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Offshore software development rates vary based on numerous factors: from the provider location to the tax policy in the target country. So, how do you choose the destination for your business? This article compared average costs in different regions and included information to help you choose the best country to outsource software development.
Offshore software development rates have always been sensitive to the slightest political and economic changes in the world. Considering the current situation, we analysed the recent insights on the development costs to help you understand, how much would you pay to hire developers for big data, AI, IoT and other innovative projects.
Over the last year, in several regions, prices for IT engineers have experienced slight increases. This growth was influenced by such factors as tech talent demand, economic situation, and the latest geopolitical events.
In Asia, India and Vietnam, which were known as the biggest hubs for cheap product development, increased their rates due to the high demand and inflation, according to the data from Indeed. The average rates ranged from $20 to $40 per hour.
Eastern Europe remains relatively stable, despite geopolitical changes. For example, Poland continues the development of its robust IT ecosystem. Rates in the country remain between $35 and $50 per hour. Offshore development in Ukraine shows its commitment to technological advancements and keeps rates on the average of $30 to $50 per hour.
Countries of Latin America profit from their proximity to the U.S. Their stable economies and increased demand for nearshore product development made the prices grow to the average of $35 to $70 per hour.
Africa continues investing in technology education and infrastructure. Still, it remains a viable cost-effective destination keeping its rates at the level of $25 to $45 per hour.
In Western Europe, offshore developer rates are kept high by the high-quality development services, high living costs, and increasing tech talent shortage. They typically fall in the range of $70-150 per hour.
Let’s have a closer look at the most popular outsourcing destinations.
When Western European businesses tend to reduce the offshore software development price, they go to the IT vendors from Eastern Europe. This region is still one of the most favourable places to get advanced technological help.
A rich talent pool of engineers is available in Ukraine, Poland, Romania, and Bulgaria. We compared the average salaries of the experts in the emerging fields: Big Data, AI, AR\VR, and IoT. However, these are the medium numbers. To get the precise information, you would need to access the CVs with more detailed information regarding the expertise, tech stack, and experience of each particular engineer.
| Country | Big Data | AI | AR/VR | IoT |
|---|---|---|---|---|
| Poland | $45–$65 | $50–$70 | $40–$60 | $45–$65 |
| Ukraine | $35–$55 | $40–$60 | $35–$55 | $35–$55 |
| Romania | $35–$55 | $40–$60 | $35–$55 | $35–$55 |
| Bulgaria | $30–$50 | $35–$55 | $30–$50 | $30–$50 |
Eastern Europe attracts businesses with a comprehensive combination of a rich and well-educated talent pool, geographical and cultural proximity, and outstanding quality of code. New students graduate from tech universities each year to join the diverse talent base of IT vendors and service providers.
Leverage our guide on offshore software development rates to make informed decisions and maximize your budget.
Asia is emerging as a competitive alternative for projects that are seeking a cheaper workforce. If you are not located in Asia, cooperation with its engineers comprises operation in the conditions of time lags and cultural diversity.
India is famous for its great number of engineers and the potential to staff even the biggest projects within a short time. Vietnam is growing its tech infrastructure and training developers to stay competitive in the region. China launches supportive government initiatives to stay on top of the world’s tech. Its strategic plan “Made in China 2025” aims at the development of AI, robotics, and green energy sectors.
| Country | Big Data | AI | AR/VR | IoT |
|---|---|---|---|---|
| India | $25–$50 | $30–$55 | $25–$50 | $25–$50 |
| China | $30–$60 | $35–$65 | $30–$60 | $30–$60 |
| Philippines | $20–$40 | $25–$45 | $20–$40 | $20–$40 |
| Vietnam | $20–$40 | $25–$45 | $20–$40 | $20–$40 |
Asia’s IT industry is facing rapid growth, and its biggest players are pushing the sector towards technological advancements. Checking medium prices we see that they are more attractive for SMEs and startups. Despite being distant from the European and North American markets, the Asian IT pool makes these countries desired destinations.
Latin America is developing its tech sector and becoming a hub for the startup ecosystem. Increased investments in the field ensure that this region will grow as a strong player in the international IT arena.
The cost of offshore software development in Latin American countries grows with the development of Industry 4.0 and increased interest in Brazil, Mexico, Argentina, and Colombia as nearshoring destinations. The fintech sector is on the rise in the region, and investors are confident to support promising products. Services like Glassdoor helped us to shape the IT landscape of this region.
| Country | Big Data | AI | AR/VR | IoT |
|---|---|---|---|---|
| Brazil | $40–$60 | $45–$65 | $40–$60 | $40–$60 |
| Argentina | $35–$55 | $40–$60 | $35–$55 | $35–$55 |
| Mexico | $35–$55 | $40–$60 | $35–$55 | $35–$55 |
| Colombia | $30–$50 | $35–$55 | $30–$50 | $30–$50 |
For a company that needs outsourcing services, Latin America offers an attractive blend of specialized expertise and competitive costs in comparison to Northern America. However, this region might not be comfortable for cooperation with European businesses due to the time difference and cultural divide.
Africa is ready to move other regions on the scene of cost-effective and productive digital product building. Its information technology sector is growing rapidly as a response to the high demand for technical expertise.
Countries like Nigeria, Kenya, South Africa, and Egypt are becoming noticeable IT hubs for startups and big companies searching for the possibilities to staff massive projects. Let’s check offshore software development rates by country:
| Country | Big Data | AI | AR/VR | IoT |
|---|---|---|---|---|
| Nigeria | $30–$50 | $35–$55 | $30–$50 | $30–$50 |
| Kenya | $25–$45 | $30–$50 | $25–$45 | $25–$45 |
| South Africa | $35–$55 | $40–$60 | $35–$55 | $35–$55 |
| Egypt | $25–$45 | $30–$50 | $25–$45 | $25–$45 |
If you didn’t think about Africa as an outsourcing destination, here are some facts that may attract your attention. Nigeria is known for their “Africa’s Silicon Valley” in Lagos, where “unicorn” tech startups are hosted. South Africa is an investment destination for Microsoft, and Kenya is focusing on mobile technologies and infrastructure.
Software vendor management best practices comprise thorough attention to budgeting. To succeed in the software development project, the managers start by analysing the estimated costs. Check, which factors will form the total cost of your product building, no matter which country you choose as an outsourcing destination.
The average hourly rate of software engineers will differ depending on the country of residence. Traditionally, the experts from Northern America and Western Europe charge more than their colleagues from Eastern Europe, Asia, and Eastern America. While the country impacts the overall project cost a lot, it shouldn’t be the decisive factor.
Large software development houses offer competitive rates due to the larger talent base and complex services they provide. Meanwhile, boutique IT vendors can be more flexible in conditions and ready to follow your rules, despite offering a higher rate for software engineers.
Access skilled developers worldwide and achieve high-quality results without overspending.
The need for rare technical expertise influences offshore software development cost drastically. An expert in rare or emerging technologies with practical experience makes the IT vendor’s services more expensive and, thus more valued. The higher demand and tech talent shortage also make prices grow bigger.
Some countries have supportive policies and tax cuts for startups or foreign businesses. It makes these countries attractive for SMEs and companies that only start their way. Others have quite rough tax policies that usually come with greater political and economic stability and a more favourable environment for big businesses.
Best prices are not the core factor that helps us build long-term mutually beneficial relationships with our clients. We also offer teams with extensive experience in different industries built exclusively to meet your tech challenges. Our analytics work to offer the most cost-effective and efficient tech stack and optimize the team composition.
Each of our clients receives a thought-off proposal that considers all the business needs and project peculiarities. For different projects, we’ve provided specialized expertise and built dedicated teams to provide end-to-end services. Our clients claim their success achieved in cooperation with Talmatic, in their stories:
13.03.2025
Looking to hire remote software developers but have a few questions unanswered? We are sharing our list of frequently asked questions by our clients when hiring software developers.
view allYou’ll find the lowest offshore developer rates in Eastern Europe, Africa, and Asia.
Offshore rates may be lower due to the economic level of the target country.
The average rates fall in the range of $25-$150 depending on the tech stack, expertise and location of the engineer.
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