By Krishna Joshi, Founder, CoreStack Technology
Hiring a software company in India can be one of the best decisions a founder or operations head makes — or an expensive lesson. The engineering talent is real, and so are the horror stories: the project that was "90% done" for six months, the agency that went quiet after the second invoice, the code that turned out to live on someone else's account.
We are a fixed-price studio in New Delhi that works with clients abroad, so we have an interest here. This guide tries to be useful even if you hire someone else.
What it costs, honestly
Rates in India vary more than almost anywhere, because the market runs from solo freelancers to listed IT-services companies. As rough 2026 bands for experienced engineers billed to overseas clients — quotes outside them are common:
| Who | Typical rate | Best for |
|---|---|---|
| Freelancer on a marketplace | $15 – $35 an hour | Small, well-defined tasks you can review yourself |
| Small studio or agency | $25 – $50 an hour, or fixed price | A product or system built end to end, with design and testing |
| Mid-size IT services company | $35 – $70 an hour | Larger teams, long contracts, formal processes |
| Large IT services firm | $50 an hour and up | Enterprise programmes with procurement requirements |
For whole projects, our own starting prices are $900 for a business website, $3,500 for an online store, $5,500 for a mobile app and $7,000 for custom business software, each for the smallest real version (full pricing). Do not expect a tenth of a US or UK quote. In our experience, once design, management and rework are counted, a well-run Indian team costs something like a third to a half of a comparable team in the US or UK — and a badly run one can cost more than either.
Fixed price vs hourly
| Fixed price | Hourly (time and materials) | |
|---|---|---|
| Who carries the risk of overrun | The developer | You |
| What you need up front | A clear scope for the first milestone | A budget, and someone to set priorities every week |
| Best for | A defined product: a website, a store, a system with known users | Ongoing product work where priorities change weekly |
| How it goes wrong | Arguments about scope; corners cut to protect the margin | Slow work is rewarded; costs drift with no end date |
| How to protect yourself | Written scope, acceptance criteria, changes quoted before they are built | Weekly caps, hours tied to delivered work, the right to stop at any time |
Neither model is honest by default. Fixed price protects you from overruns only if the scope is written precisely enough that both sides agree what "done" means. Hourly is fair only when you can see what each hour bought.
A sensible pattern for most first projects: fixed price for the first version, paid in milestones, then a monthly arrangement — a support plan or a dedicated developer — once the product is live and priorities change week to week. That is how our own engagements are structured.
How people get burned — and the defence for each
1. Paying too much up front
An advance of 50% or more before any working software exists leaves you with no leverage. Defence: a small advance to start, then payment against milestones you can open and click through yourself.
2. Code you do not own
Some agencies keep the source code on their own accounts and effectively rent you the result. Defence: the repository lives in your own GitHub, GitLab or Bitbucket organisation from week one, with the developers invited in, and the contract assigns the code to you on payment.
3. The 90% problem
Status reports say "90% done" for months because nothing has been finished end to end. Defence: a working demo on a link every week, and milestones defined as things a user can complete — "a customer can place and pay for an order" — not "backend 80%".
4. The bait and switch
The senior engineer on the sales call is not the person who writes the code. Defence: ask who will build it, by name, and speak to them. Ask whether any of the work is subcontracted.
5. Accounts in the developer's name
Hosting, domain, app-store and payment-gateway accounts registered to the agency. When the relationship ends, so does your control. Defence: every account in your company's name, with the developer added as a user.
6. No way out
No documentation, no deployment notes, no handover. Defence: make handover part of the final milestone — documentation, credentials, a recorded walkthrough — and pay for it like any other deliverable.
Already holding a project that went wrong? A written audit will tell you what is worth keeping before you spend more on it.
A contract checklist
- Scope written as things a user can do, with acceptance criteria for each.
- Price fixed per milestone, in your currency or USD, with exclusions listed: hosting, third-party fees, taxes.
- Payments: a small advance, then on delivery of working milestones.
- IP: code, designs and data assigned to you on payment; your confidential material never reused.
- Repository and accounts in your name from the start.
- Changes written, quoted and approved before work starts.
- A warranty period after launch in which defects are fixed free — ours is 30 days.
- An NDA before you share sensitive details, if you need one.
- Governing law and disputes: know which country's courts apply. Indian companies commonly contract under Indian law; our terms are published.
- Termination: what you receive, and what you owe, if either side stops.
Time zones and communication
India is on IST, UTC+5:30, all year. That puts it 4½–5½ hours ahead of the UK, 9½–10½ ahead of the US East Coast, 1½ ahead of the Gulf, and 4½–5½ behind Sydney. The gap is an advantage when work is written down: you send feedback in your evening, and it is done by your morning.
What makes it work is a rhythm rather than a heroic call schedule: a short written update each week, a demo link you open in your own time, decisions recorded in one thread, and one fixed call in the overlap. A team that needs you on a call every day to make progress will struggle across ten time zones. Our time-zone table shows how we schedule across regions.
Paying a company in India
Reputable firms invoice in USD or your own currency, and payment is usually by international bank transfer; some accept other routes. Agree the currency, the method and who bears the transfer fees before the first invoice, not after. We invoice international clients in USD and confirm the payment route before work starts.
Questions for the first call
- Can I see something you built that is live today — and what went wrong on it?
- Who exactly will work on my project, and how senior are they?
- What will I be able to click at the end of week one? Week two?
- Where will the code live, and when do I get access?
- What happens if we disagree about whether a feature is finished?
- What does support cost after launch?
Where to start
Start small and real. A paid audit, a first milestone or a free design of your core screens shows you how a team works before you commit the whole budget. Ours is free: send your idea on WhatsApp or to krishan.joshi@corestacktechnology.com, and within 48 hours we send back clickable screens — then, if you want to go ahead, a fixed quote in USD.
Frequently asked questions
Is it cheaper to outsource software development to India?
Usually, but not by as much as hourly rates suggest. Once design, project management and rework are counted, a well-run Indian team often costs a third to a half of a comparable US or UK team, and a badly run one can cost more.
Should I choose fixed price or hourly?
Fixed price for a defined first version, paid by milestone; a monthly or hourly arrangement once the product is live and priorities change weekly. Either way, insist on a working demo every week.
How do I protect my intellectual property when outsourcing?
Keep the code repository and every account in your company's name from the start, sign an NDA before sharing sensitive details, and make the contract assign the code, designs and data to you on payment.
How do I pay a software company in India?
Most invoice in USD or your own currency and are paid by international bank transfer. Agree the currency, the method and who pays transfer fees before the first invoice.
Free, within 48 hours
See your own idea as clickable screens before you spend anything.