Offshore Software Development Rates in 2024 – an overview

Why do so many businesses turn to offshore software development in today’s global scenario? And what benefits do companies want?

Offshore software development for several years and now has been a top choice for businesses for factors like cost, quality of products/services, larger talent pool, time-saving, faster to market, etc. It comes as no surprise that many from the Fortune 500 companies practice offshore software development rules to reduce workload, to augment the quality of operations, also to accelerate the delivery speed.

In such a global scenario, you will analyze the offshore software development rates presented in this article country-wise, the average hourly rate for offshore software development, and a lot more for you to understand how it can benefit your business and how to hire offshore developers effectively.

“If you deprive yourself of outsourcing and your competitors do not, you’re putting yourself out of business.”

LEE KUAN YEW

The know-how of Offshore Software Development

Do you wonder what offshore software development is? Can you reminiscence the term ‘outsourcing’?

Hot tip? The word ‘offshore’ is synonymous with ‘outsourcing’, they both mean you are handing over your business tasks to other people located outside your country.

The difference occurs when you sign a contract with a third party for a specific IT job you ‘outsource’, but ‘offshoring’ happens when you send an in-house job out of the country.

Offshore software development is a practice of outsourcing IT tasks such as the development of a website or an application, etc. You typically partner with a foreign team located in a foreign country for development purposes.

How to effectively Hire Offshore Developers in 2024

There exist multiple ways to hire an offshore developer, either you can visit some freelance portals that seem to be a fancy way to hire, collaborate with outsourcing companies that are quite reliable, or consider platforms for direct hiring.

Here are our top three recommendations for you from each of the above-mentioned categories:

Freelance Portals

1. Fiverr: the top budget-friendly platform
2. Upwork: the best choice for long-term relationships
3. Freelancer.com: a great choice for international companies

Offshore Hiring Platforms

1. Gaper: hire expert engineers
2. Youteam: a dynamic offshore team waiting for you
3. Toptal: it connects businesses
4. Empat: one of the Toptal competitors offering the same solutions for a better price

Remote Engineering Companies

1. Modern Tribe: solve complex digital challenges
2. PivotalTracker: a top-notch custom software development service
3. vteams: perfectly delivering IT services

As the number of companies outsourcing work to offshore teams remains persistent at a mounting rate, we offer some offshore software development rates to watch out for in the year 2024:

Top locations to hire an offshore software development team

We have successfully prepared some helpful stats of top locations to hire an offshore software development team worldwide.

Offshore development often means remote work. Some developers prefer a more immersive experience. A working holiday can also let them live and work in a foreign country for a time.

When seeking services at lower prices but higher quality, you can consider the following countries or locations for ease:

Eastern Europe

Speaking about Eastern Europe, the countries that it covers consist of Ukraine, Belarus, Russia, Poland, Czech Republic, Romania, Hungary, Estonia, Slovakia, and Bulgaria.

So, why Eastern Europe is famous for hiring? It is most commonly attractive for finding proficient experts at a low cost, they are quite straightforward and honest, also location convenient and time zones ease.

Ukraine, Poland, and Romania top the chart of the most popular offshore development teams due to several reasons while the others are trying to keep up with the pace.

Poland’s tech market is particularly well-regarded, thanks to the growing reputation of polish software developers, who continue to deliver exceptional results at these competitive rate.

Just to discuss their outsourcing rates, you can hire an average developer from Ukraine for $26, Poland for $40, and Russian between $25-$35.

Refer below to witness offshore software development rates in Eastern Europe countries:

Asia

If we talk about offshore software development rates in Asia, the numbers are lower in stats as compared to Eastern European countries. The outsourcing rates start from $18 hourly and reach up to $40 per hour.

Numerous Asian countries are dominant in this field as there is a large number of IT graduates and the count continues to grow every year – more than 10 million developers in just one country, currently.

The countries include Pakistan, China, Bangladesh, Philippines, Nepal, Vietnam, Indonesia, Malaysia, Philippians, and India.

Check beneath to view offshore software development rates in Asian countries:

Latin America

In the whole USA, general figures declare that a junior level software developer is grossing $67,607 whereas, a senior software developer is earning a total of $121,521 around the world in 2024.

Translating statistics shared by Indeed, the mediocre software engineer earns $107K per year in the US. Whereas, a junior software engineer makes about $101,178, while senior software engineers can earn up to $118,898 per year.

Countless trends in Latin America have taken a tool resulting in a growing pool of IT endowment. The region has successfully penetrated the Internet world with a ratio of 61% in the Continent and 45% globally. Latin America is also one of the most popular destinations to set up an offshore development center.

A growing number of startups are emerging, let’s have a look at the countries that are a part of this region: Argentina ($55), Brazil ($50), Chile ($50), Colombia, Costa Rica ($40), Mexico ($55), Panama, and Peru.

Do you wonder why Latin America is famous for offshore hiring? Let’s tell you a few: “ time difference is minimal, they are investing more and more money on developing great English linguistic skills, offers a solid IT educational background and you are likely to find the best tech tool here.

Outsourcing software development to Colombia, Mexico, India, etc., is a good choice if the company is looking for a rare tech stack at an affordable rate.

Eyewitness underneath the offshore software development rates in Latin America:

Africa

The top outsourcing countries in the Africa region are Morocco, Egypt, Nigeria, Kenya, Tunisia, and South Africa.

If you witness the offshore software development rates, Africa seems highly affordable to offshore/outsource any engineer.

Egypt, Morocco, and Kenya offer less than $20 for services whereas, Nigeria and South America are more luxurious as developers can charge around $40-$50.

OFFSHORE SOFTWARE DEVELOPMENT RATES

Which is the best-paying country for software engineers?

The USA pays software engineers the highest as per Indeed statistics i.e. $107K on average. San Jose, California is the most well-paid city with an average salary of $147,52.

For your perusal

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