Factors affecting cost of hiring developers

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Factors Affecting The Cost of Hiring Developers
in India

• www.yourteaminindia.com

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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.

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• Top ten factors that define the costs associated
  with hiring an Indian developer

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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.

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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 companys survival may be determined by your
  ability to concentrate on the most critical
  issues.

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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.

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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.

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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.

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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.

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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.

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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.

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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
  Indias 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 clients requirements better,
  delivering quality work at a shorter turnaround
  time.

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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.

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Thank you!

• Indian Offshore Software Development Company

• www.repustate.com
• info_at_yourteaminindia.com
• 1-619-309-4653