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Best Country to Outsource Web Development: India Vs Philippines

Best Country to Outsource Web Development: India Vs Philippines

Outsourcing industry increased from US$ 45.6 billion in 2000 to US$ 92.5 billion in 2019. IT outsourcing accounted for US$ 66.5 billion of that. Web development outsourcing would be included within that, of course. 

Outsourcing IT services, including web development, is no longer limited to big companies only. Not even to medium companies. A Clutch survey reveals that 37% of the 529 small companies covered were outsourcing their IT services in 2018. So, this article discusses which is the preferred location to outsource web development – India Vs Philippines.

Web Development Outsourcing: Cost Matters

Clutch offers the following information on the hourly rates for outsourcing web development in 2019:

Web Development Outsourcing: Cost Matters

In contrast, the hourly rates for web development services in Asian countries varied between US$ 18-40 in 2019. It is natural that Asia continues to be the leading destination for offshore web development. 

Within Asia, Ranker rates India to be the most favoured or best outsourcing country for any kind of IT-related needs as also for other outsourced services. Web development services are very much a part of that. China comes second and is considered India’s strongest contender. 

The Philippines ranks 8th on the Ranker list but is marked as a special case. That is because outsourcing to this country has been growing by 46%. That makes it one of the strongest emergent countries in outsourcing. That is not IT-specific, though.

Zeroing In on India & The Philippines

The existing leader and the strongest newbie – that is the combination that we explore in this article. For this discussion, we take it as a given that the web development costs are comparable in the two countries. 

Let us start with some basic facts about these two Asian countries.

  • India ranks 37th on the wellbeing index, while the Philippines ranks 42nd. 
  • The Philippines is economically richer than India as a country. In 2018, the GDP per capita in the Philippines was US$ 3,103. India’s GDP per capital in 2018 was US$ 2,010.

India as the Preferred Destination to Outsource Web Development

There are several reasons behind outsourcing web development to India.

  • Globally Recognized as an IT Talent Pool

India is a vast country with a large population second only to China. Because of its history of colonization, the country has the advantage of an advanced western education system. A vast number of students complete their graduation and post-graduation every year to start their careers in various web development companies in India.

outsource web development to India fortune 500 comonies

In 2016, 81.3 thousand male students and 79.24 thousand female students graduated in the computer engineering stream in India. Naturally enough, for many years now, the global North has recognized India as a reservoir of an enviable talent pool in the IT industry.  

  • Cutting-edge IT Infrastructure & Up-to-date Technology

India has been the IT outsourcing hub for a while now. One of the most advantageous results of that is the country’s highly developed IT infrastructure. It also has the latest technologies to offer the most advanced web development services. The availability of vast talents is one of the important reasons why countries choose to outsource web development to India.

  • A Young & Productive Population

As per the 2011 Census of India report, 8.7% of the country’s population is in the 20-24 age band while 27.6% are in the 25-44 age range. This is another driving factor behind the country emerging as the most preferred offshoring destination for IT needs with proliferating web development companies. 

  • Second Largest English-speaking Country

English is more or less the lingua franca of international communication. After the U.S., India is the second-largest English-speaking country in the world. That implies ease of communication as an offshore partner. There is no language barrier to pose a problem with web development companies in India. 

  • Experience Combines With the Creativity of Youth

India’s long-standing experience as the preferred IT outsourcing destination has given the country’s IT sector deep insights about the demands and preferences of the global North. The growing young population combines their contemporary sensibilities and creativity with that wisdom gained from experience. 

best it outsourcing companies location

  • India’s Innovation Ranking

The Boston Consulting Group published the International Innovation Index in March 2009. India ranks 46th among 110 countries with an overall score of 0.06 and an innovation inputs score of 0.14.

In the Global Innovation Index 2019, published jointly by Cornell University, INSEAD, and WIPO, India ranks 52nd among 129 countries. Its score is 36.64. 

  • Kearny Ranking of Location Attractiveness 2019

For its 2019 report on location attractiveness as an IT outsourcing destination, A. T. Kearney included a new parameter: digital resonance. 

India is the best outsourcing country as per report

The umbrella concept of digital resonance includes the following: 

  • Digital skill levels of the labour force
  • Cybersecurity protection environment
  • The amount of corporate activity
  • Digital outputs: creative outputs, knowledge outputs, and technology outputs

With this addition also, India has remained the most attractive location globally for IT outsourcing, followed by China and Malaysia. 

Also Read: Top 10 Facts About Offshore Development Centers Across the World

Philippines is Still a Rising Outsourcing Destination For Web Development Services

As per the English Proficiency Index, the Philippines ranks second among Asian countries with a score of 60.14. India ranks fifth with a score of 55.49. 

  • IT Outsourcing to the Philippines

English proficiency has made the Philippines a preferred destination for BPO (business process outsourcing). However, it is nowhere near India in its IT talent pool. The country ranks 7th as a preferred destination for IT services outsourcing. 

The Philippines is not a technologically advanced country and its IT infrastructure is extremely poor

  • Innovation Ranking

In the 2009 International Innovation Index, the Philippines ranked 54th among 110 countries with an overall score of -0.16, and an innovation inputs score of 0.76. In the 2019 Global Innovation Index, the country ranks 54th among 129 countries with a score of 36.18. 

In the 2019 Kearny ranking of location attractiveness, the Philippines is in the 10th position.

best outsourcing location India vs philippines image

Source

So.

The discussion makes it clear that the outsourcing growth in the Philippines is because of its emergence as a preferred BPO destination. But, with reference to outsourcing web development services, it will take some time for the island nation to evolve as a competitor for India. 

As of today, India has too many advantages to lose its predominant position.

hiring dedicated developers

 

Hiring Developers and Marketers in India

Hiring Dedicated Developers and Marketers in India – Possibilities and Solutions

A successful business is a well-staffed business, but finding top talent can be costly. Hiring dedicated developers and marketers can cost thousands of dollars in direct expenses, like onboarding efforts, training, payroll, and benefits but also indirectly through lost productivity and turnover.

For many businesses, outsourcing represents a way to manage expenses and increase their bottom line without sacrificing talent and efficiency. Recent statistics show that it can be a powerful economic decision.

outsource web development to India fortune 500 comonies

When polled, a full 82% of US-based companies said they preferred India as an outsourcing destination, particularly when it comes to software tasks. And by 2024, New Delhi India is expected to surpass the U.S. technical economy and become the home to the largest number of developers worldwide.

This rapid growth within the IT sector, and the skills and talent that come along with it, make India one of the best options when it comes to outsourcing marketing and development tasks to India.

India remains the preferred outsourcing option for U.S. businesses, despite opportunities around the globe.

  • $1.08 trillion spent in IT services space
  • 2nd largest English speaking nation next to the U.S.
  • 65% of all outsourced IT jobs are in India
  • English-speaking people, making
  • 82% of US-based companies choose to outsource to India.

Why Companies Prefer Hiring Dedicated Developers and Marketers in India?

Nearly 8 in 10 businesses choose to hire Indian developers and marketers, some of the popular outsourcing providers in India include major corporations like IBM, Telstra, and BestBuy. Though lower costs are certainly one of the primary benefits of outsourcing to India.

In the A T Kearney Preferred Location list of 2019 also, India ranks first with a total index score of 7.06.

hire dedicated developers India

Source

1. Skilled Workforce

Next to the United States, India is the second-largest English speaking country in the world, with over 125 million citizens proficient in the language. For business owners, this translates to a stronger experience for both employers and customers, as issues with language barriers are mitigated.

2. Young and Competitive Technological Landscape

One of the reasons India services as such a competitive technological landscape is because of the increasingly large portion of young, skilled web developers and marketers. Nearly 50% of the population is under 25, and many of them attend one of the 993 universities and 39,931 colleges. Of those attending college in India, annually over 1.5 million graduate from the engineering programs with degrees in STEM fields.

3. Cost-effective

Hiring dedicated developers and marketers in India can help you improve your bottom line by reducing payroll and benefits costs as well as costs associated with finding and hiring top talent. Typically, businesses that do outsource recognize cost savings between 20% – 30%. Below is the average cost of hiring developers from different locations across the globe.

Web-Development-Outsourcing-Cost-Matters-768x389

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Strong presence in multiple industry sectors: When you outsource to India, you gain access to a pool of highly skilled workers across not one but multiple industries.

4. Around the Clock Service

7 Proven Ways to Manage Team Performance to manage team performance offshore teams

Since India is nearly ten hours ahead of U.S. EST, many U.S. businesses find that outsourcing to India provides their company and in some cases even their company with round-the-clock efforts. Meaning development pushes, project launches, and other potentially disruptive changes and updates can take place or be addressed while most U.S. consumers are sleeping. Flexible time zone adds another highlight to hiring dedicated developers in India.

How the Dedicated Team Model is Better Than Outsourcing

When considering offshore business solutions, one of the first decisions that most businesses face is how to incorporate the outsourced team. Traditionally, this is a choice between a project-based outsourcing structure and a dedicated team model.

Project-based outsourcing results in that true “third-party” relationship, where the day-to-day tasks and ownership of the project will largely belong to the outsourced team. That includes project management and QA responsibilities. This can surely free-up your internal team(s), but it can also leave your business vulnerable, specifically when it comes to miscommunications, project delays, or even branding.

table for project-based vs dedicated team model outsourcing

The dedicated team model, on the other hand, provides you with another full function arm of the business. You’ll maintain control of the team, and your offshore development team will work alongside your existing employees to collaborate on and complete projects. This often means greater flexibility when it comes to everything from project requirements, costs, and last minute or unexpected changes.

hiring dedicated developers

Plus, because you aren’t locked for the full-cycle of a project, the dedicated team model allows you to scale back or ramp up as needed. This can make it easier to manage project needs as well as financial concerns.

How to Hire the Best Dedicated Developers and Marketers in India

Outsourcing can help make long and short-term projects more manageable, but only if you hire the right team. Here are some tips to help you ensure that your efforts to higher marketers and Indian developers yield positive results.

  • Define your needs: Before you begin your search, define your company’s long and short-term needs as well as the expectations and responsibilities of the role(s) for which you plan to hire.
  • Identify candidate requirements: Once you know what needs to be done, define the perfect candidate, including both hard and soft skill requirements.
  • Determine how you’ll hire talent: There are many ways to hiring Indian developers and marketers. You can work to find independent freelancers and contracts or you can work with an organization to help you find the best team. Working with an organization that has experience and connection within the outsourcing community can make it easier to find skilled and reliable workers.
  • Review candidates: Work with your human resources department, department managers, and key decision-makers to review candidates.
  • Be ready for your new team: Once you determine who you’ll hire, have an onboarding plan in place. This will limit disruptions and ensure that your new team is up to the task.

Conclusion

By hiring dedicated developers and marketers in India, your business will benefit from a highly skilled labour pool that can bring fresh ideas and an advanced understanding of the marketing and development landscape as it relates to multiple industries.

When you work with Uplers to build your dedicated offshore team, you can expect noticeable and measurable improvements. Our high-performing teams will help you bridge gaps in performance and maximize your company’s potential, regardless of time zone and geographical boundaries.