Which is the Best Location to have your Offshore IT Team? and Why?

A Remote IT Services and Offshore IT Staffing Consultant from the Greater Atlanta Area inquired, “Which is the best location to have your offshore IT team?”

I came across different answers from various group members. Options like Bangladesh, Vietnam, Philippines, and Poland filled my screen.
I do not know much about why exactly these countries can be the best options. I feel sure there could be some rock solid reasons. However, the one country I have known from working here for so long is India. From having come across really talented people, day in and day out in my daily professional life, I have reason to trust some of the statistics I managed to compile from various sources on the Internet, on what makes India the best location for an offshore IT team.
Here I go with my list of reasons:
  • Churning Engineers: There are 3393 engineering colleges in India having 1,485,000 seats per year, across 36 courses approved by the All India Council of Technical Education (AICTE)
  • Geographical Spread: 65% colleges are in the south and 35% in the north
  • Churning MBAs: The number of MBA seats in India has grown 4-fold from 94,704 in 2006-07 to 3,52,571 in 2011-12, resulting in a 5-year compounded annual growth rate of 30 percent
  • Workforce: The size of India’s workforce is between 430 and 471 mn
  • Low Budget Tier II Cities: Cities like Nashik, Sangli, Aurangabad (Maharashtra), Mangalore, Mysore, Hubli-Dharwad, Belgaum,Coimbatore, Nagpur, Kochi, Trivandrum, Chandigarh, Mohali, Panchkula, Ahmedabad, Bhubaneswar, Jaipur, Visakhapatnam, Raipur and Lucknow offer a truly sizable lower business process overhead
  • Government Support to Infrastructure: The Government of India in partnership with private infrastructure corporations is providing robust infrastructure throughout the nation
  • Fortune 500 Presence in India: Almost half the Fortune 500 companies, have offices in India
  • Number One Outsourcing Destination: 80% of European and US outsourcing firms ranked India as their number one outsourcing destination
  • Major Differentiators: Favorable government policies, fast-developing infrastructure, and an immensely talented work force, are responsible for the Indian IT outsourcing industry continuing to experience a tremendous growth rate of 25–30% per year
  • Unmatched Vast Pool of Skilled Resources: The country has a population of over 1.2 billion people and around 3.1 million graduates are added to the workforce each year
  • Largest English Speaking Country: India also holds the distinction of being the largest English speaking nation in the world, larger even than the US and UK combined together
  • Price Flexibility: A good developer in the U.S. can cost anywhere from $50 to $80 an hour, while a developer in India can be at as low as $15 per hour, and we are talking about full-time, permanent employees here. This pricing flexibility allows companies to manage their budgets and reap large profits
  • Cutting-edge Infrastructure: India offers state-of-the-art telecom, ISP, and cellular networks, latest and best in software technology, including customized solutions for various applications such as e-commerce, business process re-engineering, system migration, legacy system maintenance, system integration, and much more. Outsourcing companies also maintain uninterrupted communication channels with clients by providing high-speed bandwidth via satellite connectivity, submarine cables and fibre optic networks
  • IT – A Top Indian Priority: IT is regarded as one of the top 5 priority industries in India, and the government has framed policies to obtain maximum benefit from the same. IT industry has support in the form of various tax benefits and the Information Technology Act, which recognizes electronic contracts, bars cyber-crime, and supports e-filing of documents
  • Favorable Time-Zone Difference: India provides the quickest time-to-market due to an advantageous time zone difference. The 12-hour time difference between India and the USA provides companies with numerous opportunities for work to be completed earlier than expected, leading to greater efficiency, increased productivity and more time to focus on other crucial tasks. India is an ideal option for 24X7 Customer Support and Helpdesk services
  • Global Offshore Market Share: India has 65% of the global offshore BPO market
  • US Software Export Share: India is the favorite with 82% of Nasscom
  • Top CMMi Capability: THREE out of every FOUR SEI-CMM 5 companies worldwide are located in India
  • Global Reach: India exports software to over 95 countries
  • 2nd Largest Exporter of Software: India is the world’s 2nd largest exporter of software, after US
  • 40% of Start-ups in Silicon Valley: India is the source of management and technical talent for over 40% of new start-ups in Silicon Valley
  • Number One in ISO 9000 Certification: India has more software companies with ISO 9000 certification than any other country in the world