benefits of offshoring
Sep 13,

Quantifying the benefits of Offshoring: A detailed comparison between Indian & US Salaries

  • Administrator Vikram   admin
  •   Offshore Staffing
  •   0
  • The 1990s presented a tough time for America as organizations faced a colossal skill gap due to the advent of the tech revolution. That’s when US employers first turned to Indian talent for assistance. Since then, the trend has only gotten more assertive, and today, India ranks among the most sought-after countries for offshore business services, especially in the tech field.

    Offshoring to India helps businesses save up on a considerable amount of costs. Moreover, the benefits of offshoring to India go much beyond just monetary. India is the most attractive offshoring destination due to its people skills and availability, business environment, digital resonance, and, most importantly, financial competitiveness. Here’s a list.

    Here’s a list of benefits of Offshoring

    Worker salaries

    One of the most outsourced services in India is Software Development. The hourly wage of a developer in India is about  three times lesser than that in the US, even with the same profile and job role. That’s because the cost of living in India is far less than in the US. According to, an American’s cost of living is about 79% more than that of Indians.

    Work Salaries
    Employee Benefits
    Employee Benefits

    Hiring offshore staffing services helps you save on employee overhead costs such as insurance, payroll taxes, etc.

    Hiring and Training costs

    The first and foremost reason companies hire offshore employees is their skill and expertise. Offshore employees are already trained professionals who can start contributing to your organization from day one onwards. By employing them, you can eliminate the training costs of hiring new employees.

    Hring Training Costs
    Office Space
    Office space

    Hiring offshore staffing services helps you save on employee overhead costs such as insurance, payroll taxes, etc.

    Tax incentives

    Usually, governments of popular offshoring destinations like India, Malaysia, and the Philippines, offer tax benefits and financial incentives to attract investment from foreign businesses. For example, the Indian government set up SEZs or Special Economic Zones, designated duty-free regions. Establishments in these specific enclaves enjoy massive tax compensations and other benefits.

    Tax Incentives

    Don’t believe us? After all, numbers don’t lie! Let’s take a closer look at some statistics.

    Salaries Graph

    Frequently Asked Questions

    How can you help me hire offshore employees from India?
    We have a wide pool of IT talent from India. Our offshore facilities in Noida and Chennai, India comprise best-in-class infrastructure and support systems to help companies launch time-critical business initiatives with qualified technical talent. Speak to our staffing experts and learn more about how we can help you benefit with our offshore staffing services.
    What is the average salary of a developer in India?
    According to Payscale, a Software Developer in India earns a base salary of about 541,310 INR per annum.
    Apart from the cost benefit, why do US companies hire Indian developers?
    Besides lower worker salaries, India offers an unmatched pool of IT talent due to a high number of tech graduates. This widens the range of options and guarantees quality hiring for employers.

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