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Offshore Software Development Rates By Countries

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. 

So far, cost optimization is the most critical criteria 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 for 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

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 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. So, 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.

Resources:

https://www.accelerance.com/software-development-outsourcing-resources#ebook

 

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