Cost-cutting is one of the main reasons organisations move software development operations abroad and build offshore teams in countries like India or the Philippines.
But what¡¯s the real cost of offshoring? Is it only about location? What else drives the price differences from one place to another?
In this guide, we¡¯ll compare offshore software development rates by country, focusing on top destinations with elite engineering talent. By the end, you¡¯ll understand what affects these costs and how rates differ between one region and another.
A quick look at the offshore software development rates by country
The table below shows the hourly rates software developers command in popular offshoring destinations, including India, Poland, Colombia, and Egypt.
Later in this article, we¡¯ll analyse, in depth, every location, but first let¡¯s see what aspects affect offshore development rates.
What are the factors affecting offshore software development rates?
The most critical factor determining offshore software development rates is the country where developers are based, but it¡¯s not the only one. Engineers¡¯ tech stack and even the city they live in can impact the overall cost.
The city where offshore developers live and work
Organisations that leverage offshore software development benefit from large talent pools and lower costs in offshoring locations compared to their home countries. However, software development rates can vary between major and smaller cities.
For example, hiring engineers in Mumbai may cost more than in Bangalore. The higher cost of living in Mumbai drives up rates, while Bangalore offers better value for your money, often with more specialised engineers.
The offshore developers¡¯ tech expertise
Developers¡¯ rates depend on their tech expertise, programming languages, and the frameworks they specialise in.
If you want to hire offshore developers with in-demand skills, you must invest more than in a standard engineering team. Developers skilled in multiple disciplines will always command a higher wage relative to their location and specialisation.
For example, hiring a front-end developer to build an app will typically cost less than hiring a developer who¡¯s an expert in applying machine learning and artificial intelligence.
The quality of the offshore development company
An offshore development partner that sources top developers and has decades of experience building tech teams will likely offer engineers at higher rates than a less established company.
However, these rates reflect the quality of talent and delivery. In the long run, you often get more cost-effective operations thanks to higher productivity, better output, and lower turnover.
Now that we¡¯ve covered the factors that influence offshore development rates, let¡¯s dive into the most popular countries and regions, examining what they offer in terms of talent and cost.
Offshore software development rates in Eastern Europe
Two countries come to mind when talking about software development and elite engineering talent in Eastern Europe: Poland and Ukraine.
Polish and Ukrainian developers are known for their hard work ethic and project commitment. According to Clutch, 4,800+ custom software development companies offer premium services in Eastern Europe.
Poland
Poland has emerged as a prime destination for foreign investments and offshore software development due to its strategic location, advanced infrastructure, legal and political stability, and a large pool of skilled talent.
Most firms and engineers are based in three tech hotspots:
- Warsaw. The capital and largest city in the country hosts numerous tech companies and startups.
- Krak¨®w. A significant IT centre with a strong academic presence and a growing number of tech firms.
- Wroclaw. Known for its vibrant tech scene and a high concentration of IT specialists.
- The software development hourly rates in these cities range from $40/h to $56/h.
Pros of offshoring to Poland
- Polish developers are among the most skilled specialists in Europe.
- Work culture is highly compatible with Western organisations.
- There¡¯s full-time zone alignment with most Western European countries and partial overlap with the US.
Cons of offshoring to Poland
- Developer salaries are steadily rising.
- Local currency and inflation fluctuations can impact cost planning.
Ukraine
Ukraine has established itself as a top offshore destination with a large and experienced tech workforce. Kyiv is the country¡¯s capital city and a major tech hub with thousands of engineers, while Lviv is a leading IT centre in the west of the country with a strong outsourcing and offshoring culture.
The offshore software development rates in Ukraine go from $25/h to $40/h.
Pros of offshoring to Ukraine
- Developers offer strong skills at competitive rates.
- English is widely spoken in the tech community.
- There¡¯s a large, fast-growing tech ecosystem.
Cons of offshoring to Ukraine
- Ongoing geopolitical tensions and current armed conflict can pose risks to business continuity.
- In some regions, infrastructure may not meet Western standards.
Get more insights about offshore development rates in different countries.
Content source: Vocalmedia
Originally posted here: https://thescalers.com/offshore-software-development-rates-by-country/
