Hiring talent to work on your IT projects is almost impossible nowadays. The time and effort it takes to hire software developers, retain the talent, and develop the talent consume most businesses. It is no wonder why many companies turn to software development outsourcing companies to help them build their project or source their IT teams. The journey to find the right IT partner is not easy, but well worth the effort if you do it right.
Types of IT Outsourcing
The possibilities for partners are endless, you first must decide where you would like your partner to be. You will have the option to either go for onshore outsourcing, nearshore outsourcing, offshore outsourcing, or have a hybrid of the three when you hire software developers. You should mainly base this decision on how much accessibility you will need from these software developers.
When does each one make sense:
- Onshore: If you will need to work very closely with them and don’t like the idea of an IT remote team, then onshore would probably be the best option for you.
- Nearshore: If you need to work closely with them but don’t mind having the team be remote then nearshore would give you the perfect blend between accessibility and cost.
- Offshore: If you need little to no access to the team then offshore would be the best option.
In many cases, a hybrid strategy can be the best strategy for when you’re just starting out with software development outsourcing. There are many great providers out there and you should be able to get a good software development team together if you do your research.
So is there a price difference between them, the answer is yes. The largest tech hubs around the world that have plenty of tech talent are listed below along with country details and pricing.
Eastern Europe Developers
If you are in the United States or Canada this region would be considered offshore. This region has over 1 million developers, which means there are 1.3 developers for every 100 people. This is because they count on a high number of tech universities. For example, Ukraine is considered the home to Europe’s largest tech talent pool. This creates a high demand for software developers in the region. The hourly rates to hire software developers in this region are between $30 and $65 per hour.
Your key outsourcing countries in this region:
- Ukraine
- Belarus
- Russia
- Poland
Asia Developers
When we think of outsourcing what region usually comes to mind? Asia…right? And that is because they have huge populations. Between India and China we have 1/3rd of the world’s population. The increased supply drives down prices but also increases the likelihood of hiring low-quality talent. Some other challenges to outsourcing to this region are working conditions, different time zones, cultural differences, language barriers, and accessibility. The hourly rates for developers in this region are between $20 and $45 per hour.
Your key outsourcing countries in this region:
- India
- China
- Philippines
- Vietnam
Africa Developers
This continent is a cheap and growing destination to outsource software development. In last year their population of developers has increased a lot and is showing no signs of slowing down. Africa created 40% more open-source repositories on the software engineering marketplace over the past year. The hourly rates for developers in this region are between $25 and $45 per hour.
Your key outsourcing countries in this region:
- Egypt
- Kenia
- Morocco
- Nigeria
Latin America Developers
Latin America is a less known choice that has been gaining popularity quickly. This region has a surplus of talent, close proximity to North America, and proximity. Many also state that the cultural similarities, time zone overlap, and decreased travel cost make this a prime location geared towards becoming a hot tech hub soon. A country to watch closely in this region is Mexico, because of its intellectual property protections and free trade agreements with the United States and Canada. The hourly rates to hire software developers in this region are between $35 and $70 per hour. (According to Daxx)
Your key outsourcing countries in this region:
- Mexico
- Colombia
- Argentina
- Brazil
Range of Prices All around the World for Software Development Outsourcing
Source: Sumatosoft
As you can see in this comparative chart, there is a big difference between US software development salaries and salaries around the world. Outsourcing software development will save you a lot of money and time, letting you focus on the results.
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