Globalization carries a lot of benefits, and IT companies use them for their advancement. It is a lot cheaper to outsource and you can have access to a much wider talent pool if you are looking worldwide.
In 2019, the offshore software development market reached almost $100 billion, and the trend has grown since, considering the rise of remote work. Almost 60% of IT companies outsource their software development at least partly. Around 70% of them do so to save money.
The trend is likely to just grow, all the benefits considered. Do you want to enhance your project with outsourced professionals? Let’s start by choosing a region.
We will guide you through offshore developer rates in countries and regions in 2022, lay out criteria for offshore developer rate per hour, and give you some tips on how to save even more while going offshore.
You can also go straight ahead and turn to Uvik. We will find you a skillful team of experts to join your existing one in no time!
Here’s the table illustrating average outsourcing rates by region as well as top countries in that region that have top-performing software development vendors:
How Did We Choose The Best Countries for Outsourcing Development?
We will give the rates of the 7 best countries to explore if you want to go for outsourcing development. The ranking is based on such criteria as popularity, affordability, talent pool, and expertise of developers.
All the countries mentioned below are popular destinations for offshore development, meaning they already have more or less established outsourcing markets and processes. You will have no problem finding reliable outsourcing companies and information on legal and other proceedings.
Offshore Software Development Hourly Rates by Country
As you know, the offshore software development cost is determined by the hourly rates of developers. Based on our extensive experience in software outsourcing and profound research conducted, we’ve defined the average developer’s rates by country for professionals of different proficiency levels. Make sure to review this information in detail in order to choose the outsourcing country that would offer the best price-quality ratio for your project.
Well, let’s look at the software development rates by country.
Ukrainian Developer Hourly Rates
On average, a median Ukrainian developer hourly rate is $25–$40.
- Junior Software Developer Hourly Rate: $19–$25
- Middle Software Developer Hourly Rate: $26–$38
- Senior Software Developer Hourly Rate: $39–$60
Ukraine offers a great talent pool with vast expertise and high-quality delivery. It is one of the best options in terms of cost/quality ratio. Software developers in Ukraine charge by per hour, in fact, as in the rest of Europe and around the world.
Polish Developer Hourly Rates
On average, a median Polish developer hourly rate is $37-50.
- Junior Software Developer Hourly Rate: $20-$27
- Middle Software Developer Hourly Rate: $35-$50
- Senior Software Developer Hourly Rate: $65+
Poland is the most expensive country in Eastern Europe in terms of software development outsourcing since it is also one of the best destinations in the world. Poland has a huge talent pool, with every 100th citizen being a software developer and a big support system for the IT industry.
Indian Developer Hourly Rates
On average, a median Indian developer hourly rate is $19–$40.
- Junior Software Developer Hourly Rate: $15-$20
- Middle Software Developer Hourly Rate: $25-$40
- Senior Software Developer Hourly Rate: $50+
India has become an obvious destination, for big corporations in particular. The country hosts almost 6 million software developers. Indians are known for their attention to detail and ability to find brilliant, resource-saving solutions.
However, it is important to note that the quality of developers’ skills varies a lot. It is not the best idea to look for the cheapest options because you are likely to get your code fast but it will be awful.
Chinese Developer Hourly Rates
The average offshore software development rates in China reaches $19–$38.
- Junior Software Developer Hourly Rate: $12-$15
- Middle Software Developer Hourly Rate: $20-$35
- Senior Software Developer Hourly Rate: $40+
China is a leading destination in the world, having the best developers according to Hackerrank. There is huge competition in China among the developers so the standards are pretty high. However, you can still land a bad job if you go for cheaper companies.
Argentinian Developer Hourly Rates
Offshore rates for software development in Argentina are $35 – $50.
- Junior Software Developer Hourly Rate: $13-$18
- Middle Software Developer Hourly Rate: $20-$35
- Senior Software Developer Hourly Rate: $42-$50
The Argentinian IT market has been steadily growing for a while now. You can find good developers and if you are from the US, you will enjoy not a big time zone difference. However, their economy is struggling still and the laws about foreign businesses are not very welcoming.
Brazilian Developer Hourly Rates
On average, a Brazilian developer hourly rate is $25 – $50.
- Junior Software Developer Hourly Rate: $17-$23
- Middle Software Developer Hourly Rate: $25-$35
- Senior Software Developer Hourly Rate: $40-$60
Brazil is the largest IT market in Latin America. It grows rapidly, doubling its size within a span of the year. The cost for offshore developers are quite low as well, with the skill level being medium at least. The only disadvantage you might discover is the tax system is too difficult so you will have to look for a third-party company to manage it.
South African Developer Hourly Rates
The average rates of offshore developers in South Africa are $25–$45.
- Junior Software Developer Hourly Rate: $21-$26
- Middle Software Developer Hourly Rate: $25-$35
- Senior Software Developer Hourly Rate: $40-$55
South Africa is the best outsourcing destination in Africa. It has skilled developers and the majority of citizens have a very strong command of English. The government supports the industry as well. However, it does have energy shortages so it is better to keep that in mind before choosing the destination.
What Affects Offshore Developer Rates?
Offshore development rates by country are just the average though. They are useful only for offshore software development rates comparison in different countries and regions. Otherwise, the rates can vary greatly and may sometimes exceed your expectations. Why is that so? Let’s take a look.
Some technologies need more time to learn and get good at than others. They may also be more complicated in work or require the knowledge of other technologies. For instance, you can grasp HTML in no time but you will need some extensive training in C++.
Some technologies are less popular too which creates a unique and, therefore, more expensive expertise.
Team size and duration
You have different options: hiring offshore developers as a small team and having a broad deadline or hiring a small or big team for an urgent deadline. The second option will be the most expensive of them all because you will have to pay for extra hours and weekend time.
It depends on the architecture type (monolithic or microservices), the feature set, the amount of industry-specific problems, and the broadness of the technology stack. The more complex projects will require the involvement of numerous senior engineers and more testing.
Software house’s size & reputation
Big, popular, and trustworthy brands cost more, and it is the same for vendors in outsourcing software development. If you are going for an established company with many good reviews and thorough quality checks, you will inevitably run into more expensive outsourcing rates.
There are four major cooperation models in outsourcing: fixed price, hybrid, time and material, and dedicated team. The last two are the most expensive in general. However, if you choose wrongly and, for example, take a badly-planned fixed-price project, you may end up spending even more.
Offshore Software Development Rates by Region
Offshore Software Development Hourly Rates in Eastern Europe
The average software developer hourly rate in Eastern Europe is $37. It can run as low as $19 for a junior developer’s rate in Croatia or as high as $60+ for a senior in Poland. The top 3 countries in Eastern Europe are Poland, Hungary, and Ukraine.
The region is experiencing rapid growth in the IT market, with thousands of students joining IT majors and governments encouraging and supporting the industry. The region combines great professionals and relatively low rates. There is also not such a big cultural and time zone difference if you are from Western Europe.
Offshore Software Development Hourly Rates in Western Europe
The average hourly rate in Western Europe is $66. The cheapest countries are Sweden ($52) and France ($54). The United Kingdom, Germany, and the Netherlands are among the top-performing ones.
There are many reasons for higher prices in that region. Firstly, it is the living costs in these countries which call for higher rates and salaries. Secondly, it is the quality of education. However, it does not mean that you can’t find the same talented developers elsewhere.
Offshore Software Development Hourly Rates in Asian Countries
The average in the region is $28 and it is pretty stable across all countries. The most popular destinations are China and India, they have been dominating the outsourcing market for quite a while now.
Their popularity does decline at the moment though. Europe is more likely to work with Eastern Europe and the US chooses developers from Latin America. These top-performing regions have a big time difference from Asia so they turned to a pretty nice alternative nearby. However, the region is still a chosen destination for many, for its low costs in particular.
Offshore Software Development Hourly Rates in Latin America
The region’s average amounts to $50. However, the rates greatly vary. For example, the average in Bolivia is $35 while it is $61 for Mexico and Uruguay. Argentina, Brazil, and Chile are among the best destinations in the region as well.
It is one of the most expensive regions, after North America and Western Europe. However, it is quite popular due to the little time difference between Latin and North America.
Offshore Software Development Hourly Rates in Africa
The region’s average totals $31 but it is extremely diverse. You can find developers for as cheap as $20 per hour in Kenya or Morocco or as much as $40 in South Africa.
The IT industry is only emerging in the region. It grows rapidly but it is not as established as in other countries yet. It is likely to show some interesting progress in the future though.
Tips to Save Budget in Offshore Software Development
Offshore development pricing are pretty low until they are not. There are numerous things that can go wrong and in the worst-case scenario, you may have to redo everything from scratch. Every kind of development has a risk to it.
Here are some tips to save your budget while opting for outsourcing to other countries.
Choose the right vendor
A well-chosen vendor is a lifesaver for your offshore software development project. A good company can help you navigate legal systems, find top-notch developers that they have thoroughly pre-selected and worked with, choose the best collaboration option, and plan the project. They are also safe in terms of intellectual rights and high-quality delivery. Good project management is quite a bonus as well.
How do you choose a good one? Research is an important part of it. Find out the price branch within the country and strive for a middle ground. As soon as you narrow down your choice, go for established companies that were on the market long enough.
Do not hesitate to talk to their previous clients, their team, and their employees. The best way to find the right vendor is to use your network though.
Understand your cooperation options
We have mentioned that the cooperation model can either break it or make it. There is no best choice but there are best-fitting options for your project.
Fixed price is mostly used for small projects that last no more than 6 months. It needs a lot of planning but it is pretty cheap.
The time and material model is for dynamic projects which need a lot of flexibility. You need to manage a lot and deadlines can stretch out though.
The dedicated team is suited for big complex projects and it works great if you also have a continuous development plan. It is not cheap but it will work for such projects, the other two will not.
However, there are other options like hybrid or milestone-driven options. It is important to explore different systems and find out what works for you.
Carefully analyze the contract
Before starting any cooperation, it is important to understand every detail: legal, security, finance, communication, etc. You have to specify it in the contract, as well as watch out for additional payments for edits and deadline-setting.
Communicate with an outsourced team
In offshore development, it is extremely important to be involved and watch over the project. The earlier you spot some mistakes or have an edit to male, the less costly it will turn out for you. Without proper communication, you may also not notice that no one is keeping up with the deadlines, that there is something fishy about the company, or you may not notice expenses you did not plan.
It is important to contact both the project manager and teams, even though the last ones do not require as frequent meetings as PMs do.
Why is Ukraine the Best Offshore Development Country?
Ukraine has recently become a leading destination for offshore development. Even such giants as Skype, Bosch, Apple, Microsoft, and others have chosen the country for outsourcing. Around 20% of Fortune 500 companies have remote teams in Ukraine.
Why is that so? Well, Ukraine has a lot of benefits to offer. Let’s discover some of the major ones.
Great talent pool
Ukraine ranks 11th in the quality of developers around the world and it is in the top 5 in such fields as mathematics, security, and distributed systems. In 2020, there were 200,000 Ukrainian developers which is the third-largest number in Easter Europe.
It is the education system that has 20,000+ graduates in Computer Science, as well as a vast network of high-quality private IT schools and courses.
The companies also invest in raising talents. Businesses co-found courses with universities for a practice-driven approach, as well as offering internal schools and courses to their workers. It helps to enhance continuous growth and product-oriented experience.
Not big time and cultural difference
If you are from Western Europe, you will have no problem working with Ukrainian development teams. The time difference is only one or two hours and the communication style is pretty much the same.
Culture is an important topic to consider if you want to work on the project rather than on adjusting your communication to fit into each other’s perspectives.
The absence of time difference will allow you to have regular meetings and make the editions as soon as you may need, as well as control whether people are working when they are supposed to.
Variety of skills
The number of Ukrainian developers is not the only impressive thing about the country’s talent pool. Their skills are also extremely diverse.
Ukrainian developers also actively work on web and mobile development, as well as deliver DataDev and DevOps. Numerous developers have more than 10 years of experience too!
The IT industry in Ukraine continues to grow but there are also established companies and processes in the country. It means that you will have no problem finding a vendor or figuring out how to start operating in Ukraine. There are numerous guides and blog posts with guidelines and experiences of other companies.
How Can UVIK Helps You With Offshore Software Development
UVIK has been working with staff augmentation for more than 7 years now. We help companies to find their perfect development teams in Ukraine, paying great attention to both the hard and soft skills of the Python and React developers.
Our main focus is on meeting our client’s needs. We are ready to travel offline or communicate online through video calls and messaging. UVIK team pays great attention to our client’s requirements or helps them shape them to match them with perfect candidates in no time.
Offshore development is worth considering for the sake of saving the budget already. If you have an exciting idea but think that you are lacking funding, outsourcing makes it much easier to implement IT projects with lower budgets.
You can choose time difference, culture fit, and rates, considering how many options are open nowadays.
Do you want to learn more about offshore development and get more personalized answers to your questions? The UVIK team is here to help you out – it takes one email to enter the world of offshore development.