Last Updated on 2024-10-29
Finding top-notch software development talent at affordable rates is a constant challenge.
Our team at Full Scale also faced our fair share of difficulties. We found experts at a very high rate or reviewed low-quality portfolios for a lower rate. So, it led us to develop our own solutions through offshoring software development.
Today, let’s examine offshore developer rates by country to help narrow your offshoring development choices.
Offshoring Software Development Rates by Country
Offshoring is one of the best options for hiring software developers globally.
But before you start recruiting, you must assess your offshore location’s advantages and disadvantages. Many variables could affect the overall success of your project and its cost.
There is also a significant difference between freelancer rates and offshore developers.
Let’s dissect and compare the best offshore software development rates by country.
Latin America
If you have a business based in the US and choose to nearshore, hiring from Latin America would be a good choice. The average hourly rate for software developers can be between $30-$50 per hour worked.
IT wages in Argentina
Argentina is among the top destinations for nearshoring software developers. Most developers earn an average of $35 to $55 per hour. The typical tech stacks used are Java, Python, and SQL.
IT wages in Brazil
In a 2021 Tholons Services Globalization Index, Brazil ranked 15th in the top 50 list. The region is gaining popularity by producing at least 13,000 IT graduates annually.
They also have 500,000 software developers currently working. With Java, Python, and SQL expertise, the usual hourly rate ranges from $30 to $50.
Eastern Europe
Eastern Europe doesn’t fall behind when it comes to technological expertise and support. Most software developers in this continent are often well-versed in Java, Python, C or C++, .NET, Ruby, and Python.
These developers compete for projects that require full-stack development, thus attracting many clients. On average, software developers in this region earn between $20 to $50 per hour.
IT wages in Ukraine
Ukraine is the top provider of quality developers, where they produce around 130,000 new software engineering students per year. The country is also home to tech giants like Grammarly, WhatsApp, and Reface.
The average hourly rate ranges from $25 to $45. Among the most common tech stacks used in the country are Python, Java, and Ruby.
IT wages in Belarus
Besides being known for its gorgeous scenery, Belarus is also one of the top destinations in the IT services space. About 60% of developers in the country are working with offshore companies.
Their average hourly rate ranges from $35 to $50, with expertise in specific tech stacks like Javascript, Java, and .NET.
Asia
Asia remains competitive in IT, where businesses offshore their software development projects.
Though there is a big difference in the time zone, most developers on this continent are willing to work during the night shift. Developers in these time zones want to ensure they can collaborate with their in-house counterparts.
Now, let’s explore the wages in Asia’s top two offshoring countries, like India and the Philippines.
IT wages in India
India is one of the leading software offshoring countries in Asia. Their developers are popular because they can deliver one of the world’s most cost-effective offshoring software development services.
Their average hourly rate is $30. The most common tech stack used in this country is Java, C++, and Python.
IT wages in the Philippines
The Philippines is known for its tropical beaches and beautiful islands. However, the country is also building traction in offshore IT outsourcing.
The average hourly rate for a Filipino developer ranges from $25 to $50. The most common tech stacks are ASP.NET, Java, Ruby on Rails, ASP.NET Core, Python, and PHP.
The Global Software Development Arena: A Comparative Analysis
The landscape of offshore software development is as diverse as the countries contributing to it. Each nation offers a unique blend of skills, costs, and environments. Choosing where to offshore your software development needs a pivotal decision.
- Which country is no. 1 in software development?
The Philippines is recognized as one of the key players in the IT industry, with a vast pool of skilled engineers and a strong educational system. It’s a favored destination for companies looking to outsource software development.
However, it’s important to note that other countries, including China, India, and Eastern European nations, are also significant players in the global IT outsourcing market.
- Which country is best for offshore jobs?
The “best” country for offshore software development often depends on your specific needs. So, you should factor in the nature of your project, budget constraints, and preferred time zone alignment.
For example, the Philippines is renowned for its English proficiency and cultural compatibility with Western countries. It is ideal for customer service, software development, and IT support roles.
Meanwhile, Eastern European countries like Ukraine and Poland offer a rich talent pool of developers with strong technical education and expertise in cutting-edge technologies. Their tech talent is suitable for complex software development projects.
- How much does outsourcing software development cost?
The cost of outsourcing software development varies widely depending on the region.
For instance, Eastern European countries may charge anywhere from $25 to $50 per hour for software development services. At the same time, rates in South Asia, particularly in India and the Philippines, can be as low as $15 to $25 per hour.
However, it’s crucial to consider not just the hourly rates but also the quality of output, communication efficacy, and overall project management capabilities of the offshore team.
Offshore Software Developer Rates: What Affects Them
Myriad factors beyond simple supply and demand influence offshore developer rates across different countries.
Cost of Living
The cost of living in the offshore location directly impacts salary expectations and, consequently, the rates charged for software development services.
For instance, countries with a lower cost of living, such as India and the Philippines, can offer more competitive rates. Compared to their counterparts in Western Europe or North America, where the cost of living is significantly higher, so it is expected that developer rates are higher, too.
Local Economy
Currency exchange rates also play a critical role in offshoring costs. Businesses paying in stronger currencies can leverage their purchasing power to obtain services at lower costs than their home currency.
Quality of Education
Another key factor is the availability of skilled talent, shaped by the country’s education system, proficiency in English, and a tech-savvy workforce.
Countries that have invested heavily in STEM education, such as Ukraine and Poland, can offer a vast pool of highly skilled developers. However, this may also mean slightly higher rates due to the quality and expertise available.
Government Policies
Geopolitical stability, government policies towards the tech industry, and the level of technological infrastructure also significantly influence offshore developer rates.
These factors combined determine the overall attractiveness of a country as an offshore software development destination, as well as the rates developers can command.
Deciding Based on Offshore Software Developer Rate
Navigating the offshore software development market requires a nuanced understanding of the global IT landscape. First, you should learn the dynamics of offshoring, its benefits, and how it will work for your business.
You also need a clear grasp of your project’s specific needs and a strategic approach to selecting your offshore development partner. You need a partner who understands the complexities of offshoring and recruiting technical talent.
Affordable, Quality Software Development in the Philippines
At Full Scale, we understand the importance of balancing cost, quality, and efficiency.
We offer a streamlined process to connect our clients with highly skilled software developers proficient in their technical domains. Moreover, our tech talent is well-versed in English and culturally aligned with global business practices.
Our approach is not just about providing affordable rates but ensuring that our clients benefit from:
- Access to a large pool of qualified IT talent
- Significant savings on operational and labor costs without compromising on quality
- The flexibility and scalability to adjust your team size based on project requirements
- Robust project management and communication protocols to ensure smooth project execution
By working with Full Scale, you’re not just outsourcing your software development needs. You’re also investing in a partnership that prioritizes quality, affordability, and seamless integration of offshore talent into your business ecosystem.
Hire Expert Software Developers
Matt Watson is a serial tech entrepreneur who has started four companies and had a nine-figure exit. He was the founder and CTO of VinSolutions, the #1 CRM software used in today’s automotive industry. He has over twenty years of experience working as a tech CTO and building cutting-edge SaaS solutions.
As the CEO of Full Scale, he has helped over 100 tech companies build their software services and development teams. Full Scale specializes in helping tech companies grow by augmenting their in-house teams with software development talent from the Philippines.
Matt hosts Startup Hustle, a top podcast about entrepreneurship with over 6 million downloads. He has a wealth of knowledge about startups and business from his personal experience and from interviewing hundreds of other entrepreneurs.
