Software Development

Offshore Software Development Rates By Country

Today, over a million software development centres in Eastern Europe offer offshore software development teams. The salaries of middle developers lie in a range of $65,000-$70,000/year. However, the number of outsourcing software development companies is lower than in the neighboring USA. As offshore software development occurs remotely, you pay only for the services. In most cases, you do not have to bother about insurance, office space rent, perks, etc. – either developers themselves or an intermediary agency take over these costs. A pioneer of software outsourcing, Asia boasts the biggest number of offshore software developers as compared with other regions. Since saving money is top priority for any business when outsourcing software development, value for money is what you should primarily look to focus on.

Hiring the same dedicated software developer through an outstaffing vendor would cut the rates by up to 20%. The development is faster because these people have to keep working around the clock.

The average hourly rate for software outsourcing development in Ukraine ranges from $25 for junior specialists and up to $55 for senior engineers. The duration of a project is more relevant to outsourcing than offshoring. An offshore software development team is permanent, made of full-time employees with long-term goals. There’s no “if you want it sooner it’ll cost you more”-type pricing. Africa is one of the preferred outsourcing destinations, owing to the offshore software developer rates USD per hour. An increasing need to target overseas territories through online apps is one of the prominent reasons for the rise in the demand for dedicated development teams.

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In addition, it is not only startups that offshore services to cut costs, but also big enterprises. According to Deloitte’s 2020 Global Outsourcing Survey, reducing cost is why 70% of companies outsource software development. Compared to hiring locally, the operational cost when hiring offshore developers is much lower. Say, for example, an offshore development team can be available working at $25 to $120 per hourly rate. A software developer in India might work at $30/hour while the same works at $130/hour if hired from the US. Offshore software developers though work on the other side of the world, but they can never compromise over quality. These developers work with you together like your extended development team, and it is highly suggestible to hire offshore developers.

Indian Developer Hourly Rates

With the spiraling number of mobile app development companies available both, Onshore and Offshore, it is really a tough choice to make between the two. And if you have clicked this blog and started investing your time reading this article, I assume that you are also sailing in the same boat.

cost of offshore software development

Offshore software development allows you to focus more on your business strategy instead of worrying about managing a team, development and rigorous software development process. This allows the company to focus on the project without the extra workload and management of a development department.

The Most Popular Offshore Software Product Development Collaboration Models

There are some companies that can charge per maintenance basis, which means that you have to pay only when you call them for maintenance of your software. Then there are other companies that handle the complete management and maintain your software round the year. Even the best web development company would charge you maintenance charges for the website they have developed. This is because maintenance is an activity that takes effort and resources. For the same, one needs to find a reputed company with decent work history and genuine clients.

Besides, it may be difficult for American and Western European clients to work with Asian developers because of significant cultural differences and an inconvenient time zone gap. By country to help you make a more informed decision when hiring from overseas. Kanban (development) We’ll be reviewing Eastern Europe, Latin America, Asia, and Africa. As per a 2017 report of Stack Overflow, there were over a million software developers in Eastern Europe, which makes the region one of the most sought after outsourcing destinations.

When you hire a programming team with experienced senior programmers then what you pay will be a lot less than hiring programmer employees in the U.S. Africa and Oceania are the last two outsourcing regions on our list. These tech hubs have their own pitfalls like geographical isolation and time zone difference. Still, countries like Egypt and Morocco attract entrepreneurs from the Middle East and Europe. Small and mid-size outsourcing companies that develop software for businesses. The team of your choice will appear as booked to other clients because it will be dedicated only to your project.


Once upon a time, the benefits of the offshore development team were only restricted to cutting down the operational costs. However, business owners have to balance high salaries with offshore software development rates to make a profit. That’s why New Zealand, with all of its drawbacks, isn’t the cheapest place to outsource your software.

  • It’s important to understand the cultural specificities of the country you outsource to — it’ll help you deal with the differences.
  • With average hourly rates ranging from $30-$40, India, apart from being an affordable offshore development country, is also a politically stable and mature market in terms of business delivery.
  • India doesn’t have enough facilities where enthusiasts can get education and become experienced developers.
  • However, private software development companies also invest in educating more entry level tech specialists.
  • And Belarus, Hungary, and the Czech Republic are Eastern European countries that got to the world’s top in Data Science that includes such trending skills as Python, SQL, R, and others.

There’s no point in hiring a cheap offshore software development vendor who’s unable to deliver your desired end-product. You must do proper research and find yourself a reliable offshore team which can deliver a fabulous final product. Outsourcing saves your money, since it provides more affordable options for businesses. That’s probably the prime reason why so many companies start to prefer this cooperation model. As a rule, the average rates of software development in a region or a country depend on the stability of its economy, currency, and local market situation.

They will anticipate common risks and apply best practices to increase flexibility and reduce downtime. Inbound outsourcing or Onshore occurs when a customer decides to hire software developers in their country or region. Asia, the pioneer of software outsourcing, has the most offshore software engineers. In 2018, the figure reached almost 3 million people in India alone. While the region’s economy remains weak, the IT industry will rise in 2021. Latin America’s and South America’s leading software outsourcing countries. For example, startups need to perform fast to survive in a changing environment.

One of the main drawbacks of offshoring is the inconsistent quality of communication between you and your vendor. Additionally, the language barrier may become a problem as you’ll most likely be dealing with non-native English speakers.

The hourly rate is influenced not only by engineers’ qualifications but also by the cost of living in their residence country. India and China are the main Asian software development destination with nearly 5 million engineers in each country. Indonesia, the Philippines, Vietnam and Pakistan are also growing markets with the same type of outsourcing services as previous countries. As we mentioned above, the reduction in prices and the fast pace of development is achieved at the expense of lower quality projects.

Latin American Software Development Offshore

Of course, most companies make a huge emphasis on the English proficiency of their developers but that does not always guarantee full compliance. Among the various other destinations, there are a few most important destinations for offshore software development like Asia, America, Europe, and Africa. For example, you are an American entrepreneur who wants to build a development team in Bangladesh.

cost of offshore software development

Offshore software development rates in Poland are almost twice higher than in Ukraine. Such a difference in the same region is caused by the difference in programmers’ salaries. Software developers in the middle of their career offshore development best practices earn $35,000/year and over. With average hourly rates ranging from $30-$40, India, apart from being an affordable offshore development country, is also a politically stable and mature market in terms of business delivery.

Tech Lead Net

In 2021, the IT outsourcing market is expected to generate almost 359 billion dollars. Today, there are hundreds of IT outsourcing hubs all over the world, each one with different development rates, quality, culture, expertise, time differences and much more.

Sure, there’s nothing perfect in this world, and offshoring is not a perfect cooperation model either. There are tons of challenges both clients and vendors have to overcome to end up with a perfect software product. Leverage our software development expertise to build custom applications, modernize legacy systems, and build powerful API integrations. This center is the second largest General Electronics research and development center in the world and is staffed by qualified Indian professionals.

There are different factors that come into play when it comes to outsourcing software development. These could be around the efforts saved, quicker launch, faster development, or even the resources that are saved. Let’s check out the different factors that affect the cost of software development and how outsourcing helps in saving it. Now, there are several other costs that are included in the outsourcing contract which need to be accounted for before making the final calculation of cost savings with outsourcing software development. This would include the cost of hiring, transition cost, and other miscellaneous costs.

Insufficient Cost

However, the poor Internet in the majority of African countries and the lack of IT education influenced the state of affairs in African outsourcing. Some developers from this region don’t have enough experience with up-to-date technologies to create flawless products with complex features. To mitigate the risks, it’s better to search for other tech partners to build a custom project with complex features. The IT sector is constantly developing here, while the number of software development companies grows each year. Poland is one of the most expensive countries for software development outsourcing in the Eastern European region. At the same time, it’s one of the safest and stable economies in the region. Thanks to this Poland became the home of R&D offices to many international corporations including Google, Intel, and Siemens.

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