September 23, 2020 Vladyslav Kyrychenko

How much offshore software development costs: Average rates per hour in 2020

You may become interested in the exact location and pricing models available on the market if you have an idea to try outsourced software development. Lemapp has prepared the guide on all the possible options for choosing, ranged by the country and the hourly rates.

Let’s check what are the peculiarities of offshore software development all over the world.

Western Europe

This region is tricky for hiring an offshore software development team. On the one hand, many companies claim to be from the U.K. or Netherlands – but in reality, they have central offices in Asia or Africa. That’s the reason behind their relatively low rates – from $15 to $30 per hour. If you managed to find a “real” European company, the average cost would be high, something between $110 – $300.  

Eastern Europe

Many businesses search for remote teams in this area, and there’s no surprise. Notwithstanding the location proximity with Western Europe, the difference in software development costs is dramatic. 

The choice of these countries is beneficial for clients for several reasons. Among all, they are developing economies with the broadest access to education and sharpest interest in IT industry possible. And all these factors – for a relatively low price. The specialists’ average rate varies from $25 to $45 per hour, depending on the talents of a chosen professional. In particular, an hour of an experienced software developer will cost you around $20-$50.

For the greatest value-for-money, Lemapp recommends choosing an offshore software development team from former USSR countries. Countries like Poland, Hungary, and the Czech Republic are more expensive but don’t differ that much in quality.

Asia

In the region, the top countries for outsourced services are India, the Philippines, and Indonesia. For years, they were known all over the world for cheap rates and relative quality – especially after the tension in international relationships with Donald Trump appeared. Without clients from the U.S., local software developers had nothing but to decrease the bill for their services to survive. These days, you can find a remote developer who will charge you only $15-$25 per hour. At the same time, don’t expect the top quality from Asian specialists. They are not reliable in long-term projects because of the low standards and frequent lack of motivation.

Like in Europe, the situation with prices is completely different within the area. For example, the general rate for IT specialists in China is around $50-$100 per hour. But if you go to Shanghai, you’ll see the cost of $200 for the same service. Thus, Lemapp recommends searching for the most beneficial quality to price ratio in Southeast Asia. Focus on the rate of $30-$40 per hour as the best deal for the region.

North America

In this region, software developers want the highest salaries. This statement is relevant for not only well-known California but also all other areas. On average, their rate per hour that is the most impressive in the world. In both countries, a skillful specialist will ask $150 for an hour of his/her work. But don’t be surprised if you see $200 in the bill. However, you may also see $50 per hour. The latter rate signalizes you’ve met an offshore development company that has an Asian origin. So, be ready to choose the best provider carefully. 

South America

In this area, monitoring offshore development is always curious. On the IT map, South America has appeared recently and is growing like a wind. The heavy funding from the countries in North America caused such a rapid emergence. As a result, the world sees there a pool of affordable specialists – the excellent service can be delivered at the rate of $20-$30 per hour. This year, the prices have already increased to $55 – especially in the countries close to the USA. Thus, Lemapp recommends offering to Mexico, Panama, or Brazil for the best quality and affordable prices.

Africa

This continent is a newcomer to the IT market that attracts corporate leaders with low prices. But the quality of the African service is still questionable. Because of the lack of experience, you must be courageous to request this offshore team in the long run. In the northern part, the cost per hour is close to Asian prices. When it comes to South Africa, you can see that the rate reaches $50-$100. All these differences are the result of heterogeneity of the region itself.

Australia

Australia is very similar to Africa. The situation with dissimilarity is compounded as the country is an island. Although this position had been protecting Australia from wars for years, it also blocked it from cultural interchanges and cooperation perks. At last, the remote model helps the country to participate in contemporary trends. At the same time, it lacks software engineers, web developers, and testers. The Australian workers are expensive in the given circumstances, with the cost per hour starting from $100.

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