Offshore Web Development Companies in India – Do They Stack Up Against Other Low Cost Options?

High level comparison of offshore development companies in India vs the Eastern Europeans

India represents one of the largest and most cost-effective outsourcing destinations globally.

The table below provides cost & quality comparisons between India and nearshore locations in Eastern Europe, i.e. Ukraine, Poland, Romania and Moldova, to give you high-level snapshot of the relationship between quality and cost.

Criteria India Ukraine Poland Romania Moldova
English level Intermediate to Upper Intermediate Intermediate to Upper Intermediate High High Intermediate to Upper Intermediate
TechRank* 31 11 3 20 28
Pricing** <$25/h

$25-$49/h

$25-49/h $50-99/h $25-49/h $20-24/h

* TechRank on TopCoder and Hackerrank

** Clutch.co

Other factors which influence product success

When outsourcing development it is important not to just look at high-level information, trends and averages, but to dig a little deeper into:

  • Organisational culture of individual firms
  • Mentality of developers from different countries
  • Characteristics of the developers who will be assigned to your project, including their communication skills

Managing Outsourcing Risk specific to India

I have created a series of articles which will help you minimise risk associated with outsourcing software development (for all geographies)

Please note though that for India there are a couple of extra risks that we need to be aware of.

  1. Whilst Indian developers often have a decent grasp of English, comparable to Eastern Europe, their cultural background might affect their true ability to communicate effectively on projects.
  2. Expectation Management: When you are negotiating with development companies from India, it is important to know whether they will manage your expectations (as the client) effectively. If they are just agreeing to everything and not changing cost or time frames, this is a red flag.
  3. It is important to pay extra attention to the level of organisation of Indian outsourcing companies, to understand whether they have the management capability to deliver reliably. Some development firms will have a much stronger management culture than others.
  4. Quality of code base: There is an elevated chance that developers copy and paste code complete with bugs from other projects they have been working on.
  5. Plagiarism is less regulated throughout the developing world. If you’re concerned about IP infringement, you should ask some probing questions about where they get their code from or use a code plagiarism checker for your programming language.

Minimising Risk using a Hiring Platform

When it comes to selecting developers YouTeam takes quite a conservative approaching, by vetting companies before admitting them to our hiring platform. This is our way of significantly de-risking the outsourcing process before your first interactions with outsourcing companies.

Outsourcing risk is a very real problem and should be managed diligently.

TopTal is another company that provides quite a thorough pre-vetting service for developers within its Talentpool. Although TopTal tend to be 2x – 3x times more expensive than YouTeam because their developers are from the US, YouTeam is focussed mostly on the Eastern European Market (with a view of diversifying into more geographies as it grows).

Still hesitant what software developer you need to hire?
Get a free consultation with a Senior Team Advisor.

Additional Risk Management Measures

In addition to the pre-vetting process listed about, here are addition measures YouTeam puts in place as part of it’s platform model:

  • Verifying the skillsets of individual developers
  • Setting up your project correctly from the outset
  • Observing & maintaining project governance until final release
  • Appointing an Account Manager, who facilitates (at minimum) communication, legal and financial aspect of the project
  • Providing escrow services, taking an advance payment every two weeks and releasing it to the development house only after the work is accepted. Hence you always can get you money back in the (unlikely) case of non-delivery. Furthermore, if you are unhappy with the chosen vendor – we will replace them with a suitable alternative within 10 business days at no extra cost.

For more information or to do search for available software developers, we invite you to explore youteam.io

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Tristan Senycia

Tristan Senycia

Tristan Senycia is a Product Manager at YouTeam - a curated b2b marketplace that matches businesses with dedicated engineers from pre-vetted software development agencies.

He is also the founder of LeverPoint Advisory, which consults in the areas of commercialisation management, go-to-market strategy, High-Tech marketing strategy and customer development. 

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