Most “cost of software development in India” articles give you a range so wide it is useless — “$15 to $80 an hour, depends on the project.” That answer helps no one budget. Here is the opinion this post defends: for a US or UK company in 2026, the number that actually matters is not the hourly rate, it is the fully-loaded monthly cost of a dedicated engineer, and at AB7 that number starts at $1,500/month per dedicated full-time professional. Everything else is detail around that anchor.

If you want the engineering service breakdown and current tiers, it is on the AB7 Digital & Development service page. This post gives you the math a CTO can take into a budget meeting.

The honest cost picture for 2026

There are three ways to buy Indian software development, and they price very differently.

The first is hourly through a marketplace — Upwork or Toptal-style. Indian senior developers there run roughly $25–$50/hour, and Toptal’s screened talent sits higher. The hidden cost is your own management time: you are the project manager, the QA lead, and the person who notices when the developer goes quiet for three days.

The second is project-based with a dev shop — “we’ll build your MVP for $30,000.” This works until the scope changes, which it always does, and then you are negotiating change orders instead of building product.

The third, which is what AB7 runs, is a dedicated FTE model: from $1,500/month for a full-time engineer who works only on your account, and from $4,500/month for a small pod (typically a senior engineer, a mid-level engineer, and a shared QA/PM layer). That $1,500/month works out to roughly $9/hour fully loaded — no recruiter fee, no benefits overhead, no severance, no idle-bench billing.

India versus the alternatives, with the real gap

A mid-level full-stack engineer in the US costs a company $115,000–$150,000/year fully loaded — call it $9,500–$12,500/month once you add benefits, payroll tax, equipment, and office. The same capability through AB7 from India is $1,500/month for a single FTE. That is the 50–70% saving AB7 publishes, and at the single-engineer level it is closer to an 80% compression.

Against Eastern Europe (Poland, Romania), India runs roughly 30–40% cheaper for comparable seniority. Against the Philippines, India is broadly comparable on cost but deeper on senior backend, DevOps, and AI/ML talent. Against Vietnam, India is slightly higher but with a far larger senior talent pool. The point is not that India is always cheapest by a hair — it is that India gives you the largest pool of genuinely senior engineers at a price no US market can match.

What changes the number

Four things move your real cost:

Seniority. A junior React developer and a senior platform engineer who can own your AWS infrastructure are not the same $1,500. The pod model lets you mix levels so you are not paying senior rates for junior work.

Time-zone overlap. If you need six live hours with a US Eastern team, the engineer works a shifted day — that is a scheduling choice, not a price premium at AB7, but a US-night shift narrows the pool.

Specialisation. Mainstream stacks — React, Next.js, Node, Python, Postgres — sit at the base rate. Scarce skills (RLHF data engineering, embedded, specific compliance domains) carry a premium because the talent is genuinely scarcer.

Engagement length. Month-to-month costs more per unit than a six- or twelve-month commitment, because AB7 is not re-amortising ramp time every 30 days.

The hidden costs to ask about before you sign

The cheap quote is rarely the cheap engagement. Ask any India vendor four questions: Is there a separate “project management” line item on top of the developer rate? Who owns the IP, in writing? What is the notice period and the replacement SLA if an engineer underperforms? And is QA billed separately? At AB7 the answers are: PM is built into the pod price, IP assigns to you in the MSA, replacement is covered under the engagement SLA, and QA sits inside the pod — no four-line invoice surprise.

The bottom line

For a US or UK company in 2026, budget from $1,500/month per dedicated Indian engineer and from $4,500/month for a small pod, plan for a six-month minimum to get past ramp economics, and price seniority and time-zone shift into the mix. That is the real number — not “$15 to $80 an hour.”

If you want a costed proposal against your actual stack and roadmap, the AB7 Digital & Development service page has the detail. Then call AB7 at +1-321-341-7733, email director@ab7solutions.com, or book a 30-minute scoping call at https://calendly.com/ashok-benial/meeting.