By Hiring developers from India is a go-to strategy for companies from western countries to address the tech talent gap.
After all, India’s vast and growing talent pool of software engineers, software developers, designers, software testers and other tech experts is not just technically skilled but English-proficient as well.
On top of all, the availability of Indian developers at affordable rates is what really makes India the most preferred global outsourcing destination.
If you’re on this page, it probably means that you’re planning to hire an Indian developer and it’s your first time. And thus, curious about the cost to hire an Indian developer.
Well, giving a precise estimate to the question is not feasible as several factors play a significant part such as the competence of a developer, a hiring model (whether you want to hire a freelancer or remote developers from an Indian dev agency) and more.
In this post, we’ll take a deep look at all these cost influencing factors to help you determine the average cost to hire an Indian developer.
But let’s first dig into stats that show the growth of software development in India and then we’ll compare the average hourly rates of developers in India with other countries.
A Glimpse of Software and IT Industry in India
- As per findings by the International Data Corporation (IDC), the software market in India is anticipated to surpass the revenue of $8.2 billion by the end of 2021. The industry will grow at a CAGR of 14% during the period of 2020 and 2025.
- India produces more than 3.1 million graduates, 300k postgraduates, and over 500k engineering students graduate from engineering colleges and universities in India every year.
- More than 200K engineering graduates in India enter the software and IT industry on a yearly basis.
- According to a recent study, India is anticipated to beat the USA as the world’s largest developer base by 2024.
- India secured the second position as the world’s most promising source of global innovation.
- According to The National Association of Software & Service Companies (NASSCOM), almost half of all Fortune 500 firms give preference to outsourcing their development needs to Indian outsourcing dev agencies and companies.
A Quick Comparison of Developers’ Rates: India vs. Other Countries
| Location | Cost Per Hour |
| India | $18-$40 |
| Russia | $25-$45 |
| South America | $30-$50 |
| North America | $100-$150 |
| Australia | $60-$95 |
Now, you may wonder what’s the reason behind the cost-effectiveness of Indian developers as compared to other regions, especially the USA.
Well, it all boils down to the cost of living and labor rates in different regions.
India has many IT hubs including Bangalore, Hyderabad, Pune, Chennai, Chandigarh and more. Out of all tech cities, Bangalore is the most expensive but still cheapest when compared to IT hubs in the USA such as California.
The reason being the cost of living is pretty high in the USA in comparison to India. Thus, western countries like the USA have high labor rates especially for tech talent considering the global tech talent shortage crisis.
Moreover, India is the world’s second-largest English-speaking nation – which means that a language is no more barrier when it comes to outsourcing to India.
Thus, western companies prefer to hire Indian developers due to the availability of a large pool of English-proficient tech talent at reasonable rates.
Factors that Affect the Cost to Hire an Indian Developer
Let’s now explore each key cost-influencing factor in detail!
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Project Size
Every development project can be categorized into three main categories in terms of size: small-scale, medium-scale and enterprise-level projects.
Enterprise-level projects typically require a full-scale team of developers, designers, QAs, project managers and more.
Also, they require more time than small- and medium-sized projects, so larger projects are on the higher cost side.
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Project Complexity
The complexity of your project is another significant factor that impacts the cost of hiring Indian developers.
Complex custom software development projects with advanced functionality and third-party integrations typically require the assistance of more than one developer and more engagement from resources to complete them within a predefined time frame.
As a result, this can influence the price tag profoundly.
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Technology Stack
Well, a technology stack is a combination of tools, programming languages, and frameworks that developers use to build mobile apps, web applications or websites.
Web Development Technology Stack
- Frontend development (client-side): HTML, CSS, JavaScript.
- Backend development (server-side): programming languages (PHP, JavaScript, Python, Java, Scala), frameworks (Laravel, Ruby on Rails, Django), web servers (Apache, Microsoft’s Internet Information Server, Nginx) and databases (MySQL, MongoDB, PostgreSQL)
Android Development Technology Stack
- Programming languages: Java and Kotlin
- Tools: Android Studio
- UI Frameworks: Jetpack Compose, Android UI
iOS Development Technology Stack
- Programming languages: Objective-C and Swift
- Tools: XCode and AppCode
- UI Frameworks: UIKit, SwiftUI
Cross-Platform App Development Technology Stack
- Programming tools: React Native, Flutter, Ionic, Xamarin and more
If you’re looking for a developer with expertise in highest-paid programming languages such as Python, Java and Swift, be ready to have a big budget.
Moreover, developers with proficiency in emerging technologies such as AI, and Blockchain also come at a high cost.
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Experience of a Developer
Whether you’re looking for junior-level developers or experienced seasoned developers from India for your project, it also affects the cost to hire Indian developers.
Complex and enterprise-grade projects typically need the hands of seasoned experts.
It goes without saying that experienced developers charge more due to the extensive know-how and deep industry expertise they bring to the table.
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Hiring Model
When it comes to hiring developers from India, you can hire a freelancer or partner with an Indian dev agency that provides remote developers for hire.
5.1 Hiring Freelancers from India
Today, finding freelance developers from India is not challenging due to the significant transition from full-time employment to independent contracting.
Moreover, there are many freelance portals available out there such as Upwork and Fiverr.
On Upwork, you can hire developers with a cost range of $18-$39 per hour.
Freelance Indian developers may be cheaper but there are certain limitations with this model. A freelancer may be working on multiple projects at the same time, which can affect the quality of work.
On top of all that, freelance developers typically show no commitment when it comes to post-development issues.
Thus, hiring freelancers is ideal when it comes to small-scale development projects that don’t need a team of different tech experts.
5.2 Hiring Remote Developers from an Indian Dev Company
Today, many software development companies in India provide already vetted developers for hire with a cost range of $18-$45 per hour.
Hiring remote developers from a dev company is ideal for medium-sized to enterprise-level projects that require a team of developers, software testers, business analysts, and other tech professionals.
Unlike a freelancing model, you’ll have access to all pre-vetted experts under one roof when you partner with a reliable software development company. You’ll also get end-to-end development support including post-development.
Thus, if you’re looking for a long-term collaboration, you should consider hiring developers or an offshore development team from a dev company.
Conclusion
Rather than hiring an in-house developer, companies and startups find outsourcing overseas and hiring Indian developers a much more cost-effective solution.
Through this post, we discussed all key factors that affect the cost to hire an Indian developer.
Depending on the size of your project, complexity, and expertise & experience of a developer, you can expect to hire a developer from India with a cost range of $18-$40 per hour.
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