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, and that too at affordable rates. While small businesses use this approach to bring down the development cost, large enterprises use it for extending their existing team and increasing their global outreach.
It is fair to say that this business model is a success in the IT industry.
In fact, collaborating with a software development team from another geographical location helps in conceptualizing the product, refining the business model, and assisting in defining strategic goals in the best possible way.
All while you are busy with other important aspects of your business, like generating new business. If you are already convinced of the idea to outsource software development, then you can go ahead and hire offshore developers.
But if you are still concerned about the hourly rate of web developers and other developers across the globe, continue reading.
Software Developer Hourly Rate Globally
We have done thorough market research and analysis to find out the hourly rates of software developers across the globe. So, without further ado, let’s compare the price of software developers across the top outsourcing countries across; Asia, Europe, Latin America, and Africa.
Overview of Software Developer Hourly Rate
|Destination||Outsourcing Rates||Countries Included|
|Eastern Europe||$25 – $50||Ukraine, Poland, Romania, Hungary, Bulgaria|
|Latin America||$30 – $50||Brazil, Mexico, Argentina, Chile, Columbia, Peru|
|Africa||$20 – $40||Morocco, Kenya, Nigeria, Egypt, South Africa|
|Asia||$18 – $40||India, China, Philippines|
Now, as you have got a quick overview of the hourly rates across different regions, now let’s discuss everything in detail.
1. Outsourcing in Asian Countries
A pioneering software outsourcing destination, Asia boasts the biggest number of software developers i.e. 10 million. The hourly rates of software developers across the continent are shaped by various aspects and differ a lot from country to country.
Hiring an offshore developer from Asian countries is the most budget-friendly option. Specifically talking about India, the range to hire developers starts from $18 for a junior developer and goes up to $40/hr.
India, the Philippines, and China are the three major countries offering custom software engineering services. Some other countries include Vietnam, Malaysia, and Indonesia that are gaining ground while offering software development services.
To make things easy for you, let’s drill down the software development services across the top three Asian countries:
a. Software Outsourcing in India
The 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. Whether you are running a business in North or South America, Canada, Australia, or Europe, collaborating with an Indian offshore development company is easy and effective.
As a matter of fact, the country is also considered as the top digital nation in the Tholons Services Globalization Index 2019. In 2016, India was nominated as the second country across the globe with the highest numbers of STEM graduates (2.6 million).
Here are the reasons 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 colleges every year.
- More than 200,000 IT graduates adds up to the Indian workforce anually. Besides, the country has the youngest employable population globally.
- In the upcoming years, 40% of professions will train themselves according to the latest technology to meet the advanced industry requirements.
The blend of technological infrastructure, talented professionals, less hourly rates, and emerging engineers make Indian offshore developers worth considering.
b. The Philippines
The Philippines is another country that has the fastest growing IT industry. With more than 200 offshore software companies and 95000 technical positions, it is considered as the second-best country to build software teams overseas.
Despite this, the Philippines ranks 5th among the top 50 digital nations in the Tholons Services Globalization Index 2019 with Manila being the second super city.
Among other Asian countries, China is considered the third-best to hire mobile app developers or web developers. Chinese developers are the first across all HackerRank challenges.
This is because the Chinese government supports the tech sector by giving them economic incentives. Today, there are more than 50 science and technology industry parks across the country.
2. Outsourcing in Europe
The hourly rate of the developers in Europe varies from country to country. For example, Ukraine developers charge very less in comparison to the sofware developers in Poland. But on average, junior developers in Europe cost between $25 – $50/hour.
Ukraine is located in the center of Europe and has been constantly attracting foreign investors since the late 1990s and early 2000s. That was the time when the first software outsourcing companies started appearing in the country. Ukraine is one of the best offshore development providers as its education system churning out plenty of IT professionals yearly.
In short, the country is a hub for a technology startups.
Here are a Few Facts Regarding the IT industry in the Country:
- As per the State Statistics Service of Ukraine in 2019, the IT service exports in the country rose by 15%. Today, it makes up 16% of the export of various services which in the total brought the country $15.23 billion.
- In the HackerRank test results, Ukrainian developers are 11th in the world in terms of tech skills.
- Till 2019, there were approximately 160000 IT professionals in Ukraine employed at nearly 4000 IT companies.
- The IT industry of Ukraine grows by about 26% annually.
- The average hourly rate for software developer services in Ukraine is $26.
- Ukraine’s tech industry is one of the most rapidly growing industries with $4.5B in investments in 2018.
- The software developer hourly rate varies from $25 to $50 per hour and the time zone is the same as most western European countries.
Some of the Best European Countries to Hire Software Developers:
- Czech Republic
Europe is a good place that gives you the opportunity to hire dedicated offshore developers at cost-effective rates. The region is popular for its qualified IT professionals. And the rapid growth of the industry resulted in 1 million software developers in the continent.
3. Hiring Software Developes in Latin America
Top Countries: Brazil, Argentina, Colombia, Costa Rica
According to Accelerance, most of the businesses being invested in are small and medium enterprises. But the important fact to consider here is that about 90% of these tech firms are located in Colombia and Mexico.
Though, the country is a bit expensive for software development, but their quality of service is at par. So, let’s get down to the top countries to outsource software development.
European trends have a strong influence on Argentina’s IT market. Not only economically, but Argentina has also culturally connected to Europe. Well, it has the most expensive IT development teams in the region. Meanwhile, this because the developers have rich experience in working with western countries.
The country gives rise to 13,000 software developers every year and the majority of them go to the offshore companies. Nevertheless, companies are CMMI certified benefitting from American influence.
Brazil is one of the leading software development destination 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.
Costs of Outsourcing Development in Latin America
- Junior Developer: $25 – $34/hour
- Mid-level Developer: $50 – $80/hour
- Senior Developer: $100 – $120/hour
4. Software Developers Rates in Africa
Africa’s IT industry is still in its emerging phase but has started to depict rapid growth. Moreover, the country has now started to attract clients from across the globe.
- North African countries like Egypt, Morocco, and Tunisia have quickly become recommended countries having talented offshore developers. Thanks to the small-time zone difference with New York and compatibility with Europe. Besides, Morocco and Tunisia attract clients from France as the language is the same. Companies hire software engineers from North Africa as they have expertise in Python, Ruby, and SQL.
- 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 the place where the city’s infrastructure encourages technical innovation among startups. The development team is well-versed in Java, SQL, and mobile development.
Offshore Software Developer Hourly Rate by Country in Africa in 2020
- Egypt: $20
- Kenya: $20
- Morocco: $20
- Nigeria: $40
- South Africa: $40
Words for Wise
Outsourcing is not an easy decision to make. For most companies, the cost to hire developers is the top priority.
Indeed, the hourly rate of software developers do matter, but the most important thing is to find out an overall package. Our take is, you must go for the country, that can provide you top-notch developers with proven experience, at affordable rates.
Especially, when you are planning to hire software developers for a crucial project.
Once you have made the decision, the only difficult part is to look for a reliable offshore development company that fits the project scope, deadlines, tech stack, and budget. If you have already made the decision to outsource in India, we are here to help.
With a large team of dedicated developers, we can help you develop digital solutions while maintaining utmost quality. Connect with our team now and get a free consultation.