Salary inflation is a major challenge, as demand for skilled developers exceeds supply. Experienced developers command higher salaries, bonuses, and benefits, making it difficult for smaller businesses to compete. The shift towards remote work and freelancing has also raised salary expectations. Hire Indian software developers, companies must balance cost efficiency with quality talent by offering flexible compensation packages, equity options, or remote work benefits. Partnering with offshore development firms, utilizing freelance platforms, and hiring junior developers with mentorship programs can help optimize costs while maintaining high-quality development standards for long-term success.