Businesses across the globe are collaborating with outsource software developers to stay ahead of the competition. Collaborating with a software development team from another geographical location helps refine the business model & assists in defining strategic goals in the best possible way.
Offshore software development has gained an exponential boom over a couple of years. This proven business strategy has made it possible to work with top-notch professionals residing overseas.
While small businesses use this approach to bring down development costs, large enterprises use it to extend their existing team and increase their global outreach.
If you are looking to hire dedicated offshore developers and want to learn about the software developer hourly rates, we have curated this guide for you!
Current State of Global Offshoring Software Development
Since its inception in the early 2000s, the outsourcing industry has revolutionized different sectors.
As outsourcing continues to grow, a few trends would help you understand the current state of global outsourcing software development:
- The IT outsourcing market (hereafter referred to as the market studied) was valued at USD 526.6 billion in 2021. It is expected to reach USD 682.3 billion by 2027, registering a CAGR of 4.13% during 2022-2027 (hereafter, referred to as the forecast period).
- The business process outsourcing market is expected to grow by USD 76.90 billion, progressing at a CAGR of over 7% during the forecast period
- Incremental growth of 76.90 billion USD is expected from 2019 to 2024, up by 1.69% from the previous year, 2020.
- The market is fragmented with several players, and the impact is neutral.
Value over price As we know, outsourcing has been a growing trend since the early 1980s. However, today’s offshore development scenario differs significantly from the earlier models.
Organizations moving towards outsourcing software development are focusing heavily on hiring skilled labor to reduce costs, improve core business processes, enhance service quality and drive transformation in addition to various other reasons mentioned below:
Why do companies outsource?
Software Developer Hourly Rates by Regions
We have done detailed market research to find out the software developer hourly rate across the globe.
Without further ado, let’s compare the price of software developers across the top outsourcing countries: Asia, Europe, Latin America, and Africa.
What is the Software Development Hourly Rate In The United States?
Software developer hourly rates are the highest in the United States, ranging from $38-63 per hour. The total salary, including taxes and benefits, ranges from $137k to $173k.
Although hiring in the United States is a bit expensive, there are numerous benefits, such as lesser language barriers and reduced miscommunications.
Software Developer Hourly Rate In United States The following table depicts the average hourly rate of software developers in various cities in the United States:
What Is The Software Developer Hourly Rate in Asian Countries?
Asia has the most significant number of software developers, a pioneering software outsourcing destination compared to other countries., with 10 million. The hourly rates of software developers across the continent are shaped by various aspects and differ significantly from country to country.
India, the Philippines, and China are the three major countries offering custom software engineering services. Let’s drill down the software development services across the top three Asian countries to make things easy for you:
Software Developer Hourly Rate In India
The entrepreneurs who wish to execute their ideas by building top-notch solutions at affordable rates consider hiring Indian developers. India is one of the best countries to outsource software requirements.
Hiring an offshore developer from Asian countries is the most budget-friendly option. Explicitly speaking about India, the range to hire developers starts from $18 for a junior developer and goes up to $40/hr.
Here are why the country is one of the most preferred outsourcing choices:
- As per A.T Kearney Global Service Location Index 2019, India tops the list of the most attractive outsourcing destinations.
- The country has 100 million English-speaking people in the world. And by the end of this year, there will be more than 2 billion English speakers in the country.
- Approximately 1.5 million engineering graduates pass out of college every year.
- More than 200,000 IT graduates add up to the Indian workforce annually. Besides, the country has the youngest employable population globally.
- In the upcoming years, 40% of professionals will train themselves according to the latest technology to meet the advanced industry requirements.
Software Development Hourly Rate In Philippines
Philippines is another country with the fastest-growing IT industry. With more than 200 offshore software companies and 95000 technical positions, it is considered the second-best country to build software teams overseas.
According to the data by Teleport & Best jobs, the salary for junior software developers in Manila ranges from $3.5-$6 per hour, in Quezon ranges from $4-$7 per hour, and in Cebu, it goes anywhere between $5-$6 per hour.
What is The Software Developer Hourly Rate in Latin America?
Top Countries: Brazil, Argentina, Colombia, Costa Rica
According to Accelerance, most of the businesses being invested in are small and medium enterprises. But the critical fact to consider here is that about 90% of these tech firms are located in Colombia and Mexico.
Costs of Outsourcing Development in Latin America
- Junior Developer: $25 – $34/hour
- Mid-level Developer: $50 – $80/hour
- Senior Developer: $100 – $120/hour
Though the country is a bit expensive for software development, their quality of service is at par. So, let’s get down to the top countries to outsource software development.
Argentina
European trends have a strong influence on Argentina’s IT market. Not only economically, but Argentina has also been culturally connected to Europe. Well, it has the most expensive IT development teams in the region. Meanwhile, this is because the developers have rich experience in working with western countries.
Colombia
The country gives rise to 13,000 software developers every year, most of which go to offshore companies. Nevertheless, companies are CMMI certified, benefitting from American influence.
Brazil
Brazil is one of the leading software development destinations for outsourcing. Furthermore, Rio de Janeiro is a global IT center, and the city has 8/10 top technology universities producing 14 thousand alumni each year. For this fact, many US companies prefer recruiting Brazilian talents.
Software Developer Hourly Rate In China
Among other Asian countries, China has considered s the third-best for hiring mobile app developers or web developers. Chinese developers are the first among all HackerRank challenges. Today, there are more than 50 science and technology industrial parks.
In China, the overall revenue in the software development industry is expected to increase by 6.9 percent in the upcoming five years, reaching $1.2 trillion.
What is the Software Development Hourly Rate in Africa?
Africa’s IT industry is still in its emerging phase but has started to depict rapid growth. Moreover, the country has now begun to attract clients from across the globe.
The e-Conomy Africa 2020 report shows that Africa’s IT business promises to reach $180 billion by 2025. It will offer 5.2% GDP. By the end of 2050, it is expected that the industry will demonstrate $712 billion in revenue, with 8.5% of the continent’s GDP.
- North African countries like Egypt, Morocco, and Tunisia have quickly become recommended countries with talented offshore developers. Companies hire software engineers from North Africa as they have Python, Ruby, and SQL expertise.
- South Africa is the preferred choice due to its high proficiency in languages like English, German, and Dutch. Also, they have already been featured in the Tholons Digital Nations and Super Cities rankings. The top developers are skilled in C++, PHP, and SQL.
- East African Kenya has the highest number of developers. Likewise, the capital Nairobi is where the city’s infrastructure encourages technical innovation among startups. The development team is well-versed in Java, SQL, and mobile development.
To know about software developer hourly rates in other countries, read the original article.
Original Article: software developer hourly rates
Frequently Asked Questions
1. What do software developers charge per hour?
Hourly rates of software developers depend on the region and the experience level of the developer/consultant. The price range varies from $18-$60 per hour on average. Here’s the list of software development hourly rate according to the region:
1. Eastern Europe: $25 – $50 per hour.
2. Western Europe: $20-$45
3. Latin America: $30 – $50
4. Africa: $20 – $40
5. Asia: $18 – $40
6. North America: $38-$63
2. What is the top offshore destination for outsourcing?
The top destinations for outsourcing are as follows:
- India
- Ukraine
- Romania
- Bulgaria
- Poland
- China
3. What is the hourly rate of a Software Developer in India?
In India, the range to hire developers starts from $18 for a junior developer and goes up to $40/hr.
4. Which Country is the Best to Hire Software Developers?
The 5 Best countries to hire software developers are:
- India
- Ukraine
- Romania
- Germany
- China
Thank you Postpuff for allowing me to publish this article.
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