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How Much Does An Offshore Software Developer Cost?
A meticulously crafted guide on offshore software developer prices worldwide, along with tips to lessen the same!
Knowing offshore software developer costs beforehand ensures a smooth commencement of your project. It lets you ascertain the overall software development cost upfront. Fortunately, this article, embedded with meticulously crafted information on the cost of hiring offshore developers, has got your back. Let’s explore!
Gone are the days when constantly changing tech trends and a lack of developers could let your predetermined plans go haywire. Now, neither tech evolution nor the limited count of developers in your surrounding can limit your project. Yes, you’ve heard that right! Now, you can hire offshore developers, irrespective of location or region, to get your software created with ease. Getting ape to know the price? Flip through this guide right from beginning to end, and you’ll be backed with complete know-how on offshore software developer costs worldwide.
Whether it’s to hire offshore software developers or complete offshore software development, businesses rely on Codzgarage to get things right. Schedule a free consultation with one of our consummate techies!
Let’s get to grips with it!
Key Determines of Offshore Software Developer Cost
To ascertain the cost of hiring offshore software developers is the jumping-off point associated with your project. However, it matters to your project to a large extent; it depends upon a variety of factors and can vary, too. But before we go further and explore the rates, let’s assess the key determiners of offshore software developer cost. Mentioned below are some of them, if we name a few!
Developer’s Experience And Expertise
Experience and expertise matter wherever you go, and the same applies to offshore software developers as well. The higher experience and expertise a developer has, the more he/she will be likely to charge for their services. For instance, a junior developer can’t make as much money as a senior one having 5+ years of experience and a next-level of expertise can. Similarly, the cost will also vary depending on the skills. For example, the cost of hiring fullstack developers will be much higher than hiring front-end and back-end developers separately.
Programming Language
Your chosen programming language will be another key differentiator when hiring offshore software developers. There are a variety of programming languages out there in the tech arena. Some of them are popular and widely accepted, having a wider community, whereas others may be still developing, needing expertise for appropriate execution. It, thereby, can create an elephantine gap in the developer’s cost, becoming a considerable price differentiator of your project.
The Complexity of Project
Up next, the complexities involved with your project can immensely influence the cost of hiring offshore software developers. The tech stack you employ, the number of features you need to embed, the timeline, and the like can make your project complex, elevating the offshore software developer cost. Besides, building standard applications is cheaper than building custom software.
Salary Range of Developers
Every country has a certain average and median salary, which can alter the salary range of developers in a specific country. The offshore software development in a country may be different from others. Furthermore, you should gauge the price, factoring in the value difference from country to country.
Taxation System of a Company
The tax legislation tends to be different in every country. Some countries in the world may be lenient towards the IT industry, whereas others may impose gargantuan taxes. Therefore, the tax imposition in every country is more likely to influence the offshore software development cost.
Demand and Supply Gap
Apart from all the above, the gap in demand and supply also influences the cost of hiring offshore developers up to a large extent. You may find offshore developers at cheaper rates in a country where there’s an abundance of developers in a specific technology than that dealing with a lack of the same.
Business Model
Moreover, your chosen business model will influence the price you hire offshore developers for. Below mentioned are some of the popular business models which you should take a look at.
- Fixed Price Model— In this model, you pay a fixed amount for the entire project. The fixed price model would be a right fit for those having predefined project requirements. Although it’s fixed, for any change, you would be liable to pay additional charges.
- Time And Material Model— In the time and material model, you pay for only the resources you use or the actual hours developers work on. Choosing the time and material model will be the right choice if you have a project with a flexible scope. With this model, it’s difficult to determine the exact cost of offshore development.
- Dedicated Team Model— Hire a dedicated offshore development team model if you have a long-term project. It can provide you with better cost control and flexibility. It’s good; however, you need the next level of communication and management efforts from your side.
The Average Offshore Software Development/Developer Rates/Cost Worldwide
Before we dig deeper, let’s get started with the growing software development marketplace across the world. You may or may not know that the number of software developers worldwide in 2018 was just 23 million. It’s speculated that it’ll grow up to 28.7 million by the end of the year 2027.
Furthermore, the size of the application development market was valued at $168.71 Billion in 2021, which is anticipated to reach $1039.89 Billion by the year 2030. This growth will be at a CAGR of 25.54 % between 2023 to 2030.
The software development industry is proliferating; hence, it’s obvious that the price will get higher and higher. Now, let’s move towards our key discussion point and throw some light on the offshore software developer cost worldwide.
How Much Does Offshore Software Developer Cost In Different Countries?
When it comes to the cost of hiring offshore software developers, it can differ depending on a variety of factors. However, the factors are various; the country you hire the developer from will also cause you to differentiate the cost. Have a sneak peek at the table below, and continue navigating to the bottom to get a complete answer!
| Sr. No. | Region | Average Hourly Cost |
|---|---|---|
| 1. | Western Europe | $20 to $35 |
| 2. | Eastern Europe | $13 to $18 |
| 3. | North America | $41 to $71 |
| 4. | Latin America | $4 to $20 |
| 5. | Ukraine | $11 to $16 |
| 6. | India | $5 to $10 |
Software Developer Hourly Rate In the US
The average salary of software developers in the USA is $107,308 per year. In contrast, the average per-hour cost of software developers in the USA is $51.59. For beginner-level positions, the price will begin from $85,011 per year, while for experienced developers, it may go up to $148,251 per year.
Bear in mind that around 78% of the salary is the net salary, while the rest 22% will be for taxes and other benefits.
| Sr. No. | Region | Cost of Offshore Developers |
|---|---|---|
| 1. | New York | $46.94 |
| 2. | Chicago | $43.91 |
| 3. | Los Angeles | $44.43 |
| 4. | California | $62.28 |
| 5. | Washington | $57.66 |
| 6. | San Francisco | $49.57 |
| 7. | North Carolina | $55.96 |
| 8. | Colorado | $55.82 |
| 9. | Boston | $46.54 |
| 10. | Seattle | $45.50 |
| 11. | Nevada | $55.05 |
| 12. | Arizona | $53.32 |
| 13. | Texas | $52.89 |
| 14. | New Jersey | $52.88 |
| 15. | Pennsylvania | $52.88 |
Software Developer Cost In Latin America
When it comes to hiring offshore software developers, Latin America could be an ideal region. The average offshore software developer cost here may be anywhere between $5 to $20 per hour. It should be a reasonable price for competent talent for software development. Have a look at the table below to see the hourly rates in the very region.
| Sr. No. | Region | Price Per Hour |
|---|---|---|
| 1. | Argentina | $10.75 |
| 2. | Brazil | $8.35 |
| 3. | Colombia | $10.59 |
| 4. | Peru | $8.95 |
| 5. | Mexico | $14.21 |
| 6. | Chile | $18.85 |
Offshore Software Developer Hourly Rates In Africa
Africa is one of the regions where software development is getting more popular day in and day out. Previously, Africa wasn’t on the list when it came to the highest number of software developers; however, now the scenario is no longer the same but has changed considerably. For organizations on the lookout for hiring offshore developers, Africa could be an ideal location. Take a sneak peek at the table below to know the hourly rates of offshore software developers!
| Sr. No. | Region | Hourly Rates of Developers |
|---|---|---|
| 1. | Zimbabwe | $7.15 |
| 2. | South Africa | $19.85 |
| 3. | Nigeria | $8.96 |
| 4. | Kenya | $15.94 |
| 5. | Morocco | $9.52 |
Offshore Software Developer Cost In Western Europe
When it comes to hiring offshore software developers, Western Europe is one of the most expensive yet, best places. Just because of a developer’s dexterity, taxation, and high cost of living, hiring developers from Western Europe can be as expensive as that from the United States. The average salary of developers here is $60k, and the software development cost per hour can range anywhere between $20 to $35.
The primary offshore locations of Western Europe are Germany, France, Switzerland, the Netherlands, and the United Kingdom. Have a look at the offshore software developer cost per hour in the above-mentioned countries!
| Sr. No. | Region | Developer Cost Per Hour |
|---|---|---|
| 1. | The United Kingdom | $23.18 – $30.12 |
| 2. | Germany | $27.44 – $35.55 |
| 3. | France | $27.84 – $32.23 |
| 4. | The Netherlands | $24.62 – $26.26 |
| 5. | Denmark | $20.91 – $31.17 |
Offshore Software Development Hourly Rates in Eastern Europe
When it comes to technical expertise, developers from Eastern Europe secure their own place in competitions. The region is popular for its expertise, excellence, and assistance for startup culture. The developers from Eastern Europe excel at the technologies, for instance, JavaScript, Java, .NET, Python, C/C++, and the like. Hence, if you’re someone looking for reasonable offshore software development rates/costs in above mentioned tech stacks, you’re more likely to prefer this location.
The hourly rates for developers in Eastern Europe can range from $13 to $19 per hour, whereas the annual salary for developers would range anywhere between $14k to $25k. Let’s have a look at the table below for a detailed look at the price!
| Sr. No. | Region | Developer Cost Per Hour |
|---|---|---|
| 1. | Romania | $14.29 |
| 2. | Bulgaria | $14.86 |
| 3. | Estonia | $13.62 |
| 4. | Slovakia | $18.03 |
| 5. | Latvia | $13.85 |
| 6. | Croatia | $13.67 |
Offshore Software Developer Rates In Australia & New Zealand
Australia is the next country that has seen a proliferation in offshore software development but can’t surpass the popularity of Europe, the US, and Asia. One of the reasons for this is the Australian-specific time zone for US and European countries.
In spite of the above-mentioned facts, the software development market in Australia has experienced significant growth of 3.1%, says IBIS World research.
The average salary of developers in Australia is around $112,500 per year, while the average per-hour cost is around $57.69. It starts at $95,000 per year for the intermediate level; on the other hand, if you want to get engaged with an experienced developer, it would cost you up to $143,440 per year.
| Sr. No. | Region | Offshore Developer Hourly Rates |
|---|---|---|
| 1. | New Zealand | $54 |
| 2. | Australia | $57.59 |
Offshore Software Developer Cost Per Hour In Asia
Asia, with its two large software development markets (India and China), is consistently growing to set new examples. The software development industry in China is anticipated to experience significant growth between 2023 to 2028. The overall software development revenue, alone in China, is speculated to see a growth of 6.7%, reaching $1.3 trillion, in the next five years (2023 to 2028).
| Sr. No. | Region | Developers Per Hour |
|---|---|---|
| 1. | India | $5.32 |
| 2. | China | $24.76 |
| 3. | Kazakhstan | $8.35 |
| 4. | Uzbekistan | $6.5 |
| 5. | Sri Lanka | $4.61 |
| 6. | Nepal | $2.14 |
How to Mitigate Offshore Software Development Rates/Cost?
Do you think if you expect quality services but don’t have the stomach for high cost, you’re crying for the moon? If yes, then you’re not on the right track. However, the lower price may sometimes preclude the feasibility of quality solutions, but it doesn’t make sense every time.
Cost shouldn’t be the determination criterion for the cost of offshore software developers. You shouldn’t hire someone either for the highest cost or for the lowest cost, but gauge multiple aspects and then ascertain what’s right for your project. Let’s get started to Analyze the tips to lessen the offshore software developer cost!
Gauge Your Project Requirements
Don’t forget to conduct a proper assessment of your project requirements beforehand. It’s because you keep yourself from wandering while hiring developers. At times, there’s a possibility that you need just a few freelancers to bridge the gap between your requirements and solutions, or you need an extensive development team. So, determining the requirement will end you up having a crystal-clear direction toward your needs, resulting in a reduced expense for your project.
Choose the Right Offshore Software Development Company
Next up, try to find developers with the competence to meet your needs. In some countries, you may find developers with expertise at a cheaper cost compared to others with less experience and expertise. Hence, explore a multitude of them, gauge them as per your project requirements and expectations, and then hire one which is likely to extinguish what you need. It’ll assist you in mitigating the overall expense of your project.
Assess and Employ the Right Hiring Model
Except for all the above, be wise while you choose the software development model. The model you choose can immensely affect the offshore developer cost. For instance, if you employ an in-house team, the cost may go higher, whereas if you go with an outsourcing model, you can keep yourself from spending a small fortune by freeing yourself from hiring and retaining employees.
Final Thoughts:
That’s all about offshore software developer costs. You may have found this article embedding comprehensive information about the very topic. It contains a complete take on the key cost determiners, the price in different regions, as well as how to cut down the cost of hiring developers. Now that you’ve been through it, you’re more likely to find it easy to hire dedicated developers overseas and get your project done at an ample cost.
However, it shouldn’t; if you still have some questions unanswered, consider skimming through the FAQs below!
FAQs
Offshore development involves the task of delegating your entire software development task to a company located at a distant location from your current location.
More than 50% of companies across the world opt to hire offshore developers— as it assists them in lessening the cost of software development. When it comes to benefits, the cost saving is likely to reach up to 35% to 70% with offshore developers depending on the region you hire developers from.
However, there are companies that still stick to the waterfall methodology; the majority of offshore developers employ Agile methodologies. We advise you to choose a developer that makes use of Agile methodologies–as it ensures a complete and high-quality product at a reduced time and expense.
First off, conduct a complete analysis of your project requirement, then head to find a developer with competencies to help you get your project developed timelessly at a reduced cost. Once you find that, show your project details, ask for a quote, and then sign the contract, and you’ll be good to go.
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