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Demand For Offshore Developers Rising – How Rates Compare

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Global demand for software developers is sky high! With so much business driven by technology by 2030 expect the global shortage of developers to be circa 85 million.

Businesses are outsourcing too, with Statista reporting that the global IT outsourcing market generated $92.5 billion in 2019 and 359.5 in 2021.

The programming industry is expected to grow, due to global demands for digital experts for web and app development, blockchain projects, and programming frameworks. If you’re thinking about a career in software development, chances are you won’t need to worry about finding a job!

Supply and demand inequalities are pushing up salaries and freelancing hourly rates. Hiring in your location, region or country is no longer the only avenue as offshore or businesses embrace hiring offshore.

For your next software development project, you too may consider IT experts residing somewhere in Europe, Asia or South America.

In this business blog, we’re considering the continents and the going offshore development rates in USD. Globally the hourly rates can start as low as $30USD and rise to $120USD according to Upwork. However how long is a piece of string? There are many factors to consider when working out developer costs. Please be mindful that this business blog post is an overview of average rates only and it’s not designed to be used as the definitive guide for budgeting for development projects.

Eastern Europe

With over a million software developers, Eastern Europe offers many hubs, for example, in Ukraine, Belarus, Poland, and Romania. Software developers in Eastern Europe charge between $20 and $50 per hour. However, depending on the level of the programmer, the tech stack requirements, the depth of the project, and sometimes, the number of hours to be worked per week.

Ukraine

Ukraine remains the significant software development and IT hub in Eastern Europe. the IT hubs in Ukraine are Kyiv, Odesa, Kharkiv, Dnipro, and Lviv with developer hourly rates of between $20 – $50. Ukraine is one of the world’s best destinations for software engineers with a 91.26% score. The Ukrainian software development team scored 88.7% in a HackerRank challenge.

Programming language versatility and expertise in AI, mobile app development, data science, and Utility 3D. It’s home to global tech startups like Gitlab, Earth.ai, People.ai, YouTeam, PetCube, Grammarly, Mobalytics, and MacPaw. 70% of Ukrainians understand English at intermediate to upper-intermediate levels. So communication won’t be an issue and according to the IT Association, There is extensive IT education across the country, with over 20,000 tech graduates every year.

Poland

Poland’s IT Hubs are Warsaw, Lodz, Krakow, Wroclaw and the average developer rates range is $20 – $50. Poland is also the largest IT Hub in CEE (Central Eastern Europe). Adding more than 78,000 software developers annually, Poland has circa 280,000 software developers which are about one-third of the 634,700 developers in all of Eastern Europe – says Nearshore – a local IT dev co.

Outsourcing your software development needs to a Polish developer is however more expensive than securing one in Ukraine. Political and economic stability, as well as high living standards, are enjoyed in Poland.

Note: Of all the countries in CEE, Poland has a zero or a minor timezone different from Western Europe, and it shares more of the same culture including speaking English.

Did you know Poland is ranked third with 98 in the HackerRank average score?

HackerRank

HackerRank Challenges – Software Developers

Belarus

With over a thousand IT companies scattered over Belarus, and concentrated in its capital, Minsk, it is a top destination for businesses looking to outsource their software development and IT services. Belarus’s developer rate is between $20 and $40 per hour and it is influenced mainly by the country’s economic instability. However, the IT hubs in Gomel, Mogilev, Minsk, Vitebsk represent good value with education and support for software developers.

Latin America

Argentina

Argentina’s IT Hub is its capital city Buenos Aires. Junior developers get $13 to $20 per hour, and senior software engineers net anywhere from $35 to $55 per hour. In addition, Argentina’s timezone is near Western Europe, and the country’s closeness to Western culture makes doing business with its offshore developers easy.

Peru

Tech business in Peru is increasing, and the growth is connected with the Government’s investment in the IT hub of Lima. Expanding its IT services, and with a solid relationship with the USA Peru generated $85 million from software development in 2019. Software developers can expect $35 – $55 per hour – a much higher rate that Argentina.

Brazil

Brazil has IT hubs in Rio de Janeiro, Curitiba, Porto Alegre, Londrina and software developer rates between $30- $50 per hour.

Londrina is one of the largest IT outsourcing hubs in the Latin America region and the rest of the world. With a 15th position in the Tholons Services Globalization Index, half a million engineers and software developers, and more than 15,000 IT graduates every year, there is an inexhaustive pool of IT talents in the country.

Asia

India

India has IT hubs in Bangalore, Chennai, Mumbai, Kolkata. Developers expect an hourly rate of between $25 – $50.

A pool of junior and senior developers ready to work at rates lower than the average US rates. The country’s offshore options are affordable, and the educational system is geared towards medicine and engineering. In addition, the country’s population can speak conversationally to fluent English. However, it is a downside with working with Indian developers it may be the lack of quality control trustworthiness. Do your due diligence and you’ll get what you want from one of India’s best development teams.

China

China’s IT hubs are in Beijing, Shanghai, Shenzhen. It’s a country that boasts of a huge pool of talented software developers. With a population of 1.41 billion people and growing local demand for products and software development services,

Chinese developers come well-trained and affordable, compared to most developers in the United States. As a result, China remains a technology hub, and the country expressly surpasses itself with innovative creations, startups, and global businesses. The only downside to working with Chinese developers is the language barrier.

The Chinese value their culture and primarily teach with their language; however, in recent times, the Government created country-wide institutions to enhance English education to meet the constant demand for Chinese tech-geniuses with conversational to fluent use of the English language.

Summing Up

Today, the need for software developers is off the charts. However, countries with low software development rates like Ukraine have become critical players in the global industry. Countries with a low rate for software development have equally low living standards and cost of living.  Whereas countries where developers charge high rates often have a high quality of life and living costs.  Wherever you choose your next developer from we trust this information has been useful.

Caveat Emptor – the information in this article was valid at the time of publishing.
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