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Outsourcing to India: what it costs and how to do it well

The VouchQuote team ·

Consultant presenting to a small team around a table

India is the world’s largest source of outsourced digital work, from websites and apps to bookkeeping and design. For a small business abroad, the appeal is simple: skilled people at a much lower cost. This guide covers what outsources well, what it costs, and how to set a project up so it actually works.

What outsources well

Work that can be described clearly and delivered online is the best fit:

Work that depends on being in the room, on local regulation, or on deep knowledge of your local market is harder. Tax returns, for example, need someone qualified in your country’s rules.

Typical prices in India, compared

Guide prices in US dollars for freelancers and small agencies. India figures are what professionals there quote clients abroad; the others are what local professionals charge.

ServiceIndiaUnited StatesUnited Kingdom
Web Design$350 to $3,500$960 to $9,630$740 to $7,350per project
App & Software Development$2,400 to $24,000$6,600 to $66,000$5,040 to $50,400per project
SEO Services$200 to $1,000$550 to $2,750$420 to $2,100per month
Social Media Marketing$200 to $1,000$550 to $2,750$420 to $2,100per month
Copywriting & Content$60 to $700$170 to $1,930$130 to $1,470per project
Graphic Design & Branding$100 to $1,500$280 to $4,130$210 to $3,150per project
Video Production & Editing$60 to $1,200$170 to $3,300$130 to $2,520per project
Commercial Photography$100 to $1,400$280 to $3,850$210 to $2,940per project
Bookkeeping & Accounting$60 to $280$170 to $770$130 to $590per month
Accounting & Tax$120 to $1,600$330 to $4,400$250 to $3,360per project
Business Consulting$300 to $4,800$830 to $13,200$630 to $10,080per project
IT Support$140 to $1,700$390 to $4,680$290 to $3,570per month

These are our own estimates. See how we work out price ranges.

How to set a project up

  1. Start small. A first project of two to four weeks tells you more about a professional than any interview.
  2. Write the scope down. Deliverables, deadlines, number of revisions and what counts as finished.
  3. Agree communication. One channel, one weekly call, and an expected reply time.
  4. Pay by milestone. Never the full amount in advance, and never nothing until the end.
  5. Keep ownership. Accounts, source files and logins should be in your name from day one.

Time zones

India Standard Time is 4.5 to 5.5 hours ahead of the UK and 9.5 to 13.5 hours ahead of the United States, depending on the season and coast. Many businesses treat this as an advantage: you send feedback at the end of your day and find the work done the next morning. It only becomes a problem when nothing is written down and every decision needs a call.

Contracts and tax

A short written agreement covering scope, price, payment schedule, ownership of the work and confidentiality is enough for most small projects. A freelancer in India working from India is normally an independent contractor, not your employee. Tax treatment depends on your country, so ask your accountant how to record the payments.

Getting started

You can post a project on VouchQuote free. At most three verified professionals send itemised quotes, your contact details stay private until you hire, and you pay the professional directly. Describe your project or try a cost calculator first.

Quick answers

Why do companies outsource to India?

A large pool of English-speaking professionals, strong technical and design skills, and prices well below those in North America, Europe and Australia.

What are the risks of outsourcing to India?

The same as outsourcing anywhere: unclear scope, poor communication and paying too much up front. A written brief, milestones and a small first project remove most of the risk.

How much can I save by outsourcing to India?

It depends on the service. In our guide prices, Indian rates are often less than half of what local professionals charge in the US or UK.

Prices vary by country. How we work out price ranges.

Put it into practice

Post your job and compare up to three structured quotes.

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