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Offshore Software Development Rates by Country in 2021

In our post, we’ll figure out global offshore developer rates by country in 2021, the reasons they differ from region to region, and help you find a suitable solution for your particular needs.

Image source: Freysoft

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 your future vendor. 

Content

  1. Offshore software development rates by country: a compete overview
  2. Offshoring development rates: Central and Eastern Europe
  3. Offshore software development in Latin America in 2021
  4. Offshore software development in Asia
  5. Destinations with high offshore development rates
  6. Conclusion
  7. FAQ

Offshore software development rates by country: a compete overview

When a company hires an IT vendor from another country and pays for its engineering team services, this is called offshore software development outsourcing. 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’ll keep exploring the topic of offshore outsourcing and make an emphasis on global offshore software development rates by country in 2021, their differences, and peculiarities. Being informed about the software development rates by region, you as a client can reduce costs by 40%-70% and open access to new 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, Belarus, Czech Republic, Austria, Slovakia$30-$65  
Latin America: Mexico, Brazil, Colombia, Peru, Chile, Argentina$35-$70 
Africa: Morocco, Kenya, Nigeria, Egypt, South Africa$25-$45 
Asia: India, China, Philippines, Pakistan, Nepal, Bangladesh, Vietnam, Indonesia, Malaysia, Philippines$20-$45
Destinations with high offshore development rates
USA $70-$150
Australia$100-$150
Western Europe$50-$200
Israel$100-$200

Considering the above tablesheet, we can assume that countries with relatively high standards of life and economy have costly rates for offshore software development. Among these destinations are the USA, Australia, Western Europe, and Israel where the average cost varies from $50-$200. 

Another big pool of the best offshore software development countries is with less developed local markets and characterized by lower rates for IT outsourcing ($20-$70). 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.

Offshoring development rates: Central and Eastern Europe

Offshore software development rates in Europe
Image source: Freysoft

Offshore Software Development – Ukraine

Rates – $25-$50

IT hubs – Kyiv, Kharkiv, Lviv, Odessa

Most popular tech stack – Java, Node.js, Python, Ruby

Today, Ukraine proves to be one of the best IT outsourcing places. In particular, here there are:

  1. over 192,000 skilled certified developers;
  2. competitive rates for the outsourcing IT services (vary from $20 to $50 hourly);
  3. the constantly increasing number of Ukrainian IT companies in the list of Global Outsourcing 100 from IAOP;
  4. the developer’s proficient level of English;
  5. high reputation (the world-famous startups such as Grammarly, Jooble, People.ai, GitLab, PetCube, Depositphotos are created by Ukrainian developers); 
  6. convenient time zone, etc. 

In fact, 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, mobile application development, DevOps, etc.

You also might be interested in: 

“Is it a good solution to outsource web development in Ukraine?”

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Offshore Software Development – Belarus

Rates – $35-$50

IT hubs – Minsk, Vitebsk, Gomel

Most popular tech stack – .Net, Java, Ruby

Belarus has established a reputation as one of the most dynamically developing IT countries in Eastern Europe. For now, over 90 thousand developers and about 4000 IT companies work in Belarus. In comparison with many other regions of IT exporters, the salary of Belarusian IT talents is rather low. This explains the competitive hourly rates of offshore software development, which vary from $35-$50.  

Offshore Software Development – Russia

Rates – $25-$45

IT hubs – Moscow, St. Petersburg 

Most popular tech stack – Java, SQL, Python 

IT outsourcing in Russia has continued the trend of previous years, which is aimed at the growth of the industry and its players. In turn, the development of its IT market is directly related to the integration of the Russian economy into the global economic space. Here hourly rates for developers vary from $25-$35 which gives Russia the competitive advantage among other countries. 

Offshore Software Development – Poland

Rates – $35-$55

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 $35-$50 per hour. However, its IT players 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 – $35-$55

IT hubs – Prague,  Olomouc, Brno

Most popular tech stack – Python, SQL, JavaScript, Java

Over 130,000 programmers are counted in the Czech Republic, the demand for which is annually increasing. Here such world-famous startups as Kiwi, Apify were created. The offshore development rates start from $35 and reach $55 per hour, that still pretty affordable for those businesses who want to outsource highly qualified talents at an affordable budget. 

Offshore Software Development – Romania

Rates – $25-$50

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-$35 due to the country’s economic conditions and relatively low cost of living. At the same time, its 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-$50

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, in particular among which currently are Microsoft, Ericsson, Nokia, Siemens. Further, Hungary with an average cost of $40-$50 takes one of the leading positions for outsourcing software development services. However, there are developers that charge more than $60 per hour.

Offshore Software Development – Estonia

Rates – $35-$55

IT hubs – Tallinn, Tartu

Most popular tech stack – JavaScript, Python, SQL

Estonia turns 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-$35

IT hubs – Bratislava, Kosice

Most popular tech stack – Python, PHP, .Net

Slovakia is well-known for its tech talent pool, which numbers in over 40, 000 engineers. The high level of English, professional tech education, and the strength of its IT hubs are prominent reasons why international businesses turn to Slovakia for outsourcing IT talents. Besides, the average rates of around $25-$35/hour attract clients even more.  

Offshore Software Development – Bulgaria

Rates – $35-$50

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 $35-$50/hour make Bulgaria one of the most popular destinations for offshore development services in Eastern Europe. 

Offshore software development in Latin America in 2021

Offshore software development in Latin America
Image source: Freysoft

Offshore Software Development – Argentina

Rates – $35-$50

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  $35-$50 per hour. Thus, the cost for 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, Saber have their R&D centers here. That is, 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 abroad clients. 

Offshore Software Development – Mexico

Rates – $35-$50

IT hubs – Mexico City, Tijuana, Leon

Most popular tech stack – Python, JavaScript, HTML

Annually, over 100,000 developers graduate from Mexico’s universities. In turn, the IT market currently exceeds no less than 1 million developers. Still, the cost of $35-$50/hour for offshore software development services is competitive and pretty affordable for startups and international businesses with moderate budgets.  

Offshore software development in Africa

Offshore software development in Africa
Image source: Freysoft

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-$45

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 ($20-$45) but also the collaborative culture and higher quality of the product than in other parts of Africa. In addition, the region is rich in certified experts – over 86,000 engineers are graduated 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

The most prominent region of Western Africa for offshore software development is Nigeria. It is rather expensive for outsourcing if compare with other African countries since the labor market is less saturated, making it difficult to find highly qualified offshore developers at a reasonable cost. Thus, in Western Africa, an hourly offshore developer rate of a software engineer fluctuates around $40-$50 on average.   

Offshore software development in Asia

Offshore software development in Asia
Image source: Freysoft

India

Rates – $25-$50

IT hubs – Bangalore, Mumbai, Kolkata

Most popular tech stack – Java, C++, Python

Today in India, there are about 280,000 employed engineers and 1,000 software development firms. India ranks the second country in the world after the United States in terms of the number of software engineers. Due to the state policy aimed at the development of offshore programming and the export-oriented hi-tech sector, Indian is considered an attractive destination for IT outsourcing. Another benefit is the rates of offshore software development, which are not higher than $25-$50/ 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 from 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-$40

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 $40 on average. Such rates are explained by inexpensive labor and a low cost of living in the region. Still, 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 environment, the absence of ethnic and religious conflicts. Besides, the government channels the young population into the startup ecosystem, providing tax incentives and supporting businesses – all of which contribute to the further development of the market. 

The Philippines  

Rates – $25-$50

IT hubs – Manila

Most popular tech stack – PHP, ASP.NET Core

The main reason for hiring Philippines developers is the reduced cost of its IT services. Since the Philippine peso has a low exchange rate, the average developer here charges between $25 and $50 per hour. Still, IT outsourcers are slightly behind in the quality of knowledge from outsourcers of well-developed countries. But if you have conceived a simple project, turning to Filipino specialists will be a considerable solution.

Destinations with high offshore development rates

Offshore software development rates by country
Image source: Freysoft

The United States of America

Rates – $50-$150

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 in higher wages of the employees. The hourly rates of software developers here start from $50 and can reach $150 and higher, regardless of the qualification and experience of the expert. 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 $58 and in Texas, it will be $72. 

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. Still, the country is considered a top startup producer. And because of the lack of experienced developers, home businesses here tend to outsource tech talents from other countries. 

Australia

Rates – $100-$150

IT hubs – Sydney, Melbourne, and Perth

Most popular tech stack – Java, Python

Australian vendors charge high amount of rates for software development, which is  $100-$150 on average. The native language in Australia is English, which is the prominent advantage of outsourcing its labor power.  However, the huge time zone differences, the relatively high rates, and far away location are the disadvantages of Australia that should be taken into the account to make 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 – $100-$150

IT hubs – the United Kingdom, Spain, Germany

Most popular tech stack – Python, React Native, Java

The average hourly rate for software developers in Spain, Germany, and other Western countries is around $50-$100. Meanwhile, in the regions of the UK, Switzerland, or Scandinavia the very work of the engineer will cost up to $100-$200. That is caused by the large and fast-scaled industries of the countries, proficient level of English and high standards of living. Besides the local software development companies, the IT vendors have been tended to open R&D centers in countries with lower rates, for instance, in India, Poland, Ukraine.   

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.). Especially it is a great benefit when, within the project, additional talents are needed. 

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. FreySoft Case.” 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. 

FAQ

How to hire offshore software developers?

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

How software development rates are formed?

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. 

Why do offshore software developers’ rates differ?

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.  

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