyeing Indian organizations to form a strategic partnership for their IT needs, remote product development being one of the most popular services outsourced.

And while the technological advancement and the growing tech strength of India are key drivers alluring companies to outsource product development to India, there are many other reasons behind the increasing inclination. Some of these have been listed below.

Because India Is All Set To Become A Technology Leader

There are various studies that have shown the tech talent shortage across the globe in the coming years. According to a Korn Ferry study, the world is expected to witness an $8.5 trillion tech talent shortage by 2030. The same study also concluded that India, with one million surplus high-skilled workers. No wonder product companies would be eyeing India as their preferred partner for outsourcing development.

Because India Has A Very Vast Talent Pool

India does not just have the second-highest population in the world. It also has the largest talent pool when it comes to the IT workforce. India has a whopping 5 million strong tech workforce at present. Moreover, India produced 21.4 lakh STEM graduates in the year 2020-21 itself, and more are expected to graduate in the coming year. Not just that, India’s technical proficiency has also increased by 8% in the past year as tech workers keep focusing on enhancing their skills.

One of the core reasons why companies prefer outsourcing software development is to find the required talent. And with so many tech workers building their skills, it goes without saying that the Indian workforce has the best tech talent and offers a plethora of opportunities for any company to choose the right team for their development.

Because India Has World’s Second-largest English-speaking Population

There is a popular myth or misunderstanding that outsourcing to India would pose a huge challenge because of the communication gap. However, this myth has been debunked by several studies. A large part of the Indian workforce, especially those working in the tech sector are proficient in English. So, communicating the project requirements, discussing feedback, and other things would never be an issue, especially because of language barriers.

Because India Is a More Cost-effective Country

When outsourcing product development to India, the biggest benefit is the cost advantage the companies can enjoy. Companies have been outsourcing to India to achieve cost savings in their projects. They can hire remote developers from India at significantly lower costs compared to the hourly wages they might pay when hiring from the US, European countries, or similar western regions.

In fact, one can save as much as $97,000 when outsourcing to India as compared to when getting the product developed in-house. There is a gap of $20-$30 in the hourly wages of developers in the US and developers in India. And this difference keeps increasing as you shift to developers with greater experience and expertise.

Because India Has a World-class IT Infrastructure

Another reason why businesses should outsource their product development to India right away is because of the state-of-the-art IT infrastructure that it has. Being one of the fastest-growing economies, India has well-developed internet and mobile networks. In fact, the Indian IT sector is expected to add $10 billion in 2022-23 in IT service export, making the overall industry touch $126 billion. The offshore companies in India are using the latest technology to provide the best-in-class services to their customers.

Because You Can Get A Time-zone Advantage

Getting the product out fast is something every business aspires for in order to gain a competitive edge. And that’s where outsourcing product development to India can help. The majority of the western countries can enjoy a time-zone advantage by outsourcing here. Indian Standard Time is around 5.5 hours ahead of the UTC while Eastern Standard Time is around 4 hours behind it. This creates a difference of around 10 hours. So, while you switch off your work, the remote product development team sitting in India would switch on their work. This would mean round-the-clock productivity.

In addition to that, businesses can also enjoy a faster delivery of their product owing to the faster setting up of teams. You can save weeks and months in searching, interviewing, and onboarding candidates for your team. The majority of the offshore companies have pre-vetted devs in their teams and you can simply interview them and onboard within days.

Because India Has Outsourcing-friendly Policies

The next crucial reason why businesses should choose to outsource product development to India is because of its government’s various outsourcing-friendly policies. These outsourcing supportive policies like the IT Act 2000, Indian Contract Act, 1872, Foreign Exchange Regulations, etc., are known to protect and safeguard the companies while also controlling the quality of services delivered. There are other laws like the Intellectual Property Laws preventing theft of IP, the Companies Act 2013 governing companies regarding their work obligations, and more. Companies outsourcing to India can also be assured that in case of any breach of contract, their rights are protected by the Specific Relief Act 1963.


It’s no secret that outsourcing product development is the practice businesses should follow to launch their product fast & cost-effectively in this competitive world. If you want to make your product more affordable, it may be a good idea to outsource your product to India. This article highlighted some of the crucial reasons why you should outsource your product to India, the predicted technology super-power of the world. We hope that it offers reassurance that outsourcing is the right choice and there could be no better country than India to do so.

Author Bio:-

Tanya Kumari leads the Digital Marketing & Content for Classic Informatics, a global web development company. She is an avid reader, music lover and a technology enthusiast who likes to be up to date with all the latest advancements happening in the techno world. When she is not working on her latest article on tech dynamics, you can find her by the coffee machine, briefing co-workers on the perks of living a healthy lifestyle and how to achieve it.

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