Nearshore Outsourcing and the Indian Developer Boom

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iTexico, a company consisting of a team of Austin mobile app developers and their nearshore partners in Mexico, thrive on opportunities to create exciting and productive mobile apps for their customers. A big part of what makes the company so successful is their ability to deliver reliable nearshore mobile app development services to companies throughout the United States. Could it be that iTexico, and other companies just like them, are destined to face stiff competition from India in the near future?

India has long been the offshore outsourcing leader for things such as help desk and call center services. They have also been relatively strong in the area of software development for enterprise and desktop solutions. Mobile app development is an entirely different thing. Indian software companies haven’t given mobility a whole lot of attention due to the success of their other technology endeavors and the slow adoption of mobility among Indian consumers. But change is in the wind.

Business Insider reported in late December that Internet users in India are showing increased interest in mobile app development. In fact, the number of online search inquiries related to mobile app development has grown some 200% since 2014. Combined with an emerging mobile development community in India, the statistics suggest that more young people are looking to get into software development as a career have their eyes set on mobile app development.

India May Surpass the U.S.

Business Insider maintains that current trends suggest India may eventually surpass the United States in terms of the size of its mobile app development community. Right now, we have the largest app development community in the world. But how long will that last?

Some of the biggest players in the technology world have their eyes on India and its untapped market of capable workers. Take Google, for example. They launched a brand-new education initiative in India in 2016 to create a whole new generation of Android developers. Their competitors over at Apple are also pursuing opportunities in India. Apple announced this past spring their plans to invest in local iOS development in Bengaluru.

In terms of the nearshore outsourcing question, it’s important to understand what Google and Apple are doing. They are focusing on local markets in India buttressed by an explosion in mobile device use in that part of the world. If India’s app development community does reach the projected 4 million mark over the next two years, most of what those developers produce will be focused on serving the Indian market. The apps that consumers will want are just not there right now.

Nearshore Outsourcing Will Continue to Grow

For companies such as iTexico, the good news is that nearshore outsourcing will continue to grow all over the world. It’s one thing for Indian software firms to create mobile apps for their own markets in India; it’s an entirely different prospect for those companies to create apps for markets on the other side of the world.

The growth of nearshore outsourcing is directly related to the many challenges faced by companies tasked with creating products for customers located on other continents. Companies like iTexico do far better in terms of productivity and efficiency by working with nearshore partners who are much closer to home.

In the end, nearshore outsourcing is unlikely to suffer all that much from the Indian app development boom, thanks to the very nature of nearshore outsourcing itself. It is a model that has proven itself to be more efficient, more cost-effective, and more productive than offshore outsourcing. That will not change anytime soon.


June 2022