Home » Why India is a Top-Notched Destination for Outsourcing

Why India is a Top-Notched Destination for Outsourcing

by Steven Brown

Outsourcing to India has been a popular business model for many global companies. The popularity is due to cost-cutting avenues, scalability and growth. In addition, the opportunity arises for tapping domain expertise at a lower cost.

When it comes to outsourcing, India remains the top outsourcing destination. And, global companies have outsourced their software projects, including UX design ones, for the last several years.

According to a NASSCOM report, about half of all Fortune 500 companies outsource to Indian software companies.

Before discovering various aspects of outsourcing, let us understand what outsourcing is all about.

You can regard outsourcing as the practice of getting specific business tasks performed outside of your company. For example, you can outsource your user experience design task to a reputed UI UX design studio in India.

Benefits of Outsourcing


When businesses outsource their projects, they reap the following benefits:

Cost Cutting

By outsourcing projects, companies can reduce recruitment and training costs as they leverage external teams’ expertise at lower costs.


After companies outsource their projects, they get the flexibility to scale up or down quickly as per the requirements of their projects.


Indian companies have a reputation for delivering projects with a faster turnaround time. As a result, businesses can get their projects delivered faster.

Access to Latest Technology

When businesses outsource their projects, they can leverage the latest technologies. And outsourcing is a cost-effective option compared to training an in-house team.

Types of Outsourcing

Outsourcing involves three terms–onshore, nearshore and offshore.


It involves outsourcing projects to a third-party vendor located within the same country. The involved merits of onshore outsourcing are fewer cultural differences and ease of communication. However, the involved downsides are high costs and a limited talent pool.


It involves getting a project done by a third-party vendor located in a nearby country with a similar time zone.

Nearshoring also involves fewer cultural differences, but the costs are higher.


It is the process of outsourcing projects to vendors in a different country. There is also another offshoring model.

A company collaborates with a third-party offshore company that provides the infrastructure, support and resources to work with the client directly.

Offshoring is relevant to the IT industry due to a shortage of expert professionals in the local market.

With outsourcing, companies become more agile. And that means companies can quickly respond to the changing business demands.

The Advantages of Outsourcing to India

Let us look at some key advantages of outsourcing to UX design companies in India.

Large Talent Pool

The foremost advantage of outsourcing to India is getting access to a large and varied pool of skilled talent.

Here are some statistics about India’s talent pool:

⦁ India produces around 300,000 postgraduates and 500,000 engineering graduates yearly from engineering colleges.

⦁ More than 200,000 engineering graduates join the IT workforce.

⦁ More than 4 million professionals work directly in Indian IT companies and 10 million indirectly.

⦁ In the succeeding years, more than 40% of the Indian IT professionals will undergo training in emerging technologies such as virtual reality, artificial intelligence and augmented reality.

⦁ India is going to have the world’s largest developer pool by 2024.

World-Class Infrastructure

In India, the IT infrastructure is excellent. Indian companies provide web, mobile and product development services from excellent development centres with the latest technologies.

There is high-speed internet bandwidth to actuate uninterrupted communication. And it is supportive of global clients.

Indian companies have carved out a niche for delivering high-class software solutions and services to their clients.


India represents a top-class destination for outsourcing software development and UX design. With top-notched services, Indian companies have served global clients effectively. Moreover, the country is set to grow further in the outsourcing space.

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