In a recent survey, 80% European and American offshore companies hiring remote staff ranked India as their number one outsourcing destination. The National Association of Software & Service Companies (NASSCOM) also reported that almost half of all Fortune 500 companies preferred to outsource software development to Indian outsourcing companies. The statistics clearly show that India is the most preferred country when it comes to outsourcing.

Even with many other countries emerging as cost-effective destinations for outsourcing (like China, Mexico, Ireland and the Philippines), India has managed to successfully retain its position as the most favored destination to fulfill the outsourcing needs of major IT companies around the globe.

Let's take a look at what makes India such a favorite amongst offshore companies hiring remote employees:

1. Significant Cost-Benefit
The biggest reason why India remains a top outsourcing service provider is due to the substantial cost saving that companies can enjoy whenever they outsource any of their processes to India. The cost saving can be attributed to the wide gap that exists between personnel costs in India and those in developed countries.

This cost advantage empowers companies to achieve their targets at a much lesser cost, thereby helping them earn huge profits. The NOA (National Outsourcing Association) has also concluded that global firms choose India as their most preferred outsourcing destination chiefly because of the cost factor.

2. Robust Infrastructure
Technology plays a crucial role to make the outsourcing business model a success. A robust infrastructure is paramount to attract and retain global firms looking to hire virtual workers from India.

India is fast catching up as far as building a well-established infrastructure is concerned - be it transport, electricity, telecom, water or housing. Not only major cities, but those falling in tier 2 and tier 3 categories also boast of seamless infrastructure capable of attracting and retaining major outsourcing companies.

Outsourcing organizations now have access to uninterrupted communication channels owing to their high-speed bandwidth. What's more, some of the companies can even go for satellite connectivity, submarine cables and fiber optic networks to stay connected.

Interestingly, tier 2 and tier 3 cities in India are fast emerging as software hubs on account of their lower cost of living that enables Indian companies to offer major cost benefits to their global clients.

Providing a Plethora of Services:
Indian software companies offer their clients state-of-the-art software services that include e-commerce, business process re-engineering, system migration, mobile application, legacy system maintenance, system integration, and much more.

India has clearly won the confidence of international IT firms, what with global software giants like Oracle, HP, Microsoft, Google, Capgemini etc. establishing their development centers here.

3. Large Pool of Talented Professionals

India is home to the largest talent pool of technically qualified professionals conversant with the latest software technologies. When global outsourcing firms turn to India to establish their development centers, they get to work with enthusiastic and career-focused Indians who are also fluent in the English language.

Apart from being highly skilled, Indians are inherently hardworking and open to new ideas and opportunities, thereby enabling global firms to benefit from this quality of theirs.

Moreover, only India can give you access to dedicated employees who are willing to work in long shifts during odd hours to compensate for the time difference between India and western nations like the US or the UK.

4. Pro-IT Sector Policies of the Government of India

The Indian software industry is supported by the pro-industry policies of the Indian government that make it one of the top-priority industries in India. The government of India has framed policies that offer maximum benefits to the IT outsourcing Industry in the form of tax exemptions and others. The government has also introduced the Information Technology Act, which recognizes electronic contracts, helps prevent cybercrime, and supports e-filing of documents. Additionally, India has also enforced strict IPR (Intellectual Property Rights) rules to foster and enhance innovation and enable Indians to recognize their own IPs while respecting those of others at the same time.

Pro-IT sector policies:
The Indian government has created a conducive environment for the IT industry to thrive well by taking several initiatives over the years:

1) The IT sector is one of the top five priorities of the Government of India.

2) The Indian Government has implemented the "National IT Task Force" 108 point Action Plan to endorse the growth of Information Technology in India.

3) The Indian Government established the Ministry of Information Technology to speed up the implementation of IT projects and also streamline the regulatory process in India.

4) In May 2000, the Indian Parliament passed the Information Technology Bill, known as the IT Act 2000. This bill not only doles out severe punishment to cyber criminals but has also brought e–commerce within the purview of the Indian law, thereby making India one of the 12 nations having stringent cyber laws.

5) To promote software development in India, the Indian Government has allowed for 100% foreign equity.

6) What's more, the Government of India has also encouraged Indian software technology parks to offer incentives and concessions to foreign investors.

The Government, India's vast pool of qualified professionals, robust infrastructure, and significant cost benefits work together to create a favorable environment, which makes India a top destination for outsourcing.

Author's Bio: 

John Tie is a professional writer, a blogger who writes for a variety of online publications.