Outsourcing web development to India

We've just decided to outsource our web development to India and we have been given some rates that we feel are exorbitant.  I have researched online and found varying charges and would like to know what rates are applicable for the following categories:

Years of experience - 1 to 4
Years of experience - 5 to 9
Years of experience - 10+

Any currencies or hourly, daily or monthly rates are welcome as I don't mind converting
taagoroAsked:
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Ted BouskillConnect With a Mentor Senior Software DeveloperCommented:
No, hourly.
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Ted BouskillSenior Software DeveloperCommented:
I have first experience with managing remote employees in India, Romania and Argentina.  Both as fellow employees and as contractors.

As it happens I also managed a couple people from India that moved here to North America and none would ever outsource to India!  As they put it, you pay 1/3 the price for 1/4 the results and that has matched my results unless I was extremely diligent monitoring their work which completely eliminated my productivity.

The only time I've had success with workers in India was one team built by someone in India as employees that were hand picked to be loyal hard workers.  Even then we had trouble with a couple of our servers being used for sharing pirated movies and games.  When the Indian employees realized we were scanning the company hardware they stopped doing it.  Otherwise the work was adequate but I had to stay on top of them by doing daily code work reviews.

We were paying $40 USD for developers with 5 to 9 years experience.
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Miguel OzSoftware EngineerCommented:
I agree with tedbilly.
You need very good specifications (not only user but architecture and  software design specs), process, supervision (a senior developer to do design/code review) and testing in place for outsource development to work.
Thus, you need to add the above costs to your development cost.
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taagoroAuthor Commented:
@tedbilly are your rates daily?
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