Factors Affecting Cost of Hiring Developers

2. Factors Affecting The Cost of Hiring Developers in India www.yourteaminindia.com

3. Overview Post the economic liberalization in the 1990s, the Indian IT-Sector has grown at an accelerated pace. India today is considered amongst the best countries for hiring high-quality offshore IT services and software developers. 50% of Global Capability Centres are located in India and employ more than 1mn professionals. In FY 2020 Indian IT industry contributed to 54% of the 150 billion U.S. dollars export revenue and contributed to more than 18% of the global IT spending. While outsourcing IT services, resource cost plays a crucial role in hiring an offshore developer. Whether you are a first-timer or have experience working with Indian developers or companies, you may have already experienced variation in the quotation shared by these businesses, unlike its counterparts in the US and Europe.

4. Top ten factors that define the costs associated with hiring an Indian developer:

5. Tech stack The first and foremost factor that defines the cost of hiring developers is the technology stack or tech stack. As the name suggests, a tech stack refers to the combination of programming languages, frameworks, and tools that the developers use to build the software solution, website, or application. The functionality of the solution determines the selection of technology in the stack. Different technologies come at different prices basis their features, capabilities, and resilience. So, the licensing cost of technologies directly affects resource costs.

6. 2. Experience Level Like any other industry, experience in software development plays a crucial role in defining the rates of hiring a resource. Unlike the US and Europe, where the Y-O-Y inflation rate is as low as 1-2%, India witnesses a high inflation rate, ranging between 7 to 10%. An Indian developer, on average, sees a hike of 10-30% on their salaries. Hence developers with more years of work experience come at a premium fee. A higher experienced developer in terms of both years in the industry and projects delivered guarantees a higher level of skills and quality of work and charges a premium fee compared to a relatively new developer in the field. Your company’s survival may be determined by your ability to concentrate on the most critical issues.

7. 3. Time Duration When hiring a developer, a longer duration of engagement is always more economical than a short duration arrangement. When a developer is hired for a longer duration, they get work security and a consistent flow of income, making price negotiation easier. A shorter stint does not guarantee the developers’ work security and regular income, thus making price negotiation harder.

8. 4. Team Structure and Size Hiring a team is more budget-friendly than hiring individual resources. While offshoring your software development project, hiring a team helps cluster the hiring margin of each resource. This increases the scope of negotiation, enabling your IT partners to provide you with a better quotation for the project. But when you hire individual resources, the hiring margin on each resource is charged separately, increasing the cost per resource.

9. 5. Worktime Zone A resource working in the Indian time zone enjoys a better lifestyle, social life, and work-life balance. In contrast, a developer working in an international time zone has to sacrifice their sleep cycle, social life, and work-life balance. Hence developers charge a higher remuneration for working in a global worktime zone versus developers working in Indian time.

10. 6. Location Hiring developers for Tier-1 cities comes at a premium price. Though Tier 1 cities like Mumbai, Bengaluru, Chennai, Delhi, and NCR have good infrastructure and a bigger talent pool, the cost of living in these cities is far greater than in tier 2 cities, which results in higher hiring cost of resources.

11. 7. Processes & Support System When hiring, you are often are asked to choose between freelance developers or IT partners. Though hiring an offshore development partner may come at a higher price, they outperform freelance services by a large margin in the long run. With IT partners such as Your Team India, you get the proper infrastructure and support remote functioning.

12. 8. Demand and Supply Like any other industry, demand and supply play a crucial role in deciding the hiring cost of the developers. If the demand for technology in the market is high but the supply of talented resources is low, the hiring cost of developers automatically goes up. This phenomenon is usually seen when a new technology is launched in the market. The demand for resources with the latest skillsets is high as compared to the available developers. The hiring price starts to balance when more developers with the new skillsets enter the market. A reverse phenomenon can be seen when technology is outdated. As consumers move towards new and better tech stack options, the demand for the older tech drops tremendously, lowering the fees for developers.

13. 9. Communication Skills Language proficiency and communication are crucial while working with international clients and sought-after skills in developers. Though English is taught as a second language across India’s education curriculum, there is a visible gap in language proficiency amongst resources. Hence the developers with better communication skills charge a premium. Developers who are well versed in the language and technical terms easily understand the nuances of a project. They can comprehend the client’s requirements better, delivering quality work at a shorter turnaround time.

14. 10. Visa Readiness Developers with ready work visas charge a premium fee, and the charges may differ based on the country and work visa they hold. By hiring a developer with a ready work visa, you enjoy the liberty of calling the resources at the project site for as long as needed.

15. Thank you! Indian Offshore Software Development Company www.repustate.com info@yourteaminindia.com +1-619-309-4653