The software development teams around the world are more popular than ever before, with higher quality and lower cost, which makes software outsourcing development an essential part of the IT industry nowadays. But determining where to outsource and how to find a qualified development team could be a tricky task.
Offshore Software Development Rates Breakdown
So far, cost optimization is the most critical criterion when considering which countries we should outsource. In this post, we’ve collected some pieces of data which are surveyed by Accelerance to provide you a general outlook about the billing rate in top countries specialized in outsourcing software development.
|
Countries |
Hour Rates ($) |
Technical Readiness Rank |
English Proficiency |
Timezone (*) |
|
Southeast Asia |
||||
|
China |
25 - 40 |
74 |
Low |
+13 hrs |
|
Malaysia |
30 - 40 |
43 |
High |
+13 hrs |
|
Philippines |
25 - 35 |
83 |
High |
+13 hrs |
|
Vietnam |
25 - 35 |
92 |
Moderate |
+12 hrs |
|
South Asia |
||||
|
Bangladesh |
25 - 35 |
122 |
Low |
+11 hrs |
|
India |
30 - 40 |
110 |
Moderate |
+10.5 hrs |
|
Nepal |
25 - 30 |
126 |
N/A |
+10.75 hrs |
|
Pakistan |
25 - 35 |
119 |
Low |
+10 hrs |
|
Sri Lanka |
25 - 35 |
101 |
Very low |
+10.5 hrs |
|
Eastern Europe |
||||
|
Armenia |
25 - 35 |
71 |
N/A |
+9 hrs |
|
Belarus |
25 - 35 |
N/A |
N/A |
+9 hrs |
|
Russian Federation |
25 - 35 |
62 |
Low |
+8 hrs |
|
Ukraine |
25 - 35 |
85 |
Low |
+7 hrs |
|
Czech Republic
|
55 - 65 |
29 |
High |
+6 hrs |
|
Hungary
|
55 - 65 |
54 |
High |
+6 hrs |
|
Poland |
60 - 70 |
46 |
High |
+6 hrs |
|
Romania |
35 - 45 |
48 |
High |
+7 hrs |
|
Bulgaria |
45 - 55 |
38 |
Moderate |
+7 hrs |
|
American Latins |
||||
|
Argentina
|
55 - 60 |
69 |
Moderate |
+2 hrs |
|
Bolivia |
30 - 35 |
111 |
N/A |
+1 hr |
|
Brazil |
40 – 45 |
59 |
Low |
+2 hrs |
|
Chile |
50 - 55 |
39 |
Low |
+2 hrs |
|
Colombia |
50 - 55 |
64 |
Low |
+0 |
|
Costa Rica |
40 - 45 |
45 |
Moderate |
-1 hr |
|
Mexico |
35 - 40 |
73 |
Low |
-1 hr |
|
Peru |
35 - 40 |
88 |
Low |
+0 |
|
Uruguay |
55 - 60 |
36 |
Low |
2 hrs |
|
Venezuela |
25 - 30 |
107 |
Very low |
+1 hr |
(*) compared to Eastern Standard Time
Several Factors of the Outsourcing Evaluation Process
To find the best fit offshore development partner for your project, not only should you invest in low-cost countries but also find the right balance between pricing, technical capabilities, industry experience, and a host of other outsourcing criteria.
Here are several factors that form a thorough overview of the outsourcing evaluation process:
-
Geography and time zone
-
Experience and qualification
-
Domain expertise and technical stack
-
Delivery process
-
Office infrastructure and facilities
-
Outsourcing rates
-
Communication
-
Cultural fit
-
Intellectual property
-
Knowledge transfer/Exit strategy
-
Contract practices
In conclusion, the cost always matters, but what matters more is both true cost and value. It’s essential to go beyond the rates and spend considerable effort to verify your prospects on different outsourcing factors. And this could help you to develop a stable long-term working relationship, take advantage of the low-cost benefits of outsourcing methods, ensure quality as expected, and mitigate the emerging threats.
References:
- Outsourcing Software Development Resources, accelerance.com.
