Global Hiring Guide

How to Compliantly Hire Software Developers in India

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How to Compliantly Hire Software Developers in India
Written by
Mayank Bhutoria,
Co-Founder
June 13, 2024

Key Takeaways

Businesses are increasingly tapping into talent pools beyond their borders to stay competitive in today's globalized economy. And one country that has emerged as a hotspot for tech talent is India.

Out of 27.7 million software developers globally, 5.4 million are Indians.    

Wondering how to hire developers in India? This comprehensive guide will equip you with everything you need to know. We cover the best cities to hire from, different hiring models, and the essential steps to take. 

Why Should You Hire Remote Software Developers From India?

India tops the list for outsourcing IT services globally. This highlights the country's wealth of developers with sound technical knowledge, English proficiency, and the right skill set.

Below are the other factors that explain why hiring remote developers from India is beneficial.

1. Cost-effectiveness

Remote developers from India often offer competitive rates compared to developers in many Western countries without compromising on quality. For instance, a US developer's salary is $110,140 while Indian developers are paid only $7,725. So, you can stretch your budget further while also attracting top talent. 

Use the Gloroots Salary Calculator to estimate salaries for remote Indian developers, so you can prepare your budget.

2. Strong technical skills

Indian developers are renowned for their strong technical skills and expertise in a wide range of programming languages and technologies. They often possess the knowledge and experience necessary to tackle complex projects effectively.

3. Quality of work

Indian developers are known for delivering high-quality work that meets international standards, including web development, mobile app development, AI, machine learning, and more. Many developers from India have experience working with global clients and are accustomed to delivering top-notch results.

4. Abundant talent pool

Did you know that India is predicted to exceed the US with the highest software developer population by 2027? Currently, India has over 5.2 million software developers. So, you have access to an abundant talent pool.

Factors to Consider When Hiring Developers in India

India offers a vast pool of skilled software developers, , but you need to consider local market nuances for a successful hiring process. 

Here are key factors to consider when hiring the ideal Indian developer for your company.

1. Portfolio and experience

Start by reviewing candidates' portfolios and assessing their technical skills and relevant experience. For instance, if you are hiring Flutter developers in India, review their portfolio, pay attention to the apps that they have developed and check if they are currently live on the app stores. However, it's highly important to consider not just the quantity but also the quality of their experience.

2. Compensation

It's crucial to determine a competitive salary range based on local market rates and the developer's skills and experience. Also, consider location, specialization, and the current demand for specific technologies. Strive for a win-win outcome where both parties feel satisfied.

3. benefits

Offering attractive employee benefits attracts and retains top talent. Some common benefits offered in India include health insurance, retirement plans, provident fund contributions, flexible work arrangements, and gratuities. 

4. Payrolling

Ensuring timely and accurate payroll processing is crucial to complying with Indian tax laws and regulations. As a foreign employer, you need to stick to these rules to avoid getting in trouble. It's best to outsource global payroll tasks to local experts or use specialized software to handle them and ensure payroll compliance.

5. Time Zone Difference

India is located in a time zone approximately 12 hours ahead of the US. So employers must facilitate smooth communication. Because when working hours overlap, developers in India might struggle with giving updates or real-time collaboration.

6. Labor laws in India

Adhere to Indian labor laws and regulations governing employment contracts, working hours, wages, leaves, termination procedures, and workplace safety standards. So, stay informed about changes in labor laws and update employment policies and practices accordingly to maintain global compliance and reduce legal risks. 

Gloroots, as an Employer of Record (EOR), can assist with labor compliance by staying up-to-date with local labor laws and regulations. They handle tasks such as payroll processing, tax withholding, benefits administration, and employment contract management, all while ensuring adherence to labor laws to mitigate compliance risks for their clients.

Top Hiring Destinations For Developers in India

1. Bangalore

Dubbed the Silicon Valley of India, Bangalore is home to 80% of the largest global IT firms. It has a well-established IT ecosystem with numerous tech parks, IT companies, startups and research institutions. Also, the state government's proactive IT policies have attracted billions in investments, making it a prime location for hiring skilled developers.

2. Chennai

Chennai has experienced rapid growth in the IT industry. It’s home to Tidel Park, one of Asia's largest IT parks. The Tamil Nadu government has given approval to develop 37 IT special economic zones (SEZs) and nearly 220 IT parks have been sanctioned by the state IT department. This significant investment in IT infrastructure highlights the vast pool of tech talent available in the state.

3. Hyderabad

This city is a powerhouse in the IT sector, with the HITEC City area hosting multiple tech giants like Microsoft, Google, and Meta, as well as a growing number of tech-related facilities. The presence of a vast pool of tech professionals from top universities, coupled with the city’s cost-effective environment and rapid growth make it the best destination for hiring Indian developers.

4. Ahmedabad

This city boasts over thirteen universities, providing unparalleled access to top tech talent. In recent years, the Gujarat government has rolled out incentives under the IT/ITeS policy, leveraging the state’s resilient IT infrastructure. As a result, leading multinational corporations have set up shop in Ahmedabad and GIFT City, creating a hub of talent and innovation.

5. Pune

Pune has emerged as a prominent destination for IT and software development, attracting both established companies and startups. The city is known for its quality educational institutions and skilled workforce, making it an ideal location for hiring developers across different technologies and domains.

6. NCR

The National Capital Region, encompassing Delhi, Gurugram, and Noida, is a key IT hub in India, attracting tech companies, startups, and developers alike. NCR offers a diverse talent pool, proximity to government institutions and enterprises, and a thriving startup ecosystem.

Steps to Hire a Developer in India

Below, we share a quick step-by-step guide that helps you navigate the process of hiring Indian software developers.

1. Define requirements

First, define the requirements for the Indian developer you seek. Outline the necessary skills, experience level, and qualifications required for the role. 

To streamline your search, it's best that you specify the scope of the project, including the specific technologies and skills required. Additionally, outline other key requirements, such as remote work experience or availability for meetings in your time zone.

2. Source and shortlist candidates

Next, to find potential candidates, identify the right platform and post a detailed job description. For instance, platforms such as LinkedIn and GitHub remain the best places to find top-tier talent. After posting a job, numerous people will apply. Check and compile a list of potential candidates and narrow it down based on their experience, skills, and alignment with your project requirements.

3. Conduct interviews and technical assessment

With your shortlist in hand, go ahead and conduct screening calls or interviews with the candidates. In most cases, after the first set of interviews, coding tests are conducted to assess their technical skills, and their experience. Also, take a look at the past projects or work samples to get a sense of the quality of their work. Focus heavily on areas crucial for the company's growth and then gauge each candidate's suitability for the role. 

4. Evaluate communication and collaboration skills

When hiring a remote developer, technical expertise is crucial, but communication and collaboration are equally important. So, assess their ability to express themselves effectively and collaborate with your existing team members or stakeholders.

5. Negotiation terms and make a job offer

Once you have identified the right candidate, it's time to negotiate terms and finalize the hiring process. Negotiate aspects such as compensation, work hours, and project milestones to ensure mutual satisfaction. Gloroots makes onboarding an employee a breeze with a six-click onboarding process. So you can focus on integrating new talent into your team while we handle the administrative complexities, ensuring a smooth and hassle-free experience for both you and your employees

6. Onboarding the employee

Provide comprehensive onboarding documentation, including project guidelines, access to necessary tools or systems, and introductions to team members. 

Different Hiring Models for Developers in India

1. Freelancing

If you have short-term projects or need specific skills for a particular task, you don’t need to hire employees; choose freelancers instead. In addition to offering flexibility, this option is cost-effective because you only pay for the work done. 

2. Outsourcing

Opt for outsourcing if you have larger projects or need a dedicated team with various skill sets. It's cost-effective compared to hiring an in-house team. So, you don't have to worry about overhead costs like office space or equipment.

3. Employer of Record (EOR)

If you want to hire remote developers in India while ensuring compliance with local employment laws, partner with an Employer of Record. They can handle all the administrative tasks, including payroll, taxes, and benefits, saving you time and effort.

Final Words

Hiring developers from India offers a multitude of benefits that can significantly enhance your business's success in the competitive global marketplace. From top-tier technical expertise to cost-effectiveness, Indian developers bring a wealth of value to any project or team.

But you don't have to go through all the trouble of indulging in the process of hiring software developers in India. Consider partnering with Gloroots, a top-notch EOR service provider. From onboarding tech talents to payroll processing, Gloroots can provide a robust solution that makes global workforce management effortless. Get in touch with us today.

FAQs

1. What are the Platforms to Hire Developers in India?

  • LinkedIn 
  • Toptal
  • Upwork Inc. 
  • ALOA
  • Dice
  • Working nomads
  • Guru.com

2. How can I ensure effective communication with remote developers?

Follow these steps to ensure effective communication with your remote developers.

  • Use the right communication tools
  • Establish clear communication channels. 
  • Schedule regular check-in meetings with your remote developers. 
  • Provide detailed project requirements, technical specifications, coding standards, and any other relevant information
  • Encourage open and honest communication.
  • Use project management tools.
  • Prioritize face-to-face interactions. 
  • Address communication barriers

3. What are the benefits of using Gloroots for hiring Indian developers?

Gloroots, as an employer of record for hiring Indian developers, offers several benefits. It handles administrative tasks such as onboarding, payroll, taxes, and compliance with Indian labor laws. By leveraging Gloroots' local expertise, companies can navigate cultural nuances and business practices in India, fostering smooth collaboration with their remote teams.

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