Rates vary each year and it’s good to save this blog post as we regularly update it. Offshore development rates depend on the location, expertise and project complexity. We will guide you through the average fees and give you essential tips on how to get started with hiring a remote team.
How do we pick up the destinations?
We consider the things that affect the rates: location, team size, experience, tech stack, and duration of the engagement. The closer the country is to the USA or Western Europe the higher the rates are. Some tasks require high expertise and knowledge of specific stacks. You will pay more for senior’s work.
When it comes to selecting a particular partner, you may think about cost-effective solutions. In the chase for low rates, don’t forget about the quality that is more important. It’s good to consider both the price and the quality of the provider you want to hire.
World's Software Outsourcing Rates 2019
This fresh data is valuable and helpful for startups and enterprises from any part of the world. You may contrast the prices, analyze your own quotes, and assess the diversity among global regions. Have a look at the latest information:
Offshore Software Development Rates by Country
It’s hard to identify top outsourcing countries in the world. The relevant information is often biased and turned by different providers to their advantage. The cost is considered to be a clincher in search of offshore developers. We’ve picked up the most popular destinations for you.
Eastern Europe: Rates in Romania, Ukraine, Poland, Belarus
Europe attracts lots of foreign customers looking for cheap pricing. With reference to topsdev.org data, the median hourly programmer’s wage is almost the same. As of 2016, the highest cost was $25 whereas the lowest was $15.
The chart below shows that the highest costs are in Russia and Poland, the cheapest pricing for offshore developments are in Serbia and Macedonia.
European countries are deemed to offer a high quality of services on the global IT market if compared to Asia.
The costs are still competitive though the salaries are constantly growing. Just compare and contrast the hourly rates of senior QA and software engineers in the USA, Ukraine, and Poland. As you see, Poland and Ukraine outsourcing rates are much lower than the American.
We think that the time zone matters as well. 7-12 hours is an average time difference between the USA and Eastern Europe. The difference in time between the USA and India makes 10-14 hours. So, developers from Europe will more likely communicate with an American customer on a daily basis.
Asia Offshore Development Rates: China, India, Japan
The wages of IT specialists in China, for example, are somewhere behind the average income that you can find Eastern Europe. A typical coder makes up to $18,000 per year here. India is one of the top outsourcing countries in the world as 40% of jobs are inquired here thanks to the stingy costs. Developers can make up to $12,000 a year.
Japanese programmers earn around $40,000 while Japan is considered to be a nation of the latest technologies. The desire to get more makes a lot of tech engineers move to the US.
Generally, Asian programmers charge $15-25 on average. It’s quite an affordable rate but the only disadvantages are different culture and time zone that can lead to certain misunderstanding between a company and a developer.
Latin America Nearshore Development Prices: Brazil, Argentina, Chile, Mexico, Costa Rica
Brazil is well-placed as it is located in the nearest neighbor proximity to the USA. It has equal timezone as the North American countries. Brazilians earn about 30-50 dollars hourly. Argentina is easy to reach from North America. The programmers here charge the same money per hour as Brazilians do. Chile is much more cheap for getting ICT related services. The rates vary from 15 to 25 dollars.
Costa Rica offers 25-50 dollars rates. IT specialists demonstrate a good level of written and oral skills in English. In Mexico, developers charge about $35-55.
Africa Offshore Development Rates: Kenya, Morocco, Nigeria, Egypt
African countries are diverse as the prices they ask for offshore software product development. The costs vary from less than $20 and up to $50 per hour. There’s a little number of African developers. Africa is considered to be good for nearshore outsourcing services but not for the offshore ones. Now you have the rates and we’ve prepared some tips for you!
How to Delegate IT Solution Development to Remote Teams?
Offshore software outsourcing is all about hiring an external provider to execute some ICT tasks and perform business operation processes (like angular.js outsourcing).
Offshoring should be differentiated from nearshore. Let’s imagine John from the USA that hires a team of developers from Canada. This is called nearshore outsourcing. And if John hires employees from Ukraine, it will be considered as offshore outsourcing.
The image below shows how on-, off-, and nearshore differ.
There are millions of arguments for and against leveraging the staff other than local employees. It’s important to feel comfortable working with other people, no matter who they are, what country they reside in, and what payments they charge for their services.
What Are The Benefits of Outsourcing Software Development?
Speaking about the pros of employing an external provider, we may start with a major advantage - the cost. Everyone who has ever used sources other than in-house ones knows that it could be a great value for money. The reduction of expenses is obtained mainly due to the distinct difference between the rates and salaries of the staff.
The other thing that makes hiring foreigners attractive is expertise and delivery quality. You buy services just as well or better than similar in your native country. Teams which work on challenging tasks day by day gain great experience. Dedicated groups have all needed software and hardware to complete assignments that are usually related to the up-to-date IT technologies. That is one more plus that adds value to choosing outsourcing services.
Developing IT solutions for any type of business is risky as every project contains uncertain elements related to time, efforts, budgeting, technical issues, etc. By sharing risks with any offshore software development company you are able to get professional risks assessment, prioritizing, and project management. Any custom software company knows how to identify and monitor risks as well as how to deal with ad hoc problems.
Diceus - Top Offshore Software Development Company in Ukraine
Diceus believes that the most successful partnerships are based on openness and strategic collaboration. We have a team of certified developers and we charge moderate rates for this work. What you get is a great value for money for both small MVPs and enterprise projects.
Diceus team doesn’t sell working hours - we charge the price for the whole new product development. This lets us offer you a fixed fee and delivery date - you get a high-quality software product within the deadline.