Why should US companies outsource software projects to India?

Why should US companies outsource software projects to India?

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.

Ajackus logo in circle

by Ajackus Team

4 mins read

The US is one of the largest and most important financial centers which has become a leading global technology cluster. Still, Why is it a need for an hour for US companies to outsource software projects to India? Let’s dig in more.

According to Gartner, global IT investment will reach $4.47 trillion in 2022, marking a 5.5 percent raise over 2021. Without a question, the United States will be the primary focus of this market area.

In recent years, there is a surge in the use of software technologies, mobile applications, and cloud computing. As a result of the economic growth in US. Amid all this great news, after the pandemic, the US is indeed struggling with a significant shortage of competent talent capable of fulfilling the technology needs of enterprises. While businesses in the US attempt to reach market demands, offshoring projects is the ideal option to solve the growth issues.
When we talk of offshoring projects from the US, the first option immediately comes to mind is India.

Here are the 11 reasons why India is emerging as a hotshot software outsource destination for the US and other business hubs around the globe.

Abundant talent pool

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. Furthermore, India is the world’s second-largest English-speaking country, making communication easier.

Cultural overlaps and authenticity

The US and India have many things in common. Both countries have multicultural societies, and both countries have deeply ingrained democratic cultures.
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. This is because a corporate hierarchy of approvals creates inertia, stifles creativity, and instills in people a fear of failure. Outsourcing innovation in India helps businesses to be ahead of time with the changing market needs. As a result, Indian businesses provide more room for innovations to the associates.

Infrastructure & experience

Outsourcing projects to India provides 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 outsource requirements. Even startups and small and medium-sized enterprises (SMEs) in India are already utilizing innovative technology tools to give exceptional solutions.

Flexible 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 to upscale or downscale the processes. Many outsource deals in India have conditions for changes in demands that provide the utmost flexibility to businesses.

Large room for improvements

To hold the paramount position in the industry, businesses need continuous improvements 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 back-office processes to India is akin to having your office operational 24 hours! 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 quicker 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 that 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

The dollar-to-rupee exchange rate, low cost of hiring experienced personnel in India, and inexpensive infrastructure investment when compared to commencing operations in their home country make India the most desirable destination to outsource development processes. Keeping a technology business running has gotten difficult. Employers are required to pay more than before and, as a result, charge their customers more though. With the equal quality of service with lesser costs offered by Indian counterparts, many businesses are naturally switching their outsourcing to India. India’s pricing flexibility allows you to become more creative in managing your budget.

Ease of business and government support

Outsourcing is one of the major foreign income sources of India and hence India has very flexible policies. The favorable and supportive government policies in India make it easy to outsource businesses in India. India has Information Technology Act 2000, Companies Act 2013, 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 its operations, outsourcing in India serves as a useful tool for all of them.


Stories, tips, and tools to inspire you to find your most creative self. Subscribe to get curated content delivered directly to your inbox.

Contact us

We are available in 5 cities and also on the world wide web making us reachable to anyone on the planet with an internet connection.