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The Key Success Factors of Offshore Development Centres in India...

Amit Dua
6th Jun 2019
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Increased competition and globalisation has spawned an era of outsourcing the world over. More and more companies are ramping up their operations for business growth, and outsourcing ensures that there is no loss of efficiency while doing so. Amidst all this, India has emerged as one of the top destinations for outsourcing. Gartner Group has predicted that 40% of its clients will spend 40% of their legacy budget on offshore outsourcing to India in the next 2 years.


ODCs are software studios utilising the deep talent pool and a lower cost of living of another country while offering development services to a company located remotely. As one of the most preferred offshore development centres (ODCs) globally, Indian ODCs are helping organizations take care of tasks such as reducing time to market, shortening release cycles, improving performance and cutting costs etc.


The success factors for Indian Offshore Development Centres

Organizations outsourcing to India are reporting an annual growth of 45-60% already. Promising great returns in terms of efficiency as well as financial returns, India has become a front runner in offshore development. As a first mover, it has the distinct advantage of being the most mature market in the field. Its large young, English speaking, skilled and culturally sensitized population is one of the main reasons of its success. That along with the adoption of cutting-edge technologies and a stable economic growth has led to India to become a preferred destination for offshore development centres.

There are a multitude of benefits with an Indian offshore development centre. Some of them are listed below–


1.    Effective Communication

Working with global teams is a pre-requisite at an ODC. India boasts of multi-lingual workforce who can interact with customers in their own language. It helps them understand customer requirements better and respond promptly. It also helps develop a better rapport with the customer which further smoothen the project implementation.


2.    Project management capabilities

Indian partners have a wide range of experience in offshore development for international clients. As a first mover, it has developed a positive reputation of effective project management by delivering high quality project work in pre-defined budget and timelines. Indian companies deploy standard project management methodologies, quality processes and techniques in place to ensure that the customer receives superior quality of development work from them.


3.    Cost effectiveness

The cost of offshore work in India is 30-50% lower than that in the USA and Europe. Low cost development centres in India are helping businesses scale up according to specific requirements by providing immediate or phased development at a competitive rate.  India also has a stable supply of skilled engineering graduates at competitive rates. These young, English speaking professionals can be deployed at lower salaries compared to their global counterparts in developed countries.


4.    Technological skill sets and expertise

India boasts of a high-class infrastructure to support the growing needs of businesses. The ODCs in India stay on top of continually evolving businesses trends and technology and offer robust and reliable methodology coupled with a skilled manpower.


5.    Reduced time to market

Indian ODCs can deliver products in shorter release cycles. This is possible by the sheer numbers and faster learning curve of Indian professionals across these offshore centres. The time zone difference between India and client’s location also helps in getting a lead tackling issues outside of customer’s business hours. This enables a 24-hour implementation cycle and allows companies to catch up quickly with development especially in case of real-time actions which can be done only at a specified time.


6.    Access to superior infrastructure, quality and innovation

When you outsource, you do not need to hire a development team or set up a development centre. This enables you to kick off a project more quickly. Companies do not need to invest in training or contract expensive resources as their Indian outsourcing partners can ensure superior quality and innovation through their seasoned team of professionals with several years of experience between them. According to a research study by CIO.com, India has the highest number of CMM certified companies. This is why many Fortune 100 companies such as 3M, Amazon etc are outsourcing to India.


7.    Favourable policies

Over the years, India has set an incredible example of commitment towards technological growth. The government has also exhibited its resolve in showcasing India as an offshore destination of choice. It has introduced several policies and schemes such as Digital India, make in India and Startup India that aim to push the country as a preferred destination with a skilled resource pool, dedicated and structured organizations and a favourable environment for businesses to thrive.


In today’s closely connected world, any organization would want to stay competitive. Offshore outsourcing is an essential part of that strategy for an organization that wants to expand and scale up. It provides auto scaling up of a company’s resources while incurring no new infrastructural costs. As India has managed to provide superior quality at relatively lesser costs, it has emerged one of the top offshore destinations. They provide businesses with the ability to focus on their main job without compromising on quality or responsiveness.


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