Why India Still Has An Edge In Software Development Outsourcing In 2022, Despite Skill Market Disruption

Infosys, headquartered in Bengaluru, voluntarily attrition on the last twelve months trailing (LTM) basis was at 20.1% in
the September quarter, compared to 13.9% in the preceding quarter.
This may cause some drawbacks in software development at TCS and Infosys and most likely every company that faces
similar challenges.
Yet, despite all of the above about outsourcing’s attrition rate, the benefits outweigh the slight downsides. For instance,
India’s skilled labor pool will make it easier to replace staff.
Additionally, maintaining your outsourced workers is still very possible. To properly address such arising hurdles in
outsourcing havens like India require a sound management system.
Cultural Differences
Perhaps the most challenging aspect of adapting to the Indian work culture is its distinct nature compared to Western
cultures.
Cultural differences can hamper communication. Although English speakers worldwide use the same language, there are
vast differences in pronunciation, vocabulary, etc.
Hence, researching and visiting India’s destination country must be done before outsourcing. When outsourcing your
software development project, you should be mindful of the city.
Outsourcing your software development project requires you to know who you are hiring. It starts with choosing the right
offshore team.
Outsourcing Software Development To India
Remains A Great Choice. Here’s Why
Many of the top software development outsourcing companies are based in India. This communicates the
extent to which India still thrives amidst the ongoing skill market disruptions.
There are many reasons why businesses prefer India besides the cost advantages they receive by outsourcing software
development to India.
Riding the wave of technological advancements is certainly possible through collaborating with Indian tech experts.
The reasons to outsource software development to India are several. Below are some factors accounting for
why India is preferred over other countries.
Cost-effectiveness
Let’s quickly get this out of the way, as this is one of the most common reasons for outsourcing software development to
India. Your organization will reap better profits if it outsources peculiar aspects of its business. Despite the great
resignation syndrome and exponential increase in salaries, the IT talent in India is still relatively much cheaper than in
other parts of the world, including other top outsourcing nations.
The costs associated with developing in-house applications include hiring procedures, licensing fees, software architecture
consulting, training, and development are considerably high. However, outsourcing software development to India can
eliminate certain costs.
The Indian IT industry boasts expertise and advanced infrastructure. Also, India’s low average salary lets you take
advantage of this expertise at a cost-effective rate.
India provides you with access to highly talented software developers at a low cost. The cost of outsourcing is simpler to
control as well. Additionally, since offshore providers already have an established infrastructure, the startup costs are
drastically reduced.
An IT service manager in India, for example, can expect to receive 1,500 USD per month on average. If you were to hire the
same manager in China, it could cost you 3,400 USD per month and 5,000 USD per month in Canada.
An Incredibly Large Talent Pool
In terms of outsourcing destinations in India, it has the highest concentration of diverse, employable talents, including
people with skills in cloud, analytics, social media, and mobility. Having such an ideal variety of talent makes India a
perfect outsourcing destination.