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July 31, 2020

Spotlight on India: Has the Queen of Outsourcing Lost Her Shine?

Software development outsourcing to India is so common, it’s almost a cliché. After all, India practically invented it a couple of decades ago.

Over the years, though, Western firms that hired Indian software engineering companies didn’t always get good results. This led many to conclude that developers there offer cheap, shoddy service – and many companies abandoned India to seek software support elsewhere.

Of course, some Indian software companies are low-quality providers that should be avoided. That’s bound to happen when demand has created more than 5,000 software engineering service providers! But within that vast market, many rate among the best in the world, at a fraction of the price you’d pay in the US for the same level of skill. What can lead to disaster is the failure to perform due diligence before deciding who to trust as an outsourcing partner.

There are thriving tech hubs right across India, from Chennai in the south to Hyderabad in the center, Mumbai in the west, and Delhi and Jaipur in the north. Pune, known as the “Oxford of the East”, is about 95 miles south of Mumbai and considered to be the IT capital of India. 

On a research trip shortly before COVID-19 restricted travel, Accelerance investigated two leading software development outsourcing companies in this bustling metropolis. Both have experience in a wide range of industries, including manufacturing firms, public sector departments, healthcare facilities and electronic education providers.

For business travelers, Pune is a lively city to visit and remarkably safe, although it’s wise to take the normal precautions, such as avoiding poorly lit areas and not wearing valuables in public.

You’ll have an easy time moving around the city. The simplest option is Uber, but you can also take a cab or rickshaw if you’re willing to pay cash; just make sure to negotiate the fare upfront or you could end up being overcharged. 

Once the base of the peshwas (prime ministers) of the Maratha Empire, which began in the late 17th century, Pune is famous for its grand Aga Khan Palace – now a memorial to Mahatma Gandhi, whose ashes are preserved in the garden. Even more remarkable is the Pataleshwar Cave Temple, carved out from rock more than a thousand years ago.


With the shortage of tech talent on the US domestic market, and rates driven up by increased demand, building software offshore has become more attractive than ever. Here’s why India should be on your shortlist:

Scale: Few skills are more valuable in software outsourcing than the ability to rapidly shrink and scale. India offers offshore software companies that make effective use of fractional resources, which allows quick workforce augmentation if their teams are unable to complete a task. This means you should have no problem working with your developers, no matter how often your software needs change.

Talent: India has a large, highly qualified pool of software engineers with experience in a wide range of fields. The engineers we talked with stay up-to-date on all major programming languages and skills, including Java and Microsoft, as well as all major contemporary tech stacks. Agile methodology is the preferred approach.

Dedicated team model: When your offshore partner has dedicated a team to your software, it allows them to understand and respond more effectively to your needs – and be more invested in its success.

Business culture: Indian software companies work hard to meet their Western partners halfway in bridging the cultural divide. Local professionals study Western business practices and habits, and most speak English as a second language, although it’s helpful to learn some phrases in Marathi or Hindi.

India is a fascinating place to visit, and our first-hand experiences there confirm it’s a place where world-class software product development and digital transformation can still be found. 

Outsource with Confidence with Accelerance

Accelerance travels the world to simplify your search for the best offshore companies – and we remain impressed with what India has to offer. 

Visiting your software development team in person is invaluable to building a good working relationship. With international travel restricted indefinitely, you can have confidence that Accelerance has completed on-site vetting of all the partners in our global network as a key part of the certification process. Virtual meetings and collaboration tools also make it possible to work smoothly and efficiently across the miles.

If you’re interested in outsourcing your software development, contact Accelerance to find out more.

For the latest analysis on outsourcing opportunities throughout South and Southeast Asia, check out our 2021 regional guide.

Andy Hilliard

As CEO, Andy leads and advocates for the globalization and collaboration of great software teams with companies in search of talent, innovation and a globally-distributed extension of their engineering function and culture. Andy founded the ground-breaking nearshore software development services company, Isthmus Costa...

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