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It’s okay to look for a way to save your project’s budget and seek the help from offshore professionals who charge less. Companies and startups over the worlds have been practicing IT outsourcing for nearly ten years already.
P.S. The article is written based on the research made by Daxx company (the link https://www.daxx.com/article/average-rates-offshore-developers).
The discussion of this method is heating up more with each day — some say the quality of the final product will end up poor, some freelancers are blamed for IP rights violations, etc. However, most of all, people acknowledge the cost-efficiency of the multinational or foreign teams.
So, the one benefit is true: offshore development gives you a way to complete the task at a reasonable price. But still, not all outsourcing locations are equally so cost-efficient when it comes to development quality. And since our team is an experienced outsourcing provider, we decided to make for you a comparative digest of the outsourcing software development prices across the globe.
Offshore IT Specialists Average Rates
IT outsourcing service: average hourly rate by region
Without doubts, it’s difficult to hire the right team for the job. The number of the related questions (“How can I find the best app development company?” or “Which are good app developers?”) on Quora just speaks loudly. Every business owner desires to work with the software engineers that are qualified professionals. And the primary concern with offshoring development would be whether or not the investments will pay off, along with what exactly the budget should be.
So, to ease your quest, we’ve made this guide to answer your questions regarding offshore salaries for software developers in common regions and draw your attention to other factors you should consider while hiring. A little note beforehand — just keep in mind that we provide an approximate range. Expectations are expectations, but the software engineers’ hourly rates are pretty dynamic.
Where to Seek Offshore Developers: Common Outsourcing Countries
1. Eastern Europe: $25–50
Let’s start with the known fact that this region is represented by a huge number of various on-demand IT specialists. Eastern Europe includes the offshore programmers from such countries as Ukraine, Poland, Belarus, Russia, Czech Republic, Bulgaria, Hungary, Romania, Slovakia, Estonia, and Latvia.
Talking from our perspective, Ukrainian, Russian, and Belarusian professionals offer you higher education, and knowledge of English language combined advanced programming skills. These factors lead to the increasing demand for software engineers in the area. The average outsourcing software developer hourly rate in these countries starts from $25 and could be up to $50. The final software development costing depends on the company’s location, level of developer’s experience, and other project’s requirements.
Compare to other destinations, it may seem like a high price but bear in mind that that this is still much lower than in US, Canada, Australia, and Western Europe. Software engineers with similar abilities in those locations will cost you above $50–100 p/h.
2. Latin America: $30–50
Latin America became a progressive region in terms of the outsourcing offshoring development. The top locations that are worth your attention are Brazil, Argentina, and Mexico. But the hourly rates start from $30–40 and going up to $50 p/h for advanced software developers. There are also Latin American countries like Panama, Chile, Colombia, Costa Rica, or Peru that could be a good choice for North American clients who want to outsource in the regions that follow U.S. laws.
Latin America: key IT outsourcing countries
3. Asia: $15–40
Suffice to say, Asia is a pretty varied region that outstretches from Pakistan, India, Bangladesh, and Nepal to China, Philippines, Thailand, and Sri Lanka. For example, the overwhelming offshore programming labor pool of India keeps to be one of the cheapest — software developer hourly rate fluctuate between $15–25. However, this doesn’t always end up in a high-quality product; communication is difficult due to the cultural and time zone differences. Also, the adverse work conditions make a significant impact on the IT development process.
China developers operate similarly to Southern/Eastern Europe, so their hourly rates greatly increase due to the high-quality software. Top engineers in other countries like Vietnam, Indonesia, or Malaysia offer their services for around $30–40 p/h.
Asia: key IT outsourcing countries
4. Africa: $20–50
In most regions of Africa, offshore development services are rather cheap for outsourcing. It concerns such countries as Egypt, Kenya, and Morocco — software engineer hourly rate costs around $20 or even less sometimes. But Nigeria and South Africa would charge you approximately $40–50, since their IT labor market across the continent isn’t that filled, and finding high-grade software developers can be a very difficult task, indeed.
Africa: key IT outsourcing countries
So, based on the Accelerance’s report regarding 2017 programming outsourcing rates, here is a comparison charts of a minimal and maximal rate for software development pricing by types of the employment and countries.
It’s easy to notice that the equable spread growth of rates for full-time employees mainly depended on the employee’s localization.
2017 Global Outsourcing Rates(max)
Choosing an Outsourcing Company: What to Consider
The price of the product or service will always be a key factor when you outsource a software development vendor. Saving more spending less is a top priority for any startups, but choosing a cheap outsource provider for your project isn’t the good way more often than not. However, the software development costing may greatly vary even within one country or city.
So, there are several other aspects that also worth your consideration since they also influence the amount of the offshore salaries:
1. Value matters more than price
As was said earlier, the cheapest solution to your software ideas shouldn’t be a preferable one. For serious projects, it’s better to make a home run and outsource more valuable team of experienced professionals, with excellent portfolio and reviews. In the long-term perspective, you’re going to get a more financially appealing final product that matches your investments. So, before you hire, check the level of seniority for the offshore development company.
It’s a common misconception that software development transcends only money. People require money as a salary to live their lives properly, but the coding process is also a creative one! Without creativity and enthusiasm, there won’t ever be a product that wins the customers. You should look for the vendors that offer both effectiveness and the hard-working innovative development approach.
3. Working Conditions
The business environment in which we work always matters. Therefore, it’s better to consider the working conditions and rules of your potential outsourcing software developers, allowed schedules and time shifts, their work ethics, culture specifics, civil and political local situation. Some countries, for example, forbid women to work full-time night-shifts. In addition, keep in mind that the public holidays in all countries significantly vary from 7 to 18.
4. Long-term or Short-term?
The answer often defines the final software development cost. Long-term partnership could be priced a little lower than a one-time deal. As a matter of fact, most freelance developers and companies prefer to get regular stuck of tasks instead of short-term commitments.
Quick Tip: Low-quality product is the main issue with the cheap offshore development. The lack of proper communication and cultural barriers could seriously damage your business. Still, high hourly rates also aren’t a 100% insurance that everything would fit… You must carefully study the market in order to find the company that suits your needs the most.
Reasons to Outsource in Ukraine (Eastern Europe)
The main factor is that the Ukrainian developers are known for being talented and responsible. But, objectively speaking, there are other reasons why you should seek offshore IT services in Ukraine.
One of the largest tech professionals market
Ukraine offer more than 90,000 IT specialists — they make the worldwide record of the most Unity 3D and C++ developers, second highest record of Java, Scala, and Magento experts. Among their common skills are also iOS, Android, PHP, and .NET development. Over the past five years, Ukraine has shaped an incredible IT Community with international and local tech conferences, seminars, regular hackathons, networking events, and new emerging IT schools.
Rapid Internet Service
Ukraine has fast yet cheap with an unlimited data connection via Cable/ADSL. This means that the development team you hire will provide the quickest updates, constant communication, and quick uploads and releases.
One of the best benefits of offshore development in Ukraine is its the time zone — only an hour or two difference from Western Europe, and 6–10 hours from U.S. Coasts. As there is a morning there it’s evening in Ukraine. Clients can sleep peacefully and wake up to the completed tasks that were done by a team during those hours.
Great Startup Environment
According to Doingbusiness.org, in 2017 Ukraine it jumped to 20th place in the rank of highly regarded great places to do business. Efficiently corresponding is easy with Ukrainian developers and the country provide a nice environment for visiting overseas clients. There are over 2,000 various startups and the number is growing with each year. Even the Looksery (Snapchat’s acquisition) is stationed here.
We are ready to transform your ideas into awesome apps
So, if you plan to hire experienced offshore developers or learn more about our services and software development prices contact us at any time that suits you. We listen to our clients and we work closely with all the way to their success!