Software development is a complex process that involves a number of stages, including design, coding, testing, and deployment. The cost of software development is a critical factor that businesses must consider when developing and launching new software products. The cost of software development varies significantly depending on the size and complexity of the project, as well as the experience and skills of the development team.
One of the biggest drivers of software development cost is the location of the development team. Different countries have different labor costs, which affects the hourly rate that software developers charge for their services. This means that businesses must carefully consider the location of their development team when determining the cost of software development.
In this blog, we’ll take a closer look at the average software development rates by country, to help businesses understand the costs involved in software development.
Taking into account a big focus on business digitization and adoption of innovative technologies, companies all over the world need highly experienced specialists to make it happen. And software outsourcing is one of the best ways to hire software developers fast and build relevant software.
The benefits of outsourcing your software development project are immense. It’s worth noting that the first reason to outsource is the opportunity to reduce software development costs significantly while maintaining top-notch quality. In addition, you can get access to a wide talent pool of professionals with different levels of experience and tech expertise to fit your unique needs.
Let’s take a look at some statistics regarding the state of the software development market:
At this moment, Asia and Europe are dominating the outsourcing market. However, there are accomplished developers all over the world. The main difference between them is prices. The outsourcing software development market is very dynamic. And so are the software development hourly rates. If you are interested in hiring a team of developers but don’t know where — you are in the right place.
In this article, you will explore a detailed overview of offshore software development rates by country to compare the options and make a well-informed decision when starting a collaboration with your future software development partner.
Factors Determining the Software Development Cost
Before we dive into the topic and will give you a detailed overview of the offshore software development rates by region, let’s find out what core factors are shaping the average cost to develop software.
Tech Stack
Technology stack is another biggest factor that shapes the total costs. Nowadays, there is a wide array of different programming languages and platforms that are used to build software or applications. Some of them are more in demand and, of course, more pricey.
Project Complexity
The first thing that will define the costs is the type of software you want to develop as well as the overall project complexity. The more difficult your custom enterprise software development idea is in implementation, the more skilled professionals are needed and more advanced technologies will be used. Respectively, it implies a higher price for your software development.
Hiring Model
There are three main engagement models in outsourced software development. They are aimed at making collaboration with a vendor the most effective and cost-efficient for a client.
Location
Geographical location of your outsourcing software development partner also matters. In the article down below, you see how rates for software development vary depending on the region. There are countries that offer you excellent quality for a reasonable price as well as destinations that are much more expensive. By choosing the right country to outsource you can save on software development costs. Also, make sure your time zones are compatible for smooth and timely communication.
To define the right hiring model that fits your budget and business needs, contact our managers who will help you make the choice based on your unique requirements.
Project Size
Of course, the price of your software development project will be defined by the number of team members. It’s possible not only to hire developers but also QAs, project managers, designers, or any other professionals that are required for the successful execution of your idea. Each specialist will cost differently depending on their experience and qualifications.
Seniority of Team
This one is pretty straightforward. The more experienced and skilled a software engineer is, the higher rates they have. Their overall experience, knowledge, and tech stack are taken into account while defining rates for custom software development services.
Another thing that you need to take into consideration is that the rates of freelancers and developers offered by a company will be different. Obviously, freelancers will be less pricey, however, the outcomes of such collaborations and the quality of end results are unpredictable. Unlike freelance, outsourcing companies take full responsibility for quality and control over the working process.
North America
North America is home to some of the world’s largest and most technologically advanced companies. As a result, software development rates in North America are among the highest in the world. The average hourly rate for software development in North America is around $75 to $150. This is due to the high cost of living in North America and the high demand for software developers with advanced skills and experience.
Europe
Europe is home to a large number of software development companies, including some of the world’s largest technology firms. The average hourly rate for software development in Europe is around $50 to $100. The cost of software development in Europe is lower than in North America, due to the lower cost of living in many European countries.
Asia
Asia is home to many of the world’s largest software development companies, including those in India, China, and the Philippines. The average hourly rate for software development in Asia is around $20 to $50. The cost of software development in Asia is significantly lower than in North America and Europe, due to the lower cost of living in many Asian countries.
Australia and New Zealand
Australia and New Zealand have a strong technology sector and are home to many software development companies. The average hourly rate for software development in Australia and New Zealand is around $60 to $100. The cost of software development in these countries is higher than in Asia, but lower than in North America and Europe.
South America
South America is home to a growing number of software development companies, including those in Brazil, Argentina, and Chile. The average hourly rate for software development in South America is around $30 to $60. The cost of software development in South America is lower than in North America and Europe, but higher than in Asia.
Final Thoughts
The cost of software development varies widely by country, depending on the location of the development team, the size and complexity of the project, and the experience and skills of the development team. Businesses must carefully consider these factors when determining the cost of software development and choose a location that offers the best value for money. Whether you choose to work with a development team in North America, Europe, Asia, Australia and New Zealand, or South America, it’s important to choose a team that has the skills and experience to deliver high-quality software that meets your business needs.
The Best Countries For Outsourcing Software Development
Every region and every country has something to offer when it comes to software development. However, to make the choice easier for you and not to let you get lost in numbers and destinations, we offer you our top 10 countries to outsource your next project.
Hiring a perfect and cost-effective development team is only one step away. These countries are renowned on the market for their flawless quality of work as well as reasonable prices comparing the US, Canada, and West Europe.
It’s worth noting that Eastern European countries are our main recommendation as they possess the highest level of tech proficiency. In addition, they have minimal time zone differences. Moreover, they possess English proficiency as well as no big cultural difference which makes communication with them simple and smooth.
- India
- Philippines
- Ukraine
- Poland
- Romania
- Czech Republic
- Argentina
- Brazil
- Bulgaria
- China
Every country can be considered for outsourcing. Down below you will find software development rates by country to make a well-informed decision:
Down below you will see the average hourly software development rates based on the technology applied.
And let’s break the same technologies into seniority levels to see how the rates vary based on experience
Tips to Save Software Development Budget
As software development is a very costly process that requires a lot of investment, we are ready to share some effective tips that will help you reduce your expenses and save on cost to develop software:
Outsource to low-cost destinations. Outsourcing is definitely the most proven way of reducing your software development expenses. By choosing an offshore destination like Eastern Europe you will be able to receive amazing results for a significantly less price.
Set up your requirements. Define your main business needs and software requirements. Comprehensive and detailed documentation is the key to your success. It will serve your developers as a roadmap to a desired product. The more detailed you are — the fewer questions will appear.
Communicate clearly. It’s paramount to communicate your requirements and goals as clearly as possible. It will help you avoid misunderstandings between you and software engineers as well as deliver results much faster without the need to re-do tasks which of course requires money.
Develop in iterations. If you are working on a complex and massive product making changes in a finished solution is really challenging and cost-consuming. Building your software in iterations will help you save time, and money, and deliver more clean and effective software.
Review progress regularly. Misunderstandings can happen. Failure can happen as well. But if you review the progress frequently, you will minimize the chances something will go off track. Therefore, all processes will run smoothly, and there will be no need to rebuild some things for an extra price.
Test properly. The earlier you spot bugs in your software the easier and cheaper it is to eliminate the problem and ensure the end-users get a quality solution. Bugs discovered at a later phase involve more additional costs as well as a later release date.
As you can see, custom software development rates vary depending on multiple factors including geographical location. While looking for a reliable software development partner it’s very important to choose the right destination to outsource as it will define the development costs.
Consider Intellectsoft Your Dedicated Software Development Partner
If you are looking for reliable software development companies to outsource your next project then Intellectsoft can be the best match for your business.
Our company has more than 15 years of experience in building custom software development projects for clients from all over the world. Intellectsoft is proud to have a track record of collaborations with renowned international businesses and Fortune 500 companies.
We offer a wide range of professional services in the field of software engineering, consulting, and outstaffing. Our average rates for software development are very reasonable taking into account the level of expertise and professionalism of our team. We offer the best pricing model to our clients that will fit their budget and business needs. The processes at Intellectsoft are very simple and straightforward to achieve the end goal in the shortest time possible.
Right after signing the contract, our team of skilled developers and other industry professionals will thoroughly analyze your requirements to come up with the most effective plan to deliver top-notch software or applications that will help your company grow exponentially and fully benefit from digitalization.
In order to get familiar with all the main projects we delivered — check out the list of client success stories. Explore what business challenges Intellectsoft solved through expert software development.
If you have an idea for your future project in mind or your organization needs team extension services — feel free to contact us and our managers will reach out to discuss all the details and answer any questions you may have.
