For many employers around the world, India has increasingly become the go-to destination when it comes to outsourcing software engineer employees. Even amidst a wave of IT layoffs, there are companies such as Axtria, who are announcing plans of hiring over 1000 Indian software engineers. 

India is home to hundreds of thousands of skilled IT professionals. There are approximately 5 million Indian software engineers around the world. This is the result of having 243 colleges that offer computer science and software engineering as key programs in a country as populated as India. 

Indian software engineers belong to an industry popularly recognized for its impressive technical skills and trained IT professionals that contribute to a diverse talent pool. And this is one of the leading reasons why companies opt for IT professionals from countries such as India, where large amounts of skilled talent are readily available at lower costs. In fact, even Elon Musk is planning on hiring Twitter engineers from India, in order to decentralize Twitter.

In this article, we’ll explore why your company might consider hiring Indian software engineers versus American software engineers. With cost-saving benefits as the leading reason, skills, availability, work permits, communication, and experience also play a huge role.

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The Cost-Saving Benefits of Hiring Programmers in India 

Whether you’re a small business or a multi-national corporation, everyone likes to cost-cut without compromising on the quality of the work. This is one of the leading reasons why so many businesses prefer hiring employees from the eastern hemisphere. 

Most software engineers and programmers in India have received higher or equivalent education than their American counterparts. However, since the cost of living is significantly lower in India compared to the United States, software engineer salaries are significantly lower than in North America. 

Minimum Wage and Average Salary Rates in India

The minimum wage in India is INR 32,840 per month, though it can vary based on the region and professional background. Given current currency exchange rates, INR 32,840 is approximately US $395 per month, making it affordable for companies to hire Indian professionals. 

Global hiring can help you save money on your payroll, and hiring in India is no exception. In fact, the average salary of a software engineer in India can be anywhere from INR 38,536 - INR 39,723 per month. Of course, how much a software engineer earns, such as the starting salary and the highest salary, will depend greatly on their skill set and experience. 

With a software engineer salary in India, your company's new IT professional can maintain a comfortable lifestyle, thanks to India's significantly lower cost of living and the current conversion rates. 

Hiring Indian software engineers is a win-win situation for both employers and employees. While cost-saving is a huge reason to hire someone, it is also beneficial to consider other factors, such as communication, before moving forward in the hiring process. 

The Benefits of Hiring an American Software Engineer

Hiring American software engineers can be a huge investment for companies as they are expensive to employ. The average salary of an American software engineer can be approximately US $140,362 annually.

While hiring an American software engineer is expensive, they can provide your company with a wide range of benefits that Indian software engineers of the same professional background lack. From improved communication skills and proficiency in English to eliminating work permits and visa-related issues, it just might be worth paying the extra thousands of dollars in salaries. 

Pinpointing a great software engineer isn’t just about their CV. Rather, companies look for excellent team players and collaborators alongside strong technical skills. A software engineer resume is a great place to start looking for ideal candidates but it’s worth looking at their soft skills as well. 

Smooth Communication

American software engineers can offer their deep understanding of the English language and familiarity with American business cultures and etiquette to collaborate with coworkers and clients. 

There is a limited language barrier and cultural difference between American software engineers and other employees or clients, thus ensuring they can effectively communicate their message regularly. 

When an employee is a short drive or plane ride away, the time difference or distance does not affect efficiency or productivity. In fact, when the entire team is working in the same time zone, quick communication is possible, resulting in a faster turnover.

With employees working in close geographical proximity to each other, time-sensitive projects are completed without affecting their quality. And the ability to have productive face-to-face meetings and access to other coworkers' skills, company resources, and easier coordination makes completing a project much more efficient. 

Labor Laws and Work Permits

If you are a US company, hiring American software engineers is simply easier. You don’t need to worry about navigating work permits or visas to bring foreign nationals into the country or navigating Indian labor laws to hire employees abroad. 

The legal framework for hiring in India is vastly different from the US. The good news is that you don’t necessarily need to navigate the local laws on your own. An Employer of Record (EOR), like Borderless, can help you along the way and make the international hiring process a breeze. 

Intellectual Property Protection and Data Security

When hiring American software engineers, you can minimize the costs of training them on intellectual property protection and data security. Many American IT professionals have already received prior education on data security and intellectual property protection laws. 

Intellectual property protection and data security plays a huge role in ensuring sensitive company information, trade mark, copyrights, and trade secrets remain a secret. Intellectual property refers to the various creations of the mind, such as inventions, patents, designs, symbols, names, etc. Protecting these forms of data is embedded into American law, and American software engineers must adhere to these strict laws and regulations to protect company information and prevent data breaches. 

While some Indian software engineers have received education on intellectual property protection and data security, they may not be fully aware of American intellectual property laws. So, companies will have to invest in adequate training programs. 

Depending on the size and type of program, most cybersecurity boot camps can cost anywhere from US $10,000 to $20,000. Although, there are other more affordable intellectual property and data training programs available in the market.

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Factors to Consider When Choosing Between Indian and American Software Engineers 

Choosing between an Indian and an American software engineer for your business is a hard decision to make. For instance, software engineers in the United States earn an average of US $140,00 annually. Meanwhile, an Indian software engineer makes US $45,000 annually without compromising on the quality of work. For less than half the salary of an American engineer, companies get access to a diverse skill set from halfway across the globe. 

Cost-saving isn’t the only advantage of hiring abroad. Factors such as availability, experience, and a diverse skill set are equally important when identifying the right software engineer for your company. 

Both Indian and American software engineers have a significant global impact on the IT industry. From India’s IT hub in Bangalore to the United States IT hub in Austin, Indian and American software engineers have what it takes to become a great addition to your team.

Hours and Availability

Are you looking for 24/7 IT support? Then, hiring Indian software engineers is the perfect solution for you. 

Your employees will be based in Indian Standard Time (IST) which is nine and a half hours ahead of Eastern Standard Time (EST). This time zone difference is advantageous for those businesses that operate around the clock and are looking for someone to work the night shift. 

Given the significant time difference, a local American software engineer can work on projects during regular business hours, while the Indian software engineer takes on the project and continues producing quality content after business hours. 

With a diverse and global team working round-the-clock, your business can become even more productive than before. From faster response times for support requests and quicker project completions, you’ll be ready to tackle the challenges that come your way.  

Having teams in different time zones also allows you to take advantage of the benefits real-time collaboration and effective communication have to offer. 

American software engineers can contribute to projects that require constant interaction and communication with other departments, clients, and stakeholders that operate during regular business hours, unlike their Indian counterparts. However, Indian software engineers can contribute with their backend and around-the-clock services that keep your business up and running. 

Scalability and Flexibility

Streamline the workflow and enhance productivity with engineers known for their strong work ethics and dedication. With such a large pool of Indian software engineers available to hire, you can shortlist those willing to go the extra mile and meet deadlines promptly. From having a tight work schedule that requires high levels of commitment to needing someone to work the night shift, Indian software engineers are a great solution. 

Another advantage to having access to such a large number of software engineers is having the ability to mass hire. If your company is rapidly growing and you need an affordable yet scalable option for hiring employees, then hiring Indian software engineers is the way to go. 

A Diverse Skill Set 

By identifying the specific needs of your company, you can choose between Indian software engineers and American software engineers. Indian software engineers are often known for their expertise in areas such as coding, software development, and project management. 

American software engineers are known for their creativity, innovation, and problem-solving skills. While Indian and American engineers provide technical proficiency, their unique skills set them apart. 

Maybe your software company is looking for a software developer with experience in artificial intelligence. Or, you might be in search of a skilled professional with knowledge in machine learning and data structures. Or, you need a front-end developer for your website. Between the US and India, you'll have access to a large talent pool with a variety of skill sets. 

Home to world-renowned universities, India provides their IT professionals with an opportunity to enhance their practical knowledge and experience while providing access to some of the latest technologies and equipment. This practical and technical knowledge sets Indian software engineers apart from their American counterparts. 

Thanks to the diverse skill sets Indian software engineers possess, hiring companies do not need to spend as much on training their new employees.

Experience

The IT industry in North America has specific needs and trends. American software engineers have a deeper understanding of these, thanks to the experience they obtain while working with top-tier companies and cutting-edge technologies. 

On the other hand, while Indian software engineers might have received their education from renowned universities, they may lack the soft skills needed to tread through the American IT sector. 

However, with their deep technical knowledge and strong problem-solving abilities, Indian IT professionals have experience working under tight deadlines and irregular work timings. These experiences can contribute to the overall productivity of a team. 

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Making an Informed Decision for Your Business

How much money can you save hiring Indian versus American software engineers? The short answer to this question is quite a lot. However, cost-saving isn’t the only factor you should consider when hiring. 

Hiring Indian software engineers may not cost as much as hiring American software engineers. However, you'll need to consider the legal implications of hiring abroad. This includes things like employer responsibilities, setting up legal entities, processing global payroll, and more. 

With multiple factors to consider, making an informed decision is not an easy task. However, with Borderless, don’t let the hassle of international labor regulations, work permits and visa requirements get in the way of cost savings. 

Working with an Employer of Record (EOR) like Borderless means you don’t have to worry about the legal aspects of hiring. Leave all the contracts, payroll, benefits, and compliance with Indian labor laws and regulations to us. 

Want to learn more? Book a demo with our experts today and we can help you hire from 170+ countries around the world in just a few minutes. 

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Disclaimer

Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.