With an educated base of highly skilled, English speaking IT professionals, the low-cost solutions that Indian IT companies provide has made India extremely competitive in the offshore outsourcing market. India also boasts of well-structured tax laws, quality certified software firms, a stable political system and excellent IT networking infrastructure. The high quality output of Indian IT businesses is evident from the fact that India now accounts for 65 percent of the global offshore outsourcing market in IT.

Businesses seeking offshore software development are increasingly looking at India for their needs as they enjoy benefits such as fast turnaround time, a workforce willing to perform under pressure, state-of-the art telecom systems and clearly defined IPR laws.

Unlike some other emerging IT markets, India is considered to be a mature offshore outsourcing market delivering proven results. This has kept it ahead of other global players such as Philippines, Singapore, China, Japan and other countries offering offshore software development.

As many Indian software companies have offshore clients based in the US and Europe, the time lag is also favourable, with a lag or 12 hours for the US and 5 for European countries. Companies from the US, Canada and Europe are turning to India for their software development needs primarily to save on their resources and to remain competitive in their industry.

Providing quality software resources for businesses is a challenge that companies in the IT industry are confronted with.  Through offshore software development outsourcing, the business does not need to hire employees and incur expenses on salary or associated labour costs. They only have to pay the outsourcing company for its services, a far cheaper option to paying wages in the US or Europe.  As labour costs are significantly lower in India companies abroad can outsource some of its functions at a much lower rate.

Software resources that can be provided vary in complexity, from applications such as .Net or Java to creating databases, smartcard solution, enterprise resource planning, wireless application, and some other solutions for business.  These software applications require huge financial resources and a large number of skilled professionals to carry out the work.

Outsourcing providers in India have these resources readily available. There are several software companies who staff hundreds of IT professionals fully equipped and trained to handle outsourced projects, saving companies a small fortune in finding and training staff in-house.

Besides monetary benefits, outsourcing can help in-house staff learn new skills and enhance their knowledge in software development.  Collaborating with an overseas team
IT experts, employees can adapt to new techniques and quickly put their skills into practice.