India as your strategic talent destination- Case Studies

Introduction

In today's globalised world, hiring talent from different countries has become increasingly common for tech companies seeking to build diverse and skilled teams. One country that stands out as a top strategic talent destination is India. 

‍Major Benefits of Hiring Talent in India

1. Abundant Talent Pool: India boasts a massive talent pool, with millions of highly skilled professionals in the technology sector. This vast availability of talent provides US companies with a wide range of options to choose from.
2. Cost Efficiency: Hiring talent in India often proves to be cost-effective for US-based companies. The salary expectations of Indian tech professionals are typically lower than their counterparts in the United States, allowing for significant cost savings without compromising on quality.
3. 24/7 operations and faster time-to-market: With a remote engineering team spread across different time zones, you can achieve round-the-clock operations. This enables faster development cycles, as work can progress even when some team members are offline. It also allows for quicker response times to customer needs, resulting in faster time-to-market for your products or services.

In this blog, we will explore some case studies on how India has posed as a strategic talent destination to the upcoming new enterprises by providing them with better resources and more efficiency hence providing the best value.

The Rise of Remote Engineering Teams from India‍

In recent years, remote engineering teams have experienced exponential growth. According to a recent report by Gartner, 

• 58% of organisations report having at least some technology talent working in a fully remote borderless arrangement. This number has doubled in the past three years.
• India is the most selected country for recruiting borderless technology labour for European (34%) and North American (59%) companies.
• The top two areas of expertise that CIOs and IT leaders are looking at borderless talent for are software engineering/application development and application support. 

India, Ukraine, Portugal, Poland, Brazil and Philippines are recommended as the most desired locations for US-based startups to establish their remote engineering competencies. From a long term perspective, these locations provide an abundance of cost-effective, skilled talent.

Success Stories: Startups that thrived with Offshore Development Teams

Zapier

Sector: Workflow Automation (SaaS)

HQ: San Francisco

Stage: Secondary Market (2021)

Offshore Presence: 570+ (53%)

• Canada: 115+ employees
• India: 40+ employees

Remote work at Zapier enables rapid innovation by minimizing distractions and streamlining communication. The autonomy in work hours and environment allows team members to focus better, while low-distraction communication practices make interactions more intentional and efficient.

GitLab

Sector: Software Development

HQ: San Francisco

Stage: Series E (2019)

Offshore Presence: 1000+ (47%)

• Germany: 130+ employees
• India: 100+ employees

Remote work fuels rapid innovation at GitLab through asynchronous communication, transparency, and a focus on small iterations. Asynchronous communication accommodates global time zones, making collaboration efficient and well-documented. Transparency removes silos, encouraging cross-departmental input and honesty. Finally, a culture of small iterations means low-risk, fast-paced action, enabling us to adapt quickly and efficiently. In short, remote work isn't a hurdle at GitLab; it's a catalyst for groundbreaking innovation.

Awesome Motive

Sector: Digital Marketing

HQ: Florida

Stage: Series F (2022)

Offshore Presence: 170+ (63%)

• India: 40+ employees
• Ukraine: 10+ employees

Remote work allows Awesome Motive to tap into global talent, thereby enriching the diversity of ideas and skills on the team. This aligns with the company's People First principle, as it expands opportunities for a wider pool of individuals. A distributed team across 50 countries also ensures around-the-clock productivity, accelerating the development of tools and training aimed at helping small business owners.

Contra

Sector: Freelance Economy

HQ: San Francisco

Stage: Series B (2021)

Offshore Presence: 130+ (68%)

• India: 20+ employees
• Canada: 15+ employees

Contra leverages its remote-first culture to attract top talent globally, fostering an empowered community free from traditional corporate constraints. The company's policies, such as "No Meeting Tuesdays & Wednesdays," aim to minimize disruptions, allowing for focused, quality work. This approach aligns with Contra's mission to redefine work in the new global economy.

TestGorilla

Sector: HRM

HQ: Singapore

Stage: Series A (2022)

Offshore Presence: 50+ (90%)

• Netherlands: 15+
• India: 10+

Buffer

Sector: Social Media Management

HQ: San Francisco

Stage: Venture Round (2017)

Offshore Presence: 130+ (74%)

• Brazil: 40+ employees
• Spain: 10+ employees

Remote work has been a cornerstone of Buffer's success, leading to increased productivity, improved employee engagement, and better retention rates. The flexibility afforded by the remote model has empowered employees across 15 countries to manage their work-life balance more effectively, boosting overall job satisfaction and commitment to the company.

Invision

Sector: B2B SaaS

HQ: New York

Stage: Series F (2018)

Offshore Presence: 200+ (32%)

• Canada: 40+ employees
• EK: 30+ employees

Automattic

Sector: Web Development

HQ: San Francisco

Stage: Series F (2021)

Offshore Presence: 2600+ (65%)

• Brazil: 780+ employees
• Philippines: 300+ employees

Remote work has been pivotal to Automattic's success, offering round-the-clock operations, access to global talent, and streamlined communication. The model has resulted in significant cost savings, which are reinvested in employee well-being and development. This approach has not only boosted innovation but has also led to exceptionally high employee retention rates, making Automattic a standout example of the effectiveness of remote teams.

DuckDuckGo

Sector: Search Engine Optimization

HQ: Paoli, PA

Stage: Series D (2021)

Offshore Presence: 120+ (43%)

• UK: 40+ employees
• Canada: 25+ employees

Best Practices for Hiring Talent in India

Companies can navigate the challenges of hiring in India by implementing one of the following strategies:

Hiring Contractors

This helps the company to begin operations quickly. However, from a long-term perspective, it is not advisable to hire contractors, as it will be costly. There is very little control over the work, and the risk of data privacy is high. Hiring contractors also limit the talent pool in India, as Indian employees prefer to work full-time.

Setting up own Entity

This is the most compliant method to hire an international workforce, as it gives complete control over the team and day-to-day operations. However, it is not advisable to begin setting up an international entity to begin with, as it involves effort and investment. This is more of a long-term strategy that should be undertaken only when the company is sure that it wants to expand internationally in a country like India.

Partnering with an EOR provider in India

The most convenient and straightforward method for global companies to hire Indian employees is by partnering with an Employer of Record (EOR). EOR partners, such as Wisemonk, take on end-to-end responsibility, from providing guidance on the talent market in India to compensation benchmarks for different roles within the company, as well as managing the employee's payroll and compliance. The global company retains control over the employee’s day-to-day operations. This arrangement ensures full compliance with local laws, while the employee benefits from being associated with a renowned global brand. 

Conclusion

Remote hiring in India is no longer an exclusive club for large enterprises. With barriers like costs, legal complexities, and administrative headaches significantly reduced, there's never been a better time for new enterprises to tap into India's talent pool. It's a viable, efficient, and cost-effective strategy for new enterprises willing to embrace modern solutions like Employer of Record services.

‍At Wisemonk, we understand the intricacies of international hiring in India, ensuring swift, compliant, and hassle-free global teams. Leave the hassle of entity establishment and focus on what you do best—running your business. Please reach out to us, and we will be happy to assist you.

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