Statistics:Software Development in India Vs. Other Nations

Jayashree Mudaliar

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India is undoubtedly the most attractive “outsourcing software development” destination. A T Kearney’s 2016 Global Services Location Index(GSLI) rated India as the number one outsourcing destination out of the total 55 countries analysed. China, Malaysia, Brazil, Indonesia, Thailand, Philippines, Mexico, Chile and Poland make the rest of the top 10. It also means that India is as good for off-shore business.

Ample availability of skilled, talented and experienced workforce, low labour cost, developed infrastructure, favourable tax, regulatory environment and financial structure are factors that have made India the perfect location for off-shoring business.

India vs. China

India’s main competition is from China, which is fast catching up to dethrone India from its leadership position. A comparison between the two will give significant advantage for India.

The below table gives the comparative study according to A T Kearney:

How India Beats Other Outsourcing/Off-shoring Countries? Skilled Labour

India’s software development growth is attributed to its large population of skilled youth. More than 50% of the country’s population are below the age of 25 and most of them technical graduates skilled enough to handle software development and other technical off shore works.

According to Evans Data Corp. , India is to surpass the US in number of software developers by the year 2018. A 90% growth rate is estimated in India taking the tally to 5.2 million developers while it is estimated only 25% growth in the US predicting 4.5 million software developers by 2018.

Low Cost

Wages in India are much lower than that in the US and Europe. This is mainly because of the competition in the job market with large number of skilled people. Thus Indians companies could provide services at much lower cost. Organisations could save 30 to 40% in their overall costs when off-shoring to India.

Infrastructure costs in India are also much lower, enabling companies to save on their capital.


Indians excel in quality of service provided. Error rates are much lower in India when compared to other outsourcing locations across the world. This is due to the better English education level of the Indians. They understand and cater the client’s requirements. Once of the main hindrance to Chinese/Asian software development industry is the lack of proper English knowledge.

India also has exposure to all kinds of processes of the West and a large supply of high quality IT professionals that have experience working with global clients. Be it customer support, insurance claim processing, legal process outsourcing, data processing, payroll, human resource and training, engineering and design, accounting, administration and support, medical transcription or content development, Indiancompanies have working knowledge on the same and development and support for the same will be easier when knowing the process.

Time Zone

India sits on the other side of the globe exactly 12 hours from the US. This gives convenience for companies for a 24 hour work environment with no backlog in processing tasks.

Offshore development has been increasing in recent years. There is a lot of scope for growth in this sector. International players like Microsoft, Oracle, Adobe, SAP and Google has scaled up their Indian operations. Although India is placed very strongly in the offshore development market, competitors coming up from countries like China and Philippines show how reliable the industry is.


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