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25 One Line Reasons To Hire an IT Outsourcing Company

Let us now explore 25 reasons why you should hire an IT outsourcing company-

1. Outsourcing helps in reducing and controlling operating costs (the largest driver)

2. It helps in improving company focus

3. Gaining access to world-class capabilities

4. Streamlining or increasing efficiency for time-consuming functions

5. Maximizing use of external resources

6. Sharing and mitigating risks with a partner company

7. Cheaper labor costs

8. Less strict labor regulations

9. More relaxed environmental norms

10. Tax benefits- By handling business overseas, businesses are able to take advantage of lower corporate tax rates

11. Easy access to raw materials

12. Focus on the core business process while offshoring other business processes

13. Enables you to take advantages of a global knowledge base and talent pool

14. Gain access to resources not available internally or locally

15. Outsourcing can help a company expand and gain access to new markets

16. Accelerate migration to new technology with minimal downtime

17. Overcome the problem of lack of workers during holiday season and off-season.

18. Save on training costs of employees

19. Outsourcing can help a business adapt more quickly to rising or slowing demand.

20. Using offshore dedicated developers is a good way to make sure you don’t go over your budget.

21. Access to round the clock support

22. Make capital funds available

23. Leverage value added services which add value to your business by improving productivity and efficiency while reducing cost

24. Outsourcing has the potential to change industry dynamics by doing away with boom and bust cycles.

25. You can determine the workload for your offshore remote team and oversee their activities while having full control of them.

Also Read: 5 Best Outsourcing Countries to Outsource Web Development Services

What Next : The Future of Outsourcing

Digital is the future of outsourcing. More and more agencies are going to increasingly use digital systems to offer better services. With the way outsourcing is evolving, it’s going to make way for several trends, chief of which are:

Outsourcing relationships will become more systematized as businesses will be driven by process rather than price.
Furthermore, startups, SOHOs, and small businesses will see higher adoption of IT outsourcing company to contain operational inefficiencies.
Critical business functions will see higher outsourcing while the same for low-end services will stabilize.
In addition, cost pressures will give rise to personalized outsourcing contracts flexible in their SLAs and delivery scope.

Outsourcing to Uplers

With an expert and experienced white label marketing agency such as Uplers, you can focus on what you do best and let us take care of the rest. Here, at Uplers, we provide smart, focused and passionate teams dedicated to you.

Our process is simple-

Tell us your requirements, we’ll help you pick the right talents and create an ideal dedicated remote team.

Connect now.

Top 10 Facts About Offshore Development Centers Across the World

1. India Remains as the Best Offshore Development Center Location

According to the Global Services Location Index (GSLI) of 2019, India remains the top offshoring destination for organizations around the world, especially for web development services. In fact, a study from IT giant Deloitte claimed that around 59% of the participating companies in its survey outsource to India, with a further 22% planning to do so soon.

This seems to driven by a rich and growing pool of engineers and web developers in India that can bring a variety of talents in technologies such as ASP.NET, ZenCart, Joomla, AngularJS, WordPress, Magento, and ReactJS.

2. India Clocks the Lowest Operating Costs Amongst ODCs

If we compare the average cost of developer salaries around the world, India again emerges as the frontrunner with the lowest costs (refer to the graph below).

Source

This is even less than the average developer salary in the Philippines, which stands at USD 8,138.32. Combining all statistics, the top 3 offshore development centers in terms of costs come down to be: India, Philippines, and Columbia.

3. China and India Remain the Biggest Seas of Talent Pool

A study from the Institution of Engineering and Technology has found that the shortage of engineers in the US has constantly been growing. On the other hand, there is a profound availability of talented engineers and STEM graduates (science, technology, engineering, and maths) at the other end of the world.

Source

China leads the way with the biggest talent pool, followed by India as a close second. Throw in the fact that India gives more importance to the English language than China and India, again, emerges as the preferred choice for most organizations.

4. China Leads the Way With the Highest Growth in the Past Decade

Over the past 10 years, China has seen an increase in revenue from $1.38 billion to $106.46 billion. This pegs it as the ODC that has clocked the most growth. In the same time period, the technology service industry of India has grown from a revenue of $4 billion to $58 billion. Alternatively, the valuation of Ukraine’s offshore development centers stands at $5 billion today.

Although it is also important to note that the majority of China’s growth is contributed by manufacturing offshoring.

5. India Holds a Major Chunk of Global Technology Sourcing Market

As reported by the Ministry of Electronics and Information Technology, India is responsible for 7% of the global technology sourcing market. This includes both software and hardware shares in the industry. One of the major driving forces for this is the average hourly wage for Indian developers, which is $15 as compared to $100 for an American Developer. All this and more means that India remains the top outsourcing destination for some of the greatest technology companies around the world. This also brings us to our next point…

6. Major Technological Organizations That Are Outsourcing to India and China

India remains home to some of the largest tech companies around the world, including Microsoft, Oracle, Dell Cisco, Alphabet, and IBM. In fact, more than 15,000 of the foreign companies are outsourcing to India today. Out of these, 1000 are large organizations.

Contrastingly, China remains as the outsourcing hub for companies such as Apple and Google, with a manufacturing capacity of 500,000 iPhones per day.

Also Read: Top 5 Things To Consider Before You Hire Offshore Developers

7. ODCs Save Companies Tremendous Amounts of Money

It is a well-known fact that ODCs save outsourcing organizations a lot of money. To put this into perspective, Offshore Development Centers in India alone have helped to save organizations an estimated $200 Billion. In costs in the past 5 years itself (cost-reduction of around 60%).

Other ODC locations have also been known to bring down their development costs by up to 60%. In terms of overhead salaries, employee benefits, and infrastructure.

8. Increasing Focus on Data Security is Putting China at a Disadvantage

Data security has been a long-standing concern for offshore development processes. This has been one of the biggest challenges being faced by China today. Intellectual property (IP) protection remains an issue with as many as 61% of the companies that are outsourcing to China. To consider software piracy as the leading issue, following by unauthorized usage, rebranding, or redistribution. This primarily due to the poor enforcement of IP rights in China, which is lagging behind Its enactment of laws.

9. Poland and Philippines Remain Lucrative Alternatives

As per industry reports, Poland remains the 4th and Philippines as the 5th best country to outsource software development requirements (behind India, Ukraine, and China, respectively). Developers in Poland have been known to be skilled in project management along with proficiency in languages databases and security.

The Philippines is known for its programming skills with proficiency such as PHP, .NET, Ruby, HTML.ASP, Java, C++, and Python.

10. India Leads the Way As a Global Innovation Leader in its Region

If we look at the top 3 innovation economies by region, India regained its position as the leader. This is followed by Iran and Kazakhstan. As published by the Global Innovation Index of 2019 report, this is regardless of the economic slowdown which seemed to have no effect on the innovation scale.

Rounding It Up

Major factors to analyze the best offshoring country for you include Time zone differences, cost of outsourcing and innovation index. When we look at all of these, India naturally emerges as the best outsourcing destination. At Uplers, we can help you successfully outsource both web development and digital marketing services in India. Get in touch with us for a free consultation today.

Top 5 Things to Consider while Hiring Offshore Developers

Planning to hire offshore developers? Keep these tips in mind to make it a rewarding experience.

Do you know that 71% of businesses outsource web development projects include some of the most popular Fortune 500 companies like Apple, Microsoft and General Electric? Moreover, most Fortune 500 companies hire dedicated developers and rely on these offshore remote teams for project executions. Let’s look at the Top 5 Things to Consider while Hiring Offshore Developers.

Why Outsource?

The global market value of outsourcing reached US$ 92.5 billion in 2019. Two key factors drive this growth:

Cost-Efficiency: Outsourcing web development tasks are considerably less resource-intensive than getting them done in-house. According to a Glassdoor survey, businesses pay $90,000 per year to web developers. They can get the same expertise by hiring offshore developers from India at almost half the cost.
Access to Global Talent: Outsourcing allows ready access to available talent globally, which saves time and resources by cutting out the entire hiring and onboarding process.

5 Key Considerations while Hiring Offshore Developers

1. Geographical Location

Your outsourced development team needs to be located in a country with world-class infrastructure for delivering the services you seek. For instance, the partnership might become difficult if your partner lacks adequate high-performance internet access.

Choose a country that has an existing and thriving business relationship with yours. That indicates your offshore development partner is likely to have a cultural orientation about the business atmosphere in yours. That’s a huge plus.

English is pretty much the language of international business dealings. Check the country’s English proficiency before hiring offshore developers there. You wouldn’t want a language barrier in your communications.

India tops the global outsourcing destination list for any kind of IT requirements. Web development included, of course.

India now ranks 63rd among 190 countries in the World Bank report on ease of doing business. In Tholons’ Services Globalization Report 2019, India tops the list of digital nations. The score breakup (on a total of 1) is as follows:

Talent, Skill, and Quality: 0.91
Cost and Infrastructure: 0.80
Business Catalyst: 0.79
Digital Innovation: 0.72

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

The following graph represents the global offshoring preferences. The “Already there” legend stands for the surveyed companies that have an existing relationship with a particular country.

Source

Other than the cost benefits, skills and ease of outsourcing are other factors that indicate why you should hire developers in India.

Also read: 5 Best Outsourcing Countries for Web Development: Cost & Time Difference

2. Company Stability and Reliability

Once you’ve zeroed in on the country, you need to check the company’s profile before you make a decision. We recommend partnering with a web development company rather than with an individual freelancer if you need ongoing development support.

The stability and reliability factors of a company are critical to ensure that your project does not suffer because of issues at your offshore partner’s end.

Use the following yardsticks to measure an outsourcing company’s stability and reliability:

Check the annual financial statements for three consecutive years to check for the company’s growth profile. Investigate both net income and revenue growth.
- Examine the debt/equity ratio to determine the company’s financial health.
- Find out how long the company has been in business.
- Check the company website carefully.Look for customer reviews.
When you begin the initial communications, ask for customer references. Ask for their contacts to be able to speak to some customers directly.
Inquire if the company has experience of working for clients in your country. That will indicate a pre-existing idea about the business culture in your country. That’s an advantage for sure.
Investigate the company’s cyber-security commitment and history. You wouldn’t want to risk a security breach.

It is always a better choice to hire dedicated developers from a trusted outsourcing vendor instead of investing your money and efforts on freelancers.

3. Cost Efficiency

This is the other major factor behind your decision to hire offshore developers. Calculations of how much cost-cutting you’ll be able to achieve are definitely important.

However, it may not be cost-effective in the long run to choose the company offering the least expensive terms. Cost efficiency needs to balance expenses and quality. Compromising quality to cut costs is not good business practice.

We present two tables below:

The first one reflects the average hourly rates for hiring dedicated developers across popular offshoring destinations.

Source

The second one presents a more detailed breakdown of the average hourly rates for developers across tiers if you adopt the dedicated team model in offshore outsourcing. Full-time employee in the second table implies an offshore dedicated team employee, not an in-house team member.

Source

4. Human Resource and Talent Pool

If access to global talent is one of the main reasons you are hiring offshore developers in the first place. You have to probe the actual human resource and the skill-sets a company can offer.

Check whether the company you outsource web development to actually has an in-house staff with the required skills ready to work for you. If their policy is to hire freelancers when they get a project, you should better look elsewhere.

This is critical. The Mercer-Mettle Report 2019 on India’s state of talent acquisition reflects the following:

100% of small businesses (1-500 employees) reported talent acquisition to be a challenge
90% of the medium-sized companies (501-1000 employees) said the same.
So did 67% of the large companies (more than 1000 employees)
Technology, internet, and electronics are among the industries that reported talent acquisition as a challenge.

The PWC CEO survey report 2019 also reflects that 79% of CEOs globally are concerned about the availability of the right kind of digital talent.

How To Check If The Vendor Has The Human Resource That You Need

Ask for online interviews with the staff member/s who will be working for your project.
Organize to have their skills tested on-the-job. Get them to work on something while someone from your side oversees that. There are online platforms to facilitate such a process.
If the company has personnel who have worked for clients in your country before, it will be beneficial for you to have such members in your offshore team.

5. Industry Understanding

Just as a prior idea about the business practices of your country is an advantage, so is industry understanding.

Different industries have different needs. Check if the company and the offshore developers they propose for your development needs have the experience of working in your industry before.

This is not mandatory. However, if they do have exposure to your industry, that will be of considerable advantage to you.

Hiring Offshore Developers for Short-term or Long-term?

Just as there are different models of outsourcing, there are varying partnership models in offshoring also. Do you have a short-term need of developers for one particular time-bound project? If yes, a project-based contract with an offshore vendor may be all you need.

However, if you need long-term development support over a period of time, it is recommended to hire dedicated developers. You can build your own dedicated web development team offshore.

A dedicated remote team is like your own in-house team without the recruitment and onboarding hassles. Also without the heavy overheads. You get a readymade team of your choice. You also get the authority to retain monitoring and oversight control. But you remain free from the need to micromanage.

You cannot possibly ask for anything better.

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25 One Line Reasons To Hire an IT Outsourcing Company