Offshore Software Development Rates by Country in 2023
In this post, we’ll figure out global offshore developer rates by country in 2023, the reasons why they differ from region to region, and help you find a suitable solution for your particular needs.
Being informed about offshore software development rates by country is the best opportunity to find the right specialists at an affordable price. Indeed, when it comes to the cost of IT outsourcing, you should consider various factors that affect it. In such terms, you will make the best decision about you future software development vendor.
Content
- Offshore software development rates by country: a compete overview
- Offshoring development rates: Central and Eastern Europe
- Offshore software development in Latin America in 2023
- Offshore software development in Asia
- Destinations with high offshore development rates
- Conclusion
- FAQ
Offshore software development rates by country: a compete overview
Offshore software development is an outsourcing business model that implies working with an IT vendor from another country with a different time zone. This cooperation includes a great variety of software development services, including back-end, frontend development outsourcing, DevOps, mobile application development, UI/UX design, etc. Such an approach is a suitable solution for those who want to expand their in-house team or get a turn-key project while saving on operational resources. Sounds simple, but how does it actually work, and why are entrepreneurs choosing this development way? Know more about it in our previous article.
Here we offer you to look at a comparative overview of offshore software development rates by country in 2023. It will help you as a client who is looking for a vendor to reduce costs by 40%-70% and get access to tech talents abroad.
Global destinations and their rates
First, let’s take a look at an overall overview of offshore software development costs in different regions:
| The destination with low and middle offshore development rates | |
| Destination | Rates |
| Central and Eastern Europe: Ukraine, Poland, Romania, Hungary, Bulgaria, Czech Republic, Austria, Slovakia | $25-$74 |
| Latin America: Mexico, Brazil, Colombia, Peru, Chile, Argentina | $41-$82 |
| Africa: Morocco, Kenya, Nigeria, Egypt, South Africa | $20-$45 |
| Asia: India, China, Philippines, Pakistan, Nepal, Bangladesh, Vietnam, Indonesia, Malaysia, Philippines | $21-$60 |
| Destinations with high offshore development rates | |
| USA | $72-$150 |
| Australia | $100-$175 |
| Western Europe | $68-$99 |
| Israel | $50-$150 |
Considering the above table sheet, we can assume that countries with the highest living standards and income rates have costly rates for offshore software development. The USA, Australia, Western Europe, and Israel are among them.
The widest pool of tech talents and the true cost-effectiveness can be produced by offshore software development countries with lower income and lower development rates. These destinations include Central and Eastern Europe, Asia, Africa, and Latin America.
Now, let’s dive deeper into offshore software development rates by country and the factors that affect them.
The most recent offshoring development rates in Central and Eastern Europe
Offshore Software Development – Ukraine
Rates – $25-$49
IT hubs – Kyiv, Kharkiv, Lviv, Odessa
Most popular tech stack – Java, Node.js, Python, Ruby
Today, Ukraine offshore development mean one of the best IT outsourcing places. In particular, here there are:
- over 192,000 skilled certified developers;
- competitive rates for the outsourcing IT services (vary from $20 to $49 hourly);
- the constantly increasing number of Ukrainian IT companies in the list of Global Outsourcing 100 from IAOP;
- the developer’s proficient level of English;
- high reputation (the world-famous startups such as Grammarly, Jooble, People.ai, GitLab, PetCube, Depositphotos are created by Ukrainian developers);
- convenient time zone, etc.
In offshore development, Ukraine now occupies a leading position in several segments of the IT market, among which are the Artificial Intelligence/ Machine Learning sector, Cloud, Custom software development, Outsourcing startup development, mobile application development, DevOps, etc.
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Offshore Software Development – Poland
Rates – $25-$99
IT hubs – Warsaw, Lodz, Krakow
Most popular tech stack – C++, Java, SQL, Python
If compared to the average cost of offshore software development in Eastern Europe, the Polish rates are relatively high – around $25-$99 per hour. However, Polish IT experts are proven to be demanded specialists with qualified tech education and globally implemented cases. Besides, Polish talents owe a proficient level of English and solid expertise in the European market.
Offshore Software Development – Czech Republic
Rates – $37-$87
IT hubs – Prague, Olomouc, Brno
Most popular tech stack – Python, SQL, JavaScript, Java
The Czech Republic has over 130,000 software development engineers, the demand for which is annually increasing. Here such world-famous startups as Kiwi, Apify were created. The offshore development rates start from $37 and reach $87 per hour, and that is still pretty affordable for those businesses who want to outsource highly qualified talents at a cost-efficient budget.
Offshore Software Development – Romania
Rates – $25-$63
IT hubs – Bucharest, Timisoara, Iasi
Most popular tech stack – SQL, Java, JavaScript, Python
Romania with over 140,000 engineers is a favorable location for outsourcing offshore development services. The average hourly rate is around $25-$63 and the IT services are characterized by splendid quality and expertise, along with already proven global projects, in particular UiPath, TypingDNA.
Offshore Software Development – Hungary
Rates – $40-$65
IT hubs – Budapest, Debrecen, Miskolc
Most popular tech stack – SQL, Java, JavaScript, Python
Hungary is considered a pretty attractive location for establishing R&D international centers, including Microsoft, Ericsson, Nokia, Siemens. Further, Hungary with an average cost of $40-$65 takes one of the leading positions for outsourcing software development services.
Offshore Software Development – Estonia
Rates – $35-$55
IT hubs – Tallinn, Tartu
Most popular tech stack – JavaScript, Python, SQL
Estonia turns out to be one of the most technologically dynamic regions in Eastern Europe. Such globally known startups as Skype, Bolt, and TransferWise were born due to their IT talents, the number of which is over 20,000 in the country. The average salary of an engineer here is higher than in its neighbors, thus, the offshore development rates vary from $35-$55.
Offshore Software Development – Slovakia
Rates – $25-$49
IT hubs – Bratislava, Kosice
Most popular tech stack – Python, PHP, .Net
Slovakia is well-known for its tech talent pool, which is over 40, 000 engineers. The high level of English, professional tech education, and proven expertise of its IT hubs are prominent reasons why international businesses turn to Slovakia for outsourcing IT talents.
Offshore Software Development – Bulgaria
Rates – $25-$55
IT hubs – Sofia, Burgas, Varna
Most popular tech stack – SQL, JavaScript, Java, PHP
Over 70, 000 specialists are engaged in the IT sector in Bulgaria. A favorable geographic position, fast-scaled infrastructure, and affordable developers’ rates of $25-$55/hour make Bulgaria one of the most popular destinations for offshore development services in Eastern Europe.
Offshore software development in Latin America in 2023
Offshore Software Development – Argentina
Rates – $30-$55
IT hubs – Buenos Aires, Cordoba, and Mendoza
Most popular tech stack – SQL, Java, PHP
Argentina’s tech talent pool exceeds 120,000 engineers, with the average rates of $30-$55 per hour. Thus, the cost of offshore development services and close geographical location make Argentina an ideal outsourcing destination for North American businesses. However, in recent years, developers from Argentina are especially in demand within Western Europe too.
Offshore Software Development – Brazil
Rates – $35-$50
IT hubs – Rio de Janeiro, Curitiba and Londrina
Most popular tech stack – SQL, Java, PHP
Brazil is in the number of the most promising markets for the innovative technology market. In particular, it was included in the top 50 IT nations by Tholons Services Globalization Index in 2019. Besides that, the software development rates by region vary from $35-$50 which is a significant reason for international businesses to outsource Brazil’s IT teams.
Offshore Software Development – Peru
Rates – $35-$55
IT hubs – Lima
Most popular tech stack – Node.js, PHP, ASP.NET
Thanks to Peru’s great talents, the country is currently among the top ten countries with the highest percentage of new startups in the world. Besides, some tech giants including IBM and Saber have their R&D centers here. That is why Peru has a solid reputation among its Latin neighbors, and due to its relatively low rates for offshore software development services is highly popular among clients abroad.
Offshore Software Development – Mexico
Rates – $35-$55
IT hubs – Mexico City, Tijuana, Leon
Most popular tech stack – Python, JavaScript, HTML
Annually, over 100,000 developers graduate from Mexico’s universities. Mexico stays one of the most popular destinations for US companies because of the geographical proximity, close business connections, similar time zone, and affordable hourly rates.
Offshore software development in Africa
North Africa
Rates – $20-$45
IT hubs – Egypt, Morocco
Most popular tech stack – Python, JavaScript, PHP
North Africa has relatively cheap rates for offshore software development ($20-$45/ hour). The reason for this is mostly because of the small number of developers in the country. Thus, if a business considers Egypt or Morocco for outsourcing their software development talents, keep in mind not only low rates but the fact you can sometimes compromise with the working software.
Southern Africa
Rates – $20-$49
IT hubs – Western Cape, Durban, Gauteng
Most popular tech stack – Python, C++, Java
Southern African IT vendors are particularly popular among overseas companies, including eBay, IMB, Vodafone, and Deloitte. The reason for this is not only due to the competitive offshore software development rates ($25-$49) but also the collaborative culture and higher product quality in comparison with other regions of the African continent. Besides, the region is rich in certified experts – over 86,000 engineers graduate per year.
East Africa
Rates – $20-$40
IT hubs – Mombasa, Kisumu, Eldoret
Most popular tech stack – Python, Java
An hourly offshore developer rate of a software engineer in South Africa is around $20-$40 on average. The most popular region for outsourcing IT talents is Kenya, where English is its official language. Such a policy has greatly influenced the rapid interest to the country in terms of offshore software development. Besides geographic proximity to wealthy neighbors such as the UAE and Qatar ensures a steady flow of new clients.
Western Africa
Rates – $40-$50
IT hubs – Lagos
Most popular tech stack – Python, Java
Nigeria is the most prominent region for offshore software development in Western Africa. Nigeria has the largest population of English-speaking specialists in Africa. Besides, the country has the highest number of young people (53 million) aged between 18-35 years. Also, the country has the largest GDP ($448 billion) in Africa.
Offshore software development in Asia
India
Rates – $25-$49
IT hubs – Bangalore, Mumbai, Kolkata
Most popular tech stack – Java, C++, Python
Today, India offers about 280,000 employed engineers and 1,000 software development companies. India is the second country in the world after the United States by the number of software engineers. Due to the state policy that is aimed at the development of offshore programming and the export-oriented hi-tech sector, India is considered an attractive destination for IT outsourcing. Another benefit is the rates of offshore software development, which are not higher than $25-$49/ hour.
China
Rates – $35-$60
IT hubs – Beijing, Shanghai, Shenzhen
Most popular tech stack – Java, Node.js, Python, Ruby
The average cost of a Chinese developer’s work per hour is from $35 to $60. Besides, over 5 million IT professionals are graduated in China every year. However, the huge disadvantage is that of its 1.4 billion population, only 11 million speak English. So, when applying for IT development teams here, make sure they possess a good level of English. Otherwise, you might face difficulty in communication with the team.
Vietnam
Rates – $20-$50
IT hubs – Ho Chi Minh City, Hanoi
Most popular tech stack – Java, Node.js, Python, Ruby
Vietnam’s offshore software development cost varies from $20 to $50 on average. Such rates are explained by inexpensive labor and a low cost of living in the region. Vietnam has another number of features that attract international businesses to apply for its IT development services, among which are the stability of the economic and political environment with no ethnic and religious conflicts. Besides, the government channels the young population into the startup ecosystem, providing tax incentives and supporting businesses.
The Philippines
Rates – $25-$40
IT hubs – Manila
Most popular tech stack – PHP, ASP.NET Core
The Philippines is one of the world’s fastest-growing economies with highly developed infrastructure. In 1995, the government established a special economic zone in the Philippines to encourage new clients to outsource their contact centers here. Now, approximately 1,4 m people work in outsourcing in the Philippines to hundreds of companies from all over the world.
Destinations with high offshore development rates
The United States of America
Rates – $70-$172
IT hubs – California, New York, Texas
Most popular tech stack – PHP, Java, ++C
In the United States, the cost of living is much higher than in other countries. That influences the developers’ rates dramatically. The location also plays a prominent role when talking about the difference in the salaries of the engineers. To illustrate, in Washington the average cost of the developer’s work is around $75 and in Texas, it will be $100.
Israel
Rates – $50-$150
IT hubs – Tel Aviv, Haifa, Ashdod
Most popular tech stack – Java, Python
Israel is characterized by a limited talent pool and a stable economy. As a result, the offshore software development cost exceeds $50-$150 on average. A lot of skilled developers already work in the R&D centers for Google, Microsoft, etc. Besides, the country is the top startup producer. Due to the lack of experienced developers, in-house businesses here tend to outsource tech talents from other countries.
Australia
Rates – $100-$175
IT hubs – Sydney, Melbourne, and Perth
Most popular tech stack – Java, Python
Australian vendors charge the highest rates for software development. The native language is English, which is the prominent advantage of outsourcing Australian IT labor power. However, the huge time zone difference and high rates are the main disadvantages of Australia that should be taken into account while making the right choice for your project. If these factors are significant for you, it’s better to observe other English-speaking countries.
Western Europe
Rates – $68-$99
IT hubs – the United Kingdom, Spain, Germany
Most popular tech stack – Python, React Native, Java
This outsourcing region has fast-scaled industries of the countries, proficient level of English, and high standards of living. Besides, local software development companies tend to open R&D centers in countries with lower rates, for instance, in India, Poland, and Ukraine.
Wrapping up, offshore software development rates by country are different based on the geographical position, economy of the region, level of English, software development expertise, and so on. Making the right decisions about what location to choose for your business can be a complicated task. However, Eastern European and African countries are at the top of the most comfortable outsourcing destinations in 2023. Choose the most suitable from them and you won’t lose the best opportunity to scale your business.
Benefits of offshore software development
Save your costs. By outsourcing software development, there is no need for you to support an entire engineering department. That is very suitable, especially if you only need the team for one project. Plus, as we found out earlier in the article, offshore software development rates by country can significantly differ. Thus, you can select the destination with a lower cost than in your home region.
Reduced time-to-market. When turning to offshore software development services, its team fully concentrates on your project. You get the deliverables in a fast and efficient manner. That is, the time it takes to build and deploy a product or software would be cost-effective, so you can reach your target customers before your competitors do.
Access to the best talents. Offshore development companies have efficient recruitment and onboarding processes to get high qualified developers specialized in a varied range of IT services (AI/ML, custom software development, mobile app development, cloud ops, DevOps, UI/UX design, etc.). In this case, you can be sure that you are getting all the best, such as the best programming language for AI and developers who own it perfectly.
Focus on core business processes. While the outsourcing company is leading the project, you can spend more time working on your business strategy. Today, it is a common solution to apply software solutions to offshore companies that enable enterprises to optimize and improve their own inner processes.
Conclusion
Innovation is the driving force for many businesses, and offshore software development can be that very approach you need for your company to have the tools and technology through your project quickly and in a cost-effective manner. Whether it’s software or mobile app development (learn more in “PWA and Native Apps in 2021: Detailed Comparison”), AI/ML integration, support and maintenance services, etc., you can get this expertise and talents from a leading offshore company.
By being aware of offshore software development rates by country, to make the suitable solution for your future vendor would be easier and more considerable. At FreySoft, we offer offshore software development services to clients all over the world. Our head office is located in Kyiv, Ukraine, a well-known IT outsourcing center in Eastern Europe. Due to our +11 years of experience on the international market, we’ve accumulated stably working software products. To illustrate, read also in “Microservices: Choosing the Right Architecture For Your Project” In particular, our services comprise delivery of:
- Adaptable and flexible engagement models
Whether you need a single specialist or to outsource an entire project, we can deliver the exact digital solution adapted to your dynamic requirements. 85% of our clients are upon the outstaffing model of cooperation, within which we offer:
- Dedicated Team
- Team Extension
- End-to-end Project Solution
- High-quality service at lesser costs
Because of the difference in wages in Ukraine and other western countries, you get the job done at a superior level of delivery and at relatively fewer amounts of costs.
- A wide range of developers of various profiles
Our team includes Front-end, Back-end, and full-stack developers, DevOps specialists, UX / UI designers, quality assurance testers, support, and maintenance engineers, software and business analysts, project managers.
Contact us today to get professional consultation and bring your project to the next level.
If you are looking for an additional offshore software developers, explore this directory from our partners at Design Rush.
FAQ
Choosing the right vendor among so many providers all over the world can be a time-consuming and exhausting task. However, first, you need to consider the region of the vendor, the time difference with its country, the culture so that it would be comfortable for maintaining communication. Also, take into account the size of your IT provider, find out if its team has the experts/ tech capabilities you need for your project, what domains the company works in, etc. No less important is exploring the website, social media, and blog of the vendor (essential information about internal processes, lifestyle, culture); English level of developers and what engagement models the vendor offers. To know more about how to choose the best-matching software development vendor, you can read our recent article.
Offshore software development rates by country are different. As we found out in the above article, based on the geographical position, economy of the region, level of English etc. the vendor’s rates are formed. Countries with fast-scaled industries have a higher cost for software development. Here we include Australia, the USA, Israel, and countries of Western Europe. On the contrary, the regions with a lower standard of living, such as India, Kenya etc. are distinguished with more competitive prices. However, it doesn’t affect the quality and expertise of software that is the same or can be even better.
Many factors affect the cost of software development, including the location of the IT vendor, the standard of living and the economy in that country. Moreover, the rates may vary depending on the expertise and experience of the needed engineer. The hourly rate of Junior, Middle, and Senior specialists can differ from $10 to $50. Not to mention, the platforms, required features, time-taken, complexity, etc. – all that influence the overall cost of the offshore development cost.
