Digitalization has now become an essential requirement for businesses aiming to remain competitive. This shift has led to a surge in demand for IT services, leaving many companies struggling to find the right software development partners within their local markets.
More businesses are looking abroad for solutions to address this growing imbalance between the increasing demand and the limited availability of IT resources locally. Offshore software development is quickly becoming the go-to strategy, offering a variety of benefits, such as significant reductions in time, costs, and resource allocation. For startups and small enterprises, hiring an offshore software development company can be a game-changer in maximizing their often limited budgets. However, large corporations are also tapping into this model, frequently opting to hire dedicated development teams overseas rather than shouldering the cost of maintaining an in-house department.
The real key to success with offshoring lies in finding top-quality offshore developers. These professionals, carefully selected based on thorough assessments of client reviews, technical prowess, and proven track records, can provide robust software solutions while minimizing potential offshore software development risks.
In this article, we’ll explore the pros and cons of offshore software development for businesses of all sizes. We’ll also offer practical advice on choosing the best offshore partner and strategies for avoiding common missteps and ensuring smooth, effective collaboration.
Table of Contents
What Does Offshore Development Mean?
Businesses don’t rely solely on local hires to cover a broad spectrum of services. Instead, they have access to skilled talent globally, often in countries far from their own. This shift allows companies to tap into expertise and high-quality work from nearly any corner of the world. A notable example of this is offshore software development.
Offshore software development occurs when a company outsources a project to a partner in a timezone different from its headquarters. For instance, a business based in Western Europe might collaborate with a development team in South America or an offshore software development company in USA might work with developers in Ukraine.
This model is often discussed alongside nearshore software development, where businesses outsource projects to teams in nearby countries. For example, a European company could partner with a software developer in Ukraine, while a U.S. offshore software development firm might work with a South American team.
In both cases, companies work with remote teams outside their own country. These teams can be responsible for a variety of tasks, from coding and product design to creating custom software, web, or mobile apps and providing software maintenance and support.
For many businesses, offshore outsource software development services offer an excellent solution when specific skills are required, particularly when local talent with the right expertise is hard to come by.
What Does an Offshore Developer Do?
Offshore developers bring a blend of technical expertise, essential soft skills, and substantial experience to manage key aspects like building, implementing, supporting, and testing your specific tech projects.
Even though these developers may work remotely, they are often part of a larger offshore team. Together, they contribute fresh perspectives and innovative skillsets, introducing new ideas and creative solutions to your projects.
This advantage is largely because offshore teams typically come from various countries. The resulting diversity fosters innovation, encouraging creative problem-solving to deliver high-quality products.
When to Hire Offshore Developers
What is offshore software development company? Offshoring often becomes the most practical solution for companies facing specific challenges.
- Lack of local talent. Finding top-tier developers is difficult on a global scale. It can be especially challenging to recruit local engineers for in-house roles. As a result, businesses often turn to offshore outsourcing software development companies to fill these gaps, ensuring access to the necessary expertise without geographical limitations.
- Specialized positions. Some projects require highly specialized technical roles or temporary positions that might not appeal to top-tier local talent. Whether it’s a project manager, a quality assurance engineer, or another role that provides offshore .NET software development services, offshoring allows businesses to bring in the precise skills they need without the long-term commitment.
- Complex development. Technical expertise is crucial when handling complex projects to avoid bottlenecks and delays. Offshore development teams often have experience working with advanced tech stacks and can manage these intricate processes smoothly.
- Meeting tight deadlines. Speed is often critical to a project’s success. Offshore teams provide flexibility and scalability, enabling faster turnaround times. Whether using your own project manager to oversee development or relying on a full-service offshore team, you can meet deadlines more effectively, boosting both efficiency and outcomes.
- Support & consulting. Even without a specific agile offshore software development need, companies can benefit from offshore software teams’ consulting and support services. These teams, with their experience working across borders, can provide valuable guidance on regulatory issues and help rescue projects that have gone off course.
- Cost-effectiveness. Offshore partnerships eliminate the need for expensive in-house hires, offering comparable or even superior expertise at a fraction of the cost. This significantly reduces development expenses while maintaining high-quality results.
Benefits of Offshore Software Development
Choosing an offshore software development company to build or enhance your business software comes with a range of advantages. These include, but are not limited to, the following key benefits.
Partnering with the right offshore software development outsourcing company is critical for ensuring project success. Before finalizing your choice, it’s essential to carefully assess the team’s communication abilities, project management expertise, and overall reliability. It’s also important to consider potential obstacles like time zone differences and security risks to maintain smooth and efficient collaboration. Let’s learn why offshore software development can benefit you.
Cost-Effective Solutions
Opting for an offshore vendor for .NET software development services offshore can help reduce your overall expenses by as much as 30%, covering areas like recruitment, salaries, and more. In contrast to building an in-house team, you won’t need to allocate resources for licensed software or hardware either—offshore rates for software development are lesser.
On top of that, working with an offshore software development services company means you’ll bypass expenses associated with employee training, paid time off, sick leave, and other similar benefits.
Attention to Core Activities
One of the greatest advantages of bringing in an offshore software development Romania team that includes a project manager is that it allows a company’s leadership to focus on core activities, such as shaping a solid business strategy, planning future growth, or securing additional investments. Meanwhile, the development team completely manages the technical aspects of product development.
If you choose a team with a project manager, you’ll also benefit from regular updates on the progress, any obstacles encountered, and other essential information, keeping you in the loop without needing to micromanage.
Task-Specific Experts
One of the major advantages of partnering with an software development offshore vendor is the ability to build a scalable team tailored to your project’s needs. You can bring in a large team to develop your product from the ground up, without the obligation to keep everyone on board long-term. Once the product goes through the design, development, and testing stages, you can reduce the size of the team, retaining only the key tech experts required for ongoing support and maintenance.
Moreover, if your product requires updates or modifications down the line, it’s easy to reassemble the necessary specialists. Offshore software development companies typically offer various collaboration models, such as dedicated teams, fixed-price agreements, or time-and-materials contracts, allowing you to choose the option that best fits your project’s needs.
Access to a Larger Talent Pool with Bigger Expertise
Finding tech specialists on your own can be time-consuming and costly compared to working with an offshore software development company. These companies have the experience to identify top talent, whether seasoned experts or promising professionals, and know where to find them. By choosing an offshore software development provider, you’ll tap into an extensive talent pool filled with specialists skilled in both emerging and well-established technologies.
Having a team with a diverse range of expertise can truly elevate your product, helping it stand out in the market and putting you a step ahead of the competition.
Faster Time-to-Market
Not only are offshore software development firms cost-effective, but they also have all the tools and expertise needed to help you launch your software product quickly. This means you can start gathering feedback from your first users or present a polished MVP or finished product to investors much sooner.
Time really is money. The longer you spend building and testing, the more likely it is that a competitor will swoop in with a similar offering, snapping up the customers who could have been yours. Is outsourcing software development offshore making it work? The answer is “yes.”
What Types of Services Can Be Outsourced?
Successful offshore software development outsourcing becomes achievable when IT service providers not only deliver high-quality results but also maintain consistent and effective communication with their clients. A crucial aspect of outsourcing success lies in the ability of geographically distant companies to collaborate and stay connected. Essentially, with enough expertise within the development team, companies can outsource software development offshore. Let’s explore some of the most commonly outsourced services.
When businesses opt to hire offshore developers, they often enjoy offshore software development benefits like reduced costs and access to a global pool of talent. However, they also need to be mindful of potential hurdles, such as navigating time zone differences and overcoming communication challenges.
Web Development Services
Although web development can be a complex and demanding endeavor, outsourcing software development offshore can simplify the process. A competent team can deliver a high-quality web application at a competitive cost, even when factoring in the potential challenges that come with geographical distances.
Offshore software development companies are typically flexible, offering either onshore vs offshore software development services based on client needs. This is often the case when a client already has an in-house team but requires additional expertise for specific tasks.
Mobile Development Services
Mobile app development has become one of the most sought-after services in the offshore software development industry. Much like web development, creating mobile software demands a high level of skill, experience, and seamless collaboration among team members.
The growing dominance of mobile applications and their essential role in driving business growth is a well-established trend today. This is why so many offshore software development companies now focus primarily on offering mobile app development. Whether it’s building native or hybrid apps, these companies can handle the entire development process or provide specific services, just as they do with web development.
UI/UX Design Services
One of the biggest advantages of offshore software development outsourcing is the flexibility it offers. Clients can decide upfront whether they want to hand over the entire development process to an offshore team or just specific phases. This allows them to hire a full team for a comprehensive project or bring in a single expert for a specialized task.
Talented UI/UX designers are especially hard to come by, particularly in the tech world. Their work is crucial when an application needs to be optimized for different devices, each with its own screen size and resolution. As a result, businesses frequently seek out UI/UX services to ensure their software solutions are both functional and visually appealing, making these roles consistently in high demand.
QA and Testing Services
Quality assurance is an essential part of any software development process. The creator of a software product must ensure that every part, module, and component works as intended in various scenarios. Comprehensive testing is a very exhaustive and time-consuming process, so it is often outsourced to a skilled team of specialists focused entirely on this task. This way, the main team of developers can concentrate on other tasks and finish the project earlier.
Alternatively, you may have two testing teams working simultaneously to cover more platforms and use scenarios of a future software product. This method requires more coordination and is commonly used, for example, to speed up cross-platform or hybrid mobile development. One team may ensure the quality and performance on Android devices, and the other team may perform the same tasks on iOS devices.
Offshore Software Development Process
In reality, an offshore process is virtually the same as its nearshore or onshore equivalents in the IT sector. It follows the same phases and routines, such as gathering requirements, conducting architecture design, coding, ensuring security and quality, deploying the product, and handling post-launch maintenance.
When you’re thinking about hiring an offshore software development team, it’s vital to factor in the costs and various other considerations. Grasping how geographical differences affect pricing, as well as weighing the pros and cons of working with offshore teams, will help you make a well-informed choice.
Like in-house teams, offshore developers also work full-time, produce project documentation, and maintain regular communication with clients. What sets offshore processes apart is the reliance on remote collaboration and the unique challenges that come with it.
To address these challenges effectively, it’s important to take a few key steps before selecting the right offshore software development partner.
Understand Your Needs
Since communication tends to be the biggest hurdle when working with offshore teams, it’s essential to have a solid grasp of your business needs and express them clearly. Pinpoint the specific challenges your business faces and how software solutions can address them. This will help your offshore developers quickly grasp your goals and understand exactly what you need from them.
Define Your Goals and Timelines
When entering the market with your software product, it’s essential to thoroughly analyze your target audience and determine the best timing for release. This step will play a key role in your conversations with potential offshore software application development teams, particularly when mapping out deadlines. By having a clear understanding of who your product is for and the ideal market conditions, you’ll ensure smoother discussions about timelines and expectations.
Stay Informed
Staying up to date with what’s happening in the IT world—like new technologies, popular trends, and the latest advancements—is crucial. Familiarizing yourself with the latest jargon and offshore software development trends will make your future discussions with the development team much smoother.
Browse Offered Services and Investigate Candidates in Advance
Before making a final decision on partnering with a team, it’s essential to thoroughly research their background. Look into their expertise within your industry and technology, review their portfolio (including case studies), check client testimonials, and assess the size of their company. Since this will be a remote collaboration, you’ll need to feel completely confident in your choice.
Prepare Documentation
Ideas can be slippery, so it’s essential to document your vision with as much detail as possible. Once you’ve laid out everything about your future software and signed an offshore software development agreement, you’ll have a solid foundation to return to and revise before engaging with an offshore team. Making adjustments during the planning stage is much easier and cheaper than trying to change requirements once development offshore software is underway.
Challenges in Offshore Software Development
While outsourcing software development to offshore companies can be highly beneficial, it does come with its own set of offshore software development challenges and risks. That said, offshore developers often help mitigate project risks and boost flexibility for businesses. Here are a few common obstacles you might encounter.
- Time differences. Offshore teams follow their local time zones, which often don’t align with your business hours. To manage communication effectively, compromises on scheduling for calls and meetings are essential.
- Cultural and language differences. It’s common for IT professionals to be fluent in English to facilitate smooth collaboration and accurate documentation. However, in some regions, this standard isn’t always strictly upheld, leading to occasional communication issues. This can slow down progress or affect quality, though these problems are less frequent in modern business practices. Additionally, varying cultural norms—such as different work approaches or national holidays—can sometimes complicate collaboration.
- Limited supervision and transparency. Offshore development teams tend to be self-sufficient, which can be either an advantage or a drawback depending on your management style. If you prefer close oversight, you may find it difficult to work with a remote team. For long-term projects, in-person visits may be necessary, either to the offshore site or by bringing their project manager to your headquarters, which adds to costs.
- Potential for data leaks. While developers typically sign NDAs to safeguard sensitive business information, not all countries have robust data protection laws. This increases the risk of accidental exposure of your source code or vulnerabilities due to negligence or weaker work ethics.
- Need for added coordination. Even if you outsource the entire development process, you’ll need to assign managers to maintain communication with the offshore team. These managers will handle minor issues and notify you of anything requiring your attention. Close cooperation with the offshore project manager is necessary to ensure everything runs according to plan, while avoiding overlap in management duties.
How Does Knowing The Average Offshore Software Development Rates Help You Build A Profitable Startup?
A startup budget is a crucial tool for determining how to allocate funds to cover rising business costs, which applies to pre-revenue and later-stage companies.
The startup budget will determine the amount of money you will need to get through the initial few weeks or months. It’s essential that your startup budget is based on market research and provides a realistic forecast of your expenses (even if you calculated all costs to hire offshore software developer).
If you plan to outsource part of your product development, offshore rates for software development will be included in that expense line in your budget. However, the numbers you put in that line can differ significantly. Therefore, you should know the offshore software development rates by country, contractor rates, freelance developer rates, and average offshore software development rates.
Understanding offshore software development rates is not just about knowing the numbers; it’s about the potential for significant cost savings and making wise business investment decisions. Consider hiring a team with a lower hourly rate to reduce employee salary expenses and optimize your business operations. This understanding can lead to finding a top offshore software development company with the best quality/price ratio, ultimately building a more profitable business.
What Makes Up Offshore Software Development Rates: 5 Key Factors
If you have researched offshore software development rates, you might have noticed that they vary greatly. The final cost depends on several factors. Let’s explore the factors contributing to offshore developer rates.
Location
The cost of offshore software development depends on several factors, including the location of the offshore outsourcing software development company. Different countries offer different rates for software development services, which can be attributed to various factors, such as the cost of living and the level of expertise of the developers. For instance, Ukrainian developers have lower hourly rates than those in the US or Canada. At the same time, other countries such as China, the Philippines, India, Poland, Argentina, and Brazil are known for offering competitive rates for an offshore PHP developer or other specialists.
Moreover, within a country, the rates for hiring an offshore web developer can vary. In most cases, large cities tend to have higher rates compared to smaller towns. The cost of living, availability of resources, and the competition among software development companies in a particular location are some factors that influence the rates. Therefore, when choosing an offshore software development team, you should consider various factors to ensure the best time-to-money ratio.
Company’s Profile
Various factors can impact offshore software development rates, and one of them is the company’s profile. By “company’s profile,” we mean their past projects, clients, portfolio, and rating on platforms like Clutch. An offshore software development company with a good reputation and an impressive portfolio may charge higher rates.
Tech Expertise
Regarding offshore software development, the programming languages, and tech stack used can significantly impact the hourly rates developers charge. An offshore web developer with expertise in more niche programming languages often requires higher rates than specialists with more general skills. Therefore, an offshore wind developer or an offshore hybrid blockchain developer will be more costly than an offshore net developer.
Moreover, specific technologies or platforms may require specialized knowledge and experience, leading to increased rates. For instance, if you’re developing a logistics solution, you can hire developer offshore with additional expertise in security practices, which will likely be necessary and will come at a higher cost. Remember these factors when planning your software development project and ensure your budget aligns with your needs.
Taxes
Taxes can play a vital role in defining offshore software development rates. Depending on the country where the software development service is being provided, additional taxes, such as value-added tax (VAT), might significantly hike the overall cost of hiring an offshore PHP developer. To better understand how VAT and other taxes impact offshore software development rates, let’s look closely at some top offshore destinations.
- In Ukraine, the standard VAT rate is 20%. However, IT services are exempt from VAT, making Ukraine a tax-friendly destination for offshore software development.
- In India, the tax rate for software development services is 18%.
- In Poland, the standard VAT rate is 23%. However, small IT businesses can get a reduced VAT rate of 5%.
- In the Philippines, the standard value-added tax (VAT) rate is 12%.
- In China, foreign companies may face additional taxes and regulations in addition to the 6% VAT rate for software development services, making it a more challenging location for offshoring.
Type Of Cooperation
The cooperation model you select can significantly impact the cost. Various cooperation models are available, including time and materials, fixed price, and dedicated team. Let’s review them.
- Time and material. In this model, you pay for the actual hours worked by the team and the resources utilized for the project. The time and material model is a project management approach suitable for projects with dynamic scopes, where changes are expected to occur frequently throughout development. While this model offers a great deal of flexibility, accurately estimating the final cost can be challenging due to the potential for frequent changes to the project’s scope.
- Fixed price. Here, you and your service provider establish an agreed-upon price for the entire project. This pricing model best suits projects with a clearly defined scope, enabling you to assess the costs accurately beforehand. However, any modifications to the project scope could result in additional expenses, which both parties should discuss and agree upon.
- Dedicated team. This model involves hiring a skilled offshore software developer from overseas to work exclusively on your project. It is ideal for projects requiring a longer duration and offers advantages such as better cost management, increased flexibility, and access to talented developers. However, a dedicated team model also requires a higher level of management and communication from your end to ensure a successful outcome.
IT Outsourcing Market Rates
Let’s look at the most popular location for offshore software development services.
Software Development Outsourcing Rates in Eastern Europe
The IT outsourcing industry in Central and Eastern Europe is experiencing significant growth, with its revenue increasing four to five times higher than the global average. Specifically, the industry is growing at 20-25% per year, compared to the global rate of 5% per year.
If you are interested in hiring developers in Eastern Europe, the prices will depend on the destination you choose. For instance, hiring developers in Ukraine will lead to lower rates than developers in Poland or Czechia. The average rate for a developer offshore is approximately $30 for a junior-level specialist and $50 or more for a senior-level programmer.
The Best Countries for Software Development Outsourcing
- Ukraine
- Poland
- Hungary
- Czech Republic
- Croatia
- Romania
- Bulgaria
The Eastern European region possesses all the essential traits to become the top destination for hiring an offshore software product development company. The region’s IT industry is growing at an unprecedented pace, thanks to its ever-increasing pool of highly skilled professionals. It has resulted in the emergence of a thriving hub for cutting-edge technologies and innovative solutions, making it an exciting and dynamic place for anyone interested in IT.
The presence of numerous technical universities coupled with favorable business conditions has further bolstered the industry’s growth. Among the fastest-growing cities in this region is Kyiv, Ukraine, which is expected to have over 100,000 software development specialists by the end of 2023. Therefore, finding an offshore software development services company is a piece of cake.
Software Development Rates by Country
To give you an idea of the outsourcing rates to hire offshore developer in Eastern Europe, we have provided a table below that includes software development rates by country and outsourcing rates in Ukraine.
Pros and Cons of Cooperation with Software Engineers from Eastern Europe
Let’s look at the advantages and disadvantages of hiring an offshore software development outsourcing company from Eastern Europe.
Pros | Cons |
---|---|
Advanced skills at favorable prices | Obscure taxation |
Convenient time zones | Increased amount of communication time |
Vast pool of IT talents | |
Convenient location | |
Transparent regulations | |
English proficiency | |
Fast and cheap Internet access |
Software Offshore Development Rates in Latin America
Latin American countries have recently become popular destinations for seeking an offshore software development outsourcing company. The proximity of these countries to the United States, and minimal difference in time zones, make them a prime choice for customers from the US.
If you are looking to hire a junior offshore software engineer from countries like Brazil, Argentina, or Mexico, you can expect to pay around $30 per hour. On the other hand, a senior offshore software developer from these countries may cost you around $50 per hour. While some developers offer their services at lower rates ranging from $15-$20 per hour, you should remember that the quality of the results may not always be up to the mark.
Pros and Cons of Cooperation with Programmers from Latin America
The data mentioned above looks promising, but what about the benefits and drawbacks of working with Latin American programmers?
Pros | Cons |
---|---|
Convenient time zones | High market price |
Suitable business environment | Hidden unexpected costs |
Fast-growing outsourcing market | Lack of familiarity with your home country’s legislation |
Decent English knowledge | Security risks |
Cultural compatibility |
Average Software Development Hourly Rate in Africa
The hourly rates for outsourcing junior development specialists in Africa are nearly $20 in the year 2024. This data is comparatively higher than in other world regions due to a limited talent pool of software engineers in African countries. This data is true if you are looking for even more particular specialists (for instance, if you want to hire offshore Magento developer).
Specialists from South Africa, Morocco, and Kenya charge a much more reasonable rate. The average hourly rate for a senior offshore developer in these countries is approximately $40, considerably lower than what programmers in more developed countries charge for the same services.
Pros and Cons of Cooperation with Software Engineers from Africa
The rates of software development services in Africa are decent, but will they affect the quality? Let’s compare the pros and cons of cooperation with an offshore software development services company.
Pros | Cons |
---|---|
Low software outsourcing rates | Low number of IT specialists |
High development speed | Technological stack |
Lack of privacy and security laws | |
Increased amount of communication time |
Related articles:
- Best Countries To Outsource Software Development
- Most Effective Ways to Extend Your Software Development Team
- Cost to Hire Talent: Staff Augmentation vs In-House Recruitment
- Nearshoring vs. Offshoring vs. Onshoring. Any Difference for IT?
- IT Talent Sourcing in Ukraine: Best Hiring Strategies
Software Developer Rates in the Best Outsourcing Countries All Over the World
After analyzing the global situation with offshore developer rates, you may want to look at pricing for particular specialist services. Well, let’s look at software developer rates in the world’s best outsourcing countries.
Average Hourly Software Development Rates by Technology
We have gathered data from around 300 outsourcing vendors worldwide to create an hourly offshore software development rates list. It considers specific technologies used and provides a more detailed understanding of outsourcing software development costs.
.NET
.NET is a versatile technology used to create robust cross-platform applications. It offers a comprehensive suite of tools and libraries. Each offshore .NET developer is in high demand, earning an average hourly rate of $36.
Java
The hourly rate for an offshore Java developer varies significantly depending on the region and the developer’s experience level. In Eastern Europe, for example, you can expect to pay anywhere from $20 to $50 per hour for a middle to senior-level offshore Java developer. In Ukraine, rates for Java developers range from $35 for junior developers to $65 for senior developers. These rates reflect a wide range of global options, allowing you to choose a region that best fits your budget and quality requirements if you want to hire offshore Java developer.
JavaScript
JavaScript is a versatile programming language that professionals widely use to create interactive and dynamic web content. It is the most popular programming language in the world, with over 60% of all developers using it in 2021. With JavaScript, you can hire offshore web developer to create products ranging from basic web pages to complex browser-based applications. On average, hiring a skilled JS developer costs around $45 per hour.
Node.js
Node.js is a popular technology used for developing traditional websites and back-end API services. What makes Node.js particularly powerful is that it is designed with real-time architects in mind. This approach means that it is capable of handling large amounts of data and delivering updates in real time. If you are looking to hire offshore NodeJS developer, you can expect to pay an average hourly rate of $48 based on our analysis.
PHP
The hourly rate of an offshore PHP developer can vary widely depending on various factors, such as the region and the developer’s level of experience. Junior PHP developers typically charge between $40 and $60 per hour, while middle-level developers might command rates between $60 and $100 per hour. On the other hand, if you want to hire offshore Laravel developer, it would cost from $100 to $150 per hour. In some regions, the rates may differ significantly from the global average. For instance, in Eastern Europe, you might find PHP developers charging anywhere from $25 to $45 per hour, depending on their experience and project complexity.
Python
Python, the world’s third most popular computer programming language, is a powerhouse in the development world. Its applications range from website and software development to task automation and data analysis. This versatility makes Python a reliable choice for a wide range of projects. If you want to hire offshore Python developer, they will charge $51 per hour, reflecting the high demand and trust in this language.
React Native
React Native, an open-source JavaScript framework, is a powerful tool for developing software and web applications across multiple platforms, including iOS and Android. Its foundation in React and focus on mobile application development make it an efficient choice for such projects. If you want to hire an offshore React Native developer, the average price is $47 per hour, a testament to the value and potential of this technology.
Angular.js
Angular.JS is an open-source JavaScript library that is highly sought after for its ability to create dynamic, single-page user interfaces easily. Its popularity stems from the fact that it offers the ability to create reusable interface components, which can significantly reduce development time. Based on our research, you should expect to pay an average hourly rate of $47 when hiring offshore Angularjs developer.
Mobile Technologies
The hourly rate to hire offshore Android developer varies by region. In Eastern Europe, rates range from $25 to $50 per hour. In South and Southeast Asia, rates are generally lower, ranging from $20 to $40 per hour. The cost to hire offshore iOS developer is comparable to Android programmers in the same regions.
How To Estimate Offshore Software Development Costs For Your Project
Startups often fail due to a lack of funds when they face unexpected problems. To avoid this, you should accurately calculate expenses and estimate offshore software development costs to hire offshore web developer for your project. Here are some tips to help you better understand the final rates.
Define Your Project Scope
To accurately estimate the cost of offshore software development, defining the project scope first is essential. This approach involves identifying the specific features and functionalities you want to include in your product. Once you have a clear understanding of what you want to build, you can collaborate with your offshore outsourcing software development company to determine the cost and timeline of your project. By providing a detailed project scope, you can ensure that the development team has a clear idea of your requirements, which will help them estimate the project’s cost and timeline accurately.
Consider Your Development Partner’s Experience
When choosing a offshore software development company, consider their experience and expertise. A partner with more years of experience in your industry and relevant cases will understand your business needs and is more likely to provide a better solution but get ready that the average hourly rate for an offshore software developer in this offshoring company can be higher. You get what you pay for.
Look Beyond Hourly Rates
Hourly rates are an important factor when estimating offshore software development costs, but they’re not the only factor. Although a lower hourly rate for a project may initially be a cost-saving measure, you should consider the potential consequences. If the project takes longer to complete due to lower quality work or the end result is not up to par, you may find yourself paying more in the long run. Consider factors like the team’s experience, the quality of their work, and communication skills when deciding to hire offshore dedicated developer.
Use Agile Development
Agile development, a highly effective project management methodology, leverages the expertise of specialized professionals, such as an offshore Java developer, to assist you in estimating offshore software development costs with greater accuracy. This approach involves breaking down your project into smaller and more manageable tasks, which are then worked on in short sprints. This methodology allows you to make necessary adjustments to your project scope and budget as you progress, based on feedback from your customers and your own experiences.
At IntelliSoft, we firmly believe that Agile development using an agile software process with offshore development is the most suitable option for startups due to its flexibility and cost-effectiveness. It provides ample room for maneuvering and allows us to build product development most efficiently.
Consider The Cost Of Communication
Effective communication is an indispensable element in offshore software development projects. It is crucial to have a well-thought-out plan for keeping in touch with your offshore outsourcing software development company and to consider the communication costs while estimating the project budget. You can explore various communication channels, such as video conferencing tools, instant messaging, and project management software to facilitate seamless communication with your team. These tools can help you stay informed about the project’s progress, discuss any issues, and ensure everyone is on the same page.
Consider The Cooperation Model
We mentioned earlier that the type of cooperation model you select for your offshore software development project can impact the cost. The price you pay can vary based on whether you choose a time and material, fixed price, or dedicated team model. Remember that not all outsourcing companies provide all three options, so be sure to keep that in mind when making your choice.
Why Hire IntelliSoft for Offshore Software Development
When you choose IntelliSoft for your offshore development software needs, you’re partnering with a company that goes beyond just providing cost-effective solutions — we also deliver outstanding quality and efficiency. Our track record speaks for itself, as we’ve consistently completed complex projects on time and within budget. What really sets IntelliSoft apart is our deep technical know-how, excellent project management skills, and our genuine commitment to fully understanding your business goals.
We carefully select global talent to ensure they not only meet your technical requirements but also fit seamlessly into your corporate culture, making collaboration with your in-house team effortless. With IntelliSoft, you gain access to top-notch developers, the latest technologies, and a flexible development process that adjusts as your needs evolve. This allows you to accelerate your time-to-market and cut operational costs, all while ensuring your projects are handled with the utmost care. Let us support your business growth with our reliable, scalable, and innovative offshore software development center in Ukraine.
Conclusion
Choosing offshore software product development can give businesses of any size a real edge. While in-house teams or other approaches like onshoring and nearshoring have their perks, offshore development stands out for its ability to save you time, cut costs, and make the most of your resources.
At IntelliSoft, we bring over 10 years of experience, offering top-notch offshore development services. We’ve worked across various industries—from logistics to martech and healthcare—building deep expertise in these areas.
Curious about the results we’ve delivered? Take a look at our Case Studies to see some of our most successful projects.
If you’re looking for custom solutions that fit your business like a glove, feel free to get in touch and share your vision with us. We’re here to help you hit your business goals through our offshore development expertise and innovative solutions.