By the end of 2024, there are expected to be 28.7 million software developers in the world. Out of that, 5.2 million active developers in India alone. And this number is expected to continue growing in the future.

With such a wide pool of developers, India has become a hub for software development. 

This makes India a prime destination for global companies to hire software developers.

But how much does it cost to hire a software developer in India? And more importantly, how do you hire software developers in India?

In this blog, we’ll walk you through the cost of hiring a software developer in India. Plus, we’ll also look at:

  • Benefits of hiring software developers from India
  • Factors affecting the cost of software developers in India
  • Additional costs to consider while hiring software developers in India
  • Legal considerations for hiring software developers in India
  • Cost comparisons of hiring software developers from other countries
  • How to get started with hiring software developers in India
  • More FAQs about hiring software developers in India

Let’s dive deep into software development costs.

Why Hire Developers from India?

The low software development cost is often the first reason companies consider India for software development. However, there are many other compelling reasons to hire Indian developers. These include:

1. Abundance of Talent

India produces a high number of software engineers annually. With a focus on tech education, 500,000+ software engineers join the Indian workforce per year.  This gives businesses access to a large pool of developers across various domains.

2. English Proficiency

As English is widely spoken in India, communication barriers are minimal. This makes collaboration smoother, especially for international businesses.

3. Time Zone Advantage

The time zone difference allows businesses in Western countries to operate round-the-clock. This means your software development work can still be done in India while local teams rest.

4. Quality of Work

A majority of Indian developers are well-versed in the latest technologies. Plus, they follow global standards in coding and project management. These factors ensure high-quality output. The Indian government also runs many programs (like Skill India and Digital India). These programs boost the tech skills of Indian developers. 

5. Cultural Compatibility

Indian developers are known for their adaptability and willingness to work with diverse teams. This makes them an excellent fit for global projects.

The Cost of Hiring a Software Developer in India

The cost of hiring a software developer in India varies based on multiple factors. On average, the software development cost can range from $5,000 to $25,000 annually. Let us break down these factors in detail.

Factors Affecting the Cost of Software Developers in India

Factors affecting cost of software developers

1. Skill Level

Junior Developers
Fresh graduates or developers with 1-3 years of experience typically fall into this category. Their annual salary ranges from $5,000 to $10,000. These developers are best suited for basic coding, bug fixing, and support roles.

Mid-Level Developers
With 3-7 years of experience, mid-level developers are more skilled in problem-solving and project management. They usually command salaries between $10,000 and $15,000 per year.

Senior Developers
These developers have 7+ years of experience and are experts in their domains. They handle complex projects and lead teams. Their salaries range from $15,000 to $25,000 annually.

2. Specialization

Frontend Developers
Specializing in UI/UX, frontend developers in India typically charge $8,000 to $18,000 per year.

Backend Developers
Backend developers are responsible for server-side logic, database management, and APIs. They earn slightly more than their frontend counters, with compensation ranging from $10,000 to $20,000 annually.

Full-stack Developers
Since they handle both frontend and backend, full-stack software developers are in high demand. These developers command salaries between $12,000 and $22,000 per year.

Mobile App Developers
Developers specializing in Android or iOS app development earn between $10,000 and $20,000 annually.

3. Location

Tier-I Cities (e.g., Bangalore, Mumbai, Delhi)
Developers in cities like Bangalore (the Silicon Valley of India) have higher salaries. Also, those in tier-I cities like Delhi, Mumbai, Hyderabad, etc. command higher salaries. This is due to the cost of living and higher demand for tech professionals. Salaries in Tier-I cities range from $10,000 to $25,000 annually.

Tier-II Cities (e.g., Pune, Ahmedabad, Jaipur)
Developers in Tier-II cities, where the cost of living is lower, generally earn between $8,000 and $18,000 annually. This makes them a more cost-effective option if you are looking to save on overheads.

4. Type of Employment

Full-time Software Developers
Full-time employees are typically the most expensive option. This is because they require salaries, benefits, and long-term commitments. Annual costs can range from $10,000 to $25,000 depending on the experience and specialization.

Contract Developers
Contract developers are hired for short-term or project-specific work. They are usually paid on an hourly or project basis, with costs ranging from $15 to $40 per hour.

Freelance Developers
Freelancers offer the most flexibility, with costs varying based on skillset and project complexity. Freelancers generally charge between $10 to $35 per hour. This means your overall software development cost will depend on how efficient the freelancer is. 

Additional Costs To Consider While Hiring Software Developers in India

When you are hiring software developers in India, it is not just about the fixed salary you pay. There are some additional software development costs also that should be considered:

Additional costs of hiring Indian software developers

1. Recruitment Costs

Hiring developers requires time and resources for screening, interviewing, and onboarding. Many companies also use recruitment agencies, which may charge a fee based on the developer’s salary.

2. Training and Onboarding Costs

If the hired developer needs to be trained on specific tools or processes, this can add to the overall cost.

3. Software and Hardware Costs

You may need to provide your developers with the necessary tools like laptops, software, and development tools.

4. Employee Benefits and Perks

For full-time employees, additional costs like health insurance, paid leave, and bonuses should also be factored in.

Legal Considerations for Hiring Software Developers in India

Before you hire software developers from India understanding legal considerations is key. This is especially important for international businesses, not aware of local employment laws.

Some key factors that you should look into are:

  • Work contracts
  • Ensuring that all agreements are formalized to protect intellectual property and confidentiality.
  • Tax implications
  • Depending on the type of employment (full-time, freelance, or contract), taxes may vary.
  • Data protection laws
  • For projects involving sensitive data, you need to comply with the Digital Personal Data Protection Act

Comparing Costs of Hiring Software Developers in India vs. Other Countries

Before you get started with software developers from India, you should also see how much it costs to hire similar resources in other countries.

1. How much does it cost to hire a software developer in the USA?

The average salary for a software developer in the United States ranges from $80,000 to $120,000 annually. The exact cost depends on where in the USA you hire the developer from and their expertise. This is significantly higher compared to India.

2. How much does it cost to hire a software developer in Europe?

European countries also have higher salary expectations for developers. Average salaries range from $50,000 to $100,000 annually. Some Eastern European countries (like Poland or Ukraine) may offer competitive rates like $30,000 to $60,000 annually. However, even these rates remain higher than Indian rates.

How To Hire a Software Developer in India?

Now that you know the cost of hiring a software developer in India, it is time to get started. But where do you start? Well, here is the process of hiring a software developer:

Step 1: Outline your project requirements

Step 2: Identify the right type of developer

Step 3: Source candidates via various sources like job portals or freelance platforms. You can also work with professional software development companies that offer dedicated developers. At SynergyTop, we have a team of software developers available for dedicated roles on an immediate basis. 

Step 4: Conducting thorough interviews and technical assessments.

Step 5: Finalizing payment and employment terms.

Step 6: Onboarding the software developer and kickstarting the project. 

With that, you’ll be able to get started with your software development project.

Need more information? Fill in the form below to get the exact quotation for hiring a software developer for your project.

    FAQs

    Setting a budget is the first step for hiring a software developer. To do this, first determine the skill level, specialization, and preferred employment type. Plus, the additional costs mentioned earlier should be factored in.

    Typically, the budget ranges between $10,000 – $25,000 annually for full-time developers.

    The process of hiring software developers can take anywhere between 2 to 8 weeks. The exact time may depend on the complexity of the role and candidate availability. At SynergyTop, we can help you get a dedicated developer in as little as a week. This is because we have a team of pre-vetted software developers available in-house. These software developers can be deployed for your project on an immediate basis.

    Schedule a quick consultation with our team to find the right developer for your project.

    There are several ways to reduce the cost of hiring software developers. Some of these measures include:

    • Hiring from Tier-II cities
    • Opting for dedicated developers instead of in-house software teams

    Also, you should make sure you keep the scope of work clear to avoid higher costs later on.