Cost Savings

How to Calculate the True Cost of Hiring a Developer in India

AllDomainSoft Team 8 min readFebruary 10, 2026
How to Calculate the True Cost of Hiring a Developer in India

Many companies look at salary alone when calculating the cost of hiring in India. The reality is more nuanced, but the savings remain significant when you account for all factors.

Direct Costs

  • Salary: A senior full-stack developer in India earns ₹15-30 LPA ($18K-36K/year), compared to $120K-180K in the US
  • Benefits: Health insurance, provident fund, and statutory benefits add 20-30% to base salary
  • Equipment: Laptop, monitors, peripherals — approximately $1,500-2,500 one-time

Indirect Costs

  • Office space: ₹8,000-15,000/seat/month in premium Gurgaon tech parks
  • HR & administration: Payroll, compliance, leave management — typically 10-15% overhead
  • Recruitment: Finding the right candidate costs 1-2 months of salary through agencies

The AllDomainSoft Model

With AllDomainSoft, all of these costs are bundled into a single monthly fee per developer. No hidden costs, no setup fees, no minimum commitments longer than 3 months. The total cost typically works out to 40-60% less than hiring equivalent talent in the US, UK, or Australia.

Questions people have after reading the blog

How do I compare quotes fairly across vendors?

Compare fully loaded monthly cost, replacement policy, QA coverage, and management overhead. Hourly rates alone are misleading.

When does offshore stop being cheaper?

When requirements are unclear, ownership is weak, and rework dominates. Cost gains depend on process discipline, not geography alone.

Should I optimize for cheapest team or best retention?

Retention usually wins. Re-hiring and re-onboarding costs destroy savings faster than slightly higher monthly rates.

Can small teams still get meaningful savings?

Yes. Even a 1-3 person dedicated setup can reduce burn significantly when scoped and managed well.

What metric should I track monthly?

Track cost per shipped feature or cost per resolved roadmap item, not just headcount cost.

AT

AllDomainSoft Team

Content Team

The AllDomainSoft content team shares insights on IT staffing, remote team management, and technology trends to help businesses scale smarter.