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.
While searching for low-cost software development, you would surely come upon this term – offshore software development services.
When learning more about offshore software development, you would end up knowing that offshore offers several benefits like access to a larger pool of talent, cutting expenses, faster time to market, and diverse perspectives and innovations. These benefits may make you curious to opt for offshore software development.
However, you probably want to know offshore software development rates before moving further. As an experienced offshore software development agency in Canada, we understand that cost is an important factor.
This is why we have written this dedicated article by searching on offshore outsourcing software development costs.
You might have questions:
- 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?
In this article, you will learn offshore software development rates, software development rates by region, how to select the right offshore agency, and the list of best countries for offshore software development.
So, let’s go.
Before moving further, let’s learn about the hourly offshore software development rates by different regions.
Table of Contents
Offshore Software Development Cost by Continents
The costs of offshore software development differ based on multiple factors such as developer expertise, country, project complexity, and technology. The cost range mentioned in the following table is taken from reputed sources like Clutch, Goodfirms, PayScale, Talent, and Salary.com.
Here is a table that describes the offshore software development costs of popular countries.
| 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 |
As you get aware of the software development hourly rate in different continents, now it becomes clear which region is most suitable for your project development. To help you understand the software development costs, we have bifurcated the cost of development in detail in the next section.
Offshore Software Development Rates by Country
Learn about the average hourly rate of offshore developers of different regions. In this section, we have described the hourly rates in different countries of Europe, North America, Asia, and Latin America. Further, why you should choose a software development partner from Europe, North America, and Asia. Let’s first start with Canada.
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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.
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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.
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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.
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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.
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Worldwide Outsourcing Rates Comparison Table
In the following table, learn about the different professional’s hourly rates globally per region. According to a report published by Accelerance, we have mentioned these rates of different professionals across the globe. By checking this table, you get to know where you can hire different software professionals for your software project development.
| 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 |
As you are aware of the different professional’s average hourly rates per region, now you might have got an idea about which region is best suitable to hire offshore software professionals for your project. Moreover, if you want to learn about the offshore software developer rates of popular hiring or freelancing platforms, check the next section.
Average Software Development Rates by Hiring Platforms
Check the following table that describes the hourly rate of software developers from hiring platforms. You can hire individual software developers, business analysts, software designers, and quality assurances from popular platforms.
The mentioned costs of software developers in the following table may vary based on the individual’s experience, technical expertise, location, technology stack, project duration, and project complexity.
| Hiring Platform | Role | Hourly Rate Range (USD) |
|---|---|---|
| Upwork | Entry-level | $15 – $40 |
| Intermediate | $30 – $60 | |
| Senior | $50 – $100 | |
| Freelancer | Entry-level | $15 – $40 |
| Intermediate | $30 – $60 | |
| Senior | $50 – $100 | |
| Toptal | Intermediate to Senior | $70 – $200+ |
| Guru | Entry-level | $15 – $40 |
| Intermediate | $30 – $60 | |
| Senior | $50 – $100 |
Further, to give you a glimpse of the back-end developers, full-stack developers, front-end developers, project managers, and mobile developers’ average salaries from different regions, we have created a table below.
By learning about the yearly salary of these professionals, you would get to know how the costs of offshore software development differ per region. Let’s learn about the salary of these professionals. We have taken the average salary of different professionals from the Stack Overflow Developers survey.
| Yearly Salary of Different Professional Worldwide | |||||
|---|---|---|---|---|---|
| Profile | United States | India | Germany | United Kingdom | Canada |
| Back-end developer | $150,000 | $20,636 | $70,380 | $87,948 | $93,701 |
| Front-end developer | $133,000 | $15,477 | $63,986 | $75,384 | $89,797 |
| Full-stack developer | $140,000 | $18,050 | $66,708 | $77,896 | $88,157 |
| Project manager | $140,000 | $22,570 | $70,380 | $90,458 | $87,845 |
| Designer | $126,000 | $12,897 | $58,654 | $70,358 | $85,893 |
| QA tester | $120,000 | $15,480 | $66,652.5 | $75,384 | $80,427 |
| DevOps specialist | $150,000 | $28,374 | $72,983 | $90,460 | $93,701 |
So far, you have learned about the average offshore software development rates from each region, the average hourly rates of different professionals per region, and the yearly salary of offshore software developers per region.
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Next, let’s check the core factors that directly impact the cost of offshore development. Learning about these factors lets you know the reasons why software development costs differ per region.
5 Factors That Impact the Cost of Offshore Software Development
As you searched on Google for offshore software development rates, you might have noticed that the rates of offshore development vary. The reason is factors that impact the cost of development. Due to multiple factors that directly impact the cost, the final cost of your software development varies from region to region. Let’s learn about these factors in the following section.
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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.
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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 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.
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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.
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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.
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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
Here we have described the 5 points that guide you to choose the right offshore software partner.
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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.
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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.
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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.
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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
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Why do rates vary between 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.
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What is the typical payment structure for offshore software development projects?
- Fixed price
- Dedicated team
- Hybrid model
- Hourly-based model
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Are there any hidden costs involved in offshore software development?
- Project management costs
- Legal costs
- Transition costs
- Maintenance and support costs
- Currency exchange rates
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How does the complexity of a project impact offshore software development costs?
- 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.
Here are the reasons why rates vary for individual freelancers and software development firms.
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.
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.
Here are the reasons why the complexity of a project impacts the costs of offshore software development.
Outsource Your Software Development to Right Firm
In this blog, you have learned about offshore software development rates per region, designation, and hourly rates from reputed freelancing platforms. Also, you have got information about the different professional’s hourly rates per region. With this data and knowledge, now it becomes easy for you to decide where you can hire a software development firm.
Although, there are multiple factors that directly impact the cost of development as you went through in this blog. When you are looking to offshore your software development, you must consider each of these factors. This way, you are able to budget your software project development.
We are one of the top offshore software development companies in Canada, having experience in successfully delivering 300+ custom software and web solutions. If you are looking to outsource software development, we can help you from project planning to deployment. Here are a few software solutions developed by us.
Recent Projects Developed by Space-O Technologies
We have designed and developed appointment scheduling software (D4E) for our Canadian client. The D4E software solution automates the booking and managing of appointments. We developed this solution for multiple platforms like Android, iOS, iPad, and a web-based admin panel.
King of Kings is an AI-based document-processing solution built for our USA-based client. It uses AI/ML capabilities to read, understand documents, extract data, and provide precise information to user queries. To build it, we used Node.js, React.js, Express, PostgreSQL, Pinecone, OpenAI’s ChatGPT 4 and ChatGPT 3.5 Turbo’s API.
Coachee is a web-based ChatGPT-like solution for life coaching, developed using Python, Django, React.js, PostgreSQL, and OpenAI’s GPT-4 model as a tech stack. Cocahee app guides users through life’s challenges such as decision-making, goal-setting, and supporting personal and professional growth.
Tidbit is a free infographic maker web application. This web app is specially built for researchers who want to create infographics of their research. Oxford, Harvard, Ottawa, and McMaster are a few universities that use this solution. Within just 5-10 minutes, you can create a complete graphical representation of your research.
We have designed and developed meat processing software for a North American meat processing company that automates the entire operation from meat production to order tracking via one platform. It generated reports in a single click, saving 70% of the time and eliminating paper-based reports.
Let’s connect and discuss your project requirements.
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