Offshore Software Development Rates [ A Detailed Guide]
Key Takeaways:
Offshore software development cost varies by location, developer’s expertise, project size and complexity, and chosen technology, with regions like North America and Europe generally having higher rates than Asia and Latin America.
There are several factors that impact the cost of offshore in different regions such as the complexity and size of your software project, the technology stack, the experience of software developers, and the location of the offshore software development firm.
While choosing your right offshore software partner, consider checking these factors the company’s profile, previous projects, clients, experience, and ratings on reputed platforms like G2/Clutch.
How much does it cost to hire an offshore software development team?
Which factors impact the costs of offshore software development?
Which are the best countries to choose for offshore software development?
offshore software development rates
Offshore Software Development Cost by Continents
Hourly Rates
Continent Name
Countries Included
$50 – $100
North America
United States, Canada
$35 – $65
Europe
Germany, UK, Ukraine, Poland, Bulgaria, Romania
$25 – $50
Asia
India, China, Philippines, Vietnam, Thailand
$15 – $30
Latin America
Mexico, Brazil, Argentina, Bolivia, Colombia, Peru
Offshore Software Development Rates by Country
Software Development Rates in Canada
This section provides you with a comprehensive idea about the software development rates from Canada and why you should prefer software development.
Offshore development rates: $25 – $75
Popular tech cities in Canada: Toronto, Vancouver, Montreal, Calgary
Why Hire Software Developers from Canada?
A similar culture to North America and Western countries resulted in successful collaboration due to smooth communication.
Geographical proximity makes it easy for you to visit and collaborate with outsourcing partners in Canada.
Due to short time zone differences between North America and Western countries, there are fewer communication and collaboration barriers.
The lower offshore development rates when compared to North American countries allow you to cut costs.
Canada has software developers and tech startups that are giving head-to-head competition to the best tech professionals of Silicon Valley.
Software Development Rates in Ukraine
This section provides you with a comprehensive idea about the software development rates from Canada and why you should prefer software development.
Offshore development rates: $25 – $60
Popular tech cities in Ukraine: Kyiv, Lviv, Kharkiv
Why Hire Software Developers from Ukraine?
Ukraine has software developers who have strong technical expertise, proficiency in multiple programming languages, and the ability to adapt the new technology quickly.
Ukraine has lower software development rates compared to Western Europe and North America.
Software developers in Ukraine have a strong work ethic and problem-solving abilities.
Ukraine has a strong network of IT clusters, tech parks, and startup incubators.
The Ukrainian government has simplified regulations of business, reduced bureaucracy, and investment incentives to fast drive the outsourcing development business.
Software Development Rates in Poland
This section provides you with a comprehensive idea about the software development rates from Canada and why you should prefer software development.
Offshore software development cost: $20 – $50
Popular tech cities in Poland: Warsaw, Kraków, Wrocław, Poznań
Why Hire Software Developers from Poland?
Compared to EU countries the average hourly rates of Poland developers are lower.
Lower cultural barrier due to the similar cultural content of Polish with North America and Europe.
A slight difference in time zones between North America and the UK resulted in smoother cooperation.
Software Development Rates in India
This section provides you with a comprehensive idea about the software development rates from Canada and why you should prefer software development.
Offshore software development cost: $15 – $75
Popular tech cities in India: Bangalore, Hyderabad, Pune, Chennai
Why Hire Software Developers from India?
Indian developers are skilled and talented in IT technologies and provide high-quality software solutions.
Software developers in India are mostly proficient in English languages which reduces the challenges of language barriers.
Save costs of your software development as you can hire inexpensive and talented software developers remotely.
Easy and fast to hire skilled developers for software development to scale up or down as per your requirements.
Looking to Hire Dedicated Software Developers?
Talk to us, describe your requirements, and choose an engagement model. We have a team of experienced software developers.
Worldwide Outsourcing Rates Comparison Table
Hourly Rates of Different Professionals Globally
Profile Name
Latin America
Central & Eastern Europe
South Asia
Southeast Asia
North America
Architect
$61 – $99
$59 – $118
$47 – $82
$47 – $59
$98 – $210
Business Analyst
$40 – $76
$36 – $88
$38 – $65
$35 – $41
$78 – $144
Project Manager
$53 – $82
$44 – $81
$41 – $69
$35 – $61
$62 – $168
Scrum Master
$48 – $82
$44 – $78
$41 – $65
$41 – $59
$78 – $156
Graphic Designer
$35 – $82
$36 – $104
$29 – $41
$28 – $35
$114 – $185
DevOps
$45 – $99
$52 – $94
$38 – $53
$41 – $53
$98 – $192
Lead Developer
$56 – $105
$54 – $81
$45 – $65
$35 – $47
$96 – $182
Junior Developer
$34 – $65
$27 – $65
$29 – $41
$26 – $35
$86 – $150
Intermediate Developer
$42 – $65
$40 – $71
$35 – $53
$28 – $35
$110 – $168
Senior Developer
$49 – $82
$53 – $76
$41 – $59
$35 – $41
$114 – $170
Junior QA Engineer (Manual)
$28 – $59
$21 – $53
$21 – $35
$21 – $26
$49 – $96
Intermediate QA Engineer (Manual)
$33 – $64
$31 – $59
$26 – $38
$21 – $28
$54 – $102
Senior QA Engineer (Manual)
$42 – $71
$39 – $71
$32 – $46
$24 – $33
$72 – $114
Junior QA Engineer (Automated)
$33 – $71
$24 – $59
$24 – $41
$24 – $26
$52 – $102
Intermediate QA Engineer (Automated)
$42 – $71
$33 – $66
$29 – $53
$24 – $31
$60 – $118
Senior QA Engineer (Automated)
$49 – $80
$44 – $76
$35 – $59
$29 – $35
$72 – $144
Average Software Development Rates by Hiring Platforms
Tell us about your project. Our software consultants can provide you with a complete roadmap of the project and an estimation of development.
5 Factors That Impact the Cost of Offshore Software Development
Location or Region of Offshore Software Development Company
The location is the major factor that impacts offshore software development costs. Different regions of the world have different costs of offshore software development. The reason is that the hourly wages of software developers vary from country to country.
As the developer’s wages vary, the cost of overall offshore software development services varies due to the cost of living, economic conditions, and average wages.
For example, Ukraine has a lower cost of software development compared to the United States. As the developer’s hourly rates in Ukraine are lower than in the US and Canada. Moreover, there are countries like India, Philippines, Poland, Argentina, and Brazil, which have competitive costs of development compared to Ukraine. So, based on your budget, you need to choose a region to hire an offshore software development partner.
Technical Skills and Experience of Software Developers
Each software developer has a different and certain level of expertise, experience, and technical skills. When you hire experienced offshore software developers, due to their experience, you get quality work and high-perform software solutions. In addition, high-quality work can help you to save time and money in the long run as you won’t need frequent bug fixes, updates, and maintenance.
In addition, experienced software developers have a deep understanding of different programming languages, tools, and methodologies which makes them deliver reliable solutions. Whereas, junior developers may still be learning and may not have developed in-depth expertise.
Hence, a highly skilled and experienced software development team has higher rates as they have specialized knowledge and the ability to deliver high-quality software solutions within a decided timeline.
Follow these steps on hiring offshore software developers which helps you to choose the best suitable team for your project and make it a big success.
Complexity and Size of Your Software Development Project
When you want to build advanced and complex software products, then you need software developers who have specialized expertise and sufficient technical skills. The offshore software development team should have proficiency in different popular programming languages, frameworks, architecture, and technical skills.
The offshore software development teams who have specialization to handle and deliver complex projects are likely to charge higher. Due to their expertise, knowledge, experience, and speed of delivery of high-quality work, they charge you higher costs.
Moreover, an advanced and large project requires advanced technical skills, complex architectures, and complex functionalities which results in higher development costs.
Technology Stack for Your Project Development
The type of technology stack you choose for your software project directly impacts the cost of development. As per the demand for new technologies and market trends, the hourly rates of software developers in these technologies would be higher.
For example, if you want to develop an AI-powered software solution, the technologies used for development would be AI and ML frameworks, the latest programming languages, and frameworks.
According to JetBrains Developer Ecosystem Survey, JavaScript, SQL, Python, TypeScript, Java, C#, Go, Kotlin, C, C++, Ruby, Ruby, Dart, and Swift are the top popular technologies used for various types of software development.
However, when you choose any technologies that are not widely used, developers having expertise in such technologies may charge higher rates. The reason is the lack of offshore software developers in such technologies.
There are chances the technologies and tools that you choose for development may require licenses for their utilization. That’s why these costs can contribute to your overall offshore software development.
Software Development Company You Choose for Your Project
The software development agency you choose for your project development also impacts the overall cost of your software project. The software company development company’s profile, previous projects, clients, expertise, experience, and rating on the platforms like G2 or Clutch.
All these areas of a particular software development developer’s reputation in the market may lead to an increase in their costs of development.
However, there are multiple benefits you get when you outsource software development. If you want to learn the benefits of outsourcing, here is our dedicated article on the advantages of offshore software development.
Next, let’s learn how to choose the right offshore software development company. Following the below steps helps you the perfect partner for software development outsourcing.
How to Choose an Offshore Software Development Company
Evaluating the Technical Skill and Experience
First of all, you need to check the software development company’s expertise and experience in the specific technology and industry domain for your project. Experienced software developers can work effectively on your project which leads to faster development.
Hiring experienced software developers also helps to avoid potential threats that may lead to the failure of your project. In addition, if a firm has software developers who are experienced and senior, then they are likely to adapt to new technologies, and changes in requirements and your project stays up to date.
Client References and Testimonials
While searching for a software development partner, you need to check the testimonials of the software firm. As you check the testimonials and ask for references from clients, you can learn properly about the company’s strengths and work track record.
In addition, you also need to check the reviews and ratings of the best offshore software development agencies on reputed platforms like G2 and Clutch.
Communication and Language Proficiency
One of the most important factors is to check if the company has language proficiency and is able to effectively communicate. Communication is important for successful collaboration with the software development team.
You need to make sure that the company you choose has complete proficiency in English language skills, and is able to communicate thoughts clearly. This way, there are no chances of miscommunication or delay in the software work.
Scalability and Availability of Resources
When you are partnering with an offshore software development company, they should be able to meet your long-term business goals and expansion plans. That’s why you need to assess or know about the company’s scalability by checking its potential and readiness to increase its workforce, technical skills, and infrastructure as per requirements.
You require a partner who can flexibly scale up or down to accommodate your fluctuating project needs. The need for scalability is important as software requirements are dynamic and may change frequently due to market trends, needs, or technological advancements.
However, if you are still unclear about how to hire offshore software developers, read our detailed guide on the how to hire offshore software developers. By following these steps, you would be able to select the right partner for your project development.
Want to Hire a Reliable Offshore Software Development Firm?
Let’s talk. We have a team of software developers who are proficient in coding languages like Python, Node.js, Ruby, Java, Kotlin, and Swift.
FAQ About Offshore Development Costs
Why do rates vary between individual freelancers and software development firms?
Here are the reasons why rates vary for individual freelancers and software development firms.
A software development firm has a diverse team which brings collective expertise and resources to your project because of that they charge higher. Whereas, freelancers have a particular area of expertise and do not cover a wide range of capabilities.
A reputed software development firm may charge higher as they have a proven track record and a portfolio of successful projects. While experienced freelancers can also charge higher, the rates might be lower due to the competitive nature of the freelancer marketplace.
A software development firm is better to handle large and complex projects due to which they charge higher as per their expertise. However, freelancers are more suitable for smaller projects or mid-level projects.
What is the typical payment structure for offshore software development projects?
The payment structure for offshore software development may vary depending on the factors like the nature of the project, the engagement model, and the agreement between you and the software development firm. Here are commonly used payment structures.
Fixed price
Dedicated team
Hybrid model
Hourly-based model
Are there any hidden costs involved in offshore software development?
The option of offshore software development is cost-effective but there are chances of potential hidden costs. Here is the list of hidden costs about which you should be aware.
Project management costs
Legal costs
Transition costs
Maintenance and support costs
Currency exchange rates
How does the complexity of a project impact offshore software development costs?
Here are the reasons why the complexity of a project impacts the costs of offshore software development.
A complex project requires more time for development which results in more effort to complete the project. As the time duration increases, so do the costs.
For complex projects, highly skilled professionals are required who have generally higher hourly rates.
When developing a large project, a large number of developers are needed to handle the complete workload. As the team size increases, the cost of development increases.
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Rakesh Patel
Founder and CEO of Space-O Technologies (Canada)
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