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Do Scandinavian & Western European Countries Need Indian & Nearshore Software Development Companies

In today’s era when remote work and cutting down on expenses are fast becoming the new normal, software development outsourcing is becoming talk of the town.


Scandinavian countries such as Norway, Sweden, and Denmark are growing fast and require a number of software specialists and developers. In Denmark alone, the number of software and electronics specialists is expected to fall short by 19,000 by 2030 and the same trend also applies to other Scandinavian countries. This is the biggest reason why Scandinavian and Western Europe countries are turning to Indian Software Development Companies.

Although there is no dearth of countries that provide competition in the domain of outsourced software development services, but India outshines competition, both in terms of quality and cost of the final deliverables

(Image Source: Backofficepro.com)


Let’s have a look at some statistics to find out why India outperforms other countries when it comes to outsourced software development services.

  • The IT outsourcing industry of India is likely to witness a Compound Annual Growth Rate (CAGR) growth of 7.25 percent by 2025. Moreover, the country is expected to have the highest number of software developers in the world by 2023–2024, overtaking the United States. (Outsource Accelerator) (Classic Informatics)
  • The global IT outsourcing market is expected to be worth $425.19 billion and India will be one of the top market leaders. (Statista)
  • According to a recent Deloitte survey, 59 percent of global organisations that were interviewed were already outsourcing to India and an additional 22 percent are considering outsourcing software development services to India.

(Image Source: Uplers.com)


What about outsourcing development to Nearshore countries?

In the last few years, there has been a surge in outsourcing activities to the nearshore countries. Czech Republic and Slovakia are emerging as good contenders for software development.

There has been a massive surge in the macroeconomic performance for the Scandinavia countries namely Denmark, Norway, and Sweden.

Some of the biggest advantages of outsourcing development activities to development are:

  • Geographical proximities mean minimal time zone difference, fewer travel costs, cultural similarities, and better communication.
  • There are more chances that nearshore employees and freelancers will speak the same language you do, which makes it easier to discuss concerns and projects.
  • Nearshore countries have become outsourcing heaven due to the flexibility and the talent pool of young devs.


Total Nordic IT Spends

Total Nordic IT Spends (Image Source: Nasscom.in)


Percentage of IT spends in Sweden & nordic Regions

Percentage of IT spends in Sweden & nordic Regions (Image Source: Nasscom.in)

The competencies that are in high demand in Scandinavia countries include project managers, business specialists, data security specialists, web developers, and architects.

The ability to leverage low-cost resources, state-of-the-art infrastructure, both nearshore and offshore, is having a considerable impact on the IT strategies of organisations. This is driving Nordic and Scandinavia firms to adapt their delivery models to stay competitive with their international rivals. For instance, Swedish organisations are increasing their exposure to low-cost nearshore and offshore expertise and resources. They are also providing benefits through labour arbitrage, which is a critical element of global delivery


Top Reasons To Outsource Software Development Services To India

According to PricewaterhouseCoopers (PwC), India’s talent pool is highly qualified and innovative to cater to the evolving requirements of the IT/ITeS industry:

  • India has more than 100 million English-speaking population — the second largest after the United States.
  • Every year, more than 250,000 engineering graduates are joining the IT industry.
  • There are more than 3 million IT employees in India working with the outsourcing industry and 10 million qualified population is a part of indirect employment.
  • According to the EF English Proficiency Index, Indian ranks second in Asia on English proficiency.
  1. Achieve more with less
    Organizations across the world need to cut down on operational expenses and boost productivity, especially during today’s challenging times. Furthermore, the time zone differences between India and Scandinavian & Western European countries allow organizations based there to get their projects completed well ahead of time. For instance, India is ahead of Europe by 3 hours 30 minutes and India is ahead of the UK by 4 hours and 40 minutes.
  2. Access to educated and sincere professionals with rich expertise
    India has earned an impeccable reputation for itself in the world of software development outsourcing because of its rich pool of qualified, dedicated, and out-of-the-box thinkers who don’t think twice before going beyond the call of duty. Furthermore, Indian software developers are more fluent in English and other languages than their counterparts in other popular outsourcing destinations.
  3. Cost Efficiency
    Scandinavian & Western European organizations can expect to reduce their IT spend by as much as 30–55 percent by choosing as their software development outsourcing destination. This is simply because the cost of living in India is lower when compared to other countries. This is one of the biggest reasons why more and more Scandinavian & Western European organizations have been appreciating their decision to hire software developers from India.
  4. Focus on core business competencies
    Every profit-oriented business should devote more time to retain existing and attract potential client while developing new products and services after research and development. However, in-house constraints may force your manpower to be diverted to mundane activities. Outsourcing software development activities to India will help you delegate the non-core activities to experienced software developers in India. In short, it makes sense to hire Indian software developers.

India has a rich population of experienced, innovative, qualified, and out-of-the-box thinkers in the segments of:

  • React Native development
  • iOS development
  • Artificial Intelligence development
  • Java development
  • Blockchain consulting
  • Android development
  • Node.js development
  • ASP.NET development
  • Mobile application development
  • BI consulting
  • Maintenance Engineering
  • Cloud development
  • AI/ML proficiency
  • AR/VR proficiency
  • API Development
  • eCommerce Development
  • AngularJS development
  • Full Stack development
  • HTML5 development
  • Laravel development
  • PHP development
  • Python development
  • Quality Assurance Team, and much more


If you are looking for a perfect software development outsourcing partner in India, we are just a call away.

About Us: Infusai is a lead software development & IT consulting service provider in India, Singapore, Thailand, Europe, US & Australia.