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A Closer Look into the Offshore Software Development Rates by Country

Offshore Software Development Rates by Country
Written by Albert Finch

Offshore software development has been a popular topic in recent years, as companies seek ways to save on costs while still getting the high-quality resources they need. The global spending on the software development outsourcing market is expected to reach $731 billion in 2023, according to Deloitte, and offshore software development is a large part of that growth. In this post, we are going to take a closer look into offshore software development rates by country. But first, let’s go through the brief definition.

What is an offshore development center?

An offshore development center (ODC) is a location outside of the company’s home country where software development work is performed. ODCs can be located in any country, but often they are situated in countries with lower costs of living and running businesses. This allows companies to save on labor costs while still getting the same high-quality resources.

Why offshore development centers?

There are reasons why a company might choose to set up an offshore development center. The most common one is to save on costs. By outsourcing software development work to a country with lower labor costs, companies can reduce their overall spending on development. Another common reason for setting up an ODC is to access a larger pool of talent. In some cases, a business is not able to find the resources they need in its home country. By looking offshore, they can tap into a larger pool of potential employees. Finally, setting up an ODC can help a company expand its customer base. By working with developers in different time zones, companies can offer around-the-clock support to their customers. This is beneficial, especially for those companies that do business on a global scale.

The offshore software development rates in Asian countriesThe offshore software development rates in Asian countries

When considering outsourcing, one of the first questions companies ask is, “What are the going rates for software development in different countries?” It’s a valid question and one that can be difficult to answer. Rates vary depending on a number of factors, including the country’s cost of living, the availability of skilled workers, and the country’s overall economic stability. To help you get a better understanding of offshore software development rates by country, we’ve put together a list of average rates for some of the most popular outsourcing destinations.

UKRAINE

An estimated 100,000 IT developers reside in Ukraine, while an additional 10,000+ tech workers graduate each year. Similarly, Clutch lists at least 900 custom software development firms in Ukraine. The actual figure would be much higher. Ukraine is one of the most promising nations for outsourcing software development projects in Eastern Europe. Giants like Intel, Microsoft, and Nokia are already hiring software services from this country.

Average offshore development rate in Ukraine:

  • Junior developers: $19–$25
  • Middle developers: $26–$38
  • Senior developers: $39–$60

CHINA

Known as the “world’s factory,” China is one of the most populous countries in the world, with a huge IT talent pool of more than 30,000 professionals with excellent skill sets. The country is now the home of a great number of tech and IT service companies. The advantages of working with Chinese developers are low labor rates and high availability of workers. The Chinese revenue in software development services is expected to grow at a CAGR of more than 14.67% (2022-2027), leading to a market volume of US$50.05bn by 2027.

Average offshore development rate in China:

  • Junior developers: $18–$30
  • Middle developers: $31–$45
  • Senior developers: $46–$75

INDIA

Offering clients a vast talent pool of over 120,000 top software developers, a large English-speaking population, high-quality services, and more, India is well-known as the best IT outsourcing destination in Asia. India has been the leading destination of choice for many big names in the software development industry, including Apple, Google, and Microsoft.

Average offshore development rate in India:

  • Junior developers: $15–$25
  • Middle developers: $26–$35
  • Senior developers: $36–$50

VIETNAM

Getting more and more popular as the new IT powerhouse in Asia, Vietnam is one of the most promising countries for software outsourcing services. The country boasts a talent pool of over 50,000 IT workers and has been attracting many giants in the industry, such as IBM, Nokia, Oracle, and Apple, to set up offshore development centers here. With a cost of 90% less than the U.S, Vietnam can provide the best outsourcing solutions for clients around the world. English proficiency and international working culture are also a big plus when outsourcing to Vietnam.

Average offshore development rate in Vietnam:

  • Junior developers: $18–$30
  • Middle developers: $31–$45
  • Senior developers: $46–$75

THE PHILIPINES

The Philippines is also an attractive destination for software outsourcing with its talent pool of over 30,000 English-speaking IT graduates from top technical universities and academies. The country has a good reputation for providing high-quality services at reasonable rates. Software engineers from the Philippines can be hired for a fifth of the price of those in the west, and their work is of a comparable caliber.

Average offshore development rate in the Philippines:

  • Junior developers: $13–$22
  • Middle developers: $23–$33
  • Senior developers: $34–$50

THAILAND

Back in a 2016 survey by A.T Kearney, Thailand was ranked number 6 in the list of efficient offshore software development centers. With its well-educated workforce and strong technical capabilities, the country has over 40,000 IT professionals and is also a good destination for outsourcing software development services in Asia.

Average offshore development rate in Thailand:

  • Junior developers: $18–$30
  • Middle developers: $31–$45
  • Senior developers: $46–$75

There shall be no single answer to the question of how much it costs to outsource software development to different countries. Rates vary depending on different factors, including the type of project, the skills required, the level of experience of the developers, and the location of the country. When choosing a destination for your software development project, it is important to consider all of these factors in order to get the best value for your money.

About the author

Albert Finch

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