Guide to Offshore Developer Rates

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Cost to Hire Offshore Software Developers 

Modern technologies such as remote team management tools and the cloud allow organizations to hire offshore developers. This is done mainly to save costs and also use expertise from wherever it is available. The developers are picked up also based on the project scope. On one hand, while this is true, on the other, project development costs vary greatly by the organization. Other factors that affect the cost are the tech stack that is used, the hiring models of companies, the developer’s experience, and the platform that is used to hire the developers.   

Many software engineers work as part of dedicated developer teams and offer their expertise and experience to organizations that need their help. When hiring offshore developers, there may be many questions that arise in your mind. However, the most prominent one among them is likely to be the one regarding the rates of offshore developers.   

You need these details to take advantage of the talent that you get by recruiting an offshore dedicated developer team. Therefore, in this article, we attempt to list some popular offshore development destinations and offshore developer rates that are currently in vogue. 

Hiring Individuals vs. Hiring an Agency for Offshore Development 

Organizations resort to hiring software development professionals from different countries when it is hard to find developers for a job or when costs become too prohibitive. Many platforms may present talented offshore developers. Indeed, Upwork, etc., are some of them. However, when you hire individuals there are a few disadvantages such as: 

  • You have to depend only on the knowledge base of the individual

  • Your project may not get completed on time

  • It is difficult to find a replacement when the developer quits

  • Many of the advantages that are available with a team of dedicated developers are not available despite the single developer being very talented 

However, there are offshore platforms that help organizations scale their development teams quickly and cost-efficiently. 

Most popular Offshore Development Destinations 

Asia 

Asia is home to many countries that field immense technical talent. Many countries in Asia are either underdeveloped or developing. Many countries are troubled by unemployment and its problems. People live in places with high population densities and low living standards. The hourly rates on average in Asian countries are approximately between USD 18-25.  

The top countries that you can outsource your work to in Asia are India, China, and Malaysia. In China, the hourly rates are between USD 20 and USD 25. The cost of software development services in Thailand (USD 18-23), Bangladesh (USD 20-25), and Vietnam (USD 18-22) come cheaper. Sri Lanka (USD 22-25), Nepal, the Philippines (USD 22-25), and Indonesia (USD 21-24) are other destinations from where you can hire offshore developers.  

India is the most prominent offshore software development destination in Asia. The availability of a huge talent pool, a high number of technical graduates, the high quality of engineering and technical education in the country, and the encouraging business policies of the government are some factors that contribute to this popularity.  

Eastern Europe 

For Western Europe, Eastern Europe makes for the most popular offshore development destination. Though the developer hourly rates may be slightly higher, the time zone differences are very narrow and this provides them with a lot of advantages. Eastern Europe is so popular that it is estimated that there are over a million software development centres in the region that offer the facility for offshore development.  

There are estimated to be 1.5 developers for every 100 people in this region. As the countries in this region are financially stable they leverage the best setup and tools required for the development. The average hourly rates are between USD 25 and USD 30.  

Poland (USD 38-42), Ukraine (USD 35-39), and Hungary (USD 38-40) have the highest hourly rates and Croatia (USD 22-25), Belarus (USD 26-30), and Romania (USD 25-28) are among the cheapest. Bulgaria (USD 32-35) and the Czech Republic (USD 32-35) lie in between. Ukrainian developers are in high demand.  

Latin America 

This part of the world is growing as a technology hub and the most popular outsourcing destinations in this region are Argentina and Panama. The average outsourcing rate in Latin American regions is bet USD 30 and USD 50 per hour. 

Developers from Argentina (USD 50-55), Uruguay (USD 52-55), Chile (USD 48-52) and Mexico (USD 52-55), command high hourly rates. Developers from Peru (USD 32-35) and Bolivia (USD 28-32) are among the cheapest in this region. Costa Rica (USD 38-40) fields the cheapest development experts.   

Costa Rica being near North America, many offshore developers from here do work for start-ups. The quality is good and the cultural similarities prove to be an advantage.  

Africa 

Though a large part of this continent is considered underdeveloped, the younger population here is consistently making a mark on the IT scene and digital culture. Many developers work remotely in this continent and it is improving the economy of many countries in the continent. The developer rates are pretty low here at USD 20 to USD 40 per hour. 

Developers from South Africa (USD 38-40) command the highest rate, followed by Nigeria (USD 38-42) and Egypt (USD 18-22). Developers from Kenya (USD 18-20) and Morocco (USD 20) come the cheapest. Many cities in the different countries of Africa are developing rapidly with many smart cities in the making. This is encouraging individuals to pursue careers related to IT. 

How to choose offshore development country and vendor 

If you are planning to augment your staff strength by hiring offshore developers from another country, here are a few tips that you can use to choose from a suitable country.  

  • If you are looking for high-quality development, do not compromise on software development experience, expertise and hourly rates.

  • Ensure that your developers have in-depth knowledge if you want specialized software to be built.

  • Work to have a minimum time-zone difference to get optimal output. However, do not compromise on the quality of the developers.

  • Get quotes from many vendors across different nations and pick the one that suits your offshore software development rates. Also, get them to send roadmaps so that you can make a time estimate. 

  • When engaging an offshore development partner also talk to them about maintenance and support.

  • Look for experienced software developers who will showcase achievements, completed projects and case studies.

Communication Skills 

More often than not you may end up hiring an offshore software development team from a foreign nation the people of which speak a different tongue. Therefore, it is important to choose a team that can converse in a common language like English to make things easy for you. 

Choosing a team with good communication skills means better ideas, optimal use of the time, and a more efficient approach though it means higher costs. These team members would be able to communicate with the client and be able to present solutions to challenges via simple but descriptive documentation. A team with a thorough understanding of international business culture will be more than helpful even when they are from a different country.

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