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.
Here is an overview of price comparisons in hiring software developers in 2023 across the top outsourcing countries in Asia, Europe, Latin America, and Africa.
Destination | Average Hourly Rates |
North America
United States, Canada |
$38- $63 |
Eastern Europe
Ukraine, Poland, Romania, Hungary, Bulgaria |
$20 – $50 |
Western Europe
Germany, Netherlands, Switzerland, Austria, Belgium |
$25 - $60 |
Latin America
Brazil, Mexico, Argentina, Chile, Columbia, Peru |
$30-$50 |
Africa
Morocco, Kenya, Nigeria, Egypt, South Africa |
$20 -$40 |
Asia
India, China, Philippines |
$18- $40 |
Read on to learn about the software developer hourly rates, in different countries.
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:
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:
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
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.
The following table depicts the average hourly wage rate of software developers in various cities in the United States:
Average Hourly Rate In United States of Software Developers | $36-$43 |
Hourly Rate In United States of Mobile App Developer | $35-$60 |
Hourly Rate In United States of Web Developer | $28-$39 |
Hourly Rate In United States of RPA Developer | $38-$47 |
Hourly Rate In the United States For Cloud Computing & Tech Migration | $49-$57 |
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.
Average Hourly Rate In Canada for Software Developers | $36- $52 |
Hourly Rate In Canada for Mobile App Developers | $49-$97 |
Hourly Rate In Canada for Web Developers | $30-$41 |
Hourly Rate In Canada for RPA Developers | $27- $50 |
Hourly Rate In Canada For Cloud Computing & Tech Migration | $30- $46 |
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:
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.
Average Hourly Rate In India for Software Developers | $18- $25 |
Hourly Rate In India for Mobile App Developer | $18- $39 |
Hourly Rate In India for Web Developers | $16- $30 |
Hourly Rate In India for RPA Developer | $20- $40 |
Hourly Rate In India For Cloud Computing & Tech Migration | $18- $35 |
Recommended Read: Reasons To Hire Software Developers From India
Here are why the country is one of the most preferred outsourcing choices:
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.
Average Hourly Rate In Philippines of Software Developers | $4.2- $6.61 |
Hourly Rate In the Philippines of Mobile App Developer | $4- $7 |
Hourly Rate In Philippines of Web Developers | $3- $5 |
Hourly Rate In Philippines of RPA Developer | $3- $6 |
Hourly Rate In Philippines For Cloud Computing & Tech Migration | $3- $7 |
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.
Average Hourly Rate In China for Software Developers | $5- $12 |
Hourly Rate In China for Mobile App Developers | $14- $44 |
Hourly Rate In China for Web Developers | $20- $23 |
Hourly Rate In China for RPA Developers | $23- $54 |
Hourly Rate In China For Cloud Computing & Tech Migration | $23- $30 |
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 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.
Average Hourly Rate In Western Europe for Software Developers | $68-$99 |
Hourly Rate In Western Europe for Mobile App Developers | $40- $60 |
Hourly Rate In Western Europe for Web Developers | $42- $53 |
Hourly Rate In Western Europe for RPA Developers | $30- $75 |
Hourly Rate In Western Europe For Cloud Computing & Tech Migration | $70- $149 |
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 $20-$45. The average salary of software developers ranges between $40k and $70k, and Poland is the most expensive country.
Countries | Average hourly rates |
France | $42 |
Germany | $32 |
The United Kingdom | $28 |
Bulgaria | $32 |
Romania | $35 |
Average Hourly Rate In Eastern Europe for Software Developers | $25-$49 |
Hourly Rate In Eastern Europe for Mobile App Developer | $30- $50 |
Hourly Rate In Eastern Europe for Web Developers | $25- $50 |
Hourly Rate In Eastern Europe for RPA Developer | $30- $75 |
Hourly Rate In Eastern Europe For Cloud Computing & Tech Migration | $36- $96 |
Top Countries: Brazil, Argentina, Colombia, Costa Rica
In recent years Latin America, too, has emerged as a great outsourcing destination. The average hourly rate of software developers in Latin America varies from $25- $50.
Some of the major destinations in Latin America for IT outsourcing are Argentina, Columbia, Mexico, and Brazil.
Average Hourly Rate In Latin America for Software Developers | $23-$50 |
Hourly Rate In Latin America for Mobile App Developers | $27-$39 |
Hourly Rate In Latin America for Web Developers | $33-$51 |
Hourly Rate In Latin America for RPA Developer | $52- $107 |
Hourly Rate In Latin America For Cloud Computing & Tech Migration | $37- $42 |
According to Statista, the revenue of the IT outsourcing market is projected to reach $9.21 billion in 2024 and grow at a CAGR of 12.40% by 2028.
Costs of Outsourcing Development in Latin America
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 in Latin America to outsource software development.
European trends have a strong influence on Argentina’s IT market. Argentina is economically and culturally connected to Europe. It has the most expensive IT development teams in the region. This is because the developers have rich experience working with Western countries.
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 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 |
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.
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.
Major destinations in Africa for IT outsourcing are Egypt, Morocco, Kenya & Nigeria.
Countries | Average hourly rates |
Egypt | $20 |
Kenya | $20 |
Nigeria | $40 |
Morocco | $40 |
Average Hourly Rate In Africa for Software Developers | $23-$50 |
Hourly Rate In Africa for Mobile App Developers | $25-$50 |
Hourly Rate In Africa for Web Developers | $23-$50 |
Hourly Rate In Africa for RPA Developer | $30-$60 |
Hourly Rate In Africa For Cloud Computing & Tech Migration | $23-$50 |
The recent past has taught us how offshore development can bring flexibility and agility in business operations while keeping your software development projects’ cost low. Besides, the increasing gap between available software engineers & software jobs in western countries has made IT offshoring one of the most practical solutions for businesses.
But how does a company hire developers from an offshore destination for their software development projects? Well, there are four options to choose from
This is a great option when you are unable to find the right talent in your geography in your budget & wish to hire a developer for a permanent opening in your organization. You can float the requirement on various job portals or hire HR consultants to assist you with remote hiring of the resources.
Access Global Talent Pool- You can choose to hire software engineers from anywhere in the world to power your IT team.
Fill Talent Gap - Hire a software engineer who is the right fit for your organization in terms of experience, knowledge, and budget with ease.
Brings Diversity - For a global business with a client base across the world, having resources from different geography is a boon as it gives them a better understanding of the cultural nuances and requirements of different markets.
Collaboration with outsourcing companies is the most traditional way of forming an offshore development team. Such companies work with overseas clients and deliver software development services according to the client’s project requirements. If you choose this hiring option, you will get the following benefits:
Hiring a software engineer from an offshore development company is a great way to ramp up your IT operations quickly. A trusted offshore development service provider offers a large pool of certified and experienced software engineers across technologies.
You also enjoy the freedom to hire quality resources for short-term to long-term duration.
Pre-vetted Resources- Offshore development service providers have a large pool of certified and experienced software engineers across technologies to support all your software development needs
Quick Hiring- Since resources are pre-evaluated, the hiring becomes quick, smooth, and hassle-free with an offshore development partner.
Extensive NDAs- A trusted offshore software development company always creates comprehensive documentation & NDAs to ensure code security at all times.
No Additional Cost- With an offshore service provider, you don’t need to worry about the cost of infrastructure and systems for the hired programmers, as it's all part of the deal.
Hiring remote developers at freelance portals seems to be quite an attractive option, and here’s why:
When hiring offshore developers, you may come across multiple hiring model options, leaving you confused as to what is the best way forward. Don’t worry we have you covered.
The hiring model based on pricing is primarily divided into three categories
Read our blog “Choose The Right Model To Hire Developers” to explore the different models of hiring developers.
There are various factors that one must consider while choosing a developer or a team of developers likes, Intelligence, Work Flexibility, communication skills, clean coding, etc.
Read our blog, 6 Expert Tips to Recruit the Best Software Developers [+4 Pro Tips] to build your offshore development team successfully.
Investing in outsourcing for custom software development can be a game-changing decision for businesses. However, finding the right outsourcing partner can be a strategic challenge as it can significantly impact the quality of the project and its costs. Therefore, it's essential to search for an IT outsourcing partner who can deliver your projects with the desired quality, within your estimated budget, and within the pre-defined timelines.
At YTII, we have a team of software development experts who offer transparent communication, access to global talent, quality work, and flexible engagement models to provide you with the best value for your investment. Connect with our team now and get a free consultation.
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
The top destinations for outsourcing are as follows:
In India, the range to hire developers starts from $18 for a junior developer and goes up to $40/hr.
The 5 Best Countries to hire software developers are:
While most software companies will claim that they are the best in the market for delivering software development projects, this is not necessarily true for all companies. Therefore, it is crucial for business owners, entrepreneurs, and managers to perform a thorough due diligence evaluation before choosing a software-developing company for their project.
Below are the 6 tips for choosing the right custom software development company
Today, many US-based companies entrust top tech professionals from Latin America with their IT routine. The main assets include high-quality development services, real-time collaboration, and cultural similarity, which are all beneficial for a business. Among Latin American companies, Brazil is the number one software outsourcing destination, followed by Argentina and Panama.
Top US companies that outsource their operations.