Software Developer Hourly Rate Comparison Across the Globe

Software Developers Hourly Rates

Table of Contents

Businesses across the globe are collaborating with outsource software developers to stay ahead of the competition. Collaborating with a software development team from another geographical location helps refine the business model & assists in defining strategic goals in the best possible way.

 

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. 

While small businesses use this approach to bring down development costs, large enterprises use it to extend their existing team and increase their global outreach.

If you are looking to hire dedicated offshore developers and want to learn about the software developer hourly rates, we have curated this guide for you!

Current State of Global Offshoring Software Development

Since its inception in the early 2000s, the outsourcing industry has revolutionized different sectors. 

As outsourcing continues to grow, a few trends would help you understand the current state of global outsourcing software development:

  • The IT outsourcing market (hereafter referred to as the market studied) was valued at USD 526.6 billion in 2021. It is expected to reach USD 682.3 billion by 2027, registering a CAGR of 4.13% during 2022-2027 (hereafter, referred to as the forecast period).
  • The business process outsourcing market is expected to grow by USD 76.90 billion, progressing at a CAGR of over 7% during the forecast period
Global Business process outsourcing market
Global Business process outsourcing market
  • Incremental growth of 76.90 billion USD is expected from 2019 to 2024, up by 1.69% from the previous year, 2020. 
  • The market is fragmented with several players, and the impact is neutral. 
IT Outsourcing Market
IT Outsourcing Market: Source
  • Value over price

As we know, outsourcing has been a growing trend since the early 1980s. However, today’s offshore development scenario differs significantly from the earlier models. 

Organizations moving towards outsourcing software development are focusing heavily on hiring skilled labor to reduce costs, improve core business processes, enhance service quality and drive transformation in addition to various other reasons mentioned below:

Why do companies outsource?
Why do companies outsource?

Change In Software Development Rates Over The Previous Years

Since the last time we published this blog; the market trends have changed drastically, and so have the software development rates over the earlier years. 

Surprisingly, the compensation for app developers for their services will increase by up to 4 percent and will continue to rise for all the technologies. 

Technologies witnessing a whopping increase in rates are Python, React Native, ReactJS, NodeJS, Java & PHP. 

Also Read: A Complete Guide on How to Hire Developers For Startups

Software Developer Hourly Rates by Regions 

We have done the detailed market research to find out the software developer hourly rate across the globe.

 Without further ado, let’s compare the price of software developers across the top outsourcing countries: Asia, Europe, Latin America, and Africa.

Destination Outsourcing Rates Countries Included
Eastern Europe $25 – $50 Ukraine, Poland, Romania, Hungary, Bulgaria
Western Europe $20-$45 Germany, Netherlands, Switzerland, Austria, Belgium
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
North America $38-$63 United States, Canada, Mexico

What is the Software Development Hourly Rate In The United States?

Software developer hourly rates are the highest in the United States, ranging from $38-63 per hour. The total salary, including taxes and benefits, ranges from $137k to $173k.

Although hiring in the United States is a bit expensive, there are numerous benefits, such as lesser language barriers and reduced miscommunications. 

Software Developer Hourly Rate In United States

The following table depicts the average hourly rate of software developers in various cities in the United States:

City Average rate of software developers
San Fransisco

$62.5

Los Angeles

$52.5

New York

$59

Chicago

$48.7.

Source: Payscale, SalaryExpert, and Glassdoor.

What Is The Software Developer Hourly Rate in Asian Countries?

Asia has the most significant number of software developers, a pioneering software outsourcing destination compared to other countries., with 10 million. The hourly rates of software developers across the continent are shaped by various aspects and differ significantly from country to country.

 

Asia Offshore Development Rates
Asia Offshore Development Rates Source

India, the Philippines, and China are the three major countries offering custom software engineering services. Let’s drill down the software development services across the top three Asian countries to make things easy for you:

Software Developer Hourly Rate 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.

GSLI Overall Country Ranking
GSLI Overall Country Ranking

Hiring an offshore developer from Asian countries is the most budget-friendly option. Explicitly speaking about India, the range to hire developers starts from $18 for a junior developer and goes up to $40/hr.

Here are 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 college every year. 
  • More than 200,000 IT graduates add up to the Indian workforce annually. Besides, the country has the youngest employable population globally. 
  • In the upcoming years, 40% of professionals will train themselves according to the latest technology to meet the advanced industry requirements.

click to hire dedicated developers

Software Development Hourly Rate In Philippines

Philippines is another country with the fastest-growing IT industry. With more than 200 offshore software companies and 95000 technical positions, it is considered the second-best country to build software teams overseas. 

According to the data by Teleport & Best jobs, the salary for junior software developers in Manila ranges from $3.5-$6 per hour, in Quezon ranges from $4-$7 per hour, and in Cebu, it goes anywhere between $5-$6 per hour.

Software Developer Hourly Rate In China

Among other Asian countries, China has considered s the third-best for hiring mobile app developers or web developers. Chinese developers are the first among all HackerRank challenges. Today, there are more than 50 science and technology industrial parks.

In China, the overall revenue in the software development industry is expected to increase by 6.9 percent in the upcoming five years, reaching $1.2 trillion.

Countries Average hourly rates
India

$6.72

Philippines

$5.62

China

$8.52

Source: Payscale, SalaryExpert, and Glassdoor

What is the Software Developer Hourly Rate in Europe?

The hourly rate of developers in Europe varies from country to country. For example, Ukraine developers charge significantly less in comparison to the software developers in Poland. But on average, junior developers in Europe cost between $25 – $50/hour.

Average Software Developer Salaries in Europe
Average Software Developer Salaries in Europe

Some of the Best European Countries to Hire Software Developers:

  • Belarus
  • Russia
  • Poland
  • The Czech Republic
  • Romania

Europe is a good place that allows you to hire dedicated offshore developers at cost-effective rates. The region is famous for its qualified IT professionals. And the rapid growth of the industry resulted in 1 million software developers on the continent.

Here we have jotted down all the information regarding software developers’ hourly rates in different countries of Europe:

Software Developer Hourly Rate In Philippines

Western Europe

Western Europe is one of the most expensive & best offshore development countries globally. Due to the high costs of living, taxation systems, and expert developers, the average hourly rate of software developers is also high. 

The hourly rates in Western Europe range from $20-$45 per hour, with annual salaries of about $60k.

 Eastern Europe

Eastern Europe is known as the hub of start-up culture. The developers are well-versed in software technologies and programming languages such as C/C++, Java, JavaScript, .NET, and Python. 

The hourly rate for software engineering services in Eastern Europe ranges from $11-$25. The average salaries of software developers range between $40k-$70k, while Poland is the most expensive country.

  • Belarus, the Czech Republic, Hungary, and Ukraine were named the world’s top technology countries in Coursera’s Global Skills Index 2020
  • The average hourly rate for software developer services in Ukraine is $26. The software engineer’s hourly rate varies from $25 to $50 per hour, and the time zone is the same as most western European countries. 
Countries Average hourly rates
France

$42

Germany

$32

The United Kingdom

$28

Bulgaria

$32

Romania

$35

Source: Payscale, SalaryExpert, and Glassdoor

What is The Software Developer Hourly Rate in Latin America?

Software Development Hourly Rate in Latin America
Software Development Hourly Rate in Latin America

Source: https://www.daxx.com/blog/development-trends/average-rates-offshore-developers

Top Countries: Brazil, Argentina, Colombia, Costa Rica

According to Accelerance, most of the businesses being invested in are small and medium enterprises. But the critical fact to consider here is that about 90% of these tech firms are located in Colombia and Mexico. 

Costs of Outsourcing Development in Latin America

  • Junior Developer: $25 – $34/hour
  • Mid-level Developer: $50 – $80/hour
  • Senior Developer: $100 – $120/hour

Though the country is a bit expensive for software development, their quality of service is at par. So, let’s get down to the top countries to outsource software development.

Argentina

European trends have a strong influence on Argentina’s IT market. Not only economically, but Argentina has also been culturally connected to Europe. Well, it has the most expensive IT development teams in the region. Meanwhile, this is because the developers have rich experience in working with western countries.

Colombia

The country gives rise to 13,000 software developers every year, most of which go to offshore companies. Nevertheless, companies are CMMI certified, benefitting from American influence. 

Brazil

Brazil is one of the leading software development destinations 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.

Countries Average hourly rates
Argentina

$6.49

Colombia

$6.65

Brazil

$7.56

Source: Payscale, SalaryExpert, and Glassdoor

What is the Software Development Hourly Rate in Africa?

Africa’s IT industry is still in its emerging phase but has started to depict rapid growth. Moreover, the country has now begun to attract clients from across the globe.

Software Development Hourly Rate in Africa
Software Development Hourly Rate in Africa

The e-Conomy Africa 2020 report shows that Africa’s IT business promises to reach $180 billion by 2025. It will offer 5.2% GDP. By the end of 2050, it is expected that the industry will demonstrate $712 billion in revenue, with 8.5% of the continent’s GDP.

  • North African countries like Egypt, Morocco, and Tunisia have quickly become recommended countries with talented offshore developers. Companies hire software engineers from North Africa as they have Python, Ruby, and SQL expertise.
  • 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 where the city’s infrastructure encourages technical innovation among startups. The development team is well-versed in Java, SQL, and mobile development.
Countries Average hourly rates
Egypt

$20

Kenya

$20

Nigeria

$40

Morocco

$40

Source: Payscale, SalaryExpert, and Glassdoor

Choose The Right Offshore Software Vendor

Outsourcing is not an easy decision to make. For most companies, the cost of hiring developers is the top priority.

Indeed, the hourly rate of software developers does matter, but the most important thing is finding an overall package. Our take is that you must go for the country that can provide top-notch developers with proven experience at affordable rates.

With a large team of dedicated developers, we can help you develop digital solutions while maintaining the utmost quality. Connect with our team now and get a free consultation. 

Frequently Asked Questions

1. What do software developers charge per hour?

Hourly rates of software developers depend on the region and the experience level of the developer/consultant. The price range varies from $18-$60 per hour on average. Here’s the list of software development hourly rate according to the region:

1. Eastern Europe: $25 – $50 per hour.
2. Western Europe: $20-$45
3. Latin America: $30 – $50
4. Africa: $20 – $40
5. Asia: $18 – $40
6. North America: $38-$63

2. What is the top offshore destination for outsourcing?

The top destinations for outsourcing are as follows:

  • India
  • Ukraine
  • Romania
  • Bulgaria
  • Poland
  • China
3. What is the hourly rate of a Software Developer in India?

In India, the range to hire developers starts from $18 for a junior developer and goes up to $40/hr.

4. Which Country is the Best to Hire Software Developers?

The 5 Best countries to hire software developers are:

  • India
  • Ukraine
  • Romania
  • Germany
  • China

Saryu Pathania

Hi, I am Saryu Pathania. Communication has always been one of my key strengths, whether vocal or written. I started my career as a marketing professional, and in my journey as a marketer, I realized that Copywriting is my true passion. Over the years, I have honed my skills as a creative writer by working on various content formats for B2C and B2B clients.

Rewards & Recognition   :