Software Developer Hourly Rate Comparison Across the Globe

Quick Summary:

This comprehensive guide will give you an overview of the hourly rates of hiring software developers for different technologies across various nations so that you can make an informed decision.

Offshore software development has gained an exponential boom over a couple of years. This proven business strategy has made it possible to work with top-notch professionals residing overseas. 

While small businesses use this approach to bring down development costs, large enterprises use it to extend their existing team and increase their global outreach. As of January 2023, the average hourly rate of hiring software developers can range anywhere between $18- $ 90.

How Much Does It Cost to Hire a Software Developer?

Here is an overview of price comparisons in hiring software developers in 2023 across the top outsourcing countries in Asia, Europe, Latin America, and Africa.

Read on to learn about the software developer hourly rates, in different countries.

Current State of Global Offshoring Software Development

Since its inception in the early 2000s, the outsourcing industry has revolutionized different sectors. 

As outsourcing continues to grow, a few trends would help you understand the current state of global outsourcing software development:

• The IT outsourcing market (hereafter referred to as the market studied) was valued at USD 526.6 billion in 2021. It is expected to reach USD 682.3 billion by 2027, registering a CAGR of 4.13% during 2022-2027 (hereafter, referred to as the forecast period).
• The business process outsourcing market is expected to grow by USD 76.90 billion, progressing at a CAGR of over 7% during the forecast period

Global Business process outsourcing market

• Incremental growth of 76.90 billion USD is expected from 2019 to 2024, up by 1.69% from the previous year, 2020. 
• The market is fragmented with several players, and the impact is neutral. 

IT Outsourcing Market: Source

• Value over price

As we know, outsourcing has been a growing trend since the early 1980s. However, today’s offshore development scenario differs significantly from the earlier models. 

Organizations moving towards outsourcing software development are focusing heavily on hiring skilled labor to reduce costs, improve core business processes, enhance service quality and drive transformation in addition to various other reasons mentioned below:

Why do companies outsource?

Change In Software Development Rates Over The Previous Years

Since the last time we published this blog; the market trends have changed drastically, and so have the software development rates over the earlier years. 

Surprisingly, the compensation for app developers for their services will increase by up to 4 percent and will continue to rise for all the technologies. 

Technologies witnessing a whopping increase in rates are Python, React Native, ReactJS, NodeJS, Java & PHP. 

Also Read: A Complete Guide on How to Hire Developers For Startups

Software Development Hourly Rate In North America

Software developer hourly rates in the United States are the highest, ranging from $38-$63 per hour. The total salary, including taxes and benefits, ranges from $137k to $173k.

Although hiring in the United States is expensive, there are numerous benefits, such as fewer language barriers and reduced miscommunications. 

Software Developer Hourly Rate In the United States

The following table depicts the average hourly wage rate of software developers in various cities in the United States:

Software Developer Hourly Rate In Canada

Like the USA, Canada, too, has a mature IT market and resource pricing. The average software developer's hourly rate in Canada is $36-$52.

Software Developer Hourly Rate in Asian Countries

Asia has the most significant number of software developers, a pioneering software outsourcing destination compared to other countries., with 10 million. The hourly rates of software developers across the continent are shaped by various aspects and differ significantly from country to country.

Asia Offshore Development Rates Source

India, the Philippines, and China are the three major countries offering custom software engineering services. Let’s drill down the software development services across the top three Asian countries to make things easy for you:

Software Developer Hourly Rate In India

Entrepreneurs who wish to execute their ideas by building top-notch solutions at affordable rates consider hiring Indian developers. India is one of the best countries to outsource software requirements.

GSLI Overall Country Ranking

Hiring an offshore developer from Asian countries is the most budget-friendly option. Explicitly speaking about India, the range to hire developers starts from $18 for a junior developer and goes up to $40/hr.

Recommended Read: Reasons To Hire Software Developers From India

Here are why the country is one of the most preferred outsourcing choices:

• As per A.T Kearney Global Service Location Index 2019, India tops the list of the most attractive outsourcing destinations.
• The country has 100 million English-speaking people in the world. And by the end of this year, there will be more than 2 billion English speakers in the country.
• Approximately 1.5 million engineering graduates pass out of college every year. 
• More than 200,000 IT graduates add up to the Indian workforce annually. Besides, the country has the youngest employable population globally. 
• In the upcoming years, 40% of professionals will train themselves according to the latest technology to meet the advanced industry requirements.

Software Development Hourly Rate In the Philippines

The Philippines is another country with the fastest-growing IT industry. With more than 200 offshore software companies and 95000 technical positions. According to the data by Teleport & Best jobs, Software developer hourly rates, the salary in the Philippines for junior software engineers range from $3.5-$7 per hour.

Though the Philippines offer economical pricing, working there may create challenges like - a lack of IT industry maturity, Lack of Infrastructure,  Natural Disasters, etc.

Software Developer Hourly Rate In China

Among other Asian countries, China is considered one of the top destinations for hiring mobile app developers or web developers. In China, the overall revenue in the software development industry is expected to increase by 6.9 percent in the upcoming five years, reaching $1.2 trillion.

Software Developer Hourly Rate in Europe

The hourly rate of developers in Europe varies from country to country. For example, Ukraine developers charge significantly less in comparison to software developers in Poland. But on average, European junior developers cost between $25 – $50/hour.

Average Software Developer Salaries in Europe

Europe can be divided into two geographies, ‘Western’ & ‘Eastern’ Europe, to hire dedicated offshore developers.

Western Europe

Western Europe is one of the most expensive regions for software development globally. Due to the high costs of living, taxation systems, and expert developers, the average hourly wage rate of a software engineer is also high. 

The average hourly rate in Western Europe is between $25-$65 per hour, with annual salaries of about $60k.

Eastern Europe

Eastern Europe is known as the hub of start-up culture. The developers are well-versed in software technologies and programming languages such as C/C++, Java, JavaScript, .NET, and Python. 

The hourly rate for software engineering services in Eastern Europe ranges from $20-$45. The average salaries of software developers range between $40k-$70k, while Poland is the most expensive country.

• Belarus, the Czech Republic, Hungary, and Ukraine were named the world’s top technology countries in Coursera’s Global Skills Index 2020. 
• The average hourly wage rate for software developer services in Ukraine is $26. The software engineer’s hourly rate varies from $25 to $50 per hour, and the time zone is the same as in most western European countries. 

Software Developer Hourly Rate in Latin America

Software Development Hourly Rate in Latin America

Source: https://www.daxx.com/blog/development-trends/average-rates-offshore-developers

Top Countries: Brazil, Argentina, Colombia, Costa Rica

In recent years Latin America, too, has emerged as a great outsourcing destination. The average hourly rate of software developers in Latin America varies from $25- $50.

Some of the major destinations in Latin America for IT outsourcing are Argentina, Columbia, Mexico, and Brazil.

According to Accelerance, most of the businesses being invested in are small and medium enterprises. But the critical fact to consider here is that about 90% of these tech firms are located in Colombia and Mexico. 

Costs of Outsourcing Development in Latin America

• Junior Developer: $25 – $34/hour
• Mid-level Developer: $50 – $80/hour
• Senior Developer: $100 – $120/hour

Though the country is a bit expensive for software development, their quality of service is at par. So, let’s get down to the top countries in Latin America to outsource software development.

Argentina

European trends have a strong influence on Argentina’s IT market. Not only economically, but Argentina has also been culturally connected to Europe. Well, it has the most expensive IT development teams in the region. Meanwhile, this is because the developers have rich experience in working with western countries.

Colombia

The country gives rise to 13,000 software developers every year, most of which go to offshore companies. Nevertheless, companies are CMMI certified, benefitting from American influence. 

Brazil

Brazil is one of the leading software development destinations for outsourcing. Furthermore, Rio de Janeiro is a global IT center, and the city has 8/10 top technology universities producing 14 thousand alumni each year. For this fact, many US companies prefer recruiting Brazilian talents.

Software Development Hourly Rate in Africa

Africa’s IT industry is still in its emerging phase but has started to depict rapid growth. Moreover, the country has now begun to attract clients from across the globe.

Software Development Hourly Rate in Africa

The e-Conomy Africa 2020 report shows that Africa’s IT business promises to reach $180 billion by 2025. It will offer 5.2% GDP. By the end of 2050, it is expected that the industry will demonstrate $712 billion in revenue, with 8.5% of the continent’s GDP.

• North African countries like Egypt, Morocco, and Tunisia have quickly become recommended countries with talented offshore developers. Companies hire software engineers from North Africa as they have Python, Ruby, and SQL expertise.
• South Africa is the preferred choice due to its high proficiency in languages like English, German, and Dutch. Also, they have already been featured in the Tholons Digital Nations and Super Cities rankings. The top developers are skilled in C++, PHP, and SQL.
• East African Kenya has the highest number of developers. Likewise, the capital Nairobi is where the city’s infrastructure encourages technical innovation among startups. The development team is well-versed in Java, SQL, and mobile development.

Major destinations in Africa for IT outsourcing are Egypt, Morocco, Kenya & Nigeria.

How to Hire Offshore Developers in 2022 and Beyond?

The recent past has taught us how offshore development can bring flexibility and agility in business operations while keeping your software development projects’ cost low. Besides, the increasing gap between available software engineers & software jobs in western countries has made IT offshoring one of the most practical solutions for businesses.

But how does a company hire developers from an offshore destination for their software development projects? Well, there are four options to choose from

1. Hire Developers as Remote Employees

This is a great option when you are unable to find the right talent in your geography in your budget & wish to hire a developer for a permanent opening in your organization. You can float the requirement on various job portals or hire HR consultants to assist you with remote hiring of the resources.

Access Global Talent Pool- You can choose to hire software engineers from anywhere in the world to power your IT team.

Fill Talent Gap - Hire a software engineer who is the right fit for your organization in terms of experience, knowledge, and budget with ease.

Brings Diversity - For a global business with a client base across the world, having resources from different geography is a boon as it gives them a better understanding of the cultural nuances and requirements of different markets.

2. Hiring Outsourcing Companies

Collaboration with outsourcing companies is the most traditional way of forming an offshore development team. Such companies work with overseas clients and deliver software development services according to the client’s project requirements. If you choose this hiring option, you will get the following benefits:

• Reliability–the employment will be legal, with official agreements, so the developers cannot leave the project spontaneously, as freelancers would do.
• No overhead costs–the outsourcing agency will overtake all of the expenses.
• 100% commitment–the developers will be working only on your project until it is finished.

3. Partnering with an Offshore Software Development Company

Hiring a software engineer from an offshore development company is a great way to ramp up your IT operations quickly. A trusted offshore development service provider offers a large pool of certified and experienced software engineers across technologies.

You also enjoy the freedom to hire quality resources for short-term to long-term duration.

Pre-vetted Resources- Offshore development service providers have a large pool of certified and experienced software engineers across technologies to support all your software development needs

Quick Hiring- Since resources are pre-evaluated, the hiring becomes quick, smooth, and hassle-free with an offshore development partner.

Extensive NDAs- A trusted offshore software development company always creates comprehensive documentation & NDAs to ensure code security at all times.

No Additional Cost- With an offshore service provider, you don’t need to worry about the cost of infrastructure and systems for the hired programmers, as it's all part of the deal.

4. Freelance Portals

Hiring remote developers at freelance portals seems to be quite an attractive option, and here’s why:

• Vast tech talent pool–for example, Upwork features more than tens of thousands of profiles of offshore developers.
• Quick hiring–it may take you less than a week to build an offshore development team of freelancers and sign contracts with them.
• Remote cooperation–you pay only for the development services and do not incur overhead costs.
• Direct communication–you can talk or video chats with your team in the safe space provided by your freelance portal.
• Low rates–to earn a reputation on a freelance portal, a freelancer needs to fill their portfolio with projects. To do that, they often agree to low-budget projects, though their rates “in real life” are typically higher.

How to Choose The Best Pricing Model?

When hiring offshore developers, you may come across multiple hiring model options, leaving you confused as to what is the best way forward. Don’t worry we have you covered. 

The hiring model based on pricing is primarily divided into three categories

• • Fixed Price Hiring Model- Suitable for projects where the scope of work is pre-defined with less than a 5% deviation.
  • Hourly Rate Hiring Model- You can use this model for developing new products. You can hire highly-skilled and qualified developers to work on agile methodology
  • Monthly Rate Hiring Model- When you need a consistent resource to manage, maintain and upgrade your project, this is the model for you.

• Hybrid Hiring Model- This is a combination model suitable for projects with a large scope for development and management requiring resources based on milestones.

Read our blog “Choose The Right Model To Hire Developers” to explore the different models of hiring developers.

Top Criteria For Choosing A Software Developer/Team of Developers

There are various factors that one must consider while choosing a developer or a team of developers likes, Intelligence, Work Flexibility, communication skills, clean coding, etc.

Read our blog, 6 Expert Tips to Recruit the Best Software Developers [+4 Pro Tips] to build your offshore development team successfully.

Choosing The Right Offshore Software Vendor

Outsourcing is not an easy decision to make. For most companies, the cost of hiring developers is the top priority.

Indeed, the hourly rate of software developers does matter, but the most important thing is finding an overall package. Our take is that you must go for the country that can provide top-notch developers with proven experience at affordable rates.

With a large team of dedicated developers, we can help you develop digital solutions while maintaining the utmost quality. Connect with our team now and get a free consultation. 

Frequently Asked Questions

Q: What do software developers charge per hour?

Hourly rates of software developers depend on the region and the experience level of the developer/consultant. The price range varies from $18-$60 per hour on average. Here's the list of software development hourly rate according to the region:

1. Eastern Europe: $25 – $50 per hour.

2. Western Europe: $20-$45

3. Latin America: $30 – $50

4. Africa: $20 – $40

5. Asia: $18 – $40

6. North America: $38-$63

Q: What is the top offshore destination for outsourcing?

The top destinations for outsourcing are as follows:

• India
• Ukraine
• Romania
• Bulgaria
• Poland
• China

Q: What is the hourly rate of a Software Developer in India?

In India, the range to hire developers starts from $18 for a junior developer and goes up to $40/hr.

Q: Which Country is the Best to Hire Software Developers?

The 5 Best Countries to hire software developers are:

• India
• Ukraine
• Romania
• Germany
• China

Q: How to choose the right custom software development company for your business?

While most software companies will claim that they are the best in the market for delivering software development projects, this is not necessarily true for all companies. Therefore, it is crucial for business owners, entrepreneurs, and managers to perform a thorough due diligence evaluation before choosing a software-developing company for their project.

Below are the 6 tips for choosing the right custom software development company

1. Get Referrals from People. 
2. Check the Company Portfolio. 
3. Ask for their experience in your domain 
4. Focus on Delivery Time. 
5. Emphasize upon Good Communication Skills. 
6. Pay attention on User Experience.

Q: What is the top offshore destination for outsourcing US projects?

Today, many US-based companies entrust top tech professionals from Latin America with their IT routine. The main assets include high-quality development services, real-time collaboration, and cultural similarity, which are all beneficial for a business. Among Latin American companies, Brazil is the number one software outsourcing destination, followed by Argentina and Panama.

Q: What companies use outsourcing?

Top US companies that outsource their operations.

1. Google
2. Nike
3. Facebook
4. Wells Fargo
5. Unitedhealth group
6. LinkedIn
7. The Coca-Cola Company
8. IBM

Additional Resources

• Hourly Rate Vs Fixed Cost
• Guide on Offshore Software Development Rates by Country
• Cost to Hire an App Developer in India
• Factors Affecting The Cost of Hiring Developers in India