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Ending the dilemma - Myths busted about offshoring to India


(Source:rawpixel)


Prime Minister Narendra Modi of India met with tech giants Elon Musk, Tim Cook, Sundar Pichai, and Satya Nadella during his historic visit to the US. Their discussions focused on the power of technology, especially Artificial Intelligence, to transform lives. Musk expressed his enthusiasm for India's progress and plans to bring Starlink Internet to rural areas. Microsoft highlighted its commitment to India's tech growth, while the Foreign Secretary emphasized the exciting outcomes of technology cooperation. These meetings showcased the dynamic potential of Indian innovation on a global scale.


In a captivating and warm declaration, President Biden and Prime Minister Modi have voiced their resolute belief in the transformative power of technology, which will further strengthen the profound alliance between their nations. With great enthusiasm, the leaders lauded the momentous establishment of the Initiative on Critical and Emerging Technology (iCET) in January 2023, recognizing it as a remarkable milestone in the enduring bond between the United States and India.


In a resounding call to action, they urged not only their respective governments but also businesses and academic institutions to wholeheartedly embrace their joint vision for a strategic technology partnership. Their unwavering commitment was palpable as they recommitted both nations to foster an inclusive, accessible, and secure technology ecosystem—one that thrives on mutual confidence, trust, and steadfastly upholds our shared values and democratic institutions.


The future, as painted by these visionary leaders, brims with exciting opportunities and endless possibilities. With technology as the guiding force, the United States and India stand united, poised to embrace a future that is welcoming, prosperous, and driven by collaboration.


The IT sector has existed in India since the early 1980s; however, it was only in the early 90s that the country started emerging as a significant IT offshoring hub. Texas Instruments, American Express, and GE were among the first few market players to explore the hidden benefits of offshoring to India. These benefits include reduced overall costs, round-the-clock operations & customer support, flexibility, and others. But are these advantages restricted only to the top tech giants like the ones mentioned above? Absolutely not!


Then why are some startups in the U.S. still hesitant about building offshore teams in India? They often have misconceptions that offshoring may lead to operational hindrances, unexpected costs, project delays, or even failures. However, due to the tech talent supply-demand gap, building offshore teams has become a necessity of the present times for most U.S.-based startups. Here, we will address the most common concerns of startup stakeholders regarding offshoring work to India.

 

Will I be able to find the right technical expertise?


“India has some of the highest number of unicorns and gazelles, according to Hurun’s Global Unicorn Index 2023. India bagged the third spot with 68 new unicorns” ~ Hurun




India tops the chart for the most popular offshoring destinations owing to its large talent pool. The country produces the second-highest number of Science, Technology, Engineering, and Mathematics (STEM) graduates across the globe. Over 1.5 million engineers graduate every year, out of which 550,000 graduate from the IT faculty.


Several cities in the country, such as Bangalore, Pune, Hyderabad, Chennai, and others, have emerged as IT hubs. Software engineers from various parts of the country migrate to these cities owing to a better quality of living, good work environments, growth opportunities, and a high pay scale offered by IT firms. Thus, there is abundant availability of a highly-skilled & well-experienced workforce.

 

Will offshoring increase overheads?

India is among the most affordable countries to offshore work. The salary of a software developer in India with 6 to 8 years of experience ranges between $17,111 to $22,138. On the other hand, the salary of a software developer in the U.S. with similar experience ranges between $95,000 and $140,000. Thus, it offers access to the best workforce in a very cost-effective manner.

 

Will the time zone difference pose challenges?


“With the creation of a tech hub in India, the speed to market will be dramatic. What we are doing here is leveraging global time zones. The ability to turn around products across markets will be tremendous.” - Ari Sarker (Co-President, Asia Pacific - Mastercard)


By leveraging the time zone difference, you can enable round-the-clock operations. This will ensure a faster go-to-market. It will also empower you to provide 24X7 customer support, which is a crucial aspect of customer satisfaction. Through overlapping work hours, you can enable perfect synchronization between onshore & offshore teams. This will, in turn, facilitate efficient handovers.


 

Will the cultural differences pose challenges?


"A 2015 McKinsey report on 366 public companies found that those in the top quartile for ethnic and racial diversity in management were 35% more likely to have financial returns above their industry mean."


English has emerged as the business language of India, and most IT professionals are well-versed in it. This is one of the primary reasons behind its increasing preference among tech startups based in the U.S.


Moreover, a diverse team with different skills, life experiences, and cultural backgrounds will drive in more ideas. You can leverage your onshore & offshore team’s strengths and motivate them to work toward a common goal. It will positively impact employee engagement and morale, further leading to increased productivity.


Besides, working with an offshore software development team in India is never challenging due to the flexible mindset of the Indian workforce. The IT workforce is known for its ability to and carry out tasks independently and take full ownership of the assigned work. Indian developers don’t mind being on scrum calls before and after office hours. This will make it convenient for you to accommodate time zone differences. Thus, a culturally diverse workforce will only benefit your startup!


That being said, we hope we have solved the offshoring puzzle for you. It’s time for you to expedite your startup success with an offshore team in India. If you start feeling lost at any point during your journey, feel free to get in touch with us!

 

How Braves can help?


Braves helps global technology companies incubate their dedicated offshore development teams in India. The team in India is an extension of the onshore team and works collaboratively to achieve their goals.


With 17+ years of experience in technology recruitment in the US and India, we know how to build a team of high performers. Our fully managed operations model along with people driven policies has helped clients scale their teams with a high employee retention rate of 85%.


Get in touch with us to find out more.


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