Singapore, the largest and most important global financial center in Asia is swiftly becoming a leading technology cluster. The world’s growing technological businesses, along with those from the United States and China, are establishing and expanding bases in Singapore. All credit goes to Singapore’s wealth, position, and business-friendly reputation, which set a 12-year record in 2020 as part of a larger foreign investment boom. Still, Why should Singapore outsource software projects to India? Let’s dig in more!
In Singapore, the total market share of the software development industry was $5.9 billion in 2020, portraying a 1.7 percent CAGR (2016-2020) which is expected to show an annual growth rate (CAGR 2021-2026) of 5.99% by 2026. Singapore’s economic growth has been fueled in recent years by a surge in the use of software technologies, mobile applications, cloud computing, and innovations in AI/ML & IoT. Amid all this great news, Singapore is indeed struggling with a significant shortage of competent talent, capable of fulfilling the technology needs of startups and enterprises.
While businesses in Singapore attempt to reach market demands, offshoring projects is the ideal option that can help them out. When we think of offshoring projects from Singapore, the first option that immediately comes to mind is India. Here are the 11 reasons why India is emerging as a hotshot software outsourcing destination for Singapore and other business hubs around the globe.
Abundant talent pool
The availability of professional talent at reasonable prices is the frosting on the cake for companies that outsource software projects to India. According to Nasscom India’s cloud talent pool will hit the 1.5 million mark by 2025. As per the studies, the direct working IT professionals are around 4 million while indirectly are 10 million people. India’s IT workforce recruits over 0.2 million IT graduates every year, making it the world’s youngest employable population. Also, India has more than 2 billion English-speaking people who are breaking the language barrier.
Cultural overlaps and authenticity
India and Singapore share the culture as Singapore has 9.0% of Indian Singaporeans. Singapore’s business, as well as friendly relations with India, creates a strong bond of trust within the two countries.
Businesses in India adhere to global standards with certifications such as PCI and ISO. With this, they stay abreast through memberships in prominent outsourcing industry organizations such as CII and NASSCOM. This plays a key role in selecting India for offshoring projects.
The best suitable environment for R&D and innovation
India has 25% of Asia’s innovation centers. 80% of the fresh concepts are getting acquainted using Al/ML, Cloud computing: big data analytics, and so on. Within an organization, innovation is frequently tedious and inadequate because a corporate hierarchy of approvals creates inertia, stifles creativity, and instills in people a fear of failure. Outsourcing innovation in India may help businesses in Singapore to be ahead of time with changing market needs as Indian businesses provide more room for innovations to the associates.
Infrastructure & experience
Outsource projects to India provide access to highly skilled talents with extensive experience. India also has the best experience in handling vital projects with ease.
With IT clusters like Bangalore, Gurgaon, and Hyderabad, India has demonstrated it is in line with all major nations in terms of IT infrastructure. There are numerous IT outsourcing companies in India that can assist with your outsourcing requirements. Even startups and small and medium-sized enterprises (SMEs) in India are already utilizing innovative technology tools to give exceptional solutions.
Flexibility in project management
Technology-based businesses need to upscale and downscale their processes depending on the season, demands, priorities, and market competitions. When a business outsources technology projects to India, the Indian partners allow them to increase or decrease the number of skilled talents in the team and upscale or downscale the processes. Most of the outsource deals in India have conditions for changes in demands that provide the utmost flexibility to businesses.
Large room for improvements
Technology or to be more prompt, front-end software creates the market image of a business. To hold the paramount position in the industry, businesses need to improve continuously to cope with the changing market trends. Today, a new technology rises with every new dawn, and to adapt to that technology a business needs a strong, multi-skilled, and quick-reacting team. Indian businesses follow strict guidelines which make them focused and disciplined to practice continuous improvisation.
The perfect timezone
Outsourcing processes to India is akin to having your office operational 24 hours a day. The Indian time zone allows businesses to accomplish much more in a typical workday than if the work is performed locally.
Proficiency in tasks
Indians are good at picking up new technology, moreover, you can promptly train them in any emerging business software. As a result, you can add a boost to the technological growth by investing less amount of time with more work done.
Easy and faster outsourcing procedure
Starting outsourcing to India is as easy as making a local vendor agreement. A business just needs to finalize the outsourcing partner, sign a contract, and be done! Indian outsourcing partners mostly follow an agile methodology. This makes businesses easier to monitor and make amendments whenever there is a need. It’s 100% worth relying on Indian outsourcing partners.
Cost of development
There is low cost of hiring experienced personnel in India along with low dollar-to-rupee exchange rate, and inexpensive infrastructure investment. All these are low in comparison to commencing operations in India than in their home country. Hence, India is the most desirable destination to outsource any development processes. It is difficult to run a technology business. When an organization cannot afford to pay hefty salaries, India’s pricing flexibility allows it to become more creative in managing a budget.
Ease of business and government support
Outsourcing is one of the major foreign income sources of India and hence India has very flexible outsourcing policies. The favorable and supportive government policies in India make it easy to outsource businesses in India. India has Information Technology Act 2000 and many other IT policies that create a healthy development environment for industries.
Outsourcing to India provides tremendous possibilities for far-sighted businesses to boost their innovation processes and profitability. Despite the size of the business, whether a company is seeking to grow or is trying to find new solutions to optimize their operations, outsourcing in India serves as a useful tool for all of them.
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