There are many thoughts going rounds and rounds within the mind of IT vendors residing all across the globe which leads to make them in an ambiguous state of mind and due to this they feel totally confused in choosing the best offshore software development company for outsourcing their IT projects. During their hunt for such type of IT Solutions Consulting and IT Outsourcing Companies in India and other part of the world, they can find a humongous list of IT firms which can serve them as an IT outsourcing partner. But there are few questions which need to be figure out before hiring any IT outsourcing firm and these questions include:
- What would be the overall cost for IT outsourcing
- At what ratio, the scalable talent is increasing
- What are the dimensions of available skills
Why to Outsource IT Projects to Tier-2 Cities
Video Credit to FindNerd: Journey of Web App Development Company With FindNerd Community
Now the next question arises why to outsource IT projects to tier-2 cities as compared to tier-1 cities, and the answers lies in the fact that Tier-2 cities save an overall cost of around 8 to 12% as compared to tier-1 cities and add value to the vendor companies. As it is already clear that India is one of the preferred location for offshore IT consulting and project delivery which incorporates approximately 65% of the global market, of which the contribution of tier-2/3 cities is around 7 to 10%.
In the recent years, tier-2 cities are attracting more and more IT outsourcing service firms from all across the globe. Some of the tier-2 cities which are becoming popular for delivering best in class IT services to global companies include Gurgaon, Chandigarh, Jaipur, Mysore, Dehradun, Faridabad, Firozabad, Ghaziabad, Gorakhpur, Tirupati, Ujjain, Vadodara, Varanasi,etc. These tier-2 cities are offering quality services to global vendors.
Now let us check out some solid reasons why tier-2 cities are preferred for offshore outsourcing projects which are also mentioned in the image given below. This image shows complete assessment of tier-⅔ cities across 7 value propositions stages.
"Low Development Cost & Scalable Talent Availability Attracting Vendors"
- Low operational and development cost: The living standard in these cities is low as compared to tier-1 cities which make a professional comfortable to work at negotiable salary which decreases operational and development cost for the project.
- Existence of quality and talented professionals: These tier-2 cities are generally an education hub which contain high quality schools and technical institutes which produces huge amount of talented professional every year.
- Favorable market landscape: Tier-2 cities can serve global IT outsourcing companies very well due to the existence of favorable market landscape.
- Risk diversification: There is a great risk diversification available which allow IT firms residing in these locations to generate a high return on investment.
- CSR Fulfilment: The firms in these tier-2 cities have good control on CSR fulfilment functionality which help them to managing orders and other activities involved during project outsourcing.
- Opportunity to serve domestic market: Companies residing in these tier-2 cities also has an added opportunity to serve domestic market and clients.
- Govt. sponsored benefits: Companies in Tier-2 cities are also get great support from the state government as they can get some sponsored benefits from them.
This blog is listed under IT Strategy & Management Community