Outsourcing: What is the general hourly billing rate of the offshore IT companies in India for project manager, business analyst, technical architect, team lead, and developer?

It comes around 6000r...

Companies like TCS, Accenture, Cognizant, Infosys, IBM, Capgemini and the other large IT companies are usually having branches world wide. (Photo: http://Flickr.com / https://www.flickr.com/photos/pahudson/2212158644/in/photolist-4ntTGh-G2Evbj-azDsdb-7zyucG-6az23h-6auRon-6auS28-6auRP6-b1qCx-i4VvQ-8pYFr3-6u1s7-8pVvHD-8pYFdb-8pYFgL-8pYFjU-8pYFaJ-cirXXN-cirX85-6auQJv-cirXEh-cirXxN-cirXMd-8SHUUF-5yJHHp-Mbaep-6az1pU-8wLpmH-54fHvc-4BWaFf-p6Aqb7-6auRbg-dcy2RU-54jX1j-4J3Vej-KAj4m-4cLGcJ-8R8vMn-8b8xqQ-5Tbmua-M6ysw-9HxSVd-bu2gfG-8iR2z5-py2ej9-o1unh-4PC2Kr-7MhuP5-bGW4k6-ocY6yM / Paul Hudson)They also have dedicated sales people, who will negotiate the prices with their customers.The price depends also upon the location. They might charge a higher price in Switzerland and a little bit lower price in Portugal or in India.There are usually different pricing models they will offer to their clients. The following are the most common ones:1) Dedicated Team Members: Here they will lease out developers on a monthly retainer basis. Asian or Indian IT companies might charge 3500 Dollars per month for a http://ASP.NET developer. Whereas western counterparts might take a multiple of that. Their customers, who are usually large companies, will take these developers for periods from 2 to 3 years.Also it has to be noted, that companies like Bosch or General Motors might hire thousands of developers from a company like IBM or TCS at a time and might therefore get a discount based on that.2) Fixed Price: Here the IT company will take the requirement from the client and will calculate a fixed price. This fixed price is usually paid at different hand over periods.3) Time and Material: In some cases the clients will agree on paying as needed by the IT company, as they might not know exactly how much development effort is needed. So if the development company needs 100′000 hours, then the IT company will then calculate the price for those hours worked.4) Agile Pricing: This is a new type of pricing, which is based on the Agile Principles and combines the fixed price model and the time and material model.Still there will be a pricing difference between the established multinational western players, like IBM, Accenture, Capgemini and their Asian counterparts like TCS, Infosys and Wipro. Whereby the Indian companies usually try to give a better price, as they have the lower wage advantage in India.IBM and Accenture for example are able to command better prices, as CIO’s and other decision makers in large companies have more trust in these established IT companies. If the project goes wrong, then the CIO can say “See, I have taken the best IT outsourcing company IBM, so it is not my fault that the project went wrong”. If the CIO would have taken an Indian IT company, that argument would be much harder to win.Billing rates (Photo: http://Flickr.com / https://www.flickr.com/photos/janoma/4601321721/in/photolist-81AYD8-9QrDB4-qFMcqJ-qFLpNS-ekWKdu-bV6yWU-c4RDvf-bV72Lm-neERbw-bUxFMY-bV7Em9-bV7zhf-bU3A6k-bUxNqC-bV6Ehm-bV7bv1-bFbr4E-c4QoBN-bUxUJf-bU5AeF-bU5YZP-c4SpD3-c4QKXj-bU6b1x-c4RqR7-Eu9zQ-c4RQqY-c4RocC-bFbHTq-bV7Jzd-bV7CHm-py4qQr-bUwvWU-bF9teC-bFbjaW-bUxRkW-bFbhXw-bF9zfY-bF9mmb-bV7TMb-bUxLPW-c4Rzx5-bUx4ob-bFbo3Y-bV6MQy-bUxTH3-bFbHuA-bU5YeP-bV6SR9-bUwUGj / Alejandro Mallea)The billing rates in those big IT companies are usually not as simple as in a smaller company. They will have complex billing rates, which might not be always uniform. They need to involve their controlling department, their accounting department, the pricing people, the sales people, the management, to derive at a billing rate for each developer and employee who works on the project.The actual billing rates might sound strange to a normal employee or reader of this post. For example, an internal hourly billing of a department manager in Europe, might be around 250 Euro (and internal billing is just the amount which is calculated from one department within the company to the other). This might sound strange, because when you calculate it to one month, this would become 40′000 Euro. So it is always difficult to explain this calculations to a normal reader. But if you are a little bit more of these things, then it makes sense.But when you see that large companies like General Motors and other large of companies are involved, this is starting to make sense, as they usually have the cash reserves to handle these kinds of budgets.On the other side, there is a tendency by western companies to reduced their IT spendings, and therefore they are increasingly looking at Indian and Asian vendors. That is also why they are winning deals, which usually go to IBM or Accenture.Still: Also Asian and Indian vendors are starting to increase their prices to a more global level. So it makes almost no difference anymore, whether you buy from IBM or TCS.Comparision with smaller companiesSmaller IT outsourcing companies do have similar payment models as the large IT companies. But it is easier to understand, as they usually do not have to budget for large overheads and travel expenses etc.They also work on a) Dedicated Developer Team b) Fixed Price, c) Time and Material and d) Agile Pricing.Here are short overview of each of them:a) Dedicated Developer Team: A smaller IT company in Asia charges between 2500 US Dollar and 4500 US Dollar per developer per month. Usually the prices will be better if you go for long term engagements.In the USA or in Germany you migth be paying between 15′000 and 20′000 US Dollars for a developer per month.b) Fixed Price: Here they will take the requirement and give a fixed price in which they will finish the project. For a fixed price, the requirement has to be very clear. The hourly rate in Asian countriesThe hourly rate in a small Outsourcing company in Asia will be around 20 US Dollars to 60 US Dollars.The hourly rate in a small Outsourcing company in a western country will be between 100 US Dollars and 250 US Dollars.c) Time and Material: Here the IT company will charge according to the hours and development efforts needed. They will charge different rates for different kind of developers. They might charge less for a junior tester and charge higher for a senior web architect.d) Agile Pricing: A mix of Agile Practices, Fixed Price and Time and Material.ConclusionPricing (which includes billing) is a huge topic. And there will be sales people/ account managers in these large companies, who will create a pricing according to the requirements of their clients.The post here will give you a short insight on how the pricing/ billing in large companies can look like.Note: I am running a small IT outsourcing company in India, which provides dedicated software developers. I have also worked in a large IT company in Germany.Kind RegardsSascha ThattilCEO and Project Manager at http://www.software-developer-india.comKindly find a video below, on how the process for providing developers in India could look like. For a pricing or billing rate you can contact me via our website.

It depend on experience and skill set but general offshore rates are as follow:Social Media Manager$5-9$5-7Graphic/Web/PHP Developer$5-12$5-9General Virtual Assistant$5-8$5-7Software Engineer$5-8$5-6Marketing Assistant$5-8$5-6Content Writer$5-8$5-7Animator$5-9$5-7Front end developer$5-8$5-6Client Service Manager$5-8$5-7SEO Specialist$5-9$5-7Mobile App Developers$5-9$5-7Wordpress Developers$5-9$5-7Source: http://www.mojjari.com

Normally offshore billing rates... are 25-30$/hour... and the client speicfies..8 hours /day 5 days a week... Usually the client monitors all the billable guys offshore or atleast take a phone call interview before selecting them... Usually in offshore..normally developers and testers..are there..and not managers or tech leads.... if the client find that your are good they may call you onshore ..and give your a tech lead or a manager role for the project..and perwise company will be given around 60-65 $/hour for the onsite guy.. the same onsite guy if again told to go back to offshore will again be given 25-30$ from the client to the company.. normally the company pays around 25 percent of billnig rate to the guys as salary depending on negotiations.. Company usually prefer freshers over experienced guys as experienced guys have more slary but clients give same billing rate... whereas cleints prefer experienced as it has to pay the same billing rate to the fresher or experienced guy.. So the billing rate depends solely upon whether you are onsite or offshore and not on your experience or anything.. an 50 year old guy will have same billing rate as a 25 year old fresher.. in offshore together or onshore together

The offshore billing rates depends on technology and also the discipline in which they have to work ( developer, analyst, tester, project management, performance engineering and so on). It also depends on what kind of teams you are looking on , always self managed teams deliver better. Bigger companies does not mean they give better solutions but the rates may be high. The most likely rates will fall between $ 20 - $ 60 , you may have to negotiate for the roles and responsibilities.

its depend upon onshore and offshore, skill set or expierince etc Around rates are coming under. Project Manager - 55$ to 60$ per Hour Business Analyst -  38$ to 48$ per Hour Technical Architect - 40$ to 45$ per Hour Team Lead - 30$ to 35$ per Hour Intern - 11$ to 16$ per Hour Fresher- 10$ to 20$ Java developer - 22$ to 30$

The rate varies according to different aspects: 1- Seniority level 2- The no. of the resources you will hire 3- Complexity of your project 4- The county you choose for outsourcing But in general the rates varies from 15$/hr up to 30$/hour. Some times companies offer a free trial period so you can test the resource you will hire. for example RMGS is one of the most successful software outsourcing companies in Egypt. It has 6 years of proven success with top software product companies in North America http://www.rmgs.co/

It really depends on the experience level. Our team is mainly composed of offshore developers, but they all have 10+ years experience, and know how to architect and program an application properly. That is a world of difference from a "fresher" who knows almost nothing. So pay is commensurate with skill and experience level. I have seen $10 per hour for developers (run screaming), and I have seen $80 per hour (seems expensive for India). We sit in about the middle, at $40 per hour.

The answer written by Matt Eversmann, is correct enough. In his answer he mentions rates asProject Manager - $40 to $80 Business Analyst - $35 to $60Technical Architect - $30 to $50Team Lead - $20 to $35Developers - $15 to $40I supports him, but I would like to suggest some cheaper resources than it, let me tell you the name of a renowned company like http://www.valuecoders.com/. At ValueCoders the resources to hire are cheap enough with a very great quality and skill in their staff. I have my personal experience with them, I hired them for my Magento project and they did beyond my expectations.