Offshore software development rates by country 

As a viable way to save costs and access talent, offshore software development has become more popular in recent years. But before choosing where to hire software developers, it is essential that you must understand the price differences in each country. In this article, let’s learn about Offshore software development rates by popular countries today. 

I. Offshore software development overview 

Software development is one of the fastest growing industries today. In 2018, the number of software developers was 23 million. By the end of 2024, this number is expected to grow to 28.7 million.

In particular, in 2019, the offshore software development market reached nearly 100 billion USD and this trend has grown since then. 

Offshore software development is popular globally – Image: thinkmobiles.com

II. Factors that determine the cost of software development in each country 

• Supply and Demand:

High demand and limited supply will increase wages and create stiff competition for available resources. 

• Salary range:

Determined by the average salary in the country. When comparing wages from one country to another, we must convert them into a single international currency. For example USD. 

• Tax system:

Some countries have tax laws that are more open to the IT industry, while others impose higher taxes. This can lead to higher overall software development costs. 

• Cost of Living:

If a country’s cost of living and purchasing power are higher than other countries, the software development rate there will also be higher. Countries with a lower cost of living will have lower software development costs.

There are many factors that affect software development costs in different countries – Image: eduba.com

III. Software development rate by country 

India 

Average hourly rate: $15 – $50. 

India is considered one of the most competitive offshore IT outsourcing locations. It has nearly 6 million software developers. English is widely spoken throughout the country. This is an advantage when choosing where to develop offshore software. 

However, besides highly skilled developers, foreign enterprises can also find low-skilled and unreliable engineers. Because there is no legal structure to monitor domestic quality standards. 

Ukraine 

Average hourly rate:  $25 – $50. 

Most of the offshore software development teams in Ukraine are well-trained and highly skilled. Solid expertise and solid technology education have made this destination attractive to international companies. 

Poland 

Average hourly rate: $35 – $55. 

It is one of the most expensive countries in Eastern Europe for software development outsourcing. The rent for developers in Poland is slightly higher than in neighboring Ukraine.

With excellent technical education and better standard of living can make offshore software development here can increase significantly. 

In Poland, the cost is higher than in Eastern European countries – Image: youteam.io

China 

Average hourly rate: $25 – $70. 

The cost of software development in China is higher than in Asian countries, because the local economy here is more advanced. The software development industry in the country is expected to grow at a rate of nearly 7%/year over the next half-decade, reaching $1.2 trillion. 

However, the language barrier is one of the main concerns for businesses when considering outsourcing in China. 

Vietnam 

Average hourly rate: $20 – $40. 

Vietnam’s IT outsourcing market is still in its early stages but rapidly expanding. Vietnam stands out with a team of highly qualified technical experts and good foreign language skills. In particular, the average developer salary in Vietnam is about 85% lower than in the United States, helping businesses save significantly. 

Software development costs in Vietnam are lower than in many countries – Image: agiletech.com

Conclusion 

Thus, the above is an overview of offshore software development prices in some popular countries. If you want to expand your reach by hiring software developers, offshore is one of the best options to consider. Understanding pricing will assist you in making a more informed choice when choosing the right software development service provider. 

At BAP Software, we have a number of advantages to become your best partner when providing Offshore services for a wide range of products with a team of quality engineers at attractive costs.