While onsite development is costly, offshore development rates are relatively cheaper, and the billing parameters are different. In onsite development, you hire employees and pay them a fixed salary. The salary is regardless of their output and the number of hours worked or the progress of the project. But all of this changes when it comes to offshore development. There are different factors that decide the cost of your project, and now is the time to understand them.
Let us now do the offshore software development rates comparison so that you can know the average price around the world, and you can choose the region that suits you in a better way.
Offshore Software Development Rates By Country
If you are planning to source developers from a European country, Ukraine can be a great option. Situated near Russia, Ukraine is a destination for highly talented programmers and software engineers.
Over the last few years, the country has gained ranks rapidly. Ukraine has emerged as a leading choice of offshore development in eastern Europe. Some of the prime development hubs in Ukraine are Kyiv, Kharkiv, and Odesa.
These cities hold the most popular offshore development IT companies in the region, and here offshore rates for software development start just at $25. As you switch tech stack and experience, you may need to spend a bit more. However, you can find highly experienced developers at just $45 per hour.
If you are looking to spend more than Ukraine but still want to hire offshore developers in the Eastern European region, then Poland is your destination. Just like Ukraine, Poland is another East European country with the most talented software engineers. When you compare offshore software development rates by region in eastern Europe, Poland is a little costly, but the quality justifies the cost.
Here you can find less experienced developers starting at $35 per hour. And skilled industry experts between $55 to $60 on an hourly basis.
Czech Republic is at the beginning point of becoming an offshore software development country. As per clutch, there are only 70 offshore development service providers in the country, although it may differ.
Being in the early stage of technological services, the rates vary largely between service providers. On average, Czech companies provide developers for hire at rates between $25 to $50 per hour. It can be a good choice for software development outsourcing. But being a novice country, there are not many options that you can choose from. Moreover, most Czech companies have really small teams. They take up too many projects, which increases the chances of projects being delayed.
With an estimated developer population of more than 100,000 individuals, Romania is a significant offshore service provider. It is a software development provider country in the central and eastern Europe region. Immense talent and better living standards in Romania attract many individuals and companies to the country. In the past few years, tech giants like Microsoft, Amazon, and Google have developed their campuses in the country.
Technological companies in Romania have started recently. Due to this reason there is a shortage of experienced developers and project leads in the country. If you are looking to get your development done, you’ll find ample developers and companies to choose from. The offshore development rates start at $20 and go up till $50 per hour. These are standard technology rates, and as you change the technology and experience levels, the hourly rates will increase accordingly.
India is the ideal location for development. Whether you are looking for fresher developers or experienced solutions architects, this country has all the talent. Offshore software development pricing in this country is the lowest on the whole list. No matter which language you choose, you are never going to exceed the $45 hourly rate.
India has one of the largest and most cost-effective talent pools of software developers in the whole world, and the Indian IT industry’s metrics speak for it. As a company that’s looking to have an offshore development partner, here you will find the most options. You can partner with a small but fast-growing service provider, or you can even hire developers from the giant offshore service providers in the country.
For a better understanding, you can hire Indian programmers between $20 to $45 per hour in India. Even in these ranges of rates, you don’t have to worry about the quality.
Singapore is another Asian country with a significant pool of software developers. It is situated in southeast Asia. It is one of the most tech advanced places in Asia. The developers here thrive on innovation and a research mindset.
Singapore is adding 40% every year to its group of developers, and it is constantly evolving into a central IT hub in southeast Asia. Due to this, it has become a favorite of many companies, and when you compare offshore software development rates by country, this seems pretty reasonable too.
For example, you can hire a junior developer in Singapore for just $25 per hour. You can hire a highly experienced developer for $50.
Indonesia is another Asian country on the list with a good blend of experienced developers and emerging software companies. Indonesia’s internet economy is set to grow at 40% every year. This will unlock its access to the world even more. There are some major IT hubs in Indonesia, like Jakarta, Surabaya, and Bandung, where the offshore rates for software development are still low.
In Indonesia, you can hire an experienced developer for just $35. There’s a lot of emerging tech talent who can be hired starting at $18 to $20 per hour. Though Indonesia has lesser development rates, the IT industry is still emerging here. Because of this, you may have a tough time finding the best company to work with.
South American Region
Colombia is the most active country in development in the Latin American area, according to a GitHub report. The country has pioneered offshore software development, and due to this, the industry here is pretty good. There are many options to choose from, and you can get high-quality developers at cheap rates.
When you compare offshore software development rates by country, you’ll find that Columbia offers junior developers for hire at the same price as Indonesia. You can hire junior developers at just $18 per hour, and senior developers start from $45, going up to $50 per hour as per experience and technology.
After knowing offshore software development hourly rates, you might be excited and ready to hire developers for your next project. But wait, there are many fishes in the ocean, and only some of them are good.
Brazil is a Latin American country with more than 500,000 professional software developers. These developers work in different companies in the country. It is a leading service provider in Latin America, and it holds 40% of the custom software development company market in the region.
Brazil has some of the most competitive offshore development rates, and just like India, it is filled with all kinds of talented developers. The hourly rates for offshore software development begin at $17. The average rate for experienced software developers is $50 per hour. This can change based on experience and technology. Compared to other countries, Brazil provides more cost savings, as it offers more choices because of the large tech workforce.
Mexico is another top choice for offshore software development. With a workforce of more than 1 million developers and 100,000 more adding in every year, Mexico will soon become the number one offshore development service provider.
Currently, the country is home to many large tech companies. Almost all tech giants have their offices in the country. Skilled and cheaper developers are everyone’s choice, and Mexico has known this well. Just like the other countries in the region, hourly rates in Mexico start at just $17 and climb up to $40. You can find highly experienced developers at cheap hourly rates because of the well developed IT domain in this country.
Now you have a detailed idea on how much you’ll spend when you hire in each region. So now it is time to dig deeper and find out the factors deciding your project’s costs.
Factors Deciding Costs of Offshore Software Development
Project costs don’t just rely on the location from where your developers work. There are a lot of other factors that help companies in creating an estimated project cost. Below are the factors that you need to consider whenever you are looking to create a cost plan for your project.
The level of expertise of your offshore development team determines the cost you pay for the project. There are times when there is no option other than going with the most competent and experienced developers in your sight, and at such times even your offshore development costs increase significantly.
When you hire less-experienced developers, their hourly rates are low, and due to this, your overall project costs decrease, but the same goes up as you level up the experience of developers. To keep the costs in control, most companies like to create a balanced team of experienced and less experienced developers, allowing them to have the best of both worlds.
Area Of Hiring
The place from where you hire your developers is another factor that decides your costs. If you hire from a technologically advanced and developed region where the demand for developers is pretty high, like America or some parts of Europe, be ready to pay large amounts.
On the other hand, if you move your preferences to other countries that are equally advanced and have more supply than the demand for developers, you can get the developers at cheaper rates. When looking for developers for your project, always try to look in countries with more demand than supply, and you can grab great discounts for your project.
The technology that your hired developers work on is another core factor that determines project costs. If you are looking for simple web developers with knowledge of HTML, CSS, JS, and one frontend framework to create a website for your business, your costs will be low. But the fees will quickly pile up when you change the technology and move on to advanced development projects.
Every business today wants to use AI, data science, machine learning, etc in their products, but using them comes at a high cost. So, when you are looking to infuse advanced technologies into your products, you’ll always have to pay more, and it is better to look for offshore developers.
Size Of Team
It is understood that hiring more developers will cost more, and employing fewer developers will cost less money. This is the same in all hiring modes, whether it is onsite or offshore. So, if your project work can be done with the help of five developers, there’s no need to hire ten developers and pay extra money for zero productivity and output. It is just a waste.
Do understand that you are hiring offshore developers to save money on the development, so you should always hire according to your needs. The more offshore developers you hire for your project, the less difference remains between your onsite prices and offshore hiring benefits. So be mindful when you hire Indian programmers for your next project.
As project complexity increases, there will be lesser options, and this will increase the project costs. More complex solutions need experienced developers and more team members that can implement them effectively, due to this, the project costs increase too.
If you have a simple project to develop, the costs will be less, and as the complexity increases, the costs will increase too.
How To Choose The Right Offshore Software Development Company?
Before you finalize on any single agency, ask them for their past projects and case studies. Also, get some client contacts so that you can do the research independently and the results are unbiased.
Never rely on the sayings of any offshore development company. They will always try to persuade you into buying their services and developers. If you genuinely want to work with a good company, you need to assess the developers once you’ve decided on the offshore software development rates.
You can do this by interviewing the team members individually and asking them algorithmic, and data structures related questions. If you have a special request and need your team to overlap some hours with the onsite team or work completely with the onsite team, you must double-check the rates.
A flexible company can provide you options in hiring multiple software developers for the project, they can help you scale as and when the project requires, and they should be willing to work in your preferred time zone. These are the things you should look for in the flexibility section.
Collaborating and working with a company that is located geographically very far can be a little challenging. If your purpose is to extend the team, and you have a good amount of money to spend on hiring, then always hire an offshore development company in the neighboring geography.
Why Hire Offshore Software development Company In India?
Lesser Development Costs
Most companies like to hire offshore software developers to keep costs under the roof and have an easy-to-follow development process. This helps them to cut down costs significantly as there are countries like India that have large pools of talented software developers that offer services at cheaper rates.
More Experienced Developers
When it comes to building scalable enterprise-scale applications, nothing matches experience, and you need an experienced team of developers to handle your project. In some countries, it is hard to find skilled developers within the budget, and that’s why it is better to shift to an offshore development model like in India and hire better developers at fractional rates.
When you are looking to work on a fast-paced development project, it is utterly important that all deliveries take place on time, and only experienced offshore development teams in India can make them happen.
Delegation Of Responsibility
Offshore development companies in India take up all the responsibility from your shoulders, and they provide guarantees to deliver working projects to you. With such service providers, you can delegate complete duties of the projects and be sure of the results.
If you are looking for high-quality software development, do consult a few offshore software development companies in India before you plan to hire your own team in your home country.
Why do the prices of offshore software development differ from country to country ?
The prices of software development directly depend on the demand. The more there is demand for software development, the higher the prices will be in a country. Countries like the USA and Europe have higher demand for software development and hence software development rates are also higher in those countries compared to others.
Where will I get developers at less price?
India is one of the best offshore software development destinations as you will get qualitative, experienced, and skilled developers in India at an affordable price. Because India is a cheaper country, you get resources here for less price. Also, as the competition is high, you get to choose the well qualified and experienced developer for your project.
What factors affect offshore software development rates?
There are numerous factors that affect the software development rates. The important and crucial factor is the selection of the country of outsourcing. Other factors that affect the rates are the features and functionalities of your software, the size of the development team, complexity of the project and many more.