How much does an Offshore Software Developer Cost?
If you are reading this post, you want to hire offshore software developers for your project. Right…? Many veteran entrepreneurs praise the merit of outsourcing projects or hiring offshore teams to work on their projects as a part of their in-house team. The primary reason for having an offshore software development team is to cut costs, as labor costs are much cheaper overseas. Hence, the legitimate question is how much does an offshore software developer cost?
The short and ubiquitous answer to this question is “it depends.”
In this article, I shall discuss every aspect that impacts offshore software developer costs, but let me begin with some essential prerequisites.
Offshore Software Developers Market Facts
According to Statista, the revenue from IT Outsourcing is projected to reach US$460.10bn in 2023 with a CAGR (2023-2028) of 11.07%.
Its market volume is expected to reach US$777.70bn by 2028. The market trends show that the revenue from outsourcing will be generated from a specific region -the United States with around US$167.90bn in 2023.
Factors Affecting Offshore Software Developer Costs
The hiring costs for offshore software developers or the offshore software development costs will depend on these factors;
- What are you hiring offshore software developers for?
- Who are you hiring or outsourcing projects to (Freelancers, Dedicated Team, Agency)?
- Where are you hiring from?
- Experience and expertise level of offshore developers
- Hourly rates charged by your offshore developers or agency
These factors are standard but play a crucial role as your decision will impact the offshore software developers costs. Let me explore these factors a little deeper to bring more clarity.
What Purpose Do You Have to Serve?
Before you jump to calculate offshore developers costs, you need to determine your purpose. What do you want to achieve with this hiring —is it a website, web app, or mobile app? Knowing your purpose in detail will help you find suitable offshore software developers at the correct costs.
Besides, you also need to decide if you are searching for offshore developers who can handle various aspects of development. For example, coding, testing, and maintenance that you want to outsource. Apart from cost, the purpose of outsourcing projects is to access specialized expertise and accelerate project timelines.
In short, your purpose for hiring offshore developers will have a direct impact on the costs. Because, based on the goal, you will need to find developers that suit your needs and project requirements.
The Choice of Whom to Hire or Outsource Projects
Who are you hiring and outsourcing projects to will significantly impact the offshore software developers costs. If you know your requirements and the purpose, these steps are going to be easy, as the choice of whom to hire will depend on your needs and preferences.
You have many options available, including a dedicated team from a reputed agency or freelancer.
Cost to Hire Offshore Freelance Developers:
If you know how to hire offshore freelance developers, it’s the best option for you. You can hire freelance offshore developers for $10/hr or even less. However, it can be risky if you have projects that need serious attention and deadlines to be strictly maintained.
Cost to Hire Dedicated Team from Reputed Agency:
It can be anywhere between $10/hr to $250/hr, depending on the place, region, firm, level of expertise, and requirement of the projects. You can save a huge cost if you have ever hired developers for your projects. If you need help, you can get some ideas for hiring offshore software developers by connecting with an expert or exploring resources online before approaching any IT firm.
If you have time and are able to take regular updates, you may opt for freelancers. Whereas, if you want to save resources or stay focused on your core business objectives, hiring offshore software developers from an agency will be the suitable option for you. Consider taking expert advice or research for yourself before making a final call.
The Location
The offshore software developers’ costs will widely differ from one region to another. If your offshore region is the United States, you must be budget-friendly.
Offshore Software Developers Costs Region Wise
| Region | Hourly Rate Range (in USD) |
| United States | $80 – $250+ |
| Wester Europe | $60 – $200+ |
| Australia | $60 – $150+ |
| Canada | $60 – $150+ |
| Easter Europe | $30 – $100+ |
| India | $10 – $50+ |
I researched pricing from various sources but found a conflict in the data. I thought to make it comprehensive, so I asked about 86 companies from different regions. The result shows that the United States charges heavily, though they claim quality services from qualified developers.
When it comes to India, you can hire well-qualified developers at less than a quarter of the costs. If you spend $20 as an hourly cost, you can hire the best developers from reputed IT firms in India. Southeast Asian regions are known for quality work at cost-effective rates. But, you will also find many sworn off due to bad experiences. So, should you really look for offshore software developers? Then, it’s a big YES as the labor cost is much cheaper overseas.
If you know how to outsource a project overseas, the offshore software developers cost is cheaper. You will find quality developers without breaking your savings. Ultimately, why pay local developers $150 or $250/hr when you can get the same work done at less than a quarter of the cost?
The Expertise Level of Developers
When looking for offshore developers, you also need to determine if you need to hire experienced or specialized developers or if a fresher would fit your projects. If you remember the first step, I have explained the need to know your requirements. You can assess the needs based on your requirements. The cost will go higher if you choose experienced developers.
Highly experienced developers with extensive project portfolios often command higher rates than junior developers. Their expertise and track record contribute to their ability to deliver high-quality solutions.
The Hourly Rates
Some companies charge $50/hr, while others charge up to $250 in the United States. Similarly, some developers or agencies charge $10 in India while others charge up to $50. You need to determine your needs and the budget. The hourly rates will differ for the factors explained in the paragraphs above. You can know the estimate for your offshore software developers costs by connecting with an agency you want to outsource your project or hire offshore dot net developers. If you choose a lower-cost region, you can get your app developed within your budget.
Additionally, the offshore developers cost may also vary depending on the skill level of your offshore developers and the project’s complexity.
Final Thoughts
These are the factors that impact offshore software developer costs. They contribute to the overall project budget. Hiring from lower-cost regions or choosing freelancers can help reduce costs while selecting highly experienced developers or dedicated teams from a reputed software development company will be a bit comparatively expensive but will help you in the long run. Balancing the cost and expertise levels ensures you get the desired quality while optimizing project costs. It’s essential to consider the skill requirements of your project and weigh them against your budget to make informed decisions about offshore software developer costs.
