An In-Depth Guide on Offshore Software Development Rates By Country in 2023

Quick Summary:
Every business has software needs as they have to meet their goals and the customers’ demands. For such reasons, you may think about hiring developers from other countries. But how do you choose the right country or company? This guide on offshore software development rates by country explores factors affecting rates, key regions, and strategies for selecting the right partner.

Offshore software development has grown in popularity in recent years. It is a feasible option to save money and access people from various backgrounds. If you decide to take this route, you have several options, including hiring offshore developers through a freelancing platform or collaborating with a virtual team partner. The latter is usually the most practical method of dealing with offshore software development.

How much does it cost to hire offshore developers? It is a popular question. Offshoring development rates are often determined by a number of factors, with the geographic location being the most important. 

In this blog, we will look at software development rates in the most popular outsourcing destinations, so you can make an informed decision when choosing an offshoring development location.

Reasons Why Hiring Offshore Software Developers Will Boost Your Business Growth

From startups to small businesses and scaling companies, all can benefit greatly from hiring an offshore software development company. However, you can always build an in-house team, which can cost a lot and may only be feasible sometimes. On the other hand, managing remote developers can be hectic and time-consuming. Hence, working with an offshore development company can do wonders for your business. Let's check out few benefits of offshore software development.

1. You can reach a large pool of talent

Software development is one of the fastest-growing professions in the world. At times, finding the right talent can be difficult in your area or even country. In such a case, hiring developers from offshore development companies is the best solution. Moreover, it allows for access to talent from abroad without the need to hire them on a permanent basis.

2. Reasonable software development outsourcing rates

The second reason why offshore is the best solution is that it allows for cost-saving solutions due to reasonable offshore software development rates. For instance, you can hire developers in India at a low price, which you may not be able to do in your own country. Also, you can hire developers based on the budget for the project. Hence, everything fits your pocket well with the right offshore software development costs.

3. Run your business 24 hours

The third most prominent advantage is that you can run your business around the clock. Hiring developers from a country with a different time zone will ensure that your work runs all the time, leading to better productivity. 

4. Hire a professional for specific project needs

The fourth reason why you should hire a developer from an offshore company is that you can hire a professional based on the project's specific needs. For example, if you are looking for someone with the knowledge and skills of JavaScript, you can easily hire someone who has capabilities in that language.

Offshore Software Development Rates By Country 

The best part about technology and digitalization is that it has made it easy for businesses to connect with professionals from any part of the world. So, as a startup, small business, or even an enterprise, you must look for offshore development countries across the globe. Of course, the price is the primary factor you must consider while working with these companies. The prices vary a lot based on the country's location, tech stack, and opportunities for developers. 

Let's discuss the price range in North America, Latin America, Europe, Asia-Pacific, the Middle East, and Africa. 

1. United States of America 

The US is one of the most popular regions for offshore software development countries. From a small project to long-term work, you can easily hire a software developer or a dedicated team from various offshore development companies. 

North America

North America is the technology hub and has attracted several startups and small businesses. The US has over 4.4 million software developers. Studies show that developers in North America earn the highest salaries compared to other countries. When you plan to hire from small software development companies in North America, you can expect an hourly rate of $80-$140. This price can go up to $250 for a big enterprise. 

The price situation in Canada is quite similar to the US. The top and highly experienced developers in Canada can charge from $225 per hour, whereas programmers with decent experience can be hired at an hourly rate of $100-$200. On the other hand, you can hire developers from $25-$50 per hour. 

Latin America

Latin American countries like Argentina and Brazil saw a rise of 24% in hourly rates in the year 2022. Argentina is a popular outsourcing location due to its short time difference with US clients and high average hourly pay of $35 to $50. Junior software engineers might expect to be paid as little as $13 per hour, while experienced programmers can expect to be paid between $42 and $50 per hour.

In Brazil, hiring a programmer will cost you between $15 and $60 per hour. The range varies depending on the city, years of experience, and skill level. According to our analysis, a junior software engineer in Brazil will cost you $15+, while a senior programmer will cost you up to $60. However, the average hourly wage in Brazil is between $35 and $50, implying that the average software development rates in Brazil are between $280 and $400.

Hiring developers from Latin America can prove to be cost-effective as you can find an hourly rate of $75. In contrast, the same developer would be available at $150 per hour in North America.

2. Europe

Another popular hub for offshore software development companies in Europe. With qualified professionals from Poland, Germany, Romania, and Ukraine, you can hire developers from $45 and lower from smaller companies. 

Eastern Europe

Poland

Being the second biggest outsourcing tech hub in Eastern Europe, Poland provides a favorable environment for the IT field. According to our research, the hourly fees for outsourcing among Polish software development businesses range from $50 to $90. 

Romania 

Romania is another famous country in Eastern Europe for hiring offshore software developers. Offshore software development rates in companies in Romania can range from $25-$50 per hour. However, large companies can charge between $100-$150 per hour.

Ukraine

Ukraine's IT industry has seen considerable growth over the years, and it is a top offshore development country. Ukraine comes among the top 25 countries for Data Science expertise. Software programmers in Ukraine charge an average between $45-$65 per hour.

Western Europe

Germany

Germany has the highest count of professional developers in entire Europe. Outsourcing software development projects to German companies can cost you about $100-$150 per hour. But this can change from city to city as, for instance, the developer hourly rates are low in Stuttgart compared to Berlin.

France

As of 2023, there are 72,686 people employed in the Software Development industry in France. A fresher in the software industry in France can earn about $35,000, and a senior about $67,000 per year. On average, offshore software development companies in France can charge about $50-$100 per hour. 

United Kingdom

The UK is another country in Western Europe that has a large number of software developers. Even though the average salary of programmers in the UK is lower than that of Germany, the offshore developer rates are not less here. Offshore companies can charge about $100 per hour, and it can go up to $180-$200 with established companies.

3. Asia-Pacific

Asia and developing countries in Asia are the leading regions when it comes to hiring developers from the IT industry due to the cost-effective offshore developer rates. It is especially beneficial for startups and small businesses as they get offshore developers from as low as $10. India is the leading country in the Asia-Pacific region, as it is filled with professional software developers. 

India

India is a popular outsourcing location for startups, small businesses, large firms, and international corporations. The cost of hiring Indian developers, like any other outsourcing destination, would vary based on your required skill. The average hourly rate of Indian software developers is $25-$50. At some companies, you can even find developers lower than $25.

China

China, like India, is one of the most cost-effective places to outsource software development. While the typical hourly pay is $25–$60, junior developers can be hired for as little as $20 per hour, while senior developers may demand up to $50 per hour.

Philippines

Another attractive country in the Asia-pacific region is the Philippines. The software development hourly rate here can range between $10-$25 for small companies, while it can range between $25-$50 for medium-sized offshore development companies. 

Australia

Australia has a modest geographical disadvantage compared to its Asian neighbors, which prevents it from working with nearby labor markets. Thankfully, contemporary digital technology allows the country to work from anywhere. The software development hourly rate can range between $100-$200. 

4. Middle East and Africa

The number of software developers is on the rise in the Middle East and Africa. You can hire a developer for $12, and this price can go up to $52 per hour. Further, this price can vary based on location, skills, project complexity, and tech stack.

Egypt

Egypt, Nigeria, and Tunisia are developing African powerhouses in terms of software talent. Furthermore, Egypt's tech talent market offers software engineering services at affordable prices. The software development hourly rates are between $20 and $50. Junior developers can be hired for $18 per hour or more, whereas senior developers can be employed for $33–$50 per hour.

South Africa

In Africa, South Africa has the highest offshore IT rates. The typical hourly pay is between $25 and $45. Outsourcing to South Africa will cost you anywhere from $21 to $52 per hour for a junior developer to a senior specialist.

Saudi Arabia

The Middle East is experiencing a rise in software development, and there is a growing demand for highly qualified developers in countries like Saudi Arabia. The developer's hourly rate can vary between $12-$30.

UAE

UAE is another popular attraction for software developers. The average per-hour rate of software developers in the UAE can vary between $50-$150. This price is affected by the countries and the cities where you hire the developers from.

What Factors Influence The Rate Of Offshore Software Development?

You must be thinking about why the cost of hiring offshore developers varies so much in countries across the globe. Following are some characteristics that have a substantial impact on outsourcing rates, based on our extensive expertise in the IT industry:

• Location: The location of the offshore software development company is the major factor that affects the price. As we have discussed in detail in the above section, each country in a different region has different hourly rates. Because of their high living standards, the US and European markets are the most expensive to outsource to.
• Tech stack: The second most affecting factor is the country's technology advancement and the software development company. The tech stack can vary based on the niche and the project's requirements. The simpler the technology, the lower the prices will be. Also, hiring developers from North America can cost higher as it is the tech hub.  
• Experience and skills: Another major factor is experience and skills. For instance, an experienced team in the US may cost higher compared to a team with low experience and skills. The hourly rate of the developers is hugely decided by the projects they worked on and their years of experience.

To put it another way, the hourly rate of a developer is determined by all of the elements mentioned above, their experience, current market trends, and the level of demand.

Consider The Time Zone Before Hiring

Before you hire cost-effective offshore software development services, one factor that you must consider is the time difference. Time zone becomes an obvious factor to consider when you plan to hire developers from an offshore development company from a different country. One advantage of a different time zone is that your work will be ongoing for 24 hours, but the same factor can cause troubles in communications. So, consider the time differences carefully and have it well discussed before beginning the project. For better work productivity, you can fix a time to discuss the project update or any strategies for the same. 

Why Is India A Top Outsourcing Country?

By 2024, India will have the highest software developers population in the world. Over the years, India has made a great impression as one of the world’s most popular outsourcing locations for startups, small businesses, as well as established brands. Compared to countries like Australia, the USA, Canada, and the UK, India has less payroll rate. Some of the ultimate reasons why you should hire software programmers from India are:

• Skilled workforce

As mentioned above, India will become the leading nation with software developers. With so much workforce, who are highly skilled and trained, the cost of resources is low compared to other countries.

• Second-largest English-speaking country

India is the second-largest English-speaking country, with around 125 million people able to speak the language. Hence, hiring developers from India can remove the language barrier, causing no problems in communications.

• Latest tech stack 

Even in the technical field, India performs far better than other countries. Outsourcing companies in India ensure that all their remote software developers are familiar with the latest technologies to provide the best quality work. 

• Cost-effective solutions for all businesses

The last reason why India is the best choice for connecting with offshore development companies is that it provides solutions under all packages. Whether you are a startup or a small business looking for work at lower packages or an established brand searching for long-term developers, India is your best choice.

Recommended Read: 8 Reasons Why IT Outsourcing in India is the Best Decision

What Makes YTII An Ideal Offshore Software Development Company

Now that you are well aware of the Offshore software development rates by country, you need the perfect team to help you. Based in India- the leading nation with offshore software developers, Your Team In India has access to a large pool of talented, skilled, and experienced software programmers. From your short-term projects to complex and long-term software projects, we can help you get the perfect resource that specializes in the specific technology with our best offshore software development services.

You can hire a developer with us for as low as $18 per hour. Working and hiring software developers with YTII is simple and hassle-free. Contact us now and build your dedicated team of developers to scale your project.

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