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 country is ready to offer a variety of offshore development options for overseas companies considering outsourcing.

Indian tech market gets more and more annual investments from the US and Chinese venture fonds. All this has a positive influence on the progress of IT in India. Nevertheless, the country remains one of the most promiscuous in the world. Alongside with high-tech startups, you can find frauds pretending to be so. And unfortunately, high profits of the offshore software development services in India makes this niche very attractive for all kinds of speculations.

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 a high-level snapshot of the relationship between quality and cost.

CriteriaIndiaUkrainePolandRomaniaMoldova
English levelIntermediate to Upper Intermediate Intermediate to Upper Intermediate HighHighIntermediate to Upper Intermediate
TechRank*311132028
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:

  • Organizational 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 that will help you minimize the 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 that wor in offshore development 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 organization 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 in some offshore software development companies 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.

Minimizing Risk using a Hiring Platform

When it comes to selecting developers YouTeam takes quite a conservative approach, 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 and Latin American Market (with a view of diversifying into more geographies as it grows).

Additional Risk Management Measures

In addition to the pre-vetting process listed about, here are addition measures YouTeam puts in place as part of its platform model to make sure our clients work with the best engineers from top offshore development companies:

  • Verifying the skillsets of individual developers (even if they are from a trusted offshore software company)
  • Setting up your project correctly from the outset
  • Observing & maintaining project governance until the final release
  • Appointing an Account Manager, who facilitates (at minimum) communication, legal and financial aspect of the project
  • Providing secure payment services, taking an advance payment, and releasing it to the development house only after the work is accepted.  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 a search for available software developers, we invite you to explore youteam.io.

We hope, with this article we made your navigation between your offshore development options easier and safer.

2.2 Perfect team, Eastern Europe

Written by
Tristan Senycia

Tristan Senycia is an ex-Product Manager at YouTeam.

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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