In recent years, a growing number of social enterprises have focused their attention on harnessing the benefits of trade in software by involving underprivileged communities from developing countries in the production of information technology (IT). The goal of this type of activity, known as social IT outsourcing, is not only to provide employment and income to low‐income individuals but also to address wider development priorities within the locality. This paper focuses on strengthening our understanding of social IT outsourcing as a promoter of development. Based on research in Jharkhand, eastern India, we seek to understand how social IT outsourcing activity is interpreted from the perspective of employees who provide data services for the market and from the perspective of the social enterprise that balances its market orientation with its social development goals. Our findings generate new insights into the mechanisms at play through which social IT outsourcing is able to provide a variety of developmental advantages to rural poor communities leading to policy implications for governments and development agencies.