July 30, 2020

Outsourcing Web & Application Development: India vs USA vs Others


No matter what the nature of business is, it is imperative that you build a remarkable business presence online. And if that means to create web or mobile applications, then why not? ! Not only will it accelerate the growth of your business, but also help you gain an edge over your competing counterparts. However, if your core competencies are not associated with the IT industry, then hiring a web or mobile app developer to get the things done is your best bet.

Here’s what we’ll be covering in this post:

POINTS COVERED
  • Why To Outsource Web/Mobile App Development During Corona Pandemic
  • Challenges Of Outsourcing To A Remote Service Provider
  • The Possible Solutions In Present Times With Cost-Benefit Analysis
  • Outsource Web/Mobile Application Development Services To India Or Not?
  • Key Benefits Of Outsourcing Work To India
  • Pros & Cons Of Outsourcing To USA
  • Outsourcing Work To Other Countries – A Good Decision Or Not?
  • Comparing Outsourcing Costs Of USA vs India vs Other Countries
  • Top 15 Companies That Outsource To India
  • Why Do the United States And Other Countries Outsource To India
  • Which industries are more inclined to outsourcing?
  • What percentage of outsourcing does India provide worldwide?
  • What percentage of US companies outsource?
  • How can I outsource work from the USA to India?
  • Is outsourcing to India cheap?

Why You Should Select Offshore Web/Mobile App Development During Corona Pandemic

Outsourcing is a common practice that allows businesses to contract out their business processes and functions to third-party service providers. However, during the Corona pandemic, many business firms refrain from hiring an offshore team.

During these unprecedented times, you must understand that outsourced app development services have a fair share of advantages and disadvantages. Though it might seem to be a potential business risk for some, it might be a golden opportunity to gain a competitive edge for others. But before making a decision, you should first consider the pros and cons of outsourcing.

Choosing to hire offshore mobile app developers during the coronavirus crisis can actually offer substantial efficiency gains, cost savings, and a sustainable competitive advantage.

Challenges Of Outsourcing To A Remote Service Provider

It doesn’t really matter what kind of business you actually own. What really matters is that you create a strong online presence to gain a competitive edge in this digital world. However, if your competencies do not pertain to IT, you might need to hire a remote service provider that has the requisite skills to create an enticing, result-driven web and mobile applications and get things done for you.

Though this may not sound a tough nut to crack, it really is. To get things started, you will need to hire an experienced mobile or web app developer having proficiency in handling all kinds of complex IT and service-related tasks with great ease and diligence.

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Solutions With Cost-Benefit Analysis

In order to overcome the aforesaid challenge, businesses opt for remote app developers from India or any other country with a relatively lower cost of living. His not only helps in setting up virtual offices of companies within the offshore developers’ country and expand their digital footprint even more.

More often than not, the majority of companies look out for service providers that are based in India. The mere reason for this choice is the time and cost factor. By outsourcing app development services to India, businesses can actually save a lot of time and cost.

As far as the modern businesses are concerned, minimizing the errors and scaling down the capital drain should be the prime motto. However, in the current scenario, enterprises intend to dedicate a single resource to handle a multitude of roles at the same time. This, in turn, increases the chance of delays and committing errors.It impacts the cost of operations as well.

From the point of view of practicality, it is not really possible for a company to be adept and at ease with infrastructure development (both software and hardware). Also, when you are having a hard time handling all the tasks with proficiency and keep the expenditures under check, opting for offshore mobile application developmentis a viable thing to do. Companies can assign routine development tasks to an app development expert and take some of the workload off your shoulders. But, do keep in mind that all the assigned tasks are clearly stated with the requisite time deadlines. In addition, ensure that the tasks get completed within the stipulated budget and time frame.

Outsourcing Web/Mobile App Development Services To India – Yay Or Nay?

Most companies outsource their business processes and operations that do not pertain to their core competencies. There are many other vital reasons too, such as time constraint, cost factor, and so on. Infact, nowadays, companies prefer to hire offshore service providers rather than build an in-house team of professionals to handle the tasks.

When it comes to mobile or web application development, offshore outsourcing is opted by an overwhelming majority of companies for a plethora of reasons. The ones topping the list include saved money and minimized time frame. So, it is better to outsource the task.

Now, the question is whether you should outsource mobile app development services to India or not. Though there is a myriad of answers to this question, let us walk you through some of the major paybacks and drawbacks of outsourcing the app development task to India.

Yay For Outsourcing To India

So what would saying yes to outsourcing mean? Let us find out:

1. Affordable Rates For App Development

This is the most pivotal reason for outsourcing the app development task to an offshore developer. India tops the list of popular outsourcing countries offering relatively low rates for app development services. Infact, as per the research data provided by Statista, Indian developers are capable of developing mobile apps three times cheaper than the USA. And needless to say, money saved is money earned! You’ll be able to increase your marketing spend too!

2. Access To A Large Pool Of World-Class App Developers

Even though the US is the global pioneer in the IT world, India’s growth in the sector is beyond imagination.

According to the recent study by Evans Data, India is predicted to own 5.2 million software developers in the coming time.

3. Saved Costs, Time And Efforts

The need for app developers varies from time to time. Every technological advancement calls for different types of skill sets, and hiring a new in-house team for the same would be a very insensible thing to do. Once the project gets completed, the hired team will be left with no task.

When you outsource to India, you get to save a great deal of time and money, and take out time for core business activities.

4. Flexibility

In most cases, businesses offer a wide spectrum of services to their clients. But, what about the additional in-house tasks that require a huge investment? And about your business requirements that keep on changing?

With offshore outsourcing, you can easily get your project requirements modified while they develop the apps for you. Additionally, the scalability is also taken care of by the remote service providers. Indian companies offer a vast array of unmatched development services entailing app design, implementation, web app development, Android and iOS app development, and so on.

Nay For Outsourcing To India

Though outsourcing has become quite a trend nowadays, there are some drawbacks too. But, since India is the cheapest app development outsourcing country, you can still choose to get the app development work done by them.

Let us now take a look at some of the drawbacks that you should know:

1. No Definite Proof

It is not necessary that the company you choose provides you with post-release support of your project. You might get stuck with them while they go out of business. The probable solution is to gather as much information as possible. You can run through some of the popular app development platforms viz. AppFutura or Clutch.

2. Cultural Barriers

While you outsource to offshore companies based in India, you can certainly face cultural differences. Working with Indian developers can give rise to language barriers hampering the communication pattern. There might be a difference in perspective too. The developers might not understand what functions you are looking for in the app, and vice versa. Ultimately, you get the application you never wanted!

3. Difficult To Track & Control The Development Process

You will have a hard time streamlining the development process when you are miles away from your outsourcing company. As a result, it can increase the costs involved in developing the app.

These geographical barriers can be effectively combated by hiring a dedicated project manager from the outsourcing company to track and control the process.

4. Piracy Issue

Another drawback of outsourcing to India is piracy. You must be well aware of the piracy concerning your mobile and web applications. It is quite common when it comes to mobile app development. The remote developer you hire might simply copy the codes written by other developers for some other application of similar nature.Take note of all the aforesaid paybacks and drawbacks of outsourcing to India, and do the math yourself!

In order to minimize the risk of outsourcing to an Indian offshore service provider, we suggest you do a thorough research well in advance. Afterall hiring an offshore outsourcing partner becomes more arduous when you can’t visit the office physically or interact face-to-face.

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Major Advantages of Outsourcing App Development Services to India

Outsourcing the web or mobile app development task can give innumerable benefits to your business. It can make way for a rather agile, yet flexible business functioning. Not only this, you are able to adjust to the dynamic market conditions and challenges, while saving the costs significantly and rendering service level improvements.

Here’s a list of few recognized benefits that will help your business stay afloat during these difficult times:

1. Cost Effectiveness

The cost of hiring an offshore developer will prove to be comparatively less than the salary you pay to your in-house developers. And this is the reason why most companies prefer to outsource their IT development and cut down the operational costs by up to 60%.

As far as cost factor is concerned, India is regarded as the foremost choice for outsourcing the work. However, when it comes to saving the cost, it does not really mean compromising on the wages. The overall operational cost involves a variety of factors.

2. Flexibility

When you outsource the development task by hiring an offshore team, it gives your company a great deal of flexibility, allowing you to pick or remove a developer from your team giving a prior notice.

So, if you choose to hire an offshore development team, you will have the flexibility of either scaling a resource or removing it altogether.

3. Access To A Vast Pool Of Experienced Developers

One of the benefits of outsourcing the development work to India is uninterrupted accessibility to a large pool of experienced offshore developers. This is not possible in the case of an in-house resource. He/she might leave after a while and you might face shortage of resources in the company. But, with offshore developers, there will be no shortage of talent and experience.
When a company avails a dedicated team of experienced offshore developers, there is a surety that they won’t leave midway. Why? Because the offshore service provider is bound by an agreement/contract.

4. Gain Access To A Wide Range Of Skills

In addition to your in-house staff, you also get the opportunity to acquire a wide gamut of skills from the resources hired from an offshore company. Infact, these resources will work for your projects in different time-zones. They will support you in delivering your projects within the stipulated time frame.

5. Regular Monitoring & Control

When you outsource the product development task to an offshore team, you get to manage and monitor the staff members working on your project in a better way. Also, your project will be completed within the stipulated time frame and budget, that too without hindering the quality.

6. Dedicated Work Hours

It gets exhausting for most employees to work extended hours over a long period of time. But, with a dedicated team of offshore developers, your work will not come to a halt. And even if new projects come up, your project will not go unattended.

Pros & Cons Of Outsourcing To USA

There are a number of companies that outsource to western countries like the USA, which is one of the most widely known western countries providing an efficient workforce.

The United States of America is vastly popular for giving a wide range of job options. It is also famous for providing a vast variety of job opportunities and courses to the young generation. So, you will find a lot of programmers/developers, photographers, freelancers, psychologists, and more, rather than doctors, professional lawyers, or engineers.

PROS

The notable perks of outsourcing the routine tasks to a US-based company include the following:

Project-Based DeliveryMost of the American companies work on a project-by-project basis, so your project will get delivered within the stipulated time frame.

No Contracts Or AgreementsThe corporations and its employees are only focused on delivering the assigned task in due time with accuracy, consistency, and commitment. They do not bother about any agreements or contracts.

Access To Highly Efficient StaffHiring an offshore developer from an American company would mean getting access to a large pool of skill sets and talent. The workforce in the US is known to meet the deadlines ahead of time. As a matter of fact, with a US-based remote app developer by your side, your last minute updates will also be taken care of with great ease and precision.

CONS

The only disadvantage of outsourcing the task to the workforce in the US is that they have a higher expectation of salary as compared to the companies based in India, Malaysia, Philippines, China, among a gamut of others.

Outsourcing To Other Countries – A Good Decision Or Not?

There exists many factors that govern the decision of outsourcing development projects. Some of the most prominent ones have been illustrated below:

Project Completion Time
If you plan to carry out a particular task internally, you will be solely responsible for the delays, and consequently for the cost escalations. However, when you outsource to a service provider outside your home country, you must first specify your budget and estimated time frame. And in case you outsource your work to India, your project costs won’t get affected as you will have a contract/agreement stating the completion time and the mutually agreed upon budget. Infact, just make sure you hire a trusted offshore developer with strong experience in the field.

Quality Of Work Delivered
There will be companies which will boast their achievements and quality of work they deliver to their clients. In such a scenario, you must be very careful and pay close attention to what they have to share.
What needs to be done is outsourcing to a notable offshore partner that has extensive knowledge and a proven track record. Additionally, you must ensure that the remote workforce is complying with the quality standards and abiding by the rules and legislations of the country. If not, it might have serious implications affecting your business immeasurably. Look out for competence, accuracy, and thoroughness before finalizing the offshore team.

Seamless Communication
Hiring an offshore team of dedicated developers becomes imperative when you are looking to make your project a success. But, for this, you need to communicate well and share your ideas and requirements. This means that you must overcome the cultural differences, language barriers and time zone differences to complete your projects seamlessly. India is a perfect outsourcing partner making English language as its medium to communicate, eliminating all the barriers and rendering an effective communication flow.

The aforesaid factors play a pivotal role while analyzing your outsourcing decision. Companies usually prefer to go for Indian service providers as they can fulfill all the above criteria efficaciously.

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Comparison Of Outsourcing Costs of USA vs India vs Other Countries

Unbelievable as it sounds, your company can easily cut down 30 to 35% of the costs by outsourcing to India, instead of any other country. A majority of Indian companies render offshore app development services. They follow a well-defined procedure and depending on your requisite requirements, they give you the option to select a monthly fixed rate or go for an hourly rated service. If you intend to give a boost to the profitability of your business, you should hire Indian developers by spending only a fraction of the cost.You will save more than what you expect. Afterall, money saved is money earned!

If not done already, you must first reckon the profit you’ll earn by outsourcing the development job to an Indian offshore service provider. Also, consider the professional and timely service delivery.

Now, let us give you a quick comparison of the outsourcing costs of various countries:

POSITION COUNTRY AVERAGE ANNUAL SALARY
1. Australia $106,000
2. USA $94,000
3. Switzerland $69,741
4. Denmark $58,237
5. Germany $57,581
6. UK $43,682
7. Japan $31,245
8. Malaysia $15,392
9. India $14,000
10. Philippines $7,521

The above overview of outsourcing cost comparison of USA vs India vs other countries has been illustrated by Time Doctor, DOU.

Out of these top 10 countries, Australia is the one with a relatively higher pay as compared to other countries. The USA requires $94,000 which makes it the second most paid in the list.

The workforce in the Philippines do not charge much for their services. And even though it is the least paid country, it doesn’t really meet up the other key factors necessary for outsourcing, viz. communication, proper internet connectivity, and more.

It is clearly evident from the table that the workforce of the United States charges 80,000 U.S. dollars more than the Indian workforce.

Country With Average Annual Salary
USA – $94,000
India – $14,000

Talking about India, it ranks ninth with an average annual salary of $14,000, and is one of least paid countries. Therefore, hiring a remote development team from India would not only be a viable option to choose, but a cheaper one too.

Top 15 Companies That Outsource Their Work To India

There are a plethora of A-list companies that outsource their work to India. And these aren’t limited to only the IT industry, but span across diverse verticals and segments, including analytics, banking, finance, and more. Here’s a list of some of the top companies that go for outsourced app development services to get things done:

  1. IBM
  2. Telstra
  3. Oracle
  4. ATT Wireless
  5. Hewlett Packard
  6. Dell Computer Support
  7. Vodafone
  8. Cognizant
  9. Rand McNally
  10. Texas Electronics
  11. TransUnion
  12. Wipro
  13. Schlumberger
  14. BestBuy
  15. Rand McNally

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Why Does USA And Other Countries Outsource To India

From the last few years, India has been topping the list of outsourcing countries for companies based in the US, Australia, UK, Philippines, etc. Let us throw some light on few of the prominent reasons why USA and other countries outsource to India:

1. Ease Of Communication
Majority of people in India are good at speaking and comprehending the English language, especially in some parts of the country. This not only ensures a smooth communication flow, but also eliminates the language barrier to carry out the assigned tasks. So, as far as outsourcing to India is concerned, it doesn’t really matter whether the companies are based in Australia, UK, USA or any other English speaking country.

2. Cost Reduction
When you outsource the app development task to a remote service provider in India, you get to pay a lot less in comparison to other countries. Infact, as compared to the USA, the average wages are way too low. And so, the completion of your project becomes possible within a small budget, and that too without compromising on the quality.

3. Clearly Stated Rules & Regulations
In the past couple of years, the government of India has executed many laws and legislations to protect and enforce the interests of foreign corporations and investors. The rules and regulations are well-defined for all kinds of business transactions, minimizing the chances of fraud in the country.

4. Young Minds At Work
India often boasts about it’s youngest and brightest minds present in the world. The Indian youth possess the right skill sets and talent, and are adept at handling complex tasks with utmost ease and diligence.

Which industries are more inclined to outsource?

The utilization of service providers to supply IT-reliant business operations, apps, and infrastructure solutions is known as information technology outsourcing (ITO).

IT outsourcing is accelerated as a result of digital organizational changes. Cloud computing, with its component divisions infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS), makes some ITO outsourcing services more accessible.

One of the developments reshaping the IT outsourcing environment is automation. Automation as a service delivery paradigm is expected to grow in the future, according to a growing number of companies around the world. Advancements in chatbots, blockchain technology, artificial intelligence, and machine learning are being made to eliminate errors and increase workflow productivity.

Software development outsourcing has been increasingly crucial for six industries in particular. Retailers can hire a third-party software specialist who specializes in app development. E-commerce companies can save up to 85% on upfront costs by outsourcing their IT. It saves them a tremendous amount of time, energy, and resources that could be better spent on marketing and other more productive tasks.

The healthcare industry requires dependable offshore outsourcing that operates with complete confidentiality and data security.

Outsourcing in the Edtech sector allows businesses to provide customer service, live chat assistance, and develop web and mobile applications to promote learning.

The tourism sector is nearly reliant on bespoke software services by its internet presence. Travel software outsourcing can help organizations succeed in such a competitive environment.

What percentage of outsourcing does India provide worldwide?

The industry was dominated by IT exports, which accounted for most overall income. In 2021, India’s information technology business was expected to spend approximately 80 billion dollars on various areas.

According to NASSCOM, India controls 44 per cent of the global offshore outsourcing market for software and back-office services, with revenues of $17.2 billion in 2004-5. As many as 400 of the Fortune 500 companies now have either set up offices in India or outsource to Indian technology firms.

What percentage of US companies outsource?

The United States has a 66 percent outsourcing penetration level. In the same year, 92 percent of firms had an active contract for information technology outsourcing (ITO).

As the pandemic accelerated global businesses, companies have increased their competition into transferring to digitalized operations. The US has the most percentage of outsourced services in the world, with almost 68% of companies delegating their services.

countries for outsourcing services

How can I outsource work from the United States to India?

Following are the fundamental procedures to take before outsourcing your needs to India.

  • Check the Outsourcing Laws that are now in effect.
  • Determine the services and products you’d like to outsource.
  • Conduct a market survey.
  • Applications from as many companies as possible should be advertised and welcomed.
  • Compare and evaluate your choices.
  • Create a channel for ongoing communication and updates.
  • These are some of the fundamental procedures to take before outsourcing your needs to India.

Is outsourcing to India cheap?

Because of their capacity to execute complex tasks and the expectation of lesser pay, India’s workforce is favoured in other countries. It usually fluctuates depending on the urgency and intricacy of the project. Compared to equal hourly expenses in developed markets such as the United States and the United Kingdom, the cost would be roughly 50-75 percent lower.

Average hourly outsourcing rate

Conclusion

All in all, IT outsourcing comes with a plethora of benefits encompassing saved time, increased efficiency, and lower costs. But, before outsourcing, you must consider all the key factors. As far as Indian workforce is concerned, they are the most favored ones due to their competence to take up complex jobs without expecting a handsome pay in return.

Are you on the lookout to hire the best offshore workforce from India for your web/mobile app development needs? TechnoScore is a reliable technology partner offering affordable application development services within your budget and time frame. In order to connect with our certified developers, simply drop us a line or two at info@technoscore.com.

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