How to hire software developers in India

Why hire software developers in India?

Expertise

India boasts a huge talent pool of highly skilled software programmers who know many programming languages and advanced technologies. Developers in India are well-versed in cutting-edge trends like artificial intelligence, blockchain, and data analytics, making it an ideal location to hire a dedicated software development team for your needs.

Proficient with English

The proficiency of the employees in English is one of the standout reasons to hire employees from India. Indian software developers have good communication skills and are able to communicate across international teams. This proficiency means that there are no language barriers in order to minimize language barriers in the project discussions, feedback, and overall execution of your business.

Readiness to work US work hours

When hiring software developers from India, you benefit from their readiness to align with the US or other global time zones. The flexibility means that Indian developers are able to work round the clock as teams in Western countries are getting some rest. For projects with tight deadlines, this advantage is quite handy in making sure there is no skip and their task management process remains very efficient.

Cost-effectiveness

India remains a cost-effective destination to hire software developers without compromising quality. The monthly salary of an Indian software developer is US $2,383.78, which is lower than the salaries that are offered to their counterparts in Western countries. For instance, the monthly salary in Canada is US $6,121.85. It is beneficial for startups and small to medium enterprises looking to squeeze costs to the minimum and significantly reduce development costs. With a dedicated software development team from India, you can achieve results without overspending.

Two ways to hire software developers in India

Companies typically choose between two main approaches when they hire software developers in India: setting up a local entity or partnering with an Employer of Record (EOR).

Setting up an entity

Creating a subsidiary or branch office in India allows companies to directly hire employees from India while establishing your business presence in the country. But this approach involves compliance with local laws, getting licensed and building an HR infrastructure.

Advantages:

• Complete control: Companies have complete control over operations, hiring processes, and team management.
• Cultural alignment: A dedicated software development team can be trained to align with the company’s values and work culture.
• Long-term market penetration: Establishing a local presence fosters deeper integration into the Indian market, enabling sustained growth and talent acquisition.

Partnering with an EOR

An Employer of Record (EOR) simplifies the process of hiring software developers from India by acting as the legal employer. With this model, you do not need to set up a local entity to hire employees in India. EORs handle payroll, taxes, benefits, compliance, and other HR functions, allowing you to focus on building your dedicated software development team.

Advantages:

• Speed and efficiency: You can hire software developers in India quickly without delays related to setting up a local entity.
• Compliance assurance: EORs help ensure your business complies with Indian labor laws, which reduces the risk of non-compliance and legal penalties.
• Cost-effectiveness: Companies save on the expenses associated with creating and maintaining a physical presence in India.

Choosing an EOR is ideal for companies that want to access top talent and build a dedicated software development team without the administrative burden and upfront costs of entity establishment.

Challenges you face when you hire software developers by yourself

Complex processes involved with establishing a legal entity 

Establishing a legal entity in a foreign country is fraught with complexities, from navigating intricate registration processes to meeting local regulatory requirements. You will need to secure the necessary permits and licenses and build a compliant operational infrastructure, all of which demand substantial time, financial resources, and expertise. Additionally, accessing a qualified talent pool can be difficult, even in countries like India, where competition for skilled professionals is intense. The high costs associated with recruitment, coupled with prolonged timelines, further strain resources and create barriers for your business if you are aiming to set up operations in new regions.

Tracking productivity

Tracking employee productivity across diverse locations and remote teams presents a significant challenge for businesses. Without a reliable system, managing timesheets, monitoring task completion, and ensuring alignment with project goals becomes difficult. Inconsistent reporting methods and lack of visibility into individual and team contributions can lead to inefficiencies, missed deadlines, and reduced overall performance. This challenge is further compounded in global operations, where differing time zones, local labor laws, and varied working hours add layers of complexity to productivity tracking.

Handling compliance with laws and regulations

Compliance with local laws and regulations is a significant challenge when expanding operations internationally. Companies must adhere to strict legal standards, including labor laws, tax obligations, and data protection regulations, which vary widely between jurisdictions. Missteps in financial compliance, such as payroll errors or improper tax filings, can lead to severe penalties and reputational risks. Additionally, understanding and following local employment laws, from contracts to termination policies, requires thorough knowledge and constant vigilance, making compliance a daunting and resource-intensive task.

Choose Global Squirrels’ EOR solution to hire top software developers in India

Global Squirrels is a comprehensive staffing and payrolling platform that helps you hire software developers and manage them efficiently. Our platform handles all the essential HR functions including drafting employment contracts, setting up payroll and timesheets, managing tasks and performance, administrating benefits, and complying with all local and international labour and tax laws.

Let us look at how our platform helps you solve all your hiring challenges.

• Global Squirrels offers EOR solutions that ensure you do not need to set up an entity. For instance, our platform will act as your legal entity when you hire software developers in India. As your EOR, our platforms will handle everything from sourcing talent and onboarding to payroll and benefits management. 
• Global Squirrels offers a comprehensive solution to overcome the challenges of tracking employee productivity across diverse locations and remote teams. Our platform includes a country-specific timesheet feature, which ensures compliance with local labor laws while allowing you to customize approval frequencies to fit your operational needs, whether monthly, semi-monthly, or weekly. Additionally, the task assignment tool enables managers to assign and track both one-time and recurring tasks, which are integrated directly into the tasks and performance system for real-time visibility into progress. This ensures transparency, accountability, and alignment with project goals, enabling businesses to streamline operations, enhance productivity, and maintain consistent performance.
• Our platform offers a complete compliance solution to address the complexities of local laws and regulations in international operations. It ensures seamless adherence to labor laws, tax obligations, and data protection regulations through compliance analytics and assessments, which identify potential risks and areas for improvement. Our platform mitigates employee misclassification risks with proactive measures and handles all statutory deductions, taxes, and global payroll processes, ensuring accurate calculations and timely payments to respective government agencies.

You can start by choosing one of the following hiring plans that Global Squirrels offers:

Orange plan

The Orange Plan is designed to help you find and hire top talent that meet your specific requirements. Once you sign up and select the Orange Plan, you will be required to provide details such as the job title, job description, budget, skills required, educational background, and preferred hiring location. After submitting your request, our platform provides curated profiles within 2 to 5 business days. From there, you can select the candidates you want to interview and provide feedback post-interview through our platform. Once you finalize your choice, we generate offer letters that include details like job responsibilities, compensation, and benefits. Our system then handles the onboarding process and takes care of HR functions such as payroll setup, timesheet management, benefits administration, performance tracking, and compliance with all applicable labor and tax laws.

Purple plan

The Purple plan allows you to onboard pre-sourced candidates or existing freelancers as full-time employees. After selecting the Purple plan, you will be required to provide key details about the candidate, such as their full name, contact information, job title, work location, job responsibilities, and any onboarding documents you wish to include. Once the candidate’s information is submitted, our platform initiates and oversees the entire onboarding process. From setting up payroll and benefits to managing timesheets and ensuring compliance with local and international labor regulations, we take care of all HR-related tasks.

Are you ready to hire software developers in India? Request a demo today!