Offshore Software Development Rates 2022
Where to find a professional software developer? In what country this niche is best developed? What should you look for? How much does it cost to find an offshore software developer? We have done some research and are ready to give you the answers to these questions.
Perhaps we all can agree that the pandemic has greatly impacted the workplace and workflows as a whole. Now we run our meetings online, and the hybrid work model (50% office work and 50% work remotely) has become habitual and firmly entrenched in the life of every company. Along with the changes in the labor market, it is also worth noting the increased demand for IT specialists, including software developers.
This demand can easily be explained by the rapid shift to online platforms by medium and small businesses as the pandemic hit. With Covid-19, companies had to quickly move their services to mobile apps, websites, chatbots, and other IT developments. Thus, the worldwide quarantine made software developers one of the most in-demand professions.
According to Number8
Consumers' demand for developer services has tripled, and along with it, salary expectations for this position have increased. This, in turn, led to an increase in prices for client services. Such stress in hiring activity provoked significant changes in the structure of many companies.
Now, 86% of organizations consider the lack of professional engineers as their main problem and an obstacle to development. Finding specialized software developers sometimes can be a huge issue, especially if you don't have a recruiting department. Now we are going to find out how much the services of highly qualified specialists cost on the market and what countries you should pay attention to when searching for your future employee.
How quickly software development is growing?
The US market can be too competitive and challenging to find a specialist you certainly need. European countries currently continue to actively develop their field of IT developments and professions. Ukraine, Poland, Switzerland – the numbers of specialists in these countries are increasing every year. European specialists have lower remuneration requirements than in the U.S., while the level of professionalism and expertise is not inferior. That is why we recommend looking at central and Western Europe to find a software engineer.
According to U.S. Bureau of Labour Statistics
Based on the above statistics, the labour market is still short of specialists from the IT industry. This demand for specialists is predicted not only in the USA but also in other European and Asian countries. Presently there are more than 200,000 specialists in the field of software engineering огие in Ukraine, and every year the number increases by 10,000. This demand is still easily explained by the need for businesses to migrate their data to digital platforms in a post-pandemic environment.
The most in-demand requests for soft developer positions are:
- RPA (robotic process automation);
- Cloud computing;
- AI (artificial intelligence) and machine learning;
- IoT (the Internet of Things).
It is also worth noting the rapid increase in the number of IT professionals in Asia. For example, there are more than 4 million development engineers in India according to statistics by spring of 2022. Yes, it is true that Asian countries are ready to provide numerous specialists. But finding really qualified engineers will be much more difficult than in Eastern Europe, for example. You will have to try very hard to find a good specialist in the market in India.
What about Latin countries?
Latin American countries also provide their specialists in the labour market. Moreover, countries such as Brazil, Argentina, and Panama are among the top countries that offer the largest number of software developers. For example, Panama is currently the fastest growing country in the field of software development. At the same time, Argentina offers more than 100,000 who are working now in the IT market. And its status as the third IT developing country in the world makes Brazil the number one country to look for job seekers in Latin America.
While it's easy to find a Junior or Middle developer on the job market right now, 62% of recruiters consider finding a professional developer their top challenge. So, what is the cost of offshore software development?
Offshore development rates. Central and Western Europe
In case you have decided to make your own research on finding a brilliant software engineer, the first thing you really need to pay attention to is rates. Each country has its own offshore software development rates, which also depend on the level of expertise of the engineer.
The arithmetic average of wage expectations in Europe is as follows:
- Junior – $25 per hour
- Middle – $42 per hour
- Senior – $53 per hour
Next, let's take a closer look at offshore software development rates by country.
The country, which began to be talked about more in the world because of the war (unfortunately) is also known for numerous software engineers. As mentioned earlier, every year the number of specialists in the country increases by 10,000 people. Ukraine without exaggeration can be called one of the most developed countries in the digital sector. And the salary expectations of specialists are absolutely affordable for foreign companies:
- Junior – $18-25 per hour
- Middle – $30-45 per hour
- Senior – $50 per hour
Now let's turn our attention to our neighbor Ukraine country, which is considered less developed in digital technology, but still full of excellent software specialists. Offshore rates for software development in Poland are:
- Junior – $20-27 per hour
- Middle – $35-50 per hour
- Senior – $65 per hour
Romania has more than 100,000 specialists in IT development, and every year the number increases. This increase in specialists is since the country provides special high-quality education in its institutes. Offshore rates in Romania are as follows:
- Junior – $15-23 per hour
- Middle – $23-30 per hour
- Senior – $50 per hour
Based on the above data, it is easy to determine the average offshore software development costs in Western Europe:
- Junior – $25 per hour
- Middle – $42 per hour
- Senior – $53 per hour
Such indicators are below the average for the total cost of software engineer services in the world. This is another reason why American companies began to pay more and more attention to offshore developers – the high level of qualification and low cost of wages make them attractive in the labour market.
Central Europe also offers a large selection of specialists on the market. For example, Estonia graduates 38,000 IT specialists each year, among them are also software engineers. Specialists from Central European countries also provide high-quality services, but the job prices are higher than average compared to offshore software development costs in other countries.
- Switzerland – $200 – $300 per hour
- Germany, Netherlands, and the UK – $50-$100 per hour
- Austria, Belgium – $100-$145 per hour
Now let's look at the average pricing of salaries for software developers in Latin American countries such as Mexico, Brazil, and Argentina.
Average salaries in Mexico range between:
- Junior – $19 per hour
- Middle – $35 per hour
- Senior – $65+ per hour
Prices for software developers in Argentina are slightly higher compared to other Latin countries:
- Junior – $15 per hour
- Middle – $28 per hour
- Senior – $55+ per hour
A country that also offers good specialists at an affordable price:
- Junior – $17 per hour
- Middle – $29 per hour
- Senior – $60 per hour
If you compare developer salaries around the world, prices are cheaper in Central Europe. So, we suggest that you pay attention to specialists from the following countries.
What country is considered to be the best to find a developer
If you are looking for a good software developer for your company for a big project or a part-time job, the best option to look for is Eastern Europe. Countries like Ukraine, Poland, and Romania offer the best price-quality ratio. While developers from the U.S. work for $150 per hour at least, professionals from Eastern Europe work on average at a price of $50. At the same time, the quality of the work performed remains at a high level. This makes specialists from Europe popular for outsourcing from other countries.
How Unitedcode can help you find an offshore programmer
If the process of finding a new jobseeker, as well as comparing outsourcing costs by country, seems too difficult and time-consuming for you, then it is worth looking at alternative solutions. Earlier, we have already described the advantages and disadvantages of working with recruiting agencies. But not all recruitment agencies will be able to help you find a specialist in exactly the country you would like.
Unitedcode helps U.S. companies find a professional for a specific request from Central and Eastern Europe, as well as from Latin countries. The main advantages of working with Unitedcode:
- Full support. We do not just find you a specialist, we fully accompany him until he is fully employed in your company. We are interested in the cooperation of both parties.
- Payment Guarantee. We will not charge you until we are certain that you are happy with your new employee and that he or she fully meets your expectations.
- Quick and easy start of cooperation. Unitedcode works with several trusted vendors, which makes it faster and easier to find a candidate for a software developer or engineer position.
Unitedcode is also ready to offer work with a whole team of specialists, which it will find and select specifically for the client's request. The company is well versed in the pricing policy of software developers in Europe, which also gives an advantage when selecting candidates.
So, if you are looking for a great soft engineer, try Unitedcode services, to make an employee process much easier and faster.