Why US Companies Are Choosing India for Custom Software Development

The real cost of building a software team in the US right now

In the US, hiring software engineers is becoming more competitive and expensive day by day. So, finding talented people for a large team would also be difficult. As per the US Bureau of Labour Statistics, in May 2025, the median annual wage for software developers was $135,980 and the occupational category, which includes quality assurance analysts and testers, employs around 1.7 million people. The demand for these kinds of roles is also expected to increase. The BLS projects 10% employment growth from 2025 to 2035; this is much faster than the average of all other occupations. It also projects around 106,100 openings every year during this period.

It creates a full challenge for a US company that is building a custom software team. Software engineers already have high wages and growing demand. So, in the US, building a team and developing the project can be very expensive even before starting it.

What a large share of sophisticated organisations are already doing about it

Cost pressure is not the reason why not only are fewer companies doing it, but it is becoming very common in organisations with mature technology operations. According to Deloitte's 14th annual Global Business Services survey, which collected responses from more than 2,000 organisations across 30-plus countries, it says almost 50% of organisations are prioritising next-generation technology capabilities and operate a global business services centre in India. As well as it says that 55% of the organisations that are prioritising next-generation technology capabilities are operating a global business services centre in India and 50% of the respondents are planning to increase their businesses globally in the future. These numbers are proof that the same approach people are still using has expanded to many organisations.

Why this makes India a logical choice for custom software development specifically

Putting these two data points together can provide a clear picture of the case. US companies are dealing with the software development market, which is very difficult to hire for and much more expensive. At the same time, many other organisations that are already running global operations are using India to build their next-generation technology capabilities. It is not about the lower cost; India has a large pool of talent that can handle more than basic software maintenance work. It also provides a cost structure that is helpful under hiring pressure, which US companies often face locally.

How EICE Technology supports US companies building custom software

As an Indian IT company, EICE Technology works with US businesses that want to build custom software without the cost and hiring difficulties of a US-based team. Our teams have hands-on experience in custom software development, cloud application development and AI-assisted engineering. With a structured process shaped by ISO 27001 and ISO/IEC 20000 certifications, along with CMMI Level 3 and ISO 9001. See more on our Services page.