Cost of setting up Development Centre India

for a small IT company(less than 20 employees) cost per seat generally terms out to INR 25,000 per seat per month. this includes the risk metrics and operational cost (as per existing rental values/admin expenses calculated on outsourced operational values)

Foran american company looking at starting operations in India they should look at cost of USD 1500 per seat/per month. This is essential keeping in mind learning curve they will need to implement and risk for around 18 months for delivery channel to be self sustainable.  If they wish to cut down on inital training etc and would like people to straight away jump into projects thrown at them. They are looking at cost between USD 2000-2500 per seat/per month depending on a contral spanning 24-26 months.

Companies should do take a note india is no more cheap source of manpower but a place to find good minds at competetive cost.

3 Responses to “Cost of setting up Development Centre India”


  1. 1 O.Jeff January 30, 2007 at 5:26 pm

    You give the figure of $2,500 per month for an experienced developer. Could you be more specific? Does this include all costs — i.e. office space, utilities, network, computers, salary, benefit, etc?

  2. 2 Sid Puri January 30, 2007 at 6:50 pm

    Yes this pretty much include all the cost. Generally you should add 17% of this as country risk for india due to high attrition rate and other factors taken in for moving into the region for any company.


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