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Offshore developer rates calculator for businesses that decided to try

3 Mins read

Are you considering hiring an offshore developer for your business but need help figuring out where to start? Determining the best rate for the services you need can be challenging. To help make it easier, this article provides a guide on calculating offshore developer rates for businesses that have decided to try this option.

Read on to learn more about how you can ensure you get the best offshore software development cost possible!

What is offshore development?

Before we look at the cost of offshore developers, we need to know what offshore development means. Offshore development refers to the practice of outsourcing software development to a company or team located in another country.

The main goal of offshore development is to reduce costs while maintaining or improving software development quality. It can be achieved by taking advantage of lower labor costs, favorable exchange rates, and the availability of highly skilled developers in other countries.

Offshore development can be done through various models such as dedicated teams, time and material, and fixed-bid projects. It requires good communication, a clear understanding of deliverables, proper time management, and a robust project management approach to be successful.

How much does an offshore developer cost – what key factors to consider?

We must mention some of the most crucial factors to make a proper offshore software development rates comparison. Let’s find out the main ones.

  • Location: Developers in countries with lower labor costs will generally charge less than those in countries with higher labor costs. For example, a developer in India may charge less than a developer in the United States.
  • Experience and skill level: Developers with more experience and higher skill levels will generally charge more than those with less experience and lower skill levels.
  • Project type: Different types of projects will require different levels of expertise and experience, which can affect the development cost.
  • Working hours: Some offshore developers may charge more for working during non-business hours (e.g., night shift) to accommodate the client’s time zone.
  • Company size: Developers working for a large company will generally charge more than those working for a smaller company or as freelancers.
  • Project duration: Longer projects will generally cost more than shorter projects.
  • Communication and management cost: additional costs may include the cost of communication, project management, and quality assurance, which can vary depending on the method used (e.g., phone, email, video conferencing, etc.).

Offshore software development rates by country

Well, it wouldn’t be far from true that the main factor that companies consider when they partner with offshore development companies is the location of the developers. While US developers and their Western European peers often charge in excess of $100, their colleagues from other parts of the world are significantly better.

Offshore software development rates can vary significantly by country. Some common countries for offshore software development and approximate hourly rates are:

  • India: $20 – $50
  • China: $25 – $50
  • Philippines: $15 – $35
  • Eastern Europe: $30 – $60
  • Latin America: $30 – $50

It is essential to note that these are approximate rates and may vary based on the developer’s experience and skill level, the type of project, and the company they work for.

Additionally, hourly rates may not always be the best way to compare costs as some countries may charge lower hourly rates but have longer working hours, while others may charge higher hourly rates but have shorter working hours.

Also, it’s essential to keep in mind that while lower costs may be a major factor in choosing an offshore developer, it should not be the only consideration. Other factors, such as the developer’s experience, skill level, and ability to communicate effectively, should also be taken into account.

Best offshore software development cost region

We can’t say which region is best. However, many companies pick Eastern European partners, as they offer the best value for money, and they’re located near Western Europe and not far enough from the US. They also offer competitive rates and have a strong command of English, plus – they can be a natural, cultural fit.

Summary

Offshore software development cost is absolutely necessary to consider if you want to run a thriving business. However, picking the right fit for your company may be way more important.

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