InsourceIndia
India offshoring and market entry experts
Why UK Tech Companies Are Betting Big on Offshore Teams in India, and Why You Should Too
With rising competition, tighter budgets, and the constant push to scale fast, UK tech companies are rethinking how and where they build their teams. AI, digital transformation, and post-Brexit shifts are all reshaping the landscape. But one practical, high-impact trend isn’t getting talked about enough: building offshore teams in India.
At InsourceIndia, we’ve been working closely with UK and European businesses to help them build and scale development, support, and innovation teams in India. With London Tech Week here, it feels like the perfect time to spotlight this growing shift.
What’s Driving This Shift?
UK tech startups raised over $16 billion in 2024. That’s more than Germany and France combined. But with growth comes pressure. How do you scale without burning through cash? Post-COVID, remote and distributed work became the norm, making offshoring a serious option. Not just to cut costs, but to build sustainable, high-quality teams.
India, with its 5 million+ tech professionals, top-tier universities, and vibrant startup culture, has become one of the most attractive places to build offshore capability. Add to that a maturing regulatory framework like the Digital Personal Data Protection Act (DPDP), and it’s no surprise global companies are doubling down.
Why India Makes Sense Right Now
There’s a lot more to India than cost savings:
- Serious Talent: India produces over 1.5 million engineers a year, and not just generalists. Think AI, DevOps, data engineering, cybersecurity — you name it.
- Time Zone Advantage: Want to speed up development cycles or offer round-the-clock customer support? The time zone works in your favour.
- Cultural Fit: Indian professionals are familiar with Western business practices, and English is widely spoken. The learning curve is short.
- Policy and Infrastructure: Programs like Startup India and Digital India are making it easier than ever for foreign companies to get up and running.
From Outsourcing to Insourcing
We’re seeing a clear trend. UK companies don’t just want to outsource projects, they want control. They’re building dedicated offshore teams they can manage directly. Think of it as the Build-Operate-Transfer model, or what we call Insourcing. You’re not handing work over to a third party, you’re building your own extension team in India.
At InsourceIndia, we help companies figure out what makes the most sense, whether it’s setting up a subsidiary, launching through a liaison office, or building a team under our managed services until you're ready to take over.
What Usually Goes Wrong, and How We Fix It
Let’s be honest. Setting up in India isn’t always straightforward. Here’s what trips companies up:
- Red Tape: Registering a company, managing compliance, local taxation. It’s a maze if you don’t know the terrain.
- Choosing the Wrong Model: Whether you go captive, BOT, or vendor-led can make or break your strategy.
- Culture Gaps: Misalignment can slow things down. It takes experience to build teams that truly sync with your home office.
- Compliance Risks: GDPR and India’s DPDP Act leave no room for error, especially when handling sensitive data.
That’s where we come in. We take care of the messy stuff: legal setup, hiring, payroll, compliance, office space, IT. You stay focused on building your product and growing your business.
We also advise on hybrid vs. remote team structures, retention strategies, and even how to build your brand in Indian tech hubs like Bangalore, Pune, and Hyderabad.
India isn’t just a back-office option anymore. It’s a strategic partner for growth. Let’s build something that lasts.
About the Author
Praveen Kumar DK is Co-founder of InsourceIndia, a partner for UK and European businesses looking to build and manage offshore teams in India. With over 20 years of experience in global expansion and talent strategy, he helps businesses grow with confidence in new markets.
techUK and TechSkills at London Tech Week
techUK is proud to once again be taking part in London Tech Week. The event is a fantastic showcase for UK tech, and we’re pleased that techUK members and colleagues are represented on the agenda. You can find details on our speaking engagements and activities across the week, here.
We're also pleased to be working with eight techUK members at London Tech Week to highlight the positive impact of the tech industry in the UK.
You can find more details on the author of this blog, below:
