A guide to Offshore Software Development rates by country and technology
Cost saving is one of the main reasons why businesses prefer outsourcing their tech project. Offshore software development rates for companies residing in Asia, Europe, or Latin America will be much lower than the costs associated with building an in-house team.
Hiring an offshore team means you don’t have to worry about health benefits, professional growth opportunities, and office gear for the employees. You will just pay for the work done. This directly saves you lots of money. Additionally, offshore teams allow you to scale up and down quickly without having to pay for expensive recruiting processes and severance packages for termination.
With cost being such a big incentive for choosing offshore talent, it’s no surprise that companies want to know how rates vary by region and project type.
In this guide, we will examine offshore software development rates in different countries in Asia, Africa, Latin America, and Eastern and Western Europe. We will also compare rates for various technological skills like PHP, Java, front-end, and back-end development and look into the factors that affect pricing.
Read further for more information.
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Offshore software development rates by country
In 2021, the global IT outsourcing industry was worth $526.6 billion, with hundreds of cities worldwide acting as outsourcing hubs for companies requiring extra support for their tech projects.
Each of these cities differs in terms of their rates, depth of expertise, educational programs, ways of doing business, and more. And when it comes to rates, there are two primary groups to consider.
Group 1:
Teams based in countries and regions with high standards of life (and cost of living), with stable economies. These include the US, Canada, Australia, Western Europe, and Israel.
Group 2:
Countries with less developed local markets with professionals looking to support companies in other countries. These include countries from Asia, Latin America, Africa, and Eastern Europe.
As the cost of living is typically lower in the second group of countries, they are able to offer reduced rates without compromising on the quality of work. In recent times, these countries have become real players in the outsourcing economy.
Software development rates in Western Europe
Within Western Europe, outsourcing tends to be more expensive and focused towards offering experts and fractional advisors to share their expertise.
| Countries | Rate | Popular tech expertise | Popular IT hubs |
|---|---|---|---|
| Germany | $50-$150 / hour | JavaScript, Python, Java | Berlin, Munich, Frankfurt, Cologne |
| United Kingdom | $50-$150 / hour | JavaScript, Python, Java | London, Leeds, Leicester |
| Switzerland | $100-$200 / hour | JavaScript, Python, .NET | Zurich, Geneva |
Offshore software development rates in Eastern Europe
Countries in Eastern Europe that have developed a reputation for outsourcing software development include Ukraine, Belarus, Poland, and Romania.
| Countries | Rate | Popular tech expertise | Popular IT hubs |
|---|---|---|---|
| Ukraine | $30-$55 / hour | Python, Java, Ruby | Kyiv, Kharkiv, Dnipo, Lviv |
| Poland | $35-$55 / hour | Java, SQL, Python, C++ | Warsaw, Wroclaw, Krakow |
| Romania | $25-$45 / hour | PHP, Java, Javascript | Bucharest, Cluj, Timis |
| Belarus | $35-$50 / hour | JavaScript, Java, NET | Minsk, Gomel, Vitebsk, Mogilev |
| Czech Republic | $35-$55 / hour | JavaScript, Python, Java | Prague, Brno |
| Hungary | $40-$50 / hour | JavaScript, Python, Java | Budapest, Debrecen, Miskolc |
Offshore software development rates in Latin America
Latin America isn’t always considered an outsourcing destination, but it has emerged as a place with competitive talent, reasonable rates, and convenient operating hours for North American and European time zones.
The talent pool is also substantial because many professionals are keen to seek employment outside their borders due to political and economic instability.
| Countries | Rate | Popular tech expertise | Popular IT hubs |
|---|---|---|---|
| Argentina | $30-$55 | Java, Python, SQL | Buenos Aires |
| Peru | $30-$50 | Node.js | Lima |
| Brazil | $30-$55 | Java, Python, SQL | Rio de Janeiro, Porto Alegre, Curitiba, Blumenau, and Londrina |
| Colombia | $30-$50 | JavaScript, HTML, Python | Medellin, Bogota |
Outsourcing your development needs to a country based in a similar timezone may pose fewer perceived risks but may also decrease the benefits of a wider talent pool, better cost-benefit ratio, and round-the-clock remote development – schedule a consultation to learn more.
Offshore software development rates in Africa
Africa is another continent that is often overlooked when it comes to outsourcing tech talent, but recent tech investment has spurred growth in the sector. Additionally, the region has time zones that align with much of Europe and the Middle East.
| Region | Rate | Popular tech expertise | Popular IT hubs |
|---|---|---|---|
| South Africa | $20-$50 | Java, Python | Western Cape, Durban, Gauteng |
| East Africa | $20-$50 | Python, JavaScript, PHP | Mombasa, Kisumu, Eldoret |
| North Africa | $20-$50 | PHP, Python | Rabat, Cairo |
| West Africa | $20-$50 | SQL, Java, Python | Lagos |
Offshore software development rates in Asia
Countries like India, China, the Philippines, and Nepal have established Asia as one of the popular destinations for outsourcing software development projects. The main reason behind this sudden growth is the affordable rate (due to the low cost of living and strong currency conversion) compared to other regions.
Additionally, a larger population means the availability of broader tech talent, which makes the pricing competitive.
| Countries | Rate | Popular tech expertise | Popular IT hubs |
|---|---|---|---|
| India | $25-$50 | Java, C++, Python | Bangalore, Chennai, Mumbai, Kolkata |
| China | $50-$80 | Python, Algorithm, Functional Development | Beijing, Shanghai, Shenzhen |
| The Philippines | $25-$50 | PHP, ASP.NET, Ruby on Rails | Manila |
| Vietnam | $20-$40 | Java, PHP, .NET | Hanoi, Ho Chi Minh City |
| Nepal | $20-$40 | Microsoft.net, Python, PHP, C++, JavaScript | Kathmandu |
The benefits of outsourcing hubs across Asia may seem alike but there are a few key areas that make Nepal the perfect for your offshore development needs – schedule a consultation to learn more.
Comparison of offshore software development rates by country
| Country / Region | Hourly Rates |
|---|---|
| Switzerland | $100-$150 |
| Germany | $50-$150 |
| United Kingdom | $50-$150 |
| China | $50-$80 |
| Hungary | $40-$50 |
| Poland | $35-$55 |
| Czech Republic | $35-$55 |
| Belarus | $35-$50 |
| Argentina | $30-$55 |
| Brazil | $30-$55 |
| Ukraine | $30-$55 |
| Peru | $30-$50 |
| Colombia | $30-$50 |
| India | $25-$50 |
| The Philippines | $25-$50 |
| Romania | $25-$45 |
| South Africa | $20-$50 |
| East Africa | $20-$50 |
| North Africa | $20-$50 |
| West Africa | $20-$50 |
| Vietnam | $20-$40 |
| Nepal | $20-$40 |
Offshore software development rates by technology
As mentioned earlier, the rate of offshore software development also varies based on your technological requirements.
Here’s a list of popular technologies and their possible outsourcing rates;
FAQs
What factors determine offshore software development rates?
As we’ve determined, where an offshore software development company is based has a significant impact on the rates they might charge. Each country has its own income levels, costs, living standards, and exchange rates.
Plus, the depth and breadth of technology education and expertise vary from place to place. This is all going to influence how much a company is willing to charge for its work.
Other factors that will determine a company’s rates include
- The size and level of experience of the development team.
- The tech stack or programming language required for the project.
- The company’s reputation and global presence.
Why does outsourcing software development to Asia cost less?
The reason it costs less to outsource software development to Asia is that the cost of living is often lower in Asian countries than in the Western hemisphere. This means that what seems like a low hourly rate for North America or Europe could actually go further in Asian economies.
The benefit here is that since many Asian countries are investing more in building robust technology expertise in their education systems and beyond, you don’t actually have to compromise on the quality of the work.
How much do Proshore’s offshore development teams cost?
Proshore’s development team is largely based in Nepal, which results in low costs for offshore software development compared to other regions. The best part is you don’t have to worry about the quality of work.
Our team is well-trained with the latest technologies. You can look into our past work to get a better idea about the quality of work we do.
