Software engineering is a rapidly growing field, with a wide range of opportunities for qualified professionals. As the demand for software engineers continues to grow, companies around the world are looking for ways to maximize their software development teams and gain access to the best talent.
Outsourcing software development to South Asia is quickly becoming a popular option for businesses looking to increase their efficiency and lower their costs. In this guide, we will explore how and why Pakistan is becoming a top choice for software outsourcing in South Asia and the benefits of outsourcing software development in this region.
Introduction to Software Outsourcing
Software outsourcing is the process of hiring a third-party contractor or agency to develop or maintain software applications or systems. This can be done either remotely or on-site, depending on the company’s needs and preferences.
Software outsourcing is a cost-effective way for businesses to access the latest technology, without having to invest in in-house development or maintenance. It also allows companies to quickly scale up their software development teams, without having to hire and train additional staff.
Understanding Nearshore vs Offshore Outsourcing
When it comes to outsourcing software development, there are two main options: nearshore and offshore.
Nearshore outsourcing is when a company outsources to a nearby country, often within the same region or even the same time zone. This can be beneficial for companies who want to maintain close contact with their software development team, as well as reduce any language/cultural barriers.
Offshore outsourcing is when a company outsources to a distant country, often thousands of miles away. This proves to be perfect for companies who are looking to reduce costs, as labor costs in other countries tend to be significantly lower than in their own.
However, there can be some communication barriers and timezone differences, as well as cultural and language differences, that can make offshore outsourcing more challenging.
How can companies benefit from outsourcing their software development?
Outsourcing software development to South Asia can be beneficial for a number of reasons.
Overview of the South Asian Software Development Market
The South Asian software development market is growing rapidly, with a wide range of opportunities for qualified professionals. This is due to a number of factors, including the availability of highly skilled software engineers, the low cost of labor, and significant time-overlap.
The subcontinent is the largest software development market in South Asia, and is home to some of the world’s best software engineers and developers. Countries in the region, such as, Pakistan, Vietnam and the Philippines, are becoming popular destinations for software outsourcing.
Why Pakistan is the ideal place to outsource software development in 2023.
When it comes to outsourcing software development, one of the main considerations is the time zone. Different countries have varied time zones, which can make communication and collaboration a challenge.
Pakistan is quickly rising the ranks for IT solution outsourcing for its quality of work and availability of dedicated teams. While the service is being outsourced, companies provide overlap timings as per international clients, varying from off-shore solutions to nearshore timings and even full time overlap.
Many countries in South Asia, including Pakistan also offer flexible working hours. This proves to be a viable option for companies who need to access their software development team at specific times or during different time zones. Fortunately, most companies situated in Pakistan provide significant time overlap with many allowing round-the-clock availability for outsourced work.
Moreover, about 300+ companies which includes several Global enterprises like Bentley®, Ciklum, IBM, Mentor Graphics®, S&P Global, Symantec™, Teradata®, and VMware® have established research and development centers, BPO support service centers and global consulting service centers in Pakistan.
Pakistan is also ranked 5th most financially attractive location in the world for offshore services, according to A.T. Kearney' s Global Services Location Index 2019.
The major benefit of outsourcing software development to South Asia is cost savings. Labor costs in South Asia, specifically Pakistan, are significantly lower than in many other countries. This can be beneficial for companies who are looking for budget-friendly software development, as they can access the same quality of talent for a fraction of the cost.
The average cost of a software engineer per hour is $18 in Pakistan, making it one of the most affordable countries to outsource software development in South Asia. Not to mention, many countries in South Asia offer attractive tax incentives for companies who are looking to outsource IT solutions.
Pakistan's IT Industry growth has been augmented by the fact that costs remain low for it due to a plethora of factors such as low labour costs and strong government incentives.
Fun fact: The average annual cost of a software engineer in Pakistan is one-fifth of the cost in USA and Europe.
Approximately 25,000 IT graduates enter Pakistan's workforce each year, thus providing the Pakistani lT industry with the much-needed workforce. The area is home to some of the world’s best software engineers and developers. By outsourcing their software development, companies can access a wide range of highly skilled professionals.
With more than 150 ISO quality standards qualified companies businesses outsourcing their IT solutions to Pakistan can ensure that their projects are completed to the highest standards.
Access to Talent: Pakistan is one of the leading countries from where students enter the world's most prestigious universities in large numbers. Pakistanis also rank high on intelligence scales.
Seamless Cultural Integration:
Most of the IT professionals, IT executives and company founders in countries like Pakistan have graduated or lived in the West. Finding a skilled workforce in Pakistan in the technology field does not present a problem for foreign investors and there are no cultural barriers to overcome as Pakistani professionals are used to interacting with clients based in developed countries.
Software engineering is a rapidly growing field, with a wide range of opportunities for qualified professionals. As the demand for software engineers continues to grow, companies around the world are looking for ways to maximize their software development teams and gain access to the best talent. Outsourcing software development to South Asian countries is quickly becoming a popular option for businesses owing to the many incentives they offer.
If you’re looking to outsource software development, Pakistan is a great option to consider. With its attractive labor costs, nearshore hours or full time overlap, and access to some of the world’s best software engineers, it is quickly becoming the go-to destination for software outsourcing.
News and Updates
Want to know more about our services?
Fill out the form and we’ll get back to you.