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An essay on outsourcing programming and development activities to India.

faq - Frequently Asked Questions:-

(1) Is Outsourcing web development and application programming to India really Cheaper and Cost Effective ?

Outsourcing is cost effective. Many software giants like microsoft, sun have set up development stations in India for cost effectiveness. India has a large pool of talented engineers. Companies outsourcing back-office work to India save as much as 60 per cent of their cost every year. Further more Outsourcing to India is more cost effective than outsourcing to other countries such as new zealand or australia for example. At the most you will find paying just about US$10 to US$15 per hour for hiring a company in India to do your software development work.

Sun To Set Up Java Development Center In India
Microsoft plans development center in India
Companies outsourcing back-office work to India save as much as 60 per cent of their cost every year

(2) How do I find Companies in India?

a) look through freelance marketplaces like elance.com or scriptlance.com
b) searching using google.com

An excellent freelance and development marketplace
The google search for "custom freelance" programming India

3) Will the software and scripts they create be legitimate and can it be sold or marketed in USA or UK ?

This is a major concern for international buyers who wish to outsource programming to India. But rest assured that India is as serious in using legitimate software as any other country. Indian copyright law is one of the toughest in the world.

Indian copyright law is one of the toughest in the world.

4) Can I find the identity and location of the company ?

for finding details about registered companies you need to visit the particular registar's official government website.
For example if you need to find details about a company located in the state of "Tamil Nadu", then you will need to go to the Office of the Registrar of Companies website and locate the company in this list of companies page and query either by name or registration number.

Also once you get to know the phone number of a company you could easily find and cross reference their address by going to the website of BSNL the major telephone network provider in India. choose the appropriate unit from the menu "BSNL units in India" in the Bharat Sanchar Nigam Ltd website. say example you choose "chennai" city and go to chennai bsnl website. And from the page Directory Enquiry, you could do an address to phone number search or an phone number to address search.

5) How to establish the credibility and previous track record of a particular Software company in India ?

Get telephone references of previous clients that the company has done projects for either in USA or UK.
Also look out for reviews of that particular company in popular freelance marketplaces like elance or scriptlance. For example, you can read the reviews in elance and scriptlance reviews of a particular Indian software outsourcing company.

6) Is the NDA (non disclosure and non compete agreements) which we ask the company in India to sign legally binding ? what are the cyber laws in India ?

The copyright and cyber laws in India are more than adequate. Email and digital signature are recognized as most valid forms of any agreement.

The passage of the Information Technology Act 2000 in India with effect from October 17 has created a legal recognition for Electronic Documents.
further more you could ask the representative of the company to sign the NDA and get it notarized for authenticity of the signature.

7) Will communication be a problem ?

Most of the companies work from 8AM to 8PM local time and communication modes can vary from email, instant messengers etc. Phone calls can be used on intermittent basis too. Since there are excellent english speaking programmers in India communication will NOT be a major problem .

8) Does the company has basic infrastructure ?

This needs to be tested before hand. Internet reach is very good in India. But you need to test whether the company depends on dial up internet connection! or broad band connection for its business. To test the speed you could ask the company to use the tool located at This OPEN PUBLIC speed test page and send the test results to you.

9) how to test the technical competency of a company in India ? in other words will the company be able to do this project at all ?

ask the programmer representative of the company to take up a technical proficiency test at the brainbench certification center and you could judge from the results.

10) regarding payment terms etc?

Once you have satisfied yourself based on the above criteria you could start discussing payment and other issues. Always insist on paying by credit card, ask the web development company in India to setup a paysystems or a 2checkout account and pay using credit card.

The normal break up of your payments should be :-
a) You pay 50% advance payment.
b) The software development company in India starts scripting in their own servers and should keep on showing you demos
c) once you are completely satisfied (be sure to test the software thoroughly)
d) then pay the remaining 50% and ask
e) the company to install it in YOUR servers.
f) also discus before hand what will the company charge to do additions and deviations from original specs.

Examples of Sample companies located in India

A custom web development company

A data entry company


Professor lambda is an accomplished writer of many articles. Send an email to him regarding your views and comments.