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How Much A Software Developer Costs

Posted 26/10/22

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The worldwide software and service market business was worth about 430 Billion dollars in 2021. And there is more to the growth for it, based on the current trend research. Software industries’ anticipated compound annual growth is around 11% from 2022 to 2028. The main cause of the growth could vary, from the expansion of mobile technology to the growth of cloud computing technologies. And now, we will discuss the cost of software development companies in each Region.

Software Developer

Before we go to the main topic of the discussion, we will first review the software developer market that exists in the world. Alongside the market growth, the total number of software developers worldwide has exceeded 27 million. The largest share of software developer jobs is in North America, where more than 5.7 million people work as software developers, representing nearly 21% of the world’s total workforce.

India has the second-largest developer population at over 2 million, followed by China and Brazil with 1.8 million and 1.5 million, respectively. Asia Pacific accounts for more than 30% of the world’s software developer population, with over 8.6 million developers.

The total number of software developer jobs in South America and Central and Eastern Europe combined is estimated at more than 5.1 million — almost comparable to the total size of the workforce in North America.

Many businesses that aim to stay relevant in the informational era seek software developers from different countries. The main reason for this “Outsourcing” activity is several benefits of hiring outsourced software developers. One of the most popular types of outsourcing is Offshoring. You can find more about what is offshoring software development here.

Offshore Software Development Rates

Software developer rates are mainly known for charging by the hour, and there are various rates for software development professionals worldwide. The price range started from the low $20 / hour for simple support and maintenance tasks to more than $200 / hour for custom build applications. These figures depend on several factors, such as the project’s experience, type, and size.

According to the latest reports, almost 60% of global companies hire offshore programmers to optimize software development costs and fill critical vacancies. While offshore developer rates vary from country to country, you may save 40% to 70% of overall expenses.

The typical hourly rate for a senior developer in Eastern Europe costs between $30 and $65 per hour, while software developer rates in Asia and Africa are generally between $20 and $45 per hour. And In Latin America, software development costs range from $35 to $70 an hour. This may be significantly lower than the rates of qualified software developers in the US, around $65 to $130 per hour.

Offshore Software Developer rates for each Region

Other than the major holder of software developers, some regions participate in populating the software development industries. These regions are divided by the similarity of their product deliveries, prices, and advantages and disadvantages.

West Europe

Country: Netherlands, UK, Belgium, France, Norway, Germany, and Ireland
Rates: $150–$400

Advantage

  • Higher level of English + knowledge of an additional language
  • Outstanding work ethic and high-performance standards

Disadvantage

  • Complicated taxation system
  • Prices are higher than in Eastern Europe

Summary

The Western Region of Europe is one of the most advanced offshore software developer resources. Although the rate for professionals in this Region is a bit higher compared to the other side, the quality and standard of the product generated from this Region is quite high. Therefore, this Region is recommended if you are doing a project with a lot of budgets and requires excellent quality end product.

Eastern Europe

Country: Ukraine, Bulgaria, Czech Republic, Hungary, Poland, Romania, Slovakia, Belarus
Rates: $25 – $199

Advantage

  • Low price rates paired with the excellent quality
  • Working schedules can be easily synched
  • The home to over a million highly qualified software engineers

Disadvantage

  • Leaks of sensitive information occur from time to time
  • Complex payments

Summary

Eastern Europe is the Region with an abundant amount of software developer professionals. Not only the number but also the standard of the product itself. In many cases, the only problem with thiregionRegion involves a project’s data leaks.

Central Asia

Country: Kazakhstan, Uzbekistan, Tajikistan
Rates: $10–$59

Advantage

  • Affordable rates
  • Closer attention to one’s project due to the Region’s low popularity

Disadvantage

  • Less experienced developers
  • Hard to find programmers specializing in rare technologies
  • The local IT market is still in the development stage

Summary

Central Asia is dominated by developing countries, and there are smaller numbers of software professionals compared to the other region side of Asia, which means a smaller pool to choose from. But considering if you are looking for more committed and affordable software developers, this might be the right one.

East and South Asia

Country: China, Indonesia, Malaysia, Philippines, Vietnam, Japan
Rate: $10–$350

Advantage

  • 10 million talent pool of developers
  • Rates are several times lower than in other regions
  • It’s easy to find developers with any tech stack

Disadvantage

  • Low speed of project development
  • Communication challenges
  • Worse code quality compared to other regions

Summary

The east and the south of Asia have one of the highest amounts of a talent pool that you can choose from, and the average cost to hire professionals from this Region is also cheaper. But keep in mind there are many communication challenges you may encounter when deciding to hire east or south Asian professionals. This is because there are a lot of languages that you must master when you want to communicate effectively.

North America

Country: USA, Canada
Rate: $100–$450

Advantage

  • A large talent pool of vetted professionals
  • Developers specializing in any technology
  • Excellent service quality

Disadvantage

  • High rates
  • Competition between companies that aim to attract skilled developers

Summary

The leading Region that provides offshore software development, the technology used by the experts of northern America is the most advanced one. The only downside of this Region is that the price to hire experienced developers is higher, and the competitive market price to hire professionals.

South America

Country: Mexico, Panama, Brazil, Argentina
Rate: $20 – $ 55

Advantage

Over a million qualified IT specialists

Disadvantage

  • Extra taxation for foreign companies
  • Occasional lack of discipline and quality

Summary

The biggest advantage of this Region is the wide talent pool that could help you to find the most suitable software developer professional to handle your project. But although the amount of qualified talent pool of this Region is high, it also comes with a bit of a downside. The first is the tax that will be paid by the company would be bigger because there is a difference between tax for domestic companies and foreign projects.

Africa

Country: Morocco, Kenya, Nigeria, Egypt, Ethiopia
Rate: $10–$99

Advantage

  • Low development rates
  • Programmers specialize in popular technologies
  • Many specialists know English at the upper-intermediate level.

Disadvantage

  • Service quality leaves much to be desired.
  • Hard to find professionals qualified in rare programming languages
  • Periodically occurs miscommunication

Summary

The professionals in Africa have good competency in popular programming languages and are cheaper than the other Region. Yet, few are qualified to do rarer programming languages. This makes the Region the most suitable if you are tight on budget and looking for a professional to do a project that uses a popular programing language.

Australia

Country: Australia
Rate: $100–$350

Advantage

  • Advanced talent pool
  • Vetted developers
  • Progressive local IT market

Disadvantage

Rates are equal to those in North America.

Summary

Australia is a region that has an excellent standard of professionals. The location of the country that is far from European and North America makes this Region to be suitable for someone that needs high-quality professionals yet avoids the problem of the time difference when working with professionals located in Europe or North America. Surely excellent resource also impacts the rate of a professional hour. The price for hiring from this Region is almost the same as in northern America.

Conclusion

Each Region providing offshore development has its own advantage over the others. The main difference that needs to be highlighted here is the price. No matter the project size, the budgeting plan should always be the first to be held. But if you are looking for a reliable professional with a rather affordable rate for your project, the Region of south asia is the best offer you can take. Plenty of talent pools can be filtered, and the cost is also much lower compared to the quality product they deliver.

To know more about hiring a software developer, try to read the other discussion below.

More Resources:

  1. How To Hire an Offshore Software Development Team
  2. Does Outsourcing Software Development Work for Startup Company?
  3. How Can I Hire Indonesian Developer?
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