The digitalization boom has sparked a demand for developing and enhancing various software applications: these encompass mobile apps, web applications, cloud-based software, and AI-integrated systems. However, software development requires substantial investments in effort, time, financial resources, and expertise. This poses a significant hurdle for numerous businesses.
However, considering the benefits of outsourcing software development to an offshore company in a country with lower cost options, such as Asia, can be an advantageous solution for businesses. This allows enterprises to avail similar services compared to European software companies but at a more affordable price.
In this article, we’ll look at the elements that influence offshore software development rates by country and the average cost of offshore software development.
What Factors Influence Offshore Developer Rates By Country?
The impact of geographical location on offshore software development rates is significant. Factors such as salary levels, talent pool, and various other considerations vary greatly from one country to another. Moreover, in certain nations, IT companies may face higher taxes. This can potentially impact the speed of offshore software development over time.
Asia is renowned as a valuable destination with considerably lower rates for offshore developers. As a result, businesses have the opportunity to hire top-tier developers for their teams without breaking the bank, thanks to the abundance of talent and the lower cost of living in these regions.
Experience and skill
Offering higher salaries is often necessary when you hire experienced and specialized developers. Developers with specific skills and extensive experience usually command a higher average hourly wage compared to newcomers in the field of information technology. This can have a significant impact on total offshore software development costs.
Project Complexity
The complexity of your project significantly impacts the overall cost of your software. Factors such as the number of features to be implemented, the required technology stack, and project timelines can all influence your budget. However, opting for offshore development often proves more cost-effective due to managed salary structures by outsourcing partners.
Salary range
Average and median salaries determine the salary range. When comparing salaries between regions, you must convert them into a single international currency. This conversion allows for more accurate comparison and helps you understand the relative cost of hiring software developers worldwide.
Programming language
Among the various programming languages available in the market, some possess extensive and widely accepted developer communities. Alongside them, certain technologies continue to evolve and require specialized expertise for implementation. Consequently, the costs associated with hiring offshore developers can fluctuate depending on the programming language and the specific coding skills needed.
Offshore Software Development Hourly Rates in Asia
With over 10 million technology experts, Asia emerges as a highly competitive destination offering low offshore software development rates. This advantageous scenario enables businesses to easily access top-notch developers in their respective fields at a more cost-effective investment. Remarkably, while providing affordable rates, Asia maintains its ability to deliver exceptional software quality, ensuring the efficiency and excellence of your software development project.
1. Vietnam
Vietnam stands out as one of the countries globally with the most competitive offshore software development rates, ranging from $20 to $40 per hour. It boasts numerous advantages, making it a top choice for global outsourcing destinations.
The Vietnamese government has implemented various policies and support for the software development industry. This has created favorable conditions for businesses in this field. Additionally, Vietnam is known for its young and highly skilled workforce, which ensures the quality of software development.
Another significant advantage of Vietnam is its strong English communication skills. This facilitates effortless information exchange and collaboration with international partners. Combined with a dynamic young population, these factors have positioned Vietnam as a leading destination in the global offshore software development industry.
- IT Hubs: $20 – $40
- Tech stacks: PHP, Java, React, Android – Java and .NET
- Offshore software development rates: Ho Chi Minh City and Hanoi
Learn more: Top 10 Offshore Software Development Companies in Vietnam
2. India
India is renowned for its thriving software development industry, making it one of the leading choices for offshore software development. With hourly rates ranging from $25 to $50, it offers competitive pricing. One notable advantage is its strong English proficiency. However, a potential drawback is the absence of a robust regulatory framework to ensure quality standards are met. Consequently, finding a reputable offshore software development partner relies on an element of luck.
- IT Hubs: Delhi NCR, Mumbai and Pune, Hyderabad, Chennai, Kolkata
- Tech stack: Python, Java, C++
- Offshore software development rates: $25 – $50
3. China
With a massive population of 1.4 billion, China possesses an abundant pool of tech-savvy individuals. The cost per hour for software development in China is slightly higher than in other Asian countries, ranging from $50 to $80. This can be attributed to the region’s advanced local economy and the experience of its specialists. However, one significant concern companies have when contemplating outsourcing to China is the language barrier.
- IT Hubs: Beijing, Shenzhen, Shanghai
- Tech stacks: Python, Algorithm, and Functional Development
- Offshore software development rates: $50 – $80
4. Philippines
The Philippines is renowned as a leading global outsourcing destination. This distinction arises from its highly skilled English-speaking workforce, extensive technological capabilities, and stable political and economic climate. The well-developed IT infrastructure in major cities like Manila and Cebu further promotes seamless collaboration.
- IT Hubs: Manila
- Tech stacks: PHP, Ruby on Rails, ASP.NET
- Offshore software development rates: $25 – $50
Offshore Software Development Hourly Rates in Eastern Europe
Eastern Europe offers another option for outsourcing software development. It is home to the largest offshore software development center, housing more than 1 million experts. Key destinations in this region for outsourcing include Ukraine, Poland, and Romania, providing a wide range of offshore software development rates from $25 to $55 per hour. The advantage lies in the region’s commitment to promising software quality and high language proficiency, as English is widely spoken by most countries.
5. Ukraine
When it comes to outsourcing software, Ukraine truly stands out as a key player in Eastern Europe. The country’s exceptional workforce and competitive rates make it an ideal choice for high-quality software solutions. On average, the offshore software development rate ranges from $30 to $55 per hour—a testament to Ukraine’s affordability without compromising excellence.
Despite facing challenges related to its ongoing conflict with Russia, Ukraine’s offshore software development industry remains impacted. However, this adversity has not deterred the country from being a preferred destination for outsourcing—the presence of highly skilled tech professionals and cost-effectiveness continue to make Ukraine an attractive choice.
- IT Hubs: Lviv, Kharkiv, Odesa, Dnipro, Kyiv
- Tech stacks: Python, Ruby, Java
- Offshore software development rates: $30 – $55
6. Poland
In Poland, outsourcing development rates are slightly higher compared to neighboring Ukraine. However, these higher costs per hour for software development can be attributed to the country’s excellent quality of education and relatively higher living standards. Poland’s outsourcing industry offers a diverse pool of talent, including freelance specialists and established companies, making it a robust destination for software development projects that require outsourcing.
- IT Hubs: Krakow, Warsaw, Lodz, Wroclaw
- Tech stacks: Python, C++, Java, SQL
- Offshore software development rates: $35 – $55
7. Romania
When looking for cost-effective web development services, it is crucial not to overlook these particular destinations. These destinations offer budget-friendly rates, with the average cost of software development per hour ranging from $25 to $45. However, what truly distinguishes these places is their excellent expertise. Romanian developers possess highly advanced skills in handling even the most intricate databases, programming languages, and algorithms. This proficiency makes them an invaluable resource for your software development projects.
- IT Hubs: Bucharest, Cluj-Napoca
- Tech stacks: Java, JavaScript, PHP
- Offshore software development rates: $25 – $45
Offshore Software Development Hourly Rates In Latin America
If you’re seeking to hire a remote development team, it would be wise to consider Latin America as a potential location. This region offers an advantageous combination of a highly skilled workforce, competitive rates, and a convenient geographic proximity.
When outsourcing to South America, you can expect to pay around $30 per hour for a junior specialist. For the expertise of a senior developer, the rate may go up to $45 per hour.
8. Argentina
Argentina is globally ranked 34th in education and has a strong reputation for producing highly skilled IT professionals. According to Coursera’s 2020 Global Skills Index, the country earned the 22nd position in data science capabilities, covering a range of valuable skills such as Python, SQL, R, TensorFlow, Cloud API, and more. With proficiency in English and a focus on professional services, Argentina stands out as an appealing option for offshore software development.
- IT Hubs: Buenos Aires
- Tech stacks: Python, Java, SQL
- Offshore software development rates: $30 – $50
9. Peru
In Peru, a favorable environment is created by political stability and low violence rates. Remarkable growth of +9% was witnessed in the country’s IT sector last year. Peruvian developers stand out with their education in technology, proficiency in English, and familiarity with US business processes, offering average software development rates ranging from $30 to $50 per hour. Moreover, Peru boasts more than 16 recognized languages, providing diverse talent options for outsourcing needs.
- IT Hubs: Lima
- Tech stacks:Node.js
- Offshore software development rates: $30 – 50$
10. Colombia
Peru offers competitive offshore software development rates similar to those of other countries in Latin America. Despite having a considerable talent pool in the tech industry, it faces challenges. These include a complex crime situation and a lower level of English proficiency compared to other IT outsourcing destinations in the region.
- IT Hubs: Medellin, Bogota
- Tech stacks: JavaScript, Python, HTML
- Offshore software development rates: $30 – $50
11. Brazil
In Brazil, software developers earn an average hourly wage ranging from $30 to $50. The country stands out as a major global hub for outsourcing software services. According to Tholons Services Globalization Index in 2021, Brazil ranked among the top 50 countries in Information Technology. Additionally, it boasts a considerable presence of highly skilled engineers in STEM fields, constituting 2.1% of the formal workforce in the country.
- IT Hubs: Rio de Janeiro, Curitiba, Porto Alegre, Blumenau, and Londrina
- Tech stacks: Java, Python, SQL
- Offshore software development rates: $30 – $55
Offshore software development costs in Africa
In 2019, Microsoft made a significant investment of $100 million in Africa, transforming the continent’s potential as a leading offshore software development hub. This strategic investment has resulted in the rapid expansion of IT centers across Kenya, South Africa, Morocco, Egypt, and Nigeria. These regions boast competitive offshore software development rates ranging between $20 and $50 per hour, positioning them favorably within the global IT landscape.
12. South Africa
Namibia has gained recognition as one of Africa’s leading Information technology (IT) countries. In 2021, Tholons placed Namibia among the top 50 nations worldwide for its digital technology advancements. This achievement highlights the growth and credibility of the local IT industry.
In addition, Namibia shares a similar time zone with most European countries. This alignment facilitates collaboration and enables smooth communication with European companies. The combination of technical expertise and the convenience of the time zone positions Namibia as an appealing destination for offshore software development.
- IT hubs: Western Cape, Gauteng, Durban
- Tech stack: Java, Python
- Offshore software development rates: $20 – $50
13. East Africa
Kenya, situated in East Africa, stands as the region’s largest IT outsourcing hub. One of its notable advantages lies in competitive offshore software development rates. Hiring developers from Kenya eliminates concerns about their English proficiency due to the country’s policies establishing English as the official language.
- IT hubs: Kisumu, Mombasa, Eldoret
- Tech stack: Javascript, PHP, Python
- Offshore software development rates: $20 – $50
14. North Africa
North Africa offers cost-effective offshore software development compared to other regions in the continent. Additionally, its time zone alignment with most European countries contributes to convenient collaboration.
In the North African region, notable countries like Morocco and Egypt have experienced significant growth in their IT sectors. The region has gained recognition in the global tech industry with some of the world’s largest telecommunications providers establishing their research and development centers in Egypt.
- IT hubs: Morocco, Egypt
- Tech stack: PHP, Python
- Offshore software development rates: $20 – $50
15. Western Africa
Nigeria has emerged as a leading choice for offshore software development in West Africa. Despite being in the early stages of its IT market growth, the country demonstrates significant potential and a burgeoning talent pool. The Nigerian government recognizes the benefits of fostering a thriving local IT sector and actively invests in market development and developer training.
- IT hubs: Lagos
- Tech stack: Java, Python, SQL
- Offshore software development rates: $20-50
Conclusion
In the age of Industry 4.0, it’s vital to carefully select a software development partner who possesses determination and expertise. This is crucial for successfully building and advancing digital products. Your decision may be influenced by various factors, such as thoroughly comparing offshore software development rates by country and considering the capabilities of the world’s top IT outsourcing centers.
Nexle Corporation goes beyond being just a software development team. We are your trusted partners in transforming ideas into actuality. Committed to providing unwavering support, Nexle Corporation stands by you throughout every stage of the product development journey – from thorough research and thoughtful design to seamless deployment and post-launch maintenance.
Let us help you achieve your business goals and create outstanding software products. Contact us today to embark on a future-focused collaboration!
