Hidden risks with outsourcing to India

Hidden risks with outsourcing Software Development to India


When European companies are outsourcing software development to India, they rarely question the technical competence of Indian professionals.

India’s IT industry is world-class, boasting deep expertise and a vast talent pool that is well known globally. Yet too often, projects struggle, not because the code isn’t good, but because communication doesn’t work as it should.

The uncomfortable truth? Most companies still treat outsourcing as if distance doesn’t matter. Even worse, they assume their existing processes will somehow work the same across continents.

It won’t.

⏳ Why Companies Struggle with Offshore Software Teams

European managers often mention time zones as a barrier, but asynchronous work can be a strength if managed well. The real issue lies deeper:

  • Requirements lost in translation. Not linguistic translation, but contextual. What’s obvious in London may not be obvious in Chennai.
  • Decisions delayed. When specifications are vague, Indian teams hesitate (understandably) to assume intent, leading to bottlenecks.
  • Invisible collaboration gaps. Without informal corridor conversations and whiteboard sessions, minor misunderstandings snowball into rework.

🌏 Cultural Differences in Software Outsourcing: A Hidden Challenge

Most outsourcing partnerships do not take cultural challenges sufficiently into consideration. Here are some examples of differences in culture between Europe and India:

  • European teams value direct feedback; Indian teams may default to politeness to avoid perceived confrontation.
  • European managers expect initiative-taking; Indian developers may wait for clarity out of respect for hierarchy.

Neither approach is wrong; they are just different. Bridging this gap requires more than a one-off workshop. It demands ongoing mutual understanding and processes tailored for distributed, multicultural teams.

🤝 How the Best Indian Software Development Partners Succeed

To succeed, Companies need to see their Indian partner as part of their organisation, not just as a supplier. Also, success comes with repetition and learning, so a long-term approach is needed for success.

How to handle the risks with outsourcing software development to India
Mitigating Hidden risks with outsourcing Software Development to India

They:

  • Establish clear communication frameworks that balance async and real-time interaction.
  • Create shared ownership of outcomes, not just outputs.
  • Build trust intentionally, knowing it doesn’t happen over email alone.

At Gislen Software, we’ve spent over three decades refining how to make this work. Our European clients—from Stockholm to London—know they can rely on us not only for technical excellence but also for navigating these human and organisational challenges.

This is why we’ve had partnerships that’ve lasted 10, 15, and or even 20 years.

🔥 A Bold View on the Future of Outsourcing Software Development

The future of outsourcing does not belong to the cheapest provider or the one with the flashiest tech stack. It will be won by those who make distributed teams work seamlessly, where geography stops mattering. Businesses in Europe need to rethink their approach: Are you helping your offshore teams to succeed, or setting them up to struggle with invisible barriers?

Because the question is no longer “Can they code?”

The question is “Can we collaborate?”

📞 Ready for a Better Outsourcing Experience?

At Gislen Software, we’ve helped European companies bridge the communication gap with Indian software teams for over 30 years. We have also researched, written and trained companies and employees on how to mitigate risks when outsourcing software development from Europe to India. If you’re looking for an Indian software development partner who understands your business context and makes distance invisible, we’d love to start a conversation about how we can help you with outsourcing software development successfully.

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