Once seen as an absurd idea and fad in the IT industry, the concept of offshore software development services has evolved for the better. Once upon a time, the benefits of the offshore development team were only restricted to cutting down the operational costs.
However, as innovative ideas cloud the mobile/ web app development industry, startups and entrepreneurs across the world began looking for an expert team of offshore developers to leverage the best of the technical knowledge.
An increasing need to target overseas territories through online apps is one of the prominent reasons for the rise in the demand for dedicated development teams. Besides this, technologies such as the cloud and remote team management tools have made it easier to outsource dedicated software development teams and work with them.
Today, many software engineers are working under the dedicated development team model and offering software development services with dedicated experts. However, the top questions that cross the mind of business owners paving into the tech space, just like you, are as follows:
- How to Hire an Offshore Developer?
- What is the Cost Structure in Outstaffing?
- What is the Right Approach to Choose an Offshore Development Country?
- What are the Average Hourly Rates of Offshore Software Developers?
- How to Manage your Offshore Developers?
Amidst all these queries pertaining to the extended development team, the actual outsourcing rates are central. And, why not?
When you invest your time, efforts, and resources, you need to know how much you should capitalize to extend a dedicated development team. In this blog, you will find out some interesting facts about offshore software development, the most popular offshore software development destinations, and the offshore developer rates guide.
What are the prominent offshore development trends across the world?
The United States and Western Europe are the hotspots for the Tech World. Since most of the top-rated digital companies are established in these regions, they hire senior software developers with several years of expertise and the ability to resolve complex challenges.
Since they already get their hands on the large talent pool of software engineers, the emerging startups and entrepreneurs experience a shortage of skilled resources.
This dearth of qualified software engineers makes them scramble to the other parts of the world by implementing the popular offshore software development models.
By offshore, we mean the talents from the overseas territories. Among the others, there are the four most popular offshore software development destination:
- Eastern Europe
- Latin America
The following section will provide you with detailed information about the average outsourcing rates by region and facts about offshore development rates if you want to hire offshore developers.
Offshore developer rate per hour in Asian countries explained and justified
Bring the largest continent globally, Asia constitutes of many countries with numerous forging ahead on the technology front. Let’s take a look at the various dynamics pertaining to the offshore developer rates in Asia.
What are the typical offshore development rates in Large Asia?
Most of the countries in Asia are developing or underdeveloped. As a result, unemployment is one of the grave concerns in these countries. Besides this, the population density of the Asian countries is high, and the living standard is relatively low than the other continents, excluding Africa.
Given this influence, the per-hour rates for the offshore developers are relatively as low as USD 18-25/hour for IT services.
What are the top IT outsourcing Countries in Asia?
Out of these countries, India has been one of the top outsourcing destinations in Asia, and China and Malaysia rank second and third, respectively.
The inclination towards an engineering career and the evolving technological architecture are the prominent factors underpinning India’s growth and turning it into one of the best offshore development countries in the Asian continent.
What are the average offshore software development rates in Eastern Europe?
Offshore software development models explained: When startups or enterprises hire dedicated developer from a software development outsourcing company residing in a faraway country, it is known as offshore outsourcing.
On the contrary, there is a lesser-popular term known as nearshore software development hiring, except that the country from where you upgrade your development team is located near your own country. For Western Europe, Eastern Europe is that country.
Another benefit of nearshore software development is the narrowing of the time-zone differences. However, when it comes to the software development rates in Eastern Europe, they are slightly on the higher side.
What are the offshore development rates in Eastern Europe?
Today, over a million software development centres in Eastern Europe offer offshore software development teams.
The software developers’ density in Eastern Europe is relatively high–there are about 1.5 developers per 100 people in the region. The tech university in the Eastern Europe area is growing, which further implies that software developers are only going higher.
One of the peculiar facts about Eastern Europe is its financial stability, which means that software developers can leverage the best tech facilities and architectures. In addition, the annual revenue growth from IT outsourcing is about 20-25% in Eastern Europe.
If you want to hire an offshore development team in Eastern Europe, the average rates of offshore developers are somewhere between USD 25-30 per hour.
What are the best offshore software development countries in Eastern Europe?
Among the countries in the Eastern European region, the software developers in Ukraine are most preferred for offshore hiring. The outsourcing rates in Ukraine are pretty high.
However, the country sits at the 11th position for the tech skills in the world. In case you think that the rates are pretty high, you can hire a junior offshore software developer to balance the equation between your budget and required skills.
What is the offshore developer rate per hour in Latin America?
Latin America stands tall as the emerging offshore destinations to hire high-quality software developers. If you want to exclusively hire an offshore developer from Latin America, Argentina and Panama are two of the most popular outsourcing destinations.
Latin America is growing as a technology hub and constantly revolutionizing its capabilities by staying abreast pertaining to tech solutions just like its neighbour–North America.
What are the offshore outsourcing rates in Latin America?
Offshore software development in Latin America is a relatively new concept. The startups headquartered in North America are scrambling towards Latin America to hire remote developers, as this is the closest region to their territories.
As a result, Latin America offers both–the lowest offshore software development rates and the highest offshore software development rates.
The typical offshore software development rates in Latin America are between USD 30-50 per hour.
What are the top software development outsourcing countries in Latin America?
There are numerous Latin American software development companies across various countries. Let’s find out the outsourcing rates by country in Latin America:
Among these countries, startups and enterprises prefer to hire software development teams from Costa Rica, as it falls quite near to North America. Companies that hire software developers from Costa Rica can rest assured about cultural similarities and good quality development.
Trends: Offshore software developer in Africa
Though considered an underdeveloped economy, Africa is gradually making a prominent mark in IT infrastructure. In fact, there is more awareness about the digital culture than it ever was in the African continent.
As a result, the number of employees working remotely are increasing in Africa. Outsourcing is a crucial economy-booster in the region, which encourages more individuals to work as software developers for even low offshore software development rates.
What are the software development hourly rates in Africa?
One of the prominent reasons for establishing the IT culture in the African continent is the presence of the young population. Given the increasing penetration of smartphones in Africa, the IT infrastructure is constantly widening, and new horizons are opening, owing to the tech revolution.
Africa is one of the preferred outsourcing destinations, owing to the offshore software developer rates USD 20-40 per hour.
Where are the Skilled Software Engineers in African Countries?
The African tech market can be segregated into two parts-North Africa and South Africa. The North African countries such as Tunisia, Morocco, and Egypt are compatible with Europe and New York’s time zones. Besides this, the lower software developer rates further make North African countries an attractive destination to hire offshore programmers.
Besides this, the rapid development of cities in South Africa also counts as a crucial factor driving the IT industry’s growth in the region. In addition, numerous smart cities projects are underway, encouraging individuals to develop IT-related skills and make an earning out of it.
Why choose offshore developers over freelancers?
It is interesting to know that the offshore developer rate per hour is the same for the dedicated software engineering teams and freelance developers. As a result, it is your call to one of the following models of outsourcing:
- Project Outsourcing Cooperation Model
- Dedicated Development Team Model
What is the project outsourcing cooperation model?
The offshore developer rate in the project outsourcing cooperation model depends upon several factors. In this model, the prices you have to pay to hire the best offshore developers are hourly.
You have to hire developers on an hourly basis and bear the project’s fees and the additional cost for making changes into the software development cycle with the inclusion or deletion of functionality.
In addition, you will have to consider the cost of hiring business analysts, project managers, and architects based on your project requirement.
Being independent software developers of freelancers under the project outsourcing cooperation model, the startup and companies might be duped and might hire a junior offshore software developer while their project requires hiring a senior software developer.
What is the Extended Team Model?
The extended team or dedicated development team model is a safe bet to play for startups who wish to have a long-term and good relation with the software development companies to get their project to breathe life, step up with the advanced features, and keep on staying relevant with the users’ needs.
If you want to build your offshore remote developers team using the extended team model, you need to fix monthly salaries along with the fees for the vendor’s infrastructure. In this model, the onus is on the vendor company to ensure quality project development. As a result, the chances of fraud and project abandonment rates are quite low.
Let’s gauge the efficiency of both the models using various parameters:
A vendor company offering its software developers for hire provides more shared expertise based on the experience. As a result, client companies are more prone to get the benefits of knowledge sharing within the wide team of software developers from vendor companies.
If a functionality suggested by the client is not known to the dedicated team, the vendor company can quickly include another resource from the other team to work on the complexity.
On the other hand, a freelance software developer might only have a limited set of skills. A freelance software developer may not be able to fill in for the other skills. As a result, you will have to begin your search for an offshore developer to find relevant skills.
On the basis of reliability, there’s no doubt that the extended development team is the ideal solution. When a vendor company accepts a project, the course of development is an instrument to make or break their credibility. Unless there is a heated discussion or colossal difference of opinions, the vendor company won’t leave the project midway.
On the contrary, freelancer software developers are often known for their tendency to project-hop for the highest prices. As a result, they exhibit low reliability.
To hire an offshore software programmer is no lesser than gambling in the dark. If you have done your research well and narrowed down your search to a reliable offshore software developer, you may be in with the resource for the long term. However, the offshore development team comes with their own sets of challenges, leading to discontinuity of the projects.
As a result, the scalability can get affected, and you might end up beginning your search for offshore developers from ground zero. However, when it comes to hiring an extended development team, you might be in with the legal binding. When legalities involve, it is riskier to opt-out abruptly. Hence, you can rest assure about the scalability of your project.
Tips to select offshore development country and vendor
As a startup or an enterprise embarking on your journey to view the offshoring industry’s hyper-crowded areas, you need to have the right metrics to hire virtual programmers for your project.
Below are some of the crucial factors that you can employ to suffice your outstaffing and staff augmentation needs:
Value over Cost
If you want to hire high-quality software developers, it is probably for your business venture or for including automation in your business. Regardless of what your aim is, the underlying mindset is to extract profitability out of it.
Hence, you do not want to compromise on the quality of the software development. As a result, one of the crucial criteria for choosing the ideal offshore development country and vendor is to scroll the vendor’s profiles, expertise, and capabilities.
When you have a unique software development requirement, you would not want a newbie to handle it and encounter complexities.
As a result, while scrutinizing the software development companies, you need to ensure that the vendors have in-depth knowledge about the technologies required for building your project.
In today’s time, this might seem a bit insignificant as software developers from across the world are available to work for any shift. However, the factor is important when you are hiring an extended development team.
In such a case, you will have multiple people from different parts of the world working on your project. Hence, try to have the minimum time-zone difference if possible but not at the project quality cost.
Quote Comparison and Roadmap
Though we cling on to the quality too tightly, it is crucial to know the project’s estimated budget. Hence, you can send in your requirements to the shortlisted software development companies and ask them for the roadmap/milestones.
This will help you find out the ideal time required for the project development. You can compare the quotes, expertise, and roadmap from different software development firms and narrow down your search.
Scalability and Convenience
Once a tech partner, always a tech partner—if you follow this rule, you will never have to explain your project for the hundredth time to a software development company.
When you are inquiring about a software development vendor, you can ask them about the maintenance, support, and future requirements. That ways, when your project requires additional features or another revenue stream, your vendor can take it ahead from where they left.
Probably, this is the only and most important aspect of any project development. No two apps or website can exactly be the same. To put this into perspective, an experienced software development vendor can differentiate between innovation and normalcy in the IT industry.
As a result, you can ask the vendor companies to showcase their expertise and recognitions. Alternatively, you can read the case studies to find out how they tackle the mid-project crisis.
Why Choose India’s Peerbits for Hiring Offshore Developers?
Among the countries of the world, India holds a promising position as an outsourcing destination and generates over 8% of the GDP annually. Numerous foreign direct investments in the country only point at the fact that low yet quality software services are the highlight of the Indian IT Industry.
During the last decade, the number of engineering graduates has increased and more startups offering IT industries are coming to the fore with Indian software developers.
Given the increase in IT investments, the Indian offshore software development companies are encouraged to offer a wide spectrum of services to amplify their profit margins. Peerbits is one such leading IT companies in India offering quality and timely software development services.
At Peerbits, we have a stringent resource scrutiny process with multiple stages to get aboard only passionate and skilled software developers. We have been recognized by reputed brands for our expertise and skills.
However, we believe we owe you more reasons to trust us to hire dedicated Indian software engineers:
Wide Range of Software Experts
With over 10 years of experience in the development of breakthrough software, Peerbits has 100+ in-house talents, ready to help you disrupt your niche with innovative solutions.
We have software experts for almost every programming language, framework, technology, testing, maintenance, and support. Besides this, our programmers inculcate the best software development practices and keep clients updated at every step with the agile methodology.
Time Zones. What’s that?
While some Indian offshore software development companies come out strongly about their working hours, we are enthusiastic technology experts who are willing to go the extra mile to serve our clients just right.
Hence, if you wish to hire offshore developers in India without compromising your sleep patterns, Peerbits is the right tech partner. At Peerbits, our developers defy the time zones’ norms and work dedicatedly for the tasks assigned to them.
Advanced Technological Infrastructure
At Peerbits, we take pride in parallel walking with the technology. We work within the strict budgets provided by our clients. However, we do not think twice when it comes to investing in technology and improving the infrastructure for maintaining the ideal working conditions for our employees.
So, when you hire virtual programmers for your project from Peerbits, you can rest assured about your project’s environment is breathing life.
Moderate Rates to Hire Remote Worker in India
It is no surprise that this is one of the ideal destinations for clients to quickly hire a team of Indian developers. In India, cost and quality weigh on equal scales, which enable you to get the best resources at affordable prices.The same applies to Peerbits.
Our leading software Development company charges moderate rates for offshore developers and provide quality IT services.
Strict Timelines and Milestones
We understand the importance of timelines for the project. Hence, we communicate the best possible software development time and break them down into sprints.
After every milestone, our clients receive a view of the development. Hence, the software flow change can be possible at the early stage without costing a lot of time.
Frequently Asked Questions
What are the Top Advantages of Hiring Offshore Software Development Teams?
When you hire offshore developers under the extended development team model, you get the same benefits as hiring an in-house team at better cost and quality.
You need not worry about setting up the tech infrastructure and scrolling through multiple profiles of software developers. The vendor company can manage the background work, leaving you with complete control over the team structure and project.
Which is Better—Offshore Software Developer of Nearshore Software Developer?
When the time zone is the determiner, you may consider opting for a nearshore software developer. However, given the availability of numerous tools used for managing remote developers, the line separating the offshore developer and the nearshore developer is getting blurred. The crucial point is the value that you receive for your project.
Is it Okay to Hire Indian Programmers and Developers?
India is hands down leading in the outsourcing vicinity and one of the top offshore destinations. Affordable prices and proficiency in IT skills often encourages clients to hire dedicated developers from India.
Which is the Perfect Outsourcing Company?
The term perfect outsourcing company demands a brief definition and various parameters. However, in a nutshell, an IT company that offers high-quality software development at reasonable prices and within the specified timeframe can be considered an ideal outsourcing company. But you also need to consider the technical expertise of a company to come to a conclusion.
Where can I Find Moderate Offshore Development Rates for IT Services?
Eastern Europe and Asia offer moderate offshore development rates for IT services, owing to the improving technological architecture and availability of a large pool of resources.