After the technology boom in 1990s, India created its mark as an IT powerhouse; it grew to be a preferred site for Application Development Outsourcing task, the main reason simply being that India was able to establish its niche as IT outsourcing service provider facilitating very high quality work at a fraction of labor cost.

The same was reflected in the survey results which mentioned 46% of the respondents' companies outsource most of their application development to India and United States picks up 30%. About application maintenance over half almost 55% of the companies outsource the application maintenance tasks to India. India with its cheap workforce has grown to be a reliable service provider to all those who seeking a reliable offshore service provider.

Companies which outsource large amount of application development as well as maintenance tasks to Indian providers are known to be more satisfied with the work quality than those companies which have outsourced primarily to U.S. providers. Cost saving is one important reason; by carrying out application development outsourcing to India one can hire application developers at extremely affordable rates. India comes with cheap skilled professionals hence the affordable potential in the country has attracted a majority of companies.

In all cases economic feasibility is not all that matters, its ultimately quality everyone demands in business. Providers in various countries Eastern Europe, China, Brazil, Mexico, Canada, etc. are also on their way providing more options for the investors. Outsourcing application however for the first time is not easy. When you hire application developers you need to be very careful because there are important aspects you need to deal with before going for outsourcing. By going for outsourcing you are entrusting the entire development to a team located far many times overseas. Therefore there is a risk if the provider fails to meet the levels of proficiency, you suffer loss in terms of unsatisfactory work done and you also lose your precious time as well as money you have spent in outsourcing. Moreover the distance does matter. As a result it is essential to know a good service provider before investing. India has been growing to be a preferred hub for application development activities.

With the IT domain being a popular domain in India and increasing number of fresh graduates passing out of reputed engineering schools every year the country lacks no skilled professionals suitable for this field. Thus India is growing to be the most favored destination for those who are seeking a reliable service provider.