What is software development outsourcing in India?

Software development outsourcing in India involves hiring an external Indian company or team to handle software projects, allowing businesses to reduce costs and access skilled developers without managing local employment.

Is outsourcing software development to India cost-effective in 2026?

Yes, outsourcing software development to India remains cost-effective in 2026 due to competitive developer rates, a large talent pool, and lower operational expenses compared to the US and Europe.

What are the risks of outsourcing software development to India?

Common risks include communication gaps, time-zone differences, data security concerns, and limited control over team management if governance and contracts are not clearly defined.

How is hiring developers via EOR different from outsourcing in India?

Outsourcing involves third-party project delivery, while hiring developers via an Employer of Record (EOR) gives you direct control over developers who work exclusively for your company.

Is Employer of Record in India suitable for software teams?

Yes, an Employer of Record in India is ideal for software teams that need long-term, dedicated developers while ensuring compliance with Indian labour laws and payroll regulations.

What is the Employer of Record services cost in India?

Employer of Record services in India typically cost a monthly fee per employee, usually ranging from 8% to 15% of the employee’s gross salary, depending on services included.

How does payroll in India work for outsourced or EOR-hired developers?

For EOR-hired developers, payroll includes salary processing, tax deductions, social security contributions, and statutory filings, all managed by the EOR partner in India.

What labour laws in India apply to outsourced software developers?

Outsourced developers are governed by contract law, while EOR-hired developers fall under Indian labour laws covering wages, working hours, social security, and employee benefits.

Software Development Outsourcing in India: 2026 Guide

Expand Globally with Ease

Hire, pay, and manage international teams – without setting up entities.
Let our EOR experts help you scale compliantly.

Expand Globally with Ease

Table of Contents

Asanify Newsletter

Products

Resources

Important Links

Contact Us

© Copyright Asanify 2026 — All rights reserved