Most of the budget in software development consists of developer wages. However, if you work using the IT outsourcing model, this factor becomes less critical in forming the development rates.
Software developer salary in the United States differs significantly from those, for example, in Central Asia or Eastern Europe. Consequently, hiring a remote team, a customer can reduce costs several times without losing quality.
We have prepared a short report which will give you an idea of the average software developer hourly rates around the world. If you want to find an answer to the question of how much it costs to hire a developer, this article will help you.
The United States and Canada
An experienced developer’s work costs from $50 to $120 per hour in the United States. In some states like California, top developer rates may range from $150 to $200 per hour. Canada does not differ much in this respect, being at about the same level.
And average offshore development rates in USA and Canada:
The offshore development market is relatively young here, concentrating mainly in Mexico, Brazil, and Argentina. Latin America is a convenient outsourcing destination for customers from the USA and Canada, as it is geographically quite close with minimal differences in time zones, which makes it convenient for communication.
The average offshore software developer rates range from $30 to $50 in South American countries, and it shows a trend towards further growth in 2020.
In Western European countries, the cost of living and wages are quite high, but even in this case, wages level can significantly differ in even neighboring countries. Average software engineer’s average salary in the Netherlands is comparatively lower, according to Payscale:
Generally, the average offshore software developer rates in Western Europe range from $70 to $120.
Despite the geographical proximity, the economic level in these countries is significantly lower than that of Western Europe. If you outsource your project to a software development company in Eastern Europe, it will cost you around $25 to $45 per hour.
Such countries as Ukraine and Poland stand out prominently, as they have a large resource of IT specialists, and at the same time, their services are quite affordable. Read more about these markets in our article “9 Reasons Why to Outsource your App Development to Ukraine.”
The average offshore software developer rates in Asia are $18 to $40. Most IT professionals are located in:
- China ($15 to $30/hour);
- India ($10 to $20/hour);
- Pakistan ($10 to $20/hour).
Hiring software engineers from these countries has its disadvantage as their work mainly differs in quality very much. Paying the same money for the same work complexity, you can get a product of quite different quality levels from different companies.
The IT market in the countries on this continent is just starting to develop. If you outsource your project to a software development company in Africa, it will cost you around $15 to $40 per hour.
The prices are affordable here, but the countries experience a small talent pool and have lots of newbie developers.
Customers rarely see this country as an offshore software development location because software engineers get high wages here, and most local companies focus on the domestic market. According to Payscale, the average software developer rates in Australia are 72,345 Australian Dollars ($50,627 as of 20 July 2020) per annum.
Besides the high cost of work, the large difference in time zones compared to the United States and other Western countries is also worth considering.
As you see, if you resort to an offshore software development model, the cost of hiring software engineers can vary greatly depending on which country you are going to work with. The hourly rate is influenced not only by engineers’ qualifications but also by the cost of living in their residence country.
The most expensive locations for software development are the USA, Canada, Australia, and Western European countries. The cost of work in all other regions is significantly lower. Moreover, we can call Eastern Europe the golden mean in this respect. Hiring a remote team from Poland and Ukraine will be the most profitable option in the price-quality ratio.