In the West, talent scarcity is gaining momentum. A recent Manpower Group survey reveals that almost a quarter of UK employers struggle to meet hiring needs.
This shortage leads to a classic dilemma: tech jobs are up for grabs, but there aren’t enough professionals to fill them, leaving these positions vacant for months. In the end, Western businesses turn to outsourcing or offshoring.
While China, Mexico, and The Philippines were renowned offshoring hubs, India has now taken the lead. Indian software developers—skilled, cost-effective, and plentiful—are reshaping the tech landscape.
So, why is India the frontrunner when it comes to offshoring? Read on to find out!
1. A thriving ecosystem
India's on fire in the global IT scene, and its rapid growth shows it!
With the third-highest startup count worldwide, trailing only the US and China, India welcomed over 1300 startups in 2019. The evidence is rock-solid, showcasing how India's IT setup is a force to be reckoned with, fueling startup beginnings and sustaining their advancement.
The backbone of this success is Indian software developers. Why? Well, these professionals are:
- Fluent in English
- Driven by a relentless thirst for knowledge
- Tech-savvy
- Able to create groundbreaking technological innovations
2. Forward-thinking government initiatives
Prime Minister Narendra Modi has ignited a series of impactful campaigns that have propelled India's dynamic tech sector to new heights in recent years.
One standout example is the inception of Startup India in 2016, designed to amplify the nation's IT landscape. This initiative provides startups with financial support to fortify their branding, safeguard intellectual property, and attract top-tier talent.
Another notable endeavour is the Make In India movement, launched in 2014, spanning 25 key sectors of India's economy. This push led to increased local product manufacturing, delivering impressive outcomes. Afterwards, India garnered remarkable foreign direct investment (FDI) commitments, outshining even the global appeal of the United States and China.
3. Holding the fort on the financial front
Western companies have been drawn to offshoring in India for years due to the massive savings in developer hiring expenses. Indian software developers make nearly 50% less than their Western counterparts, boosting cities like Bangalore, Chennai, and Hyderabad as offshore hubs.
Time to connect the dots: the cost-effectiveness, exceptional skills, and tech prowess are driving startups and industry giants to see the potential in these skilled young developers.
Beyond payroll savings, businesses also benefit from savings in:
- Diminished recruitment expenses
- Employee-centric perks
- Rental costs
- Internet charges
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4. An incredible work ethos
Picture Bangalore - the epicentre of India's IT frenzy. This city is all about startups and millennials who are really into tech.
It's not just about their technical know-how; they've got that "never back down" attitude and a natural flair for creative thinking. So, when it comes to your projects, they're all in!
This fierce determination is rooted in their persistent drive and hard work, cultivated in a country that pumps out loads of engineers annually. When you blend this steadfast attitude into your business, it has the potential to ignite impressive growth and performance.
Wrapping up
While Western companies are hitting roadblocks in finding local talent, a new generation of Indian offshore software developers is riding the wave of the Eastern offshore industry.
To step up their game, Western organisations should get on the same page with this shift and come to terms with the fact that Indian software developers are setting the pace in the offshore scene. Teaming up with an offshore software development centre in India comes with significant advantages and dedicated, talented developers. So, what are you waiting for?
We're all geared up to help you start your offshore journey, fully prepared to create an outstanding team of software developers customised to fit your business demands. Feel free to reach out via our contact form, and our experienced senior executive will get back to you shortly!
