Factors to Consider While Selecting the Right Country for Outsourcing Software and Product Development

Many factors come into play while selecting the right country to outsource. Here’s a guide to know each in detail.

5 min read
Aug 18, 2021

To help you make an informed decision, here’s a detailed guide on the advantages and disadvantages of outsourcing your software and product development projects. If you have opted for an outsourcing model, the next thing to consider is the country or a region to outsource your projects to.

When it comes to selecting the right country for outsourcing, it must not be based on the wild guess. You should make yourself aware of the following aspects other organizations use as selection criteria. Some of these factors differ from region to region, thus, which criteria should be a deciding one varies from project to project. But for now, without further ado, let’s have a glance at them:

Factors to Consider While Selecting the Right Country for Outsourcing

1. The Technical Education Level

This factor alone impacts greatly, more than any other, while selecting a country to outsource your projects. If a country lacks highly qualified and skilled resources, it shouldn’t be on your radar. The obvious reason behind this is poorly skilled resources will lack technical expertise. Because having highly skilled resources is the backbone for the success of your software project and organization.

What you can do is assess the technical skills of an outsourcing partner you plan to hire. There are multiple ways to do so and the first is to check the number of university graduates each year top the ranks. Also, you can conduct personal interviews with the team to find if they meet your requirements or not for successful project completion.

Besides, many international data providers have gathered information pertaining to software development companies belonging to a particular country or region. The more qualified IT professionals in a country, the more chances of that country being the leading outsourcing provider. India is one such country with a vast number of qualified IT professionals and tops the list with a 55% share for the best region to outsource projects to.

2. Time-Zone Difference

Time-zone difference can pose a hurdle when going for offshore outsourcing as you’d have to overcome some logistical issues. However, technology has revolutionized digital communication. And now, companies can easily overcome any hurdle to make the time-zone difference an irrelevant factor. Albeit, companies can turn this into an advantage for them.

You and your in-house team may be done for the day but your outsourcing team just started afresh. This means work on your project continue round the clock even when you are fast asleep. Some may see this as an issue, however, true trouble-free communication with the outsourced teams takes place when the working hours partially overlap.

Due to the time-zone difference, climate conditions also impact the cooperation and working conditions. Thus, getting to know the major influential factors of outsourcing partners from top outsourcing locations will never hurt your decision-making process.

3. English Communication Skills

English is a globally accepted language for communication, thus, poor English communication skills lead to misunderstandings and confusion. The outsourcing service providers must have qualified tech professionals with above-average communication and English speaking skills. It is generally relevant when it comes to software and product development niche because the whole terminology is based on the English language.

Top outsourcing providers from locations such as India meet the criteria for English communication to be competitive in the global market. Insufficient English speaking skills can destroy context and mutual understanding, which is one of the biggest risk factors that can thoroughly be mitigated before a project starts.

Team leads, project managers, and even the developer team should possess an excellent command over English communication to be competitive in the market. Experienced and adept outsourcing companies from the top outsourcing regions usually meet such requirements.

4. Experience Working with Complex Projects

No matter how great companies promote their services but the true indicator of their skills is their experience in completing complex projects. When assessing the outsourcing providers, look through their portfolio and success stories of past projects that can be validated.

While assessing the work portfolios, outsourcers should consider a couple of aspects such as the complexity level of the project and technologies used to effectively overcome those challenges. It may just happen that the countries outsourcing may differ in the technology usage than the countries projects outsourced to.

Another thing to consider during the assessment is what countries those regions have served. If the outsourcing providers have been serving countries like the USA, the UK, Australia, and others, their trustworthiness is hardly questionable.

5. Diversified Resource and Tech Competency

This factor partially overlaps with the technical education level discussed above. Countries and companies claiming to be the top outsourcing providers must have qualified tech specialists to carry out the software and product development projects.

The top resources of a country symbolically represent the status of why they are known as the center point for project outsourcing. Diversified resources and tech competency of the outsourcing providers increase the interest of the potential prospects.

The educational institutes and the technical infrastructure of the country also help determine the technological development of that country as a whole. Industries such as rocket science, ship construction, aircraft building, and others hint at the tech competency of the local resources of the available workforce. Among others, India is one such country favored for its tech competency and resource diversification.

6. Cultural Differences

The cultural difference also plays a vital role in the IT outsourcing industry. People in different countries have a different mentality and behave differently in the same situation. As the saying goes, wars have erupted not between countries but between cultures. Thus, taking cultural differences into consideration is essential when selecting the location for outsourcing your projects.

Projects such as software and product development would consist of participants with common knowledge of the industry and technology for uniform interaction. However, people with similar social and cultural backgrounds come to mutual understanding much easier than people with unalike mindsets.

As a developing country, India poses as the most suitable choice for outsourcing software and product development projects for the most western countries of the world. Companies like Ashutec Solutions Pvt Ltd. have proximity in the context of mental archetypes than other outsourcing service providers do.


When you factor in all the aspects of outsourcing mentioned above, India among others comes out as the Best. Further, as per the Global Services Location Index (GSLI), India ranks at the top for leading countries to outsource your projects. This is because of the vast number of tech competent resources and the financial attractiveness of the country due to the lower lifestyle than western countries.

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