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India's IT Industry: Data & Performance

India is well-known for being the biggest IT outsourcing resource in the world. Based on a report delivered by IBEF, Indian IT & ITeS companies have set up over 1,000 global delivery centers in about 80 countries across the world. According to the same report, the country has become one of the biggest hubs of digital competencies with around 65% of the world’s digital talent being present in the country. 

In 2019, the value of the IT market in India was estimated at $177 billion, registering a growth of 6.1% from 2018. It is expected that by 2025 the market value will reach $350 billion, as more and more companies source out Indian professionals due to their significantly lower hourly rate. 

According to payscale, the average hourly rate of an Indian web developer is around $5,39, which is considerably lower than the global average. 

Why you should work with an Indian IT company

Lower prices and skilled IT professionals are the main attraction for most of the clients that worked with Indian companies. The continuously growing competition in the IT industry made companies focus more on quality and segmented the market into several different categories depending on types of services, price range, location, competencies, and portfolio. The enormous variety of companies to choose from, make India a colorful and expanded market where the possibility to find the company that will deliver exactly what you need is higher. 

What you should be aware of when working with an Indian-based IT company?

The challenges the Indian IT industry faces still have a huge impact on the local market and creates difficulties to attract new investments. Some of the biggest challenges are software piracy, lack of discipline, and missing a well-established business culture and environment.

Are Indian IT companies reliable? 

The Indian IT market exposes a huge number of companies, that act differently, has various experiences, and engage different-level professionals in the IT process. The growing number of companies that relocate and invest in Indian IT infrastructure reveals an increasing level of trust in the country’s industry. However, approaching an Indian company without good research about the history, portfolio and reputation may be challenging. 

How the Indian IT industry relates to the neighboring countries

The biggest regional competitor of the Indian IT industry is the Chinese one. Both countries have known growth in the past few years within the sector, and provide similar opportunities to foreign companies and potential customers. On the other hand, Indian companies tend to provide more creative services, while China focuses on computing and software development. 

Generally, India is a good opportunity for budget projects and average tech competencies compared to the EU & US markets. In terms of  IT investments, India is a promising destination.