How to budget an offshore software project in India (2026): a line-by-line method

A realistic budget for an offshore software project in India in 2026 is built line by line, not as a single lump sum: discovery and specification, the build itself, QA, project management, infrastructure and tooling, and a contingency of 15–20%. Most budget blowouts come from leaving one of these lines out — usually QA, project management or contingency — and discovering it mid-project. Here is the method, with a worked example at AB7 rates.

Rates referenced below are on the AB7 pricing page; delivery scope on the Digital & Development Services page.

The six budget lines

1. Discovery and spec. A short, paid scoping phase that turns an idea into acceptance criteria. Skipping it is the most expensive saving you can make, because it is where rework is prevented.

2. Build. Roles × months × rate. Size the team to the work — a dedicated AB7 engineer is $1,500/month, a multi-discipline pod $4,500/month — and estimate the months honestly.

3. QA. Budget testing as its own line, not an afterthought folded into the build. Untested software is not finished software.

4. Project management. A named lead who runs cadence, reporting and risk. On an AB7 pod this is built into the pod; on a single FTE, account for your own oversight time.

5. Infrastructure and tooling. Cloud hosting, CI, monitoring, third-party APIs and licences — small monthly costs that are easy to forget at budgeting time.

6. Contingency. Add 15–20% for the unknowns every real project surfaces. A budget with no contingency is a budget that will be exceeded.

A worked example

A bounded web product with a three-person AB7 pod for four months: build at a pod rate of $4,500/month is $18,000; add a short discovery phase, QA within the pod, infrastructure of a few hundred dollars a month, and a 15–20% contingency. The total is predictable because every line is named up front — and the fixed monthly pod cost means the build line does not drift.

Get a line-by-line quote

Send AB7 your scope and target date and get a budget broken out by discovery, build, QA, PM, infrastructure and contingency — at a dedicated FTE from $1,500/month or a pod from $4,500/month. See the pricing page, then call +1-321-341-7733, email director@ab7solutions.com, or book a 30-minute call with Ashok.