How to Compliantly Hire Software Developers in India

Businesses are increasingly tapping into talent pools beyond their borders to stay competitive in today’s global economy. One country that has become a major source of tech talent is India.

According to the 2025 GitHub Octoverse report, there are about 21.9 million developers building software in India, making it one of the largest developer communities in the world. India also added more than 5.2 million new developers in the past year alone, showing rapid growth in its tech workforce. By 2030, that number could grow to over 57 million developers.

Wondering how to hire developers in India? This guide will walk you through the best cities to recruit from, different hiring models, and the key steps to take for compliant and successful hiring.

Different Hiring Models for Developers in India

1.Freelancing

Best for short-term projects or specific tasks. You pay only for the work delivered, making it flexible and cost-effective without long-term commitments.

2.Outsourcing

Ideal for larger projects or multi-skilled teams. Outsourcing reduces overhead costs like office space and equipment while giving you a dedicated team focused on your project.

3.Employer of Record (EOR)

The simplest way to hire full-time developers compliantly. An EOR manages payroll, taxes, benefits, and local labor law compliance, letting you hire talent in India quickly without setting up a local entity.

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

Instead of just thinking about the base salary, it’s important to understand the full cost of hiring a developer in India. This helps you plan your budget accurately and avoid surprises.

Typical US vs India Cost Difference:

• US Developer: $8,000–$12,000 per month (for mid-level talent)
• India Developer: $1,200–$2,500 per month (for mid-level talent)

Hidden Costs in India that US founders often miss:

• Employer Provident Fund (PF): ~12% of salary
• Gratuity: ~4.81% of salary
• Professional Tax: varies by state
• EOR/Payroll Platform Fees: depends on provider
• Hardware & Tools: laptops, software licenses, cloud accounts

Fully Loaded Cost Example (Mid-Level Developer):

• Base Salary: $2,000
• PF + Gratuity + Taxes: ~$400
• EOR Fees & Tools: ~$200
• Total Monthly Cost: ~$2,600

By considering these components, you get a realistic picture of what it truly costs to hire and manage developers in India, making it easier to compare with hiring locally or in other countries.

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

Paying developers in India isn’t just about salary it includes statutory contributions and compliance:

• Provident Fund (PF): Mandatory retirement fund contribution (~12% of basic salary from employer and employee).
• Gratuity: Payable for long-term employees (~4.81% of salary for eligible employees).
• Professional Tax: Varies by state, deducted from employee salary.
• Income Tax (TDS): Tax deducted at source for employees, which must be reported to the Indian government.
• Leave & Benefits: Paid leave, insurance, and other statutory benefits must be tracked.

Foreign companies often struggle with calculations, filings, and currency conversions. 

Using a global payroll platform or EOR like Gloroots Global Payroll ensures accurate payroll, legal compliance, and timely payments so you can hire Indian developers without hassle.

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.

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. 

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.

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.

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 best platforms to hire developers in India?

Top platforms include LinkedIn, Toptal, Upwork, Dice, Working Nomads, and Guru. These connect you with experienced Indian developers for full-time or project-based roles.

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

Use reliable tools like Slack or Zoom, set clear communication routines, share detailed project requirements, and schedule regular check-ins to keep everyone aligned.

3. What are the benefits of using Gloroots to hire Indian developers?

Gloroots manages onboarding, payroll, taxes, and compliance in India. It simplifies hiring and ensures smooth collaboration through its local expertise and EOR support.