As software development companies and providers continue to pop up, and organizations realize they need solid software development and IT infrastructure, the need to hire software engineers is not slowing down. To meet the demand of software engineers, employers are looking at engineers without borders and offshore teams.
However, for companies looking to hire developers at scale, India represents an excellent destination to outsource software development. Over the past twenty years, India’s service exports have grown by 14% — and a significant part of that is thanks to its IT industry. This growth is largely due to global companies looking to hire talent in here, particularly Indian programmers. Now, India is a rapidly growing technology and innovation hub, making it the perfect place for companies to go global and hire Indian software developers.
If you’re looking to onboard a team of dedicated software developers, choose India. Here’s why.
Advantages of Hiring Indian Software Developers
Hiring Indian software developers has many advantages for employers. Software developers and programmers from India are highly-educated, skilled, and offer fresh perspectives to companies.
For employers looking to hire a large team of software developers from India, they may experience the following advantages.
Cost Effective
Other than the highly skilled talent across the country, the cost is one of the primary reasons why companies hire in India. The cost of hiring employees in India is significantly lower than hiring employees in the United States and Canada. For instance, software engineers in the United States make, on average, USD $110,000 per annum. In India, however, the price is half — approximately USD $45,000 per annum. However, just because the salary is lower, doesn’t mean that the quality of work is. When you hire your team of software engineers in India, you don’t have to sacrifice skills for profit.
Language Proficiency
India is one of the largest English-speaking countries in the world, making it the ideal place for companies to hire a team of software engineers. Having this language proficiency allows for increased collaboration and easier communication skills across all departments in the company. While not all developers in India might speak English, there should be few geographical or cultural challenges.
Access to Educated and Skilled Talent
India has many world-renowned universities. The Indian Institute of Technology (IIT) and Vellore Institute of Technology are known for their computer science and engineering programs, producing highly skilled software developers.. These institutions offer practical learning experiences through co-ops and professional development learning opportunities so students can gain practical knowledge, experience while getting access to the latest equipment and technology. Hiring employees in India gives you peace of mind that they’ve received a high quality education.
Because of that education, India is home to highly skilled talent, especially in the information technology and software engineering industries. Combine the education and talent, and having a team of software developers from India can bring innovation and problem solving to your organization.
Additionally, because software engineers in India have access to exceptional education and technology, there will be minimized training costs once they’re hired. The IT industry in India is constantly evolving, so software engineers there are up to date on new technologies and advances. There are many experienced developers with technical expertise in custom software development, artificial intelligence, app development, data analytics, several programming languages,
Increase Business Hours
With the large time difference India has with companies in Canada, the United States, and even parts of Europe, some companies may see it as a disadvantage. However, this couldn’t be more wrong. The time zone in India can bring many benefits for companies in North America and Europe, especially if managed correctly. This time zone allows employees to be working at all times of the day, solving problems as they arise in the development process.
It also is beneficial for companies looking to expand into the South Asian market. Outsourcing software development to India means having employees online at the same time as other companies in South Asia. This allows for real-time connection and collaboration and seamless project progress.
Scalability and Flexibility
The country’s large and skilled population means that hiring a large number of software engineers at once won’t be a challenging — nor extremely expensive — feat. This offers many scalability options for employers. Companies that want to grow rapidly and increase their software engineers should look to India.
Hiring an In-House Software Development Team vs. Hiring Freelancers
For an employer that’s looking to add on a software engineer here and there, they may consider hiring a freelance software engineer. A freelance software engineer is flexible in their working hours, can meet deadlines, and can adapt to changing needs of businesses. A freelance software engineer may also reduce costs — independent contractors are not entitled to benefits, both mandatory and supplemental, like employees.
However, while hiring freelance software engineers may be good to help with projects, there may be some limitations. Freelancers often have numerous clients on the go, so they may not be able to fix a specific issue at a certain time. Also, freelancers are not fully integrated into the company culture, and as a result, don’t usually work throughout departments. This may create complicated processes and miscommunication among employees.
Hiring software engineers as full time employees, though, comes with many benefits.
- Regular testing is conducted: Hiring a full time, in-house software engineer means that the service or product is fully developed, refined, and tested on a regular basis. When a company does not hire a full-time, in-house software developer, it comes with the risk that problems may occur and, in some instances, no one will be able to fix it.
- Subject matter expertise is on call: Employing a team of software engineers allows for companies to have subject matter experts on-call during core work hours. This gives employers the ability to have regular check-ups and testing. It also lets the software engineers participate in crucial parts of new development, such as machine learning technology or new apps.
- Projects are seamlessly managed: To ensure project management and development is consistent, it’s best to have in-house software engineers. If outsourced, it could lead to some loopholes or inconsistencies.
- It’s efficient: For efficient and seamless results with software development, it’s best to have a team of software engineers. In-house software engineers know the company policies and standard operating procedures, so there’s no communication errors when working on projects or standard testing.
- Hiring a team covers all the bases: By employing a team of software engineers, you can cover all the bases you need to ensure smooth sailing. There are back-end developers, front-end developers, full-stack software engineers, security, and DevOps to keep in mind. Hiring a team that includes all these categories guarantees that your team will be fully stacked and can work seamlessly together.
Pair these benefits with hiring a large team in India, your company — and all the departments, not just software engineers — will flourish.
How to Hire Indian Developers
When it comes to hiring software engineers in India, there are three routes you can go: you can hire independent contractors, establish a foreign subsidiary on your own, or work with an Employer of Record (EOR).
Hire Independent Contractors
Hiring independent contractors is generally easy. Since independent contractors are not entitled to benefits and are required to deal with taxes on their own, employers don’t need to worry about providing them with mandatory benefits, like paid vacation, or contributing to social security. As a result, there is no formal registration required for a business to start working with an independent contractor in India.
Hiring an independent contractor requires a contract signed by both the employer and contractor. Independent contractors are paid via invoice through a payment method of their choice — this could be a wire transfer, a global banking service, such as Wise, or through a global payroll platform.
While hiring independent contractors may be easy, there are some risks involved. As stated above, independent contractors aren’t fully integrated into the company culture, so collaboration may be challenging. Additionally, hiring independent contractors comes with the risk of misclassification.
Establish a Foreign Subsidiary
A foreign subsidiary is a legally independent business entity that’s set up in a foreign country. Establishing a local business entity independently takes time, money, and resources. It requires advanced knowledge of India’s labor laws, tax requirements, and employee rights and protections.
Setting up a foreign subsidiary includes the following tasks:
- Registering with the local authorities
- Opening a local bank account
- Appointing a local director
- Setting up a registered physical office
- Onboarding your local team
Basically, establishing a foreign subsidiary on your own requires mountains of paperwork. Unless you have time, legal advice, money, and resources, it’s best to look for other options.
Work with an EOR
Working with an Employer of Record (EOR) is the simplest and most efficient way to hire employees in India. It is an ideal platform for companies looking to hire, manage, and pay employees across the world, including your large team of software engineers in India. An EOR, in essence, takes care of all the administrative tasks that are required when hiring in a foreign country.
Overall, working with an EOR comes with many benefits. Using an EOR to hire a team of talented software engineers in India will save you time, money, and minimize any compliance risks that may arise.
Hiring software engineers in India with an EOR won’t be much different than hiring software engineers locally. By having an EOR tackle all the administrative tasks, you can focus on connecting with your new, remote team of software engineers.
Contracts and Documentation
An EOR takes care of all the work relating to employment contracts and documentation. This includes ensuring that employment contracts are compliant and all the necessary documents from the employee — such as right-to-work entitlements and banking information — are taken care of by the Employer of Record.
Employment Insurance and Benefits
Employers of Record administer all mandatory employee benefits. In addition, EOR’s, like Borderless, also offer attractive global benefits. This includes medical, dental, vision and life insurance, as well as retirement savings plans. This way, you don’t need to worry about offering supplemental benefits as a means to attract top talent and maintain employee wellbeing.
Leave Entitlements
When it comes to navigating leave entitlements, public holidays, and vacation for employees abroad, it can get complicated — especially in India. India has 28 states and eight union territories, so vacation and public holiday entitlement will vary. An EOR will make sure that all of your employees in India are taken care of in terms of leave.
Taxes and Social Security Obligations
Understanding taxes and social security obligations in India are complex, especially as a foreign employer. Employers in India are required to pay a range of taxes and social security contributions. This includes health insurance and the government managed retirement savings plan Employee Provident Fund. An EOR has access to local legal expertise, so it’s easy to become well-versed in Indian tax laws and to remain compliant.
Employer Considerations
While an EOR does take care of all the intricate administrative processes, there are elements that an employer should be aware of and take into consideration.
You will need to take care of your remote team of software engineers like you would any of your local hires. This means that onboarding, training, and management is your responsibility.
For one, employers should encourage employees to get to know each other. By having virtual team building events or emphasizing open communication, it can help create a positive and inclusive company culture.
However, it is important for employers to be respectful of cultural differences and time differences. India is a vibrant and cultural country, with many different customs, perspectives, and religious holidays. Employers need to accommodate employees' needs and wishes when it comes to religious holidays and festivals.
Companies that have a team of remote employees in India need to be aware of the time difference and consider adopting flexible working hours. Rather than working core hours, like the standard nine to five, perhaps consider nonlinear workdays and asynchronous communication.
Go Beyond with Borderless
If you’re looking to hire a large team of software engineers, look no further than India. India is full of exceptional tech talent, and it’s only going to grow from here. To hire a full team seamlessly, work with Borderless.
Borderless will take care of everything, from contracts, onboarding, to administering benefits and global payroll. With our team of legal experts, not only do we make sure that the hiring process is seamless, but is also compliant. Book a demo with Borderless today.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
