The rapid changes in the digital landscape lead businesses to choose offshoring for cost minimization, access to a wider talent pool, and time-to-market acceleration. According to ISG, 57% of the 2000 largest global companies choose technical partnerships for software development. This article aims to provide wages for IT specialists in the best outsourcing destinations.
Comparison of software development rates per hour by regions
The high price of hiring and the shortage of available experts in the USA cause businesses to choose offshore engineers from more convenient locations. Doe to lower wages, simplified taxation for IT companies, and access to a vast pool of skilled talents make these regions extremely beneficial outsourcing destinations. For instance, the median wage of a developer on Upwork in Eastern Europe is 20-30, in Asia 10-25, in LatAm 15-40, while in the US, it goes as high as 30-150.
Let’s take a closer look at the best offshore software development countries in terms of their average full-stack engineer rate, place in the skill proficiency world rating according to the Coursera Global Skills Report, and time zone:
| Country | The average full-stack offshore developer rate | Place in skill proficiency world rating | Time zone |
| Ukraine | 20-35 | 15 | GMT+2 |
| Poland | 20-30 | 24 | GMT+2 |
| Romania | 20-25 | 54 | GMT+3 |
| Bulgaria | 10-40 | 18 | GMT+3 |
| Hungary | 20-25 | 51 | GMT+2 |
| Czech Republic | 20-25 | 27 | GMT+2 |
| India | 10-20 | 60 | GMT+5 |
| China | 15-30 | 34 | GMT+8 |
| Vietnam | 10-30 | 55 | GMT+7 |
| Philippines | 5-25 | 99 | GMT+8 |
| Bangladesh | 10-20 | 73 | GMT+6 |
| Pakistan | 15-20 | 92 | GMT+5 |
| Brazil | 10-50 | 28 | GMT-2,-3,-4,-5 |
| Argentina | 10-40 | 30 | GMT-3 |
| Mexico | 10-40 | 25 | GMT-6 |
| Colombia | 10-30 | 19 | GMT-4 |
To assist you with making an informed decision, we provide the standard compensations of diverse IT specialists from the well-known platform Upwork for the popular outsourcing areas. In addition, the wages for the most sought-after technologies are included.
Eastern Europe
Over the past few years, the large talent pool, excellent tech education, and high English proficiency have become key reasons why companies from North America choose Eastern European countries for software development. Of course, the time difference from the USA with limited overlapping working hours may initially seem challenging. However, the right management approach offers numerous benefits.
- Average offshore software development rates by country
| Ukraine | Poland | Romania | Bulgaria | Hungary | Czech Republic | |
| Front-end developer | 20-35 | 20-30 | 20-25 | 10-35 | 20-25 | 20-25 |
| Back-end developer | 20-35 | 20-30 | 20-25 | 10-35 | 20-25 | 20-25 |
| UX/UI Designer | 20-35 | 15-30 | 20-30 | 10-35 | 20-30 | 20-25 |
| Business Analyst | 20-40 | 10-35 | 10-25 | 10-20 | 10-20 | 10-25 |
| Project manager | 20-35 | 15-30 | 10-30 | 10-30 | 10-25 | 15-25 |
| QA Engineer | 10-35 | 10-30 | 10-20 | 10-15 | 15-20 | 10-35 |
- Average outsourcing rates by country for different technologies
| Ukraine | Poland | Romania | Bulgaria | Hungary | Czech Republic | |
| JavaScript | 20-35 | 20-30 | 20-25 | 10-35 | 20-25 | 20-25 |
| Node.js | 30-35 | 30-35 | 15-40 | 10-30 | 10-40 | 10-40 |
| Vue.js | 30-35 | 30-40 | 30-40 | 30-50 | 15-25 | 20-25 |
| React | 25-35 | 25-30 | 10-40 | 10-30 | 20-35 | 10-40 |
| React Native | 30-35 | 25-30 | 20-35 | 20-30 | 20-30 | 20-30 |
| Java | 20-30 | 20-30 | 20-30 | 10-30 | 20-30 | 20-30 |
| Scala | 35-40 | – | 20-30 | – | – | – |
| Python | 25-30 | 20-30 | 20-30 | 20-25 | 20-30 | 20-25 |
| Ruby on rails | 20-30 | 20-30 | 20-30 | 25-40 | 20-30 | 20-30 |
| PHP | 20-35 | 20-30 | 20-25 | 20-40 | 20-25 | 20-25 |
| Laravel | 20-30 | 20-30 | 20-25 | 35-40 | 20-25 | 20-30 |
Asia
Asian countries have the world’s largest talent pool and offer relatively low rates, contributing to the popularity of this outsourcing region. Nonetheless, one of the major drawbacks of partnering with Eastern companies is the significant time zone gap, which can be as large as 13 hours for US companies. Furthermore, cultural dissimilarities can add an extra layer of complexity to the collaboration process.
- Offshore software development rates by country
| India | China | Vietnam | Philippines | Bangladesh | Pakistan | |
| Front-end developer | 10-20 | 10-30 | 10-30 | 10-20 | 5-15 | 10-20 |
| Back-end developer | 10-20 | 15-30 | 10-30 | 5-25 | 5-15 | 15-20 |
| UX/UI Designer | 10-20 | 15-25 | 10-20 | 5-15 | 10-15 | 5-15 |
| Business Analyst | 10-15 | 10-30 | 10-20 | 5-10 | 5-10 | 5-15 |
| Project manager | 5-20 | 10-30 | 10-15 | 5-10 | 5-10 | 5-15 |
| QA Engineer | 5-15 | 15-25 | 10-15 | 5-10 | 5-15 | 5-15 |
- Average outsourcing rates by country for different technologies
| India | China | Vietnam | Philippines | Bangladesh | Pakistan | |
| JavaScript | 5-20 | 10-30 | 10-30 | 5-20 | 10-20 | 10-20 |
| Node.js | 10-20 | 20-35 | 10-30 | 5-20 | 10-20 | 10-30 |
| Vue.js | 10-20 | 10-25 | 10-30 | 5-30 | 10-20 | 15-30 |
| React | 5-20 | 15-30 | 10-30 | 5-30 | 10-20 | 10-20 |
| React Native | 10-20 | 20-30 | 15-30 | 10-30 | 10-20 | 15-30 |
| Java | 10-20 | 10-30 | 10-30 | 5-20 | 10-20 | 15-30 |
| Scala | 10-30 | – | – | – | – | 20-30 |
| Python | 5-20 | 10-30 | 10-30 | 5-30 | 5-20 | 10-30 |
| Ruby on rails | 10-20 | – | 20-30 | 5-35 | 10-20 | 15-30 |
| PHP | 10-20 | 15-30 | 10-30 | 5-20 | 10-20 | 10-20 |
| Laravel | 10-20 | – | 10-30 | 5-30 | 10-20 | 10-30 |
Latin America
The primary advantage of outsourcing from LatAm for North American businesses is the minimal time difference, which allows effective real-time communication and planning. Meanwhile, a good level of English and social alignment ensures smooth teamwork. On the other hand, the wages of this region are the highest among other popular outsourcing destinations.
- Offshore software development rates by country
| Brazil | Argentina | Mexico | Colombia | |
| Front-end developer | 10-50 | 10-40 | 10-40 | 10-30 |
| Back-end developer | 10-50 | 15-40 | 10-40 | 10-35 |
| UX/UI Designer | 10-40 | 10-30 | 10-40 | 15-30 |
| Business Analyst | 5-30 | 10-30 | 10-20 | 5-20 |
| Project manager | 10-30 | 10-30 | 10-30 | 5-20 |
| QA Engineer | 10-30 | 10-30 | 10-30 | 5-20 |
- Average outsourcing rates by country for different technologies
| Brazil | Argentina | Mexico | Colombia | |
| JavaScript | 15-50 | 5-30 | 15-40 | 10-40 |
| Node.js | 15-50 | 15-30 | 15-40 | 15-40 |
| Vue.js | 25-40 | 15-40 | 25-40 | 30-40 |
| React | 15-50 | 5-35 | 15-40 | 15-40 |
| React Native | 25-45 | 10-40 | 25-40 | 25-40 |
| Java | 10-50 | 10-40 | 10-40 | 10-40 |
| Scala | – | – | 25-30 | – |
| Python | 15-45 | 15-40 | 10-30 | 10-40 |
| Ruby on rails | 25-40 | 30-40 | 20-40 | 25-40 |
| PHP | 15-45 | 15-40 | 10-40 | 15-40 |
| Laravel | 25-50 | 15-40 | 10-40 | 25-40 |
Aspects influencing outsourcing expenses
When considering offshore software development, it’s crucial to understand how the prices are formed. It can influence the cost-effectiveness and quality of the services you achieve. Here are the primary factors affecting outsourcing rates:
Cost of living
Average wages can vary across regions and countries due to differences in living costs and standards, as well as currency exchange fees. So, they tend to be lower in areas with smaller living costs. That’s why offshore software developers from Eastern Europe, Asia, and LatAm frequently have more competitive rates than those from Western countries.
Taxation system
A country’s lower corporate tax can lead to decreased operational expenses, which could then be reflected in reduced service costs for clients. Moreover, certain countries provide incentives or deductions specifically for companies in the IT sector. They can lessen outsourcing firms’ financial responsibilities, enabling them to offer more convenient pricing.
Skills and technologies
The rates of IT specialists are significantly influenced by specific skills and depth of technological knowledge. Developers with expertise in cutting-edge solutions, such as AI and Machine Learning, often charge higher wages than those outlined in the tables due to the complexity of the implementation and the increased demand for their competencies.
To conclude, cost savings, access to a global talent pool, and team flexibility are just a few benefits of offshore software development. The right outsourcing partner can help businesses successfully achieve their goals even with limited resources. Therefore, understanding the rates and factors influencing them in the most popular outsourcing regions is crucial for making informed decisions.
SysGears upholds high standards by combining experienced teams with well-established development processes and industry best practices. From the initial contact, our primary focus is identifying all your business challenges and objectives to provide the most suitable technical solution.
If you are looking for a software development team, explore our development services.