Software Developer Hourly Rate Comparison Across the Globe

Offshoring software development can be an excellent choice for businesses looking to obtain high-quality software development services while reducing costs. However, finding the right offshoring partner with the desired cost-effectiveness can be challenging. 

But do you know that location plays a critical role in deciding hourly rates and can significantly affect them?

Well, yes. Numerous factors affect the cost of offshoring services, and location is one critical factor. In this blog, we will provide you with a breakdown of the global offshore software developer hourly rates by country in 2024, which can help you determine the most viable location for your business.

Read on to know everything about it and make a strategic move for your business today.

How Much Does It Cost to Hire a Software Developer?

Here is an overview of price comparisons in hiring software developers in 2024 across the top outsourcing countries in Asia, Europe, Latin America, and Africa.

Read on to learn about the software developer hourly rates, in different countries.

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 is increasing at a CAGR of 5.48%. According to Mondor Intelligence research, the current market size is USD 617.69 billion and is expected to grow to USD 806.53 billion by 2029.

• According to Global Market Estimates, the global software development outsourcing market is projected to grow at a CAGR of 11.5% from 2023 to 2028.

• Based on the end industry use, the Global Software Development Outsourcing market is segmented into BFSI, which is expected to be the largest segment during the forecast period 2023 to 2028. 

• The market is fragmented with several players, and the impact is neutral.

• 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:

 

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. 

Python, React Native, ReactJS, NodeJS, Java, and PHP are among the technologies witnessing a whopping increase in rates. 

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

Software Development Hourly Rate In North America

The highest software developer hourly rates are 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 expensive, there are numerous benefits, such as fewer language barriers and reduced miscommunications. 

Software Developer Hourly Rate In the United States

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

Software Developer Hourly Rate In Canada

Like the USA, Canada, too, has a mature IT market and resource pricing. The average software developer's hourly rate in Canada is $36-$52.

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.

India, the Philippines, and China are the three major countries offering custom software engineering services.

The Asia-Pacific region is expected to have the largest market share by 2031. Cost factors and a skilled workforce have driven the market in this area. India was the largest contributor to the market in 2023 compared to other countries. Highly skilled and cost-effective IT professionals are abundant in APAC countries such as India, China, and the Philippines.

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

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.

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.

 

Recommended Read: Reasons To Hire Software Developers From India

Here are why the country is one of the most preferred outsourcing choices:

• • According to Deloitte's survey 2023, India, Poland, and Mexico are the top three locations with the largest shared services centers, followed by the USA.

  

• There are 100 million English-speaking people worldwide, 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 join 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.

Software Development Hourly Rate In the Philippines

The Philippines is another country with the fastest-growing IT industry. With more than 200 offshore software companies and 95000 technical positions. According to the data by Teleport & Best jobs, Software developer hourly rates, the salary in the Philippines for junior software engineers range from $3.5-$7 per hour.

Though the Philippines offer economical pricing, working there may create challenges like - a lack of IT industry maturity, Lack of Infrastructure,  Natural Disasters, etc.

Software Developer Hourly Rate In China

Among other Asian countries, China is considered one of the top destinations for hiring mobile app developers or web developers. 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.

Software Developer Hourly Rate in Europe

The hourly rate of developers in Europe varies from country to country. For example, Ukrainian developers charge significantly less than software developers in Poland. But on average, European junior developers cost between $25 and $50/hour.

Europe can be divided into two geographies, ‘Western’ & ‘Eastern’ Europe, to hire dedicated offshore developers.

Western Europe

Western Europe is one of the most expensive regions for software development globally. Due to the high costs of living, taxation systems, and expert developers, the average hourly wage rate of a software engineer is also high. 

The average hourly rate in Western Europe is between $25-$65 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 pro