35 percent of USA companies are hiring remote developers in India - Here's why?
11 APR 2024Jaya K
India has emerged as the leading IT outsourcing destination for companies planning to shift its business processes from USA to India. There are numerous advantages of outsourcing to India, cost benefits a vital point and vast IT skilled talent pool are just two! However, before outsourcing to India, you need to be completely informed and this write-up covers everything you might want to know. So, let's get started.
Recently, the National Association of Software & Service Companies (NASSCOM) reported that almost half of all Fortune 1000 companies wanted to
hire remote developers
in India and that 72% of firms are of Europe and USA. Although other countries like China, Mexico, Philippines are in a row to give tough competition to India, the country remains to be the most preferred outsourcing destination. Let's start with a simple question - "What is outsourcing?"
In simple terms, outsourcing is a simple process where your business operations performed outside your in-house infrastructure. A company is said to be outsourcing, when you
hire remote software developers
, dedicated teams, distributed teams, and get your complete project completed at an external location. A company can choose to outsource a specific task, a full project or
hire software developers / teams to work on it. Now, major of the companies believe a strategic partnership between the two firms for achieving the best outcome from an outsourcing venture has become the way out.
IT Spending Growth Forecast 2022-2027 (US$ bn)
The above statistics clearly show how aggressively the IT industry spending is growing, this is due to current demand outgrowing the supply of qualified specialists for certain technologies. In 2022, the spending on IT services reached US$1.85 trillion worldwide. Its expected to reach
US$ 3.9 trillion by 2027.
How to Hire Remote Developers in India - A Complete Guide in 12 Steps
To hire
remote developers
in India, requires a structured approach to ensure you find the right fit for your project. Here are the steps you can follow:
Step 1 - Define Your Project Requirements
Clearly outline your app's objectives, features, target audience, platforms (iOS, Android, or both), and any specific technical requirements. This will help you identify the skill set needed in remote software developers.
Step 2 - Research
Look for remote developers
through various channels such as online
job portals (e.g., LinkedIn, Indeed), tech forums, social media, or referrals from your network. Also, consider
outsourcing platforms like Upwork or Toptal if you prefer a remote team.
Step 3 - Review Portfolios and Profiles
Examine the portfolios and profiles of potential candidates or development agencies. Pay attention to their experience, previous projects, client reviews, and technical expertise relevant to your project.
Step 4 - Shortlist Candidates
Narrow down your list to a few
remote software engineers
who seem to match your project requirements and have a solid track record. Consider factors like their communication skills, responsiveness, and cultural fit for your team.
Step 5 - Conduct Interviews
Schedule interviews with the
shortlisted developers to assess their technical skills, problem-solving abilities, and compatibility with your team. Ask about their previous projects, challenges faced, and how they resolved them.
Step 6 - Evaluate Communication Skills
Effective communication is crucial for successful collaboration. Evaluate how well the programmers communicate their ideas, understand your requirements, and respond to your queries.
Step 7 - Check References
Reach out to the candidates' previous clients or employers to gather feedback on their performance, reliability, and work ethic. This can provide valuable insights into their professionalism and ability to deliver results.
Step 8 - Assess Cultural Fit
Consider the
remote developers
compatibility with your company culture and team dynamics. Look for individuals who align with your values, work ethic, and collaborative style.
Step 9 - Negotiate Terms and Conditions
Discuss the project scope, timelines, budget, and other terms with the
selected developers or agency. Ensure clarity on expectations, deliverables, payment structure, and any legal agreements.
Step 10 - Start with a Trial Project
If feasible, consider initiating a small trial project to assess the
developer's capabilities, work quality, and compatibility before committing to a long-term engagement.
Step 11 - Provide Necessary Resources
Once you've
hired developers, ensure they have access to the necessary tools, documentation, and support to effectively carry out their tasks.
Step 12 - Maintain Regular Communication
Maintain open communication with the developers throughout the project lifecycle to address any issues, provide feedback, and ensure alignment with your goals.
By following these steps, you can streamline the process of hiring remote developers and increase the likelihood of finding the right talent for your project.
Demand of App Developers & Global Trends
The global mobile application market size was valued at
USD 228.98 billion in 2023 and is expected to grow at a compound annual growth rate
(CAGR) of 14.3% from 2024 to 2030. Applications for gaming, mobile health and fitness, music and entertainment, social networking, retail and e-commerce, and other purposes are all included in the study's scope. The ubiquity of smartphones, rising internet usage, and the use of technologies like artificial intelligence and machine learning in mobile applications all point to future growth in demand for mobile applications (apps).
Outsourcing Vs Offshoring
Over the years, outsourcing has become an indispensable business strategy of global corporations, start-ups, mid-sized companies, enterprises, and all others. Now let me introduce you to the terms outsourcing and offshoring. Knowing the meaning of outsourcing is not just enough you should have a clear understanding of all the three, so to adopt without confusion.
While we have already discussed what outsourcing means in the initial paras. Here, let’s know what offshoring and nearshoring and how they are different from outsourcing.
Offshore:
The term outsourcing is defined as a business practice in which a business contracts out certain business processes or services to a third-party provider. Offshoring involves business processes, tasks or services by a company to its center in a different country.
For more clarity, let's have a look at this example,
hiring a software development outsourcing services to provide by a company for creating its software products is outsourcing. Whereas the establishment of a new
software development center by this company in a different country to provide software products is an example of offshoring. Another simple example is
Apple opening a customer service center in India to serve its
clients in the United States. Main Advantages of Outsourcing in India
It is well known that the cost of labor in Western countries like the United States is high. So, when it comes to comparing price and also the quality of work, India has a vast pool of talent that is available at a comparatively inexpensive rate. By shifting their business service to a developing country like India, companies can leverage cost differences and get their services completed at a much lower price.
Hiring a team at less wage is a major advantage but let me tell you a few more advantages that are also considered.
Reduced costs:
Outsourcing to a third-party provider usually provides a large cost saving to businesses. For example, for a US company, getting a website developed and maintained in-house is much costlier than just outsourcing web development to an IT outsourcing service provider in India.
Focus on core competencies
Outsourcing lets the company dedicate concentrate on its business core operations.
Expertise
Outsourcing a business task like in a web development project, to a software
development outsourcing company expert in development results in a high-quality, on-time, bug-free product.
Scalability
According to the business requirements a company that hired a third party outsourcing company can increase or decrease in the size of the outsourced team. If a company hired a size of five remote developers for its project, but for some reason, it requires more developers, then the outsourcing service provider can easily scale up the team.
Skilled workforce
Another major benefit that US companies draw from offshoring is getting their work done by highly skilled and certified professionals. India is well acknowledged for its expert IT professionals, due to this reason many software companies have offshored their software development centers to India.
Infrastructure
With IT hubs in Bangalore, Gurgaon, and Hyderabad, India has proved itself to be a part of all the developed nations when it comes to IT infrastructure. Even the increased establishment of start-ups and SMEs are very well utilizing advanced technology tools to provide excellent web solutions.
Supportive Govt. Policies
It’s hard to find countries that have favorable and supportive government policies, whereas India is popular in terms of IT industry policies. The Information Technology Act and all other IT policies in India are supporting the industry’s growth.
Apart from the major these, there are many other perks of outsourcing web development tO India like consistent in quality, round the clock support, faster project delivery, and much more.
Want to know which is the best outsourcing country?
By now, you must have got the idea that outsourcing is a great approach that you must adopt to scale, cut costs, and include the latest technology stack. The next question you need to address is which could be the best country to outsource?
At Global Services Location Index™(GSLI) India is ranked one in terms of magnetism for outsourcing. There are 500+ companies in India catering to the different requirements of the western countries.
Countries Outsourcing to India 2024 (%)
Also, Deloitte's study on global businesses, revealed that over 59% of business are already outsourcing to India. Only 22% of those that are not currently outsourcing to India, but are planning to do the same in the near future.
India IT professionals statistics
- India over 3.1 million graduates and over 30,000 post-graduates are churned out from India and 500,000 engineering graduates pass out from Indian Engineering colleges each year.
- Around 4 million IT professionals are directly employed in the IT industry and 10 million indirectly.
- Over 200,000 IT graduates are annually added to the IT workforce in India, which makes them the youngest employable population globally.
- In the next 5 years, it is expected that 40% of the Indian IT workforce would enhance their skills in emerging technology to meet advanced skill requirements.
IT service outsourced to India
- Web Development
- Software Product Development
- Content Management System (CMS)
- ecommerce Solutions
- e-Learning Systems
- CRM Systems
- Enterprise Information Portals
- Intranet Applications
- Customer ERP Systems
- Legacy System Maintenance
- Application Enhancement
Now that you are well aware of which services are best suited for outsourcing, you must find the best company for IT sourcing in India. While plenty of IT outsourcing companies in India there are several ways to find an effective one. Let me help you in preparing a questionnaire that fits your requirements.
- What are the major services you offer?
- Please provide 7-8 benefits you offer your customers?
- Do you make custom web design or use the theme?
- Can you provide the Portfolio?
- Do you provide case studies to showcase the results of your web design?
- What is the policy for building websites in comparison with the competitors?
- How do I get the timely work progress of the project?
- What are the types of technologies you are specialized in?
- Do you give round the clock support and also handling the updates of the applications?
Summing Up
Whether you want to minimize your cost, include advanced technologies towards growing your business, outsourcing to India could be the right step. There are many advantages you can avail, cost benefits you can leverage, timely updates on work, maintenance and round clock support, and technology stack you can bring to the table when you choose to outsource development to India.
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