Custom software development is pretty much in rage these days. Every business whether they are tech-savvy or not is found seeking a reputable software development company around. Now the big question is how can one estimate the cost of software development? The following blog focuses on choosing the right offshore software development services at appropriate rates. However, the blog also includes information on offshore software development rates across different countries, how to choose a reliable company, is it advisable to hire an offshore development company for half of the price and what not!
Table of Content
- Classification of Offshore Software Development Rates
- Offshore Software Development Rates Among different Countries Across the Globe
- How to Estimate the Cost of Outsourcing Software Development?
Now many of you are often found referring to offshore development as outsourcing. Well, Offshore and outsourcing are quite different. Now since we have a limited amount of time so I won’t get there but as of now, it is very important to know that both the terms are different. So what exactly is offshore software development? It is a process of hiring third-party services from another country at a reasonable price. Let me tell you this, the concept is growing at an immense rate. And why not since hiring offshore software development companies can offer a wide range of advantages such as customized solutions as per the organization’s needs and scope, streamlines the business procedures, enables companies to focus on their core activities, etc.
Now what to expect from an offshore software development company. Well, some of the common offshore software development services include bespoke software development as well as mobile apps and web app development. Apart from these services, other aspects include:
- Lower costs
- Exclusive access to a large talent pool
- Faster Time-To-Market
- Save Time To Focus On Core Business Activities
- Time Zone Differences
- Easy business expansion
- High-end innovation
1. Classification of Offshore Software Development Rates
Over these years, there are hundreds of IT outsourcing hubs established all across the globe. Now what’s so amazing about these hubs is here you will find different companies at different offshore software development countries offering development services. Since you are reading the post I assume that you have probably realized the fact that onshore software development is way too expensive and is not a cut above in comparison to the advantages offered by offshore software development.
Unlike onshore, offshore software development companies usually have low software development hourly rates. Now in this big world, how to identify the best outsourcing locations? Simple you have to consider offshore developer rates offered by different continents.
#1 There are certain countries such as the US, Australia, Western Europe, Israel, and UAE featuring high-quality of life and costs of living. As a result, they have high offshore development rates ranging from 50$ up to 150$ per hour
#2 Countries like Latin America, Africa, Asia and Eastern Europe offer offshore development rates from 20 to 50$ per hour
2. Offshore Software Development Rates Among different Countries Across the Globe
2.1 Eastern Europe
So you are willing to hire an offshore software developers in Eastern Europe. Great! You have the entire ocean of talent to pick from. The count goes to approx 1 million software developers. By 2021, Europe’s IT outsourcing market is estimated to generate revenue of around 103.9 billion US dollars. In fact, it may interest you to know that the main outsourcing hubs in Eastern Europe include Ukraine, Poland, Romania, Belarus where average offshore development rates for junior or senior developers range from $20 to $50.
Wondering why? Well, these Eastern European countries have software developers with a strong fundamental base and experience. Another plus is their proficiency in English as a language. With strong fundamental knowledge, these guys do possess strong communication skills.
Slowly and steadily, Ukraine has become renowned for software development outsourcing services in Eastern Europe. And why not, around 38,000 IT specialists graduate each year from here. Not to mention the IT industry located in Ukraine is evolving at a great pace. It may quite interest you to know that these Ukrainian software development companies offer services at an average hourly rate of somewhere $30-$60 per hour.
The next country in line is Poland. Now what makes Poland among the top names in Eastern Europe is its lower offshore development rates and a friendly tax regime. Not just that, they have highly skilled professional developers out of which over 247,800 students are freshly brewed from posh universities every year in the information technology sector.
Another advantage of choosing Poland to outsource software development projects is that here almost every software developer is multilingual especially in English, French, German, Italian and Spanish. So communication is no longer a hurdle if your remote development team is from here.
Another top favored destination in Eastern Europe to conduct offshore development is Romania. The reason could be that the IT industry and offshore development companies located there have now become pretty much stable and substantiated. Also, they offer highly competitive offshore software development rates.
Romanian believe in, people first policy. Apart from this, they ensure to offer high-education especially in regards to foreign cultures. People residing here are pretty much adaptable and possess a supportive attitude for those who are willing to partner with their development companies.
Another impressive country to take into account when looking for offshore software development companies includes Belarus. When comparing offshore software development rates, Belarus offers the best in regard to price. On average, in Belarus one hour of offshore software development costs at least 2–3 times less than in Western Europe and 3–4 times less than in the USA. To be precise, Belarus offers the third lowest development rates in the Eastern Europe, right after Moldova and Ukraine.
Other than money, quality is one such concern and hiring offshore development teams from here precisely means that the work their software developers do is very high quality and professional in nature.
Located in the center of Europe, itt offers minimal time zone difference. If you reside in the United States and Europe, Belarus is your sure-shot move.
2.2 Latin America
Why choose Latin America? Well, I can at least give you three reasons for your upcoming offshore software outsourcing project.
First, Agile or scrum methodologies are one of the best methodologies that comes to our mind when considering offshore development -right? And software development companies located here do excel at that. Also, not to mention that Latin America lies in time-zone proximity.
Second, here you may find a similar working culture.
Third, Latin America comprises software developers who possess more proficiency in English. Besides offshore software development rates in these Latin American countries range between 40$ to 70$ for software engineers.
This is no surprise that several IT hubs have opened up and grown exponentially especially in Brazil. The reason being, its impressive and intimidating infrastructure, cost-effective development rates and a bunch of skilled offshore developers with a go-getter attitude.
Of course, an excessive talent pool is one of the obvious advantages but one shouldn’t avoid the infrastructural strength of Brazil’s IT sector. There are other huge tech parks such as São Paulo, Rio de Janeiro, Florianópolis, Recife, Porto Alegre, and Curitiba, where you can find experienced developers.
There are a plethora of reasons which you shouldn’t avoid when considering Mexico for your offshore development project such as it’s offshore software development rates or highly-skilled and well-educated talent pool, favorable trade treaties, better infrastructure, proximity to the target market, and the list goes on.
One of the outstanding reasons here is the difference in time zones. Mexico and the US share the same time zone. This means there is no difference in working hours. If anyone in the US wants to conduct nearshore software development then Mexico would be the best option. Thus, time zone difference don’t get in the way of getting things done.
When we speak about Argentina I am sure you must be recalling its passion for football and many renowned football players such as Lionel Messi, but do you know that Argentina is also a renowned destination for offshore development in Argentina. If you are looking for a space offering high-end communication, exceptional services at a time, consider offshore software developers from Argentina.
Why Argentina? The country’s only two hours ahead of the East Coast and five hours ahead of the West Coast during Daylight Savings Time.
Did you know that South Africa was named “Offshoring Destination of the Year” twice in the last four years (2016 and 2018)? Apart from India and Philippines, South Africa has left no stone unturned in proving themselves as one of the finest outsourcing destinations across the globe.
And since they have lower cost of living, the offshore development rates can be relatively low. With the high adoption of the next-gen technology, nothing can stop South Africa from competing worldwide.
Another name that offers the best offshore software development rates is Asia. A space that offers best of both worlds, quality and low development costs.
When companies hire offshore software developers from here they can save as much as 60% on their labor costs. It’s a fact!
Further, I would like to mention certain Asian software development outsourcing countries.
Each one of these does not just offer the best offshore software development rates. By hiring Asian software development countries, businesses can grab the best deals on offshore developer rates. Finding the right talent at reasonable costs.
If you are thinking of going for an outsourcing company, make sure it is from India. As, one of the finest offshore development rates is offered by India in Asia. Based on a recent survey conducted in the USA, 85% of United States-based companies prefer to outsource their data processing, e-publishing, photo editing, eCommerce management, website design, search engine marketing and other processes to Indian software development companies. Now, why prefer India for hiring offshore developers?
Receiving high-end services, in a quick turnaround time is the pure magic offered by India. Apart from this, the favorable government policies, ever-growing economy and infrastructure and an immensely large population makes India more favorable if you are looking for an offshore development team.
Moreover, India has a population of over 1.2 billion people and on a yearly basis, the scope of a talented offshore developer simply keeps on widening day by day. This could be beneficial if you have complex projects.
Also, here you won’t be facing any language or communication barrier. Indian developers are extremely at their best when it comes to languages whether its English or any other.
Another country to succeed as a world-class software outsourcing destination is China. Not to mention that the country offers one of the lowest offshore software development rates.
The Asian country has made massive innovative strides like Alibaba, pretty much known to all. Located near the Asian and European markets, China is the best place where you can find many outsourcing companies.
If you are looking for one of the leading destinations in the world for outsourcing software development, the Philippines is the name. Today, you will come across several companies whose onshore offices are not located here but do conduct offshore activities from here. These outsourcing companies come from various industries, from manufacturing to technology. Why the Philippines, you may ask?
- English Fluency
- Better Quality of life
Outsourcing to Singapore when it comes to software development, is quite interesting. A lot of people outsource their software development services just to cut development costs, and it is a very smart move.
I have come across many of you still debating whether to outsource software development in America or not. Fret not, here’s your answer! First and foremost, the price for certain offshore labor has gone up. But at the same time, both North America and South America web developers attract businesses from different parts of the world.
To be precise they offer a price less than $150 per hour.
Last but not the least, Australia offers the best development rates by country. Though this is a continent, there are places such as Sydney, Melbourne, and Perth that are considered as best destinations for conducting offshore software development.
Here the average software development rates lie from $100 to $175.
3. How to Estimate the Cost of Outsourcing Software Development?
Before you even begin estimating the offshore software development costs it is very crucial for you to be clear about two aspects. One, Is this affordable to you? And Two, Can it be done in the predetermined time? Other than these there are certain factors that do affect the offshore software development cost in one way or the other. Let us go through those.
3.1 Which Platform is Being Used?
The first and foremost factor worth considering while offshore development is the choice of the platform. From Android to iOS, Microsoft Azure, Nodejs, Amazon Web Services, and Twilio, platforms are many but making the right choice for the software development process is a crucial move. So make a decision, your price will surely get affected.
3.2 Size of the Project
The next factor affecting the offshore software development cost is the size of the project. In software development realm, a project is divided into 4 categories such as:
Small – If you just want to have certain minor changes such as bug fixing.
Medium -This requires work upto an extent. For ex, Third-party integrations
Large – As the name implies, this one might require integration with multiple systems or a complex business system
Enterprise – Right from the development of an app from the scratch to incorporating several third-party integrations and what not!
3.3 Development & Testing
Development and testing is one of the crucial price-driving factors in the software development market. Both the procedures go hand in hand. The custom software development rates and testing always depends on the complexity of your project.
So that’s all for now! I hope now you know different offshore development rates by country. In case, if you still have any doubt or queries regarding offshore outsourcing, feel free to mention that in the comment section below.