Offshoring is considered a more cost-effective alternative to full-time hiring. By outsourcing tasks and projects to a team of professionals, companies can close skill gaps, complete projects on time, and optimize the work of in-house teams. However, companies face different salaries and hourly rates from specialists from various countries when looking for an offshore talent pool. In this article, we will analyze offshore software development rates by country and find out in which regions you can hire specialists cost-effectively and efficiently.
Factors that Influence Offshore Software Development Rates
It’s hard not to notice that the cost of developers’ services on the market varies significantly. For example, you can hire a specialist for as little as $15 per hour, while other experts’ ratings can reach $70. What is the reason for this? Let’s look at the factors that influence the price to understand the formation of the hiring cost.
Expertise & Experience
Foremost, you should pay attention to the expertise and skills of specialists. For example, junior software developers who have just started working usually charge less for their services. This is due to their limited experience in the field. In contrast, senior experts who have been working for more than 5–7 years provide their services at a higher price.
Technologies
The software with which the consultant will deal directly affects the cost. If you are looking for help with unique technologies, the rate will be higher than for common programs.
Location
Finally, a lot depends on the region of outsourcing. For example, American offshore specialists prorate much higher ratings than engineers from Africa. It is influenced by the average earnings and the standard of living in a particular country.
Current Situation in the Worldwide IT Hiring Market in 2024
The modern hiring market requires highly qualified specialists who know software perfectly. Although senior engineers are more expensive, such cooperation can save money in the long run. By hiring one experienced individual, the firm does not need to create a whole team: one trained specialist is multitasking and can replace others. We see this trend in the US and Western European markets, especially in developed economies such as Germany or the Netherlands.
As for companies that cannot pay high salaries to local specialists, offshoring from regions with lower wages comes to the rescue. The high demand for offshoring is also due to a shortage of experienced professionals in local markets. Engineers from Eastern Europe, Latin America, Asia, and Africa can help fill this shortage. They offer relatively lower ratings and high-quality expertise. Eastern Europe remains the most popular region. Here, developers offer high-quality skills, and, more importantly, cultural fit. Thus, they can easily integrate into foreign companies and allow teams to cover their needs in a high-quality and cost-effective manner.
Below is a table with offshore software development rates comparison by region and skill level.
| Region | Average Hourly Rate | Junior Developer | Middle Developer | Senior Developer |
| North America | $105 | $50 – $65 | $65 – $100 | $100 – $180 |
| Western Europe | $105 | $100 – $150 | $150 – $200 | $200 – $300+ |
| Eastern Europe | $50 | $15 – $30 | $30 – $50 | $50 – $100 |
| Latin America | $45 | $20 – $35 | $35 – $50 | $50 – $75 |
| Asia | $30 | $10 – $20 | $20 – $30 | $30 – $45 |
| Africa | $25 | $10 – $15 | $15 – $25 | $25 – $40 |
Offshore Rates for Software Development in Different Areas
As you can see, hourly rates vary not only globally, but also within regions. For example, in Europe, you can hire a specialist for $35 or more than $300. It depends on the level of development of a particular country or state and the skills of a specialist. We suggest reviewing the state in the regions with a focus on the main countries.
Offshore Software Development Rates by State in the North America, US
The United States is a fairly big country with different levels of life, economy, and education. That is why the prices for hiring software engineers vary from state to state. Most of the country’s tech hubs, which require highly skilled professionals, are concentrated in states, like California and New York. It increases the demand for software engineers and accordingly their hourly rates. On the other hand, states, like Virginia and Georgia, provide lower-paid engineers. According to Indeed job offers, the situation in popular locations looks like this:
| State | Average Hourly Rate | Junior Developer | Mid-Level Developer | Senior Developer |
| California | $70 | $50 – $60 | $70 – $80 | $90+ |
| Texas | $65 | $40 – $50 | $60 – $70 | $75+ |
| New York | $60 | $45 – $55 | $65 – $75 | $85+ |
| Washington | $55 | $45 – $55 | $60 – $70 | $80+ |
| Florida | $50 | $35 – $45 | $50 – $60 | $70+ |
| North Carolina | $45 | $35 – $43 | $48 – $58 | $68+ |
| Illinois | $55 | $40 – $50 | $55 – $68 | $75+ |
| Virginia | $50 | $40 – $50 | $60 – $65 | $75+ |
| Massachusetts | $55 | $45 – $55 | $60 – $72 | $85+ |
| Georgia | $50 | $35 – $45 | $50 – $60 | $70+ |
Offshore Software Development Rates by Country in the Western Europe
Similarly to North America, engineers from Western Europe have high rankings. They have a high standard of living, great demand in the market, and a decent level of education. Let’s compare the current situation in the main countries.
| Country | Average Hourly Rate | Junior Developer | Middle Developer | Senior Developer |
| Switzerland | $100 | $70 | $90 | $120 |
| Norway | $90 | $65 | $80 | $110 |
| Denmark | $85 | $60 | $75 | $105 |
| Germany | $80 | $55 | $70 | $95 |
| Netherlands | $75 | $50 | $65 | $90 |
| Sweden | $70 | $45 | $60 | $85 |
| UK | $70 | $45 | $60 | $85 |
| France | $65 | $40 | $55 | $80 |
| Belgium | $60 | $35 | $50 | $75 |
| Finland | $60 | $35 | $50 | $75 |
Where to Hire Offshore Software Developers in the Eastern Europe?
Eastern Europe is currently considered the most popular location for offshoring. It is home to many highly skilled professionals working in the US and Western European markets. Here are some statistics about this region:
- Eastern Europe is home to 1.7 million IT professionals. At the same time, these specialists have a high level of education, expertise in specific technologies, and years of experience with software. This puts them on a par with senior specialists from the United States or Western Europe.
- Poland, Ukraine, and Romania are among the most popular IT offshoring destinations.
- Statista reports the region’s revenue from software development in 2024 may reach $8.31 billion, expected to reach $20.54 billion by 2028.
What is the reason for the popularity of the location? In addition to the high level of certification, the region’s proximity to Western Europe plays a role. It concerns both cultural compatibility and time zones. These factors allow for avoiding misunderstandings and conflicts in the workflow and ensure quick onboarding of a new team.
As for offshore engineer salaries, the situation in the countries is as follows:
| Country | Average Hourly Rate | Junior Developer | Middle Developer | Senior Developer |
| Poland | $40 | $30 | $45 | $55+ |
| Ukraine | $35 | $20 | $35 | $50+ |
| Romania | $30 | $20 | $35 | $45+ |
| Hungary | $40 | $30 | $45 | $55+ |
| Czech Republic | $35 | $25 | $40 | $55+ |
| Bulgaria | $30 | $25 | $35 | $50+ |
| Slovakia | $35 | $25 | $40 | $50+ |
| Croatia | $35 | $20 | $35 | $50+ |
| Serbia | $30 | $25 | $35 | $45+ |
Offshore Software Development Rates Comparison in Latin America
Latin American engineers are less likely to cooperate with offshore companies. There are several reasons for this. First, Latin American countries are experiencing political instability and relatively low economic development compared to North America. Secondly, the language factor plays an important role. Most often, developers speak Portuguese or Spanish, which negatively affects communication with foreign companies doing business in English.
At the same time, South American countries have their advantages, as they demonstrate excellent cultural compatibility with US teams. Brazil is considered the largest tech hub with more than 500,000 engineers in the country, as well as Mexico for its proximity to the US.
Salary expectations of engineers in the region look like this:
| Country | Average Hourly Rate | Junior Hourly Rate | Middle Hourly Rate | Senior Hourly Rate |
| Mexico | $30 | $20 | $30 | $40 |
| Brazil | $37 | $25 | $35 | $50 |
| Argentina | $33 | $22 | $32 | $45 |
| Colombia | $28 | $18 | $28 | $38 |
| Chile | $43 | $30 | $45 | $55 |
Offshore Rates for Software Development in Asia
Asian countries offer many specialists for the international market. According to the latest data, it is the location with the largest number of offshoring software specialists. This is primarily due to the support of experts at the local level. For example, the Chinese parliament allocates monetary incentives for the tech sector. In particular, this makes the location a developing point with many highly qualified specialists.
The next factor is a fairly low price. It is worth talking about offshore software development rates from India. Every year, the country’s universities graduate 1.5M engineers, making India the largest offshoring center in Asia. At the same time, specialists demand a fairly affordable price, about $30 per hour, which makes their services much cheaper than in the US or Western Europe.
In general, the landscape of rates looks like this:
| Country | Average Hourly Rate | Junior Developer | Middle Developer | Senior Developer |
| India | $30 | $18 | $22 | $30 |
| China | $35 | $25 | $30 | $40 |
| Vietnam | $25 | $20 | $25 | $35 |
| Indonesia | $23 | $18 | $23 | $32 |
| Philippines | $28 | $20 | $28 | $40 |
Offshore Software Development State in Africa
Although the African offshoring market is quite young, it is developing rapidly. Local developers have decent skills and are ready to provide them to foreign companies. Here are some reasons for the region’s rapid growth:
- North African countries, particularly Egypt and Morocco, have high time zone compatibility with Europe. Moreover, Moroccan engineers speak French, which allows for smooth communication with companies from French-speaking countries.
- As for South Africa, developers here can boast of their knowledge of English and German, which also brings them to the global market.
- Lastly, it is worth noting that African specialists have the necessary skills and work with popular technologies such as .Net, Java, C++, PHP, and others.
Prices in the region are relatively low.
| Country | Average Hourly Rate | Junior Developer | Middle Developer | Senior Developer |
| South Africa | $45 | $22 | $34 | $50 |
| Nigeria | $38 | $27 | $39 | $48 |
| Kenya | $29 | $21 | $29 | $37 |
| Egypt | $27 | $19 | $28 | $35 |
| Morocco | $22 | $16 | $22 | $32 |
Offshore Software Development Rates By Technologies
As you can see, the payment rates of specialists strongly depend on the location. However, this is not the only factor. The technology the expert specializes in plays an important role. It works in such a way that the rarer and more unique the skill, the higher the average rate. Let’s take a look at how much it can cost you to hire an expert to work with popular tasks:
| Technology | Average Hourly Rate (USD) |
| Unreal Engine | $25 – $50 |
| Drupal | $20 – $55 |
| Magento | $25 – $70 |
| WordPress | $15 – $50 |
| Database Engineer | $30 – $60 |
| Rust | $30 – $80 |
| SAP | $50 – $100 |
| Designer | $20 – $60 |
| Unity | $20 – $45 |
| Business Analyst | $25 – $60 |
| System Analyst | $25 – $65 |
| Flutter | $25 – $60 |
| Web3 | $35 – $100 |
| AQA | $20 – $45 |
| C++ | $25 – $80 |
| Golang | $30 – $75 |
| Ruby | $35 – $85 |
| QA | $20 – $40 |
| Vue | $25 – $50 |
| React Native | $30 – $70 |
| Android (Java/Kotlin) | $25 – $60 |
| iOS (Swift) | $30 – $65 |
| PHP | $20 – $45 |
| .Net | $30 – $60 |
| Angular | $25 – $55 |
| Java | $30 – $70 |
| Python | $30 – $75 |
| DevOps | $35 – $80 |
| React | $30 – $70 |
| Node.js | $30 – $65 |
Keep in mind that this data is quite generalized and applies to experts worldwide. You can find information on our developer rates here.
Wrapping Up
To summarize, offshore software development rates by country vary greatly. Specialists demand higher prices for their services in regions with high economic development and living standards. Companies that can’t afford expensive cooperation resort to offshoring to cover the need for experts without breaking the bank. The most popular locations are Asia and Eastern Europe, while Africa is also catching up and joining the ranks of popular offshoring locations.
If you are considering expanding your staff and looking for the most reliable and cost-effective solutions to hire developers, don’t hesitate to contact us. We will select the best match in all respects and guarantee perfect compatibility with future team members.
