Offshore software development rates by country
- progressiveitllc
- Sep 6, 2024
- 6 min read
It is projected that the global revenue in the IT outsourcing market will steadily increase by 66 billion U.S. dollars (+42 percent) from 2023 to 2027. By 2027, offshore software development revenue is expected to reach 223.17 billion dollars.
Top Reasons to Choose Offshore Software Development in Eastern Europe
Leading Hubs: Eastern European countries like Ukraine, Poland, and Romania are top global centers for offshore software development.
IT Exports: In 2022, Romania exported 3.2 billion euros worth of IT services, while Poland exported 3.74 billion dollars’ worth.
Global Skills Index: According to Coursera’s Global Skills Index 2022, Ukraine, the Czech Republic, Poland, and Hungary ranked highly in Technology-related fields.
Cost vs. Stability: Poland, while one of the more expensive options in Eastern Europe for outsourcing, offers a stable and secure economy.
Language Proficiency: Over 80% of Ukrainian developers speak English at least at an intermediate level, according to the Ukrainian IT Report 2021.
Growing Talent Pool: Ukraine has 212,000 qualified IT professionals as of 2021, a 29,000 increase from the previous year.
Offshore Software Development Rates by Country in Eastern Europe
Country | Scope | Average Hourly Rate |
Ukraine | Ukraine, with key cities like Kyiv, Lviv, and Kharkiv, is a significant hub for offshore development. The offshore software development rates in Ukraine are highly competitive, offering great value compared to other countries. | $25+ |
Poland | Poland, with cities like Warsaw, Krakow, and Wroclaw, is a key Eastern European tech hub. Offshore software development rates in Poland are competitive, adding to its appeal for international projects. | $30+ |
Romania | Romania is renowned for its IT expertise, especially in software development and QA testing. Cities like Bucharest and Cluj-Napoca are leading tech hubs, and the offshore software development rates in Romania are notably competitive. | $50+ |
Hungary | Budapest, the capital of Hungary, has a burgeoning tech community. Although Hungary’s offshore software development rates may not be the lowest in Eastern Europe, its skilled workforce and proximity to Western Europe make it a compelling choice. | $45+ |
Bulgaria | Bulgaria provides competitive rates and a growing tech industry. Sofia, the capital, has become a hub for IT companies and skilled professionals, making it a strong option for cost-effective software development. | $45+ |
Belarus | Belarus is recognized for its strong software development capabilities, especially in AI and machine learning. Minsk, in particular, has a burgeoning tech scene, with offshore software development rates in Belarus being relatively lower than those in Western countries. | $50+ |
Serbia | Serbia's tech industry is growing rapidly, with cities like Belgrade providing a mix of affordability and quality. The offshore software development rates in Serbia are competitive, and its IT professionals are highly regarded for their expertise across various domains. | $35+ |
Why Offshore Software Developers from Asian Countries?
India: As Asia’s largest software outsourcing provider, India leads in digital innovation, ranking first globally in the Global Innovation Index 2022. Indian software development companies are also among the most economical options.
China: China is a top choice for offshore development, with Chinese developers excelling in HackerRank tasks. The software development industry in China is expected to grow by 6.7% over the next five years, reaching $1.3 trillion. The Chinese government supports this growth through technology park funding and financial incentives for overseas developers.
The Philippines: The Philippines, with its capital Manila being the second-largest metropolis in the world, is ranked 59th in the Global Innovation Index 2022, reflecting its growing importance in the digital landscape.
Offshore Software Development Cost by Countries in Asia-Pacific.
Country | Scope | Average Hourly Rate |
India | India is a global leader in offshore development, offering competitive rates and a vast IT workforce. Cities like Bangalore, Mumbai, and Hyderabad are renowned tech hubs with diverse skill sets, making India a top choice for offshore software development. | $20+ |
China | China’s IT industry is rapidly expanding, with cities like Beijing, Shanghai, and Shenzhen showcasing a broad range of tech skills. Although offshore software development rates in China may be slightly higher than in some other Asian countries, the country’s substantial tech capabilities make it a significant player in the global market. | $30+ |
Philippines | The Philippines is a well-known destination for customer service, support, and software development. Its high English proficiency, cultural compatibility, and competitive offshore software development rates make it a popular choice for international projects. | $30+ |
Vietnam | Vietnam has gained popularity recently for its young and dynamic workforce. Cities like Ho Chi Minh City and Hanoi provide affordable offshore software development rates while ensuring high-quality work. | $35+ |
Bangladesh | Bangladesh is emerging as a key destination for software development outsourcing. With lower labor costs and a growing tech talent pool, the offshore software development rates in Bangladesh are particularly appealing for cost-sensitive projects. | $30+ |
Indonesia | Indonesia’s tech industry is growing, with cities like Jakarta becoming prominent tech hubs. Offshore software development rates in Indonesia can be competitive, though they may vary depending on project complexity. | $25+ |
Malaysia | Malaysia provides a skilled IT workforce and a variety of tech services. Kuala Lumpur and Penang are key tech cities, offering competitive offshore software development rates. | $35+ |
Top Reasons to Offshore Developers from African Countries (Especially Tunisia)
Rising Tech Hub: Tunisia is rapidly emerging as a prominent tech hub in Africa, with a growing number of skilled developers and a dynamic IT ecosystem centered in cities like Tunis and Sfax.
Competitive Rates: Tunisia offers highly competitive offshore software development rates, making it a cost-effective choice for high-quality software solutions.
Skilled Workforce: Tunisian developers excel in technologies such as Python, Ruby, SQL, and Java, providing a broad range of expertise for various software needs.
Proximity to Europe: Tunisia's geographic location offers convenient time zone overlaps with Europe, facilitating efficient communication and collaboration.
Growing Market: According to e-Conomy Africa 2020, Africa’s IT market is expected to grow significantly, with Tunisia playing a key role in this expansion.
Supportive Environment: The Tunisian government and local tech community actively support technology and innovation, creating a favorable environment for outsourcing.
Cultural and Business Compatibility: Tunisia’s strong cultural and business ties with Europe enhance its attractiveness as an outsourcing destination, ensuring smooth integration with international teams.
Offshore Software Development Rate by Country in Africa
Country | Scope | Average Hourly Rate |
Tunisia | Tunisia provides a strong pool of tech talent, especially in software development and IT services. Tunis, the capital, is home to a growing tech community and competitive offshore software development rates. | $20+ |
Egypt | Egypt has a robust IT industry, especially in cities like Cairo and Alexandria. With strong English proficiency and a growing tech community, offshore software development rates in Egypt make it an attractive option for international projects. | $22+ |
Morocco | Morocco’s tech industry is growing, with cities like Casablanca and Rabat showing significant promise. The country’s proximity to Europe and competitive offshore software development rates make it an advantageous choice for many projects. | $22+ |
Nigeria | Nigeria is emerging as a tech hub in West Africa, with Lagos being a key city for IT talent. Although offshore software development rates vary, the country’s youthful population and expanding tech ecosystem make it an increasingly attractive option. | $44+ |
Kenya | Kenya boasts a vibrant tech scene, especially in Nairobi. The country’s emphasis on innovation and entrepreneurship fuels the growth of its software development capabilities, making it a notable player in the industry. | $24+ |
Uganda | Uganda is gradually making a name for itself in the tech space. Although offshore software development rates may be lower than in other regions, the country’s tech ecosystem is still evolving. | $20+ |
South Africa | South Africa stands out in Africa’s tech scene, with cities like Cape Town and Johannesburg boasting skilled developers, strong English proficiency, and relatively competitive offshore software development rates. | $25+ |
Frequently Asked Questions
Which is better for my project: outsourcing or offshoring? Choosing between outsourcing and offshoring depends on factors such as project complexity, budget, and desired control. Offshoring might be ideal for cost savings and specialized skills, while outsourcing within your own country could be preferable for local expertise and greater oversight.
How do I select an offshoring location beyond just rates? Evaluate factors like skill availability, language proficiency, cultural fit, time zone alignment, legal considerations, data security, and infrastructure. These elements help ensure effective communication and successful project outcomes, beyond just cost.
How can I reduce offshore software development costs? To lower offshore software development rates:
Optimize project scope to avoid unnecessary work.
Select a cost-effective offshore destination.
Focus on essential features and prioritize tasks.
Provide clear requirements to minimize revisions.
Adopt efficient project management and collaboration practices.
Why might India not always be the best offshoring location?India, though renowned for its large talent pool and competitive rates, may not always be the best choice due to potential issues like time zone differences, communication barriers, and varying quality standards. Additionally, rising costs in certain sectors may lessen the expected cost benefits.
What are the rates for offshore developers? Hourly rates for offshore developers vary based on project complexity, size, timeline, and location. European developers generally start around USD 35 per hour, while Asian developers typically begin at USD 20 per hour. Rates are subjective and should be evaluated based on various criteria.
What are the benefits of offshore software development? Offshore software development offers benefits such as cost savings, access to a global talent pool, faster time-to-market, scalability, and increased flexibility. This model allows you to focus on core business activities while managing risks effectively.
Would you consider outsourcing your software development?
Yes, for cost savings and access to global talent.
Maybe, depending on the specific project requirements
No, I prefer keeping development in-house for better control
Please add contact info
The numbers are scary ! Outsourcing is growing rapidly
From my own experience hiring from East Europe is the worst! I would definitely explore other regions like north Africa or East Asia.
India, though renowned for its large talent pool and competitive rates, may not always be the best choice due to potential issues like time zone differences, communication barriers, and varying quality standards. Additionally, rising costs in certain sectors may lessen the expected cost benefits.