Offshore Developers Rate 2024: Know Everything Here!
Businesses worldwide are continuously looking for ways to use the potential of offshore developers in the rapidly changing field of software development and technology in order to stay competitive, cut costs, and expedite project timeframes. The need for offshore developers is expected to increase as 2024 approaches, so it’s critical for companies and developers to be up-to-date on the newest practices and cost models.
We’ll go into the world of offshore developers’ prices for 2024 in this in-depth article, clearing up the many variables that affect these rates and assisting you in making wise choices. Whether you’re a developer looking to explore chances in the offshore market or a business thinking about outsourcing development needs, this blog will offer insightful information about the rates, trends, and dynamics that are anticipated to shape the industry in the upcoming year.
We’ll go over important topics like the price of offshore development services, the effect of geography, developer experience and skill sets, and new technologies that are influencing market pricing. With this understanding, you’ll be more capable of navigating the intricate world of offshore development and reaching your objectives through strategic decision-making.
So, continue reading if you’re interested in learning what to anticipate from offshore developer rates in 2024 and want to maintain your competitive edge in the highly competitive global tech market. This handbook will serve as your roadmap for comprehending the future course of offshore development.
- The Average Cost of Software Development Services
- What Was the Change in Offshore Software Development Rates in the Past Year?
- How to Hire Offshore Developers in 2023
- Benefits of Hiring Offshore Developers in 2023
- Average Developer Hourly Rate on Hiring Platforms in 2023
The Average Cost of Software Development Services
These days, you can save money by hiring a team of programmers abroad to handle software development. Access to worldwide talent pools is another benefit of offshoring. Nonetheless, there are still significant regional differences in the average cost of software development services. Product development expenses can also vary based on a number of factors, including the tech stack, the hiring methodology, the platform you use to find offshore professionals, and the developer’s seniority.
In this post, we’ll examine the offshore software development rates according to the seniority of each nation and offer some hiring advice for developers. Reputable sites like PayScale, SalaryExpert, Indeed, Upwork, TopTal, and ourselves—Appic softwares, a marketplace for on-demand technical staff augmentation—will all provide us with consistent data.
| Region | Average software development hourly rate | Ease of doing business* | Political stability** |
| North America | $77 | 84 | 0.3 |
| Western Europe | $75 | 80.3 | 0.7 |
| Eastern Europe | $58 | 73.7 | 0.4 |
| Latin America | $61 | 65.7 | -0.1 |
| Asia Pacific | $28 | 65.5 | -0.7 |
| Africa | $33 | 66.1 | -0.9 |
Please keep in mind that average rates for software development services can vary significantly from the actual cost for the following reasons:
- The average rate includes charges for many technologies; some are more expensive and part of the mainstream, while others are unique and will cost much more;
- Junior and senior developer rates are combined to create average cost, with the first group being the majority of the market;
- Because they are always in demand, developers with strong communication, English language proficiency, and a proactive attitude get paid more than average.
- In addition, we made an effort to provide the most accurate estimate of the hourly fee that you should pay for an experienced developer who is prepared to work on foreign projects in this post.
Present State of the IT Employment Market in 2023
Our research indicates that US-based businesses favor hiring senior software engineers. Job openings for junior or even middle level positions are hard to come by. This could be due to a variety of factors, including the need to move quickly in order to maintain stability in a changing environment, the requirement for strong leaders in every position, the lack of resources that prevent the hiring and management of a large development team, or even the opposite—getting funding rounds that allow for new opportunities. Similar circumstances are also seen in Western Europe, particularly in Germany and the Netherlands, where a large concentration of European companies is found.
Salary increases and fierce competition for few resources result from these locations’ high demand and low supply of senior engineers. Furthermore, the majority of smaller businesses will need to search for talent in nations with lower cost of living if large corporations can afford to pay the highest fees and prevail in this battle. This is how the reputation of Eastern Europe, South America, Asia, and Africa as centers of offshore software development was established.
What Was the Change in Offshore Software Development Rates in the Past Year?
This piece was initially posted on our blog at the start of 2020. However, we occasionally update this content due to the ever-changing nature of the industry. We made the decision in January 2023 to contrast the rates we had initially stated in this post with the going rates on the market for software development.
It should come as no surprise that fees for app development services will rise over 3.8% and will continue to rise for practically all technologies. The most important technologies that saw growth were PHP, Java, Node.js, Ruby on Rails, React Native, React.js, and Python. The remuneration to these developers was increased by up to 30% over the previous year.
Software Development Hourly Rates by Region in 2023
We’ll now provide a country-by-country breakdown of offshore software development rates and areas so you can choose wisely when employing foreign talent. We’ll go over Africa, Asia, Latin America, and Eastern Europe. However, before we compare the rates with those in offshore countries, let’s first look at rates in Western Europe and the United States, which have the biggest demand for offshore software development.
Rates of Software Development in Western Europe and North America in 2023
As of 2023, the average basic hourly rate for a software engineer in the US is $71, according to Indeed.com. This figure may differ based on geography as well as experience and technology. Furthermore, you should be aware that the rate just covers the developer’s earnings; it does not account for any taxes or other costs. Here are a few instances of rates in different states:
| State | Average Salary, $ per hour | Junior Engineer Salary, $ per hour | Senior Engineer Salary, $ per hour |
| California | $85 | $56 | $74 |
| New York | $70 | $54 | $76 |
| Texas | $52 | $48 | $53 |
| Washington | $63 | 53 | $68 |
Comparably, rates in Western Europe can differ depending on the nation, such as:
| Country | Average Salary, $ per hour | Ease of doing business, out of 100 | Political stability, from -2.5 to +2.5 |
| France | $54 | 76.8 | 0.4 |
| Germany | $61 | 79.7 | 0.8 |
| Netherlands | $69 | 76.1 | 0.9 |
| Sweden | $52 | 82 | 1.0 |
| United Kingdom | $93 | 83.5 | 0.5 |
| Region’s average | $66 | 79.62 | 0.7 |
Let’s move on to the rates in offshore nations now.
Offshore Software Development in Eastern Europe in 2023
Eastern European nations like Romania, Poland, and Ukraine are currently ranked among the world’s leading hubs for software development. In 2022, Romania exported 3.2 billion euros, Poland 26 billion dollars, and Ukraine 3.74 billion dollars worth of IT.
In this region, the Czech Republic, Hungary, Bulgaria, Serbia, and Moldova are other prominent players.
Here are some further statistics about the condition of the Eastern European IT sector:
- The profit for the 477 IT companies who took part in the study was $5 billion.
- 700,000 is the number of IT specialists in the area (the number of IT talent has grown to 200,000 professionals since the report was released and is still increasing).
- The annual number of graduates from tech universities is sixty thousand.
- 20–25% is the region’s yearly revenue growth.
The top four countries in the world for Technology, which encompasses software engineering, databases, security engineering, operating systems, computer networking, and human-computer interactions, are Ukraine, the Czech Republic, Poland, and Hungary, according to Coursera’s Global Skills Index 2022. Furthermore, two Eastern European nations that have made it to the top of the world rankings in data science are Hungary and the Czech Republic. These nations have expertise in fields like UX design, Python, SQL, R, and others.
Offshore Software Development in Ukraine in 2023
Situated in the heart of Europe, Ukraine has been a popular destination for foreign investors ever since the first software outsourcing firms began operating there in the late 1990s and early 2000s. The following data and information describe the status of the nation’s IT industry:
- The IT Report of Ukraine states that the nation’s exports of IT services increased by 24% in 2020.
- The nation’s exports of IT to the worldwide market exceeded $5 billion in 2020.
- In the Ukrainian IT Report 2021, it is said that over 80% of developers speak English at least intermediately.
- Over 126 Ukrainian firms have secured venture capital funding since 2021.
- The overall number of licensed IT specialists in Ukraine has climbed by 29K over the past year, or 212,000 workers.
- The IT sector in the nation has expanded by over 36% since 2021.
- Ukraine is ranked in the top 25 for data science expertise in Coursera’s 2022 assessment.
- The value of Ukraine’s IT exports increased by 5.8% in 2022 to $7.3 billion.
Undoubtedly, there are numerous benefits to outsourcing software development to Ukraine, and the nation justly merits a spot on the list of nations with the highest offshore software development rates.
Poland as an Offshore Development Destination
In the Eastern European software development outsourcing market, Poland is among the priciest destinations. Its economy is also among the most stable and safest in the area. The Polish IT sector receives ongoing backing from the government. This led to the establishment of R&D centers in Poland for numerous multinational companies, such as Google, Intel, and Siemens.
Being a part of the European Union is one of this nation’s greatest advantages. Because of this, it is quite alluring to Western European businesses who share its physical and legal boundaries.
Not only does Poland produce IT graduates, but it also actively seeks out the top engineers in Ukraine to add to its pool of talent. Since many software outsourcing businesses serve both the Polish and Ukrainian markets, it is simple for them to transfer engineers to the nation where living expenses and software development costs are greater.
Eastern Europe’s Average Hourly Rate for Software Engineers by Country in 2023
When seeking a long-term relationship, a company’s development costs are a critical consideration. However, establishing secure working connections with your offshore developers is an even more crucial factor to consider when selecting an outsourcing location. For your convenience, we integrated The World Bank’s Index of Political Stability and Ease of Doing Business with the average hourly rate for software development talent in other Eastern European nations.
| Country | Average software development hourly rate | Ease of doing business, out of 100 | Political stability, from -2.5 to +2.5 |
| Bulgaria | $54 | 72 | 0.5 |
| Croatia | $58 | 73.6 | 0.7 |
| Czech Republic | $60 | 76.3 | 1.0 |
| Hungary | $57 | 73.4 | 0.9 |
| Poland | $59 | 76.4 | 0.5 |
| Romania | $56 | 73.3 | 0.5 |
| Ukraine | $59 | 70.2 | -1.5 |
| Region’s average | $57 | 73.7 | 0.4 |
Offshore Software Development in Latin America in 2023
In 2023, the IT sector in Latin America is expected to prosper despite poor economic growth and political unpredictability, predicts IDC. As per Statista, the IT market is expected to increase at a rate of 6.5% until 2028, having reached 7.7% in 2021. Businesses are spending more on AR/VR, AI, IoT, cloud, robots, security, and 3D printing technology, according to IDC.
According to Coursera, Argentina and Chile are among the top 100 countries in the world for data science (machine learning, data management, data visualization, and statistical programming).
Offshore Software Development in Brazil in 2023
In Latin America and South America, Brazil is one of the top outsourcing destinations for software. With almost 500,000 software engineers, Brazil leads the area in the number of software developers, per an earlier Agile Engine analysis. Furthermore, according to the Global Innovation Index 2022, Brazil ranks 54th out of the world’s most innovative countries. In Brazil, the average hourly wage for a software engineer is projected to be $65.
Top Performing Outsourcing Destinations in Latin America
In their quest for engineers, firms more often than not refer to other Latin American countries, even though Brazil is the largest country in South America and thus has the largest talent pool. The only plausible explanation for this is that Portuguese is solely spoken in Brazil. The remainder of the continent, however, speaks Spanish. As a result, businesses can hire more people from more nations with greater ease because they know that their foreign developers will communicate flawlessly with one another.
Mexico, which is closest to the US and has developers who are accustomed to dealing with US clients and fully understand their corporate culture, is one of the most sought-after locations for nearshore software development.
Argentina and Panama are the second and third offshore development countries in the region that we would like to discuss here.
Argentina is placed second in the region and 69th among the finest software outsourcing countries, according to the same Agile Engine survey. According to the Global Innovation Index 2022, it is also the 38th digital nation in the globe.
The World Bank Group reports that, in recent years, Panama’s economy has grown at one of the quickest rates among major economies, thanks to remarkable technological advancements in the IT sector.
Latin America’s Average Developer Hourly Rate by Country, 2023
According to the most recent data, stability scores are lower and the average hourly rate for software developers is greater in Latin American countries than in Eastern European countries.
| Country | Average software development hourly rate | Ease of doing business, out of 100 | Political stability, from -2.5 to +2.5 |
| Argentina | $51 | 59 | -0.1 |
| Bolivia | $33 | 51.7 | 0.3 |
| Brazil | $44 | 59.1 | -0.5 |
| Columbia | $51 | 70.1 | -0.9 |
| Costa Rica | $44 | 69.2 | 0.9 |
| Chile | $55 | 72.6 | 0.1 |
| Mexico | $61 | 72.4 | -0.6 |
| Peru | $39 | 68.7 | 1.0 |
| Uruguay | $61 | 61.5 | 1.0 |
| Region’s average | $50 | 64.9 | -0.1 |
Offshore Software Development in Asia in 2023
Asia, a leader in software outsourcing, has the highest concentration of offshore software developers when compared to other continents.
Another desirable location for offshore development is China. The top developers across all HackerRank challenges are Chinese. Through financial incentives, the Chinese government promotes the technology industry. For instance, over 200 national high-tech businesses are currently represented in the Haidian Park Entrepreneurship Service Center.
The Philippines’ IT sector is expanding at the quickest rate in Cebu City, where there are over 200 offshore enterprises and 95,000 open tech jobs. The capital Manila is the second super metropolis in the globe, and the Philippines is ranked 59th among the top digital countries in the world by the Global Innovation Index 2022.
Offshore Software Development in India in 2023
As the top digital nation in the world according to the Global Innovation Index 2022, India is the main software outsourcing destination in Asia. The most economical web development process outsourcing is typically provided by Indian software development organizations. Over 1.5 million IT professionals graduate from the nation’s IT universities each year. In India, the average hourly rate for a developer is $32.
Hourly Rates for Offshore Developers in Asia by Country, 2023
Like the one comprising LATAM countries, the Asia Pacific region’s ease of doing business index is comparable. In addition, compared to the prior region, this one has far poorer conditions regarding political stability.
The following are the outsourcing rates for other Asian nations in 2023:
| Country | Average software development hourly rate | Ease of doing business, out of 100 | Political stability, from -2.5 to +2.5 |
| Bangladesh | $28 | 45 | -1.0 |
| China | $29 | 77.9 | -0.5 |
| India | $29 | 71 | -0.6 |
| Malaysia | $33 | 81.5 | 0.1 |
| Nepal | $28 | 63.2 | -0.2 |
| Pakistan | $25 | 61 | -1.7 |
| Philippines | $28 | 62.8 | -0.9 |
| Sri Lanka | $28 | 61.8 | -0.3 |
| Region’s average | $28 | 65.5 | -0.5 |
Offshore Software Development in Africa in 2023
Although the market for IT outsourcing in Africa is still in its infancy, it has already shown signs of significant expansion and is drawing interest from abroad. It is anticipated that the region would soon rank among the top countries for software engineers in 2023 due to the growing number of young people living there, which will increase demand for high-quality positions in the service industry.
North Africa—more especially, Egypt, Morocco, and Tunisia—has emerged as a major outsourcing hub because to its proximity to Europe and its narrow time difference from New York. Additionally, because they speak the same language, France is a major market for Morocco and Tunisia. Programmers from North Africa are skilled in languages like Python, Ruby, and SQL.
Because of the minimal time zone variations and excellent fluency in languages like English, German, and Dutch, South Africa is another desirable location. Additionally, the area is listed in the Tholons Super Cities and Digital Nations rankings. Developers in South Africa are proficient in SQL, PHP, and C++.
Africa in East Programmers are especially concentrated in Kenya. Nairobi, the country’s capital, is home to thousands of Kenyan companies, and the infrastructure of the area fosters technological innovation in nascent enterprises. Java, SQL, and mobile app development are areas of expertise for developers in East Africa.
Nonetheless, when it comes to worldwide talent rankings, African nations do the worst.
Rates of Offshore Software Development in Africa by Country in 2023
According to current data, African hubs have much lower hourly rates for software engineers than any other outsourcing location. You will, however, bear greater risks for this, as this area has the lowest stability index.
| Country | Average software development hourly rate | Ease of doing business, out of 100 | Political stability, from -2.5 to +2.5 |
| Egypt | $22 | 60.1 | -1.0 |
| Kenya | $24 | 73.2 | -1.1 |
| Morocco | $22 | 73.4 | -0.4 |
| Nigeria | $44 | 56.9 | -1.8 |
| South Africa | $44 | 67 | -0.7 |
| Region’s average | $31 | 66.12 | -0.9 |
Hourly Rates for Software Development by Region in 2023
As you can see, offshore nations have much less average software development costs than Western Europe or the US. Even senior software engineers may find that their hourly wage in an offshore nation is less than that of a junior or medium developer in the United States. Because living expenses in offshore nations are lower than in the US or Western Europe, hiring offshore developers is therefore the most economical course of action.
When selecting a nation to outsource software development services to, you must exercise caution. Regretfully, not every offshore nation provides a favorable price/quality ratio. If you have to hunt for another offshore development team to fix the flaws of the prior one, a promising contract can wind up costing you double.
Just focusing your search on the top nations for software development outsourcing is the first step toward a successful partnership. It’s important to remember that managing remote workers necessitates setting up an organized framework for cooperation and communication. Furthermore, due to notable cultural differences and an unpleasant time zone difference, it could be challenging for clients in the United States and Western Europe to collaborate with Asian developers.
Benefits of Hiring Offshore Developers in 2023
Hiring offshore developers will provide you with the following benefits in addition to reasonable costs:
- access to a huge talent pool for tech. The number of IT employment grew again in 2022 (far faster than other fields). In the event that your business is one of these employers, outsourcing can be an option.
- no extra expenses. Since remote software development takes place, you only pay for the services that are rendered. Most of the time, developers or an intermediate agency handles insurance, office space rent, benefits, and other expenses, so you don’t have to worry about them.
- Your project receives more time commitment. When your remote workers work from home, they avoid having to spend time traveling and may instead focus on the assignment.
How to Hire Offshore Developers in 2023
Hiring offshore developers can be done in a few different ways:
Freelance Websites
For the following reasons, hiring remote developers through freelance portals appears to be a very appealing option:
- large pool of IT talent; Upwork, for instance, has over ten thousand offshore developer profiles.
- Fast hiring: Putting together an offshore development team of independent contractors and negotiating contracts with them may take less than a week.
- Remote collaboration: there are no overhead expenses; you only pay for the development services.
- Direct communication: In the secure environment that your freelance portal provides, you can have conversations or video chats with your team.
- Low rates: A freelancer must build a portfolio of completed tasks in order to gain recognition on a freelance marketplace. Even if their fees “in real life” are usually greater, they frequently accept low-budget projects in order to achieve that.
However, the drawbacks are as follows:
- Unreliability: Since they are not subject to formal contracts, freelancers are free to abandon your project at any time.
- Time zone differences: Having to catch up with your team when you are in separate time zones can be inconvenient for both of you.
- Commission cost: Every payment you make through freelance portals is subject to a processing fee.
- Lack of dedication: You can’t be certain that freelancers will focus entirely on your project because they can work on other projects in addition to yours.
Outsourcing Companies
Forming an offshore development team typically involves working with outsourcing providers. These businesses provide software development services in accordance with the project specifications of their international clientele. You will receive the following advantages if you select this hiring option:
- Reliability: Since the job would be legally binding and backed by formal agreements, the developers won’t be able to quit on their own, unlike independent contractors.
- No overhead because all expenditures will be covered by the outsourcing company.
- Complete dedication: the developers will only work on your project till it is completed.
The disadvantages of outsourcing firms are:
- Slow hiring process: It could take months to assemble a team for your project because of bureaucracy.
- Lack of contact: You rarely get to speak with your developers face-to-face because local project managers handle most of the correspondence.
Average Developer Hourly Rate on Hiring Platforms in 2023
Let’s now evaluate the hourly wages for software development on Upwork, TopTal, and Appic Softwares , three job marketplaces. These prices vary depending on a number of variables, including area, project scope, language, and platform. The average rates as of 2023, based on these parameters, are:
| Upwork*,
$ per hour |
TopTal*,
$ per hour |
Appic softwares*,
$ per hour |
|
| Web development | 32-176 | 60-250 | 54-130 |
| Mobile development | 35-210 | 75-245 | 49-170 |
| Front-end web development | 25-170 | 60-220 | 55-180 |
| Back-end web development | 36-240 | 75-320 | 55-210 |
2023 Developer Hourly Rate Depending on Experience and Technology
Appic Softwares has gathered data on the average hourly cost of software development based on experience levels (junior, medium, and senior) and technologies (e.g., JavaScript, Python,.NET, etc.). Because the pricing for bespoke software development are compiled from over 500 outsourcing organizations and over 50,000 developer profiles worldwide, the table below provides a fairly accurate picture of the costs associated with this process. The minimum, maximum, average, and median rates for developers that are featured on our platform are shown in the table below.
| Average Rate, $ | Median Rate, $ | |
| .NET | 51 | 49 |
| Angular.js | 56 | 49 |
| C# | 53 | 50 |
| C++ | 53 | 52 |
| CSS | 52 | 51 |
| DevOps | 58 | 56 |
| Java | 56 | 51 |
| JavaScript | 51 | 50 |
| Node.js | 53 | 52 |
| PHP | 51 | 47 |
| Python | 52 | 54 |
| React Native | 53 | 51 |
| React.js | 53 | 51 |
| Ruby on Rails | 52 | 51 |
| Junior, $ | Middle, $ | Senior, $ | |
| .NET | 33 | 44 | 120 |
| Angular.js | 39 | 43 | 98 |
| C# | 32 | 41 | 98 |
| C++ | 33 | 43 | 105 |
| CSS | 30 | 40 | 50 |
| Java | 38 | 48 | 120 |
| JavaScript | 33 | 48 | 170 |
| Node.js | 39 | 44 | 157 |
| PHP | 30 | 47 | 186 |
| Python | 38 | 54 | 210 |
| React Native | 42 | 45 | 121 |
| React.js | 36 | 51 | 111 |
| Ruby on Rails | 32 | 43 | 87 |
FAQ
What are the advantages of developing software remotely?
The main factor driving offshore considerations is cost effectiveness. Your money won’t be wasted on overhead expenses like office rent, payroll, insurance benefits, vacations, hiring fees, etc. while working with offshore developers. Furthermore, offshore locations give you access to talent that is only available on-site. For instance, IT companies already employ the majority of California’s highly qualified software engineers. Conversely, there are plenty of competent developers in offshore nations in Eastern and Latin America who would be happy to work for your business.
Which offshore location is the best for outsourcing US projects?
These days, a lot of North American businesses commit their IT routines to elite computer specialists from Latin America. The primary benefits for a firm include real-time cooperation, high-quality development services, and cultural similarities. Brazil is the most popular location for software outsourcing among Latin American businesses, followed by Argentina and Panama.
What does software development nearshore mean?
With the exception of the fact that the places you outsource to are close by, nearshore software is identical to offshore development in every manner, minimizing time zone disparities. Visit our comprehensive guide to nearshoring to learn more.
Conclusion
Offshore developer rates will still have an impact on the tech sector in 2024. Learn the main variables that affect pricing so you may make wise choices for your company or profession.
For your project, you can select a skilled full-stack developer from Appic Softwares. Our full-stack engineers have a wealth of global project experience and are highly skilled in soft skills.
You will be able to supply top-notch developers for your project if you choose to collaborate with them.
Why then the hesitation?
