Why Offshoring to India?

Ashish Kasama|August 31, 2023|4 Minute read|
Blog / Resources / Why Offshoring to India?



Understanding Offshoring: The Cost-Effective Strategy of Outsourcing to India

Offshoring is a cost-saving strategy where a company relocates its business operations to another nation, often to maximize cost efficiencies. India emerges as a leading offshoring destination due to its significant cost-saving advantages. Saving on costs is the primary incentive that drives companies to choose India as their offshoring partner.

Why Do Companies Opt for Offshoring Services in India?

The decision to offshore to India provides various benefits for businesses, chiefly in the realm of cost savings. Here are some compelling reasons why companies choose India for offshoring:


  • Cost-Effective Government Policies
  • Availability of Skilled, Young Technical Professionals
  • Proficiency in English Communication
  • Cultural Compatibility
  • Advanced Expertise in Information Technology
  • Internationally Recognized Quality Standards
  • Affordable Cost of Living

For example, American Express was one of the first companies to offshore back-office operations to India. General Electric invested $130 million to set up a research and development center in Bangalore.

Is India an offshore country?

Yes, India is a top destination for offshoring. Offshoring is when a company moves its business operations to a less-developed country to reduce costs. India is a popular choice for offshoring because of its financial attractiveness, availability of staff, and skills.

India is the top country for IT & BPO offshoring. It's also one of the top two countries for outsourcing and offshoring call centers. India's IT sector, BPO/call centers, accounting, and finance industries are at the forefront of outsourcing.

India's technology has transformed in recent years, resulting in a surge in offshore outsourcing of IT-related services and software development services.

Offshoring can be a strategic necessity for cost savings or a way to expand overseas operations.


How do you save cost and time with Offshoring?

Offshoring can help businesses save money and time by:


  • Reducing the amount of office space needed
  • Reducing labor costs
  • Reducing the cost of hiring and training employees
  • Reducing the cost of setting up new equipment
  • Reducing the cost of infrastructure, resources, and training programs
  • Reducing the cost of rent and other overhead costs
  • Improving the efficiency and quality of work
  • Allowing companies to focus on core business activities
  • Allowing companies to be more flexible

Offshoring can also help companies access labor pools in countries with a better ecosystem for specific business functions.


How much can you save with offshoring?

Offshoring to India can save companies 30-40% on most services. The savings come from lower labor costs, infrastructure costs, and overhead costs. For example, a skilled developer in the US might cost $50-80 per hour, but the average in India is around $15 - $30 per hour.


  • The amount a company can save by offshoring depends on factors like:
  • The tasks outsourced
  • The location of the outsourcing partner
  • Industry norms
  • Offshoring can also provide other benefits, such as:
  • Access to a large pool of talent
  • Greater availability
  • Reduced risk
  • Control


How Lucent Innovation can help you save time and cost?

Lucent Innovation is a software development company that can help you save time and money by:


  • Hiring developers within 48 hours
  • Developing CRM systems to retain customers
  • Outsourcing to save on costs associated with hiring, training, and retaining IT staff
  • Creating faster websites that increase conversions by 25%
  • Helping with marketing, such as creating ads, landing pages, and email campaigns
  • Using sustainable web design to solve performance difficulties
  • Using ReactJS, which is flexible and reusable, to reduce time-to-market


Lucent Innovation is the perfect partner for startups and product teams looking to scale and grow at an accelerated pace.

Ashish Kasama

Co-founder & Your Technology Partner

Ashish KasamaAshish KasamaAshish KasamaAshish Kasama

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