Businesses across the globe are collaborating with outsource software developers to stay ahead of the competition. Collaborating with a software development team from another geographical location helps refine the business model & assists in defining strategic goals in the best possible way.
Offshore software development has gained an exponential boom over a couple of years. This proven business strategy has made it possible to work with top-notch professionals residing overseas.
While small businesses use this approach to bring down development costs, large enterprises use it to extend their existing team and increase their global outreach.
If you are looking to hire dedicated offshore developers and want to learn about the software developer hourly rates, we have curated this guide for you!
Current State of Global Offshoring Software Development
Since its inception in the early 2000s, the outsourcing industry has revolutionized different sectors.
As outsourcing continues to grow, a few trends would help you understand the current state of global outsourcing software development:
The IT outsourcing market (hereafter referred to as the market studied) was valued at USD 526.6 billion in 2021. It is expected to reach USD 682.3 billion by 2027, registering a CAGR of 4.13% during 2022-2027 (hereafter, referred to as the forecast period).
The business process outsourcing market is expected to grow by USD 76.90 billion, progressing at a CAGR of over 7% during the forecast period
Incremental growth of 76.90 billion USD is expected from 2019 to 2024, up by 1.69% from the previous year, 2020.
The market is fragmented with several players, and the impact is neutral.
Value over price As we know, outsourcing has been a growing trend since the early 1980s. However, today’s offshore development scenario differs significantly from the earlier models.
Organizations moving towards outsourcing software development are focusing heavily on hiring skilled labor to reduce costs, improve core business processes, enhance service quality and drive transformation in addition to various other reasons mentioned below:
Why do companies outsource?
Software Developer Hourly Rates by Regions
We have done detailed market research to find out the software developer hourly rate across the globe.
Without further ado, let’s compare the price of software developers across the top outsourcing countries: Asia, Europe, Latin America, and Africa.
What is the Software Development Hourly Rate In The United States?
Software developer hourly rates are the highest in the United States, ranging from $38-63 per hour. The total salary, including taxes and benefits, ranges from $137k to $173k.
Although hiring in the United States is a bit expensive, there are numerous benefits, such as lesser language barriers and reduced miscommunications.
Software Developer Hourly Rate In United States The following table depicts the average hourly rate of software developers in various cities in the United States:
What Is The Software Developer Hourly Rate in Asian Countries?
Asia has the most significant number of software developers, a pioneering software outsourcing destination compared to other countries., with 10 million. The hourly rates of software developers across the continent are shaped by various aspects and differ significantly from country to country.
India, the Philippines, and China are the three major countries offering custom software engineering services. Let’s drill down the software development services across the top three Asian countries to make things easy for you:
Software Developer Hourly Rate In India
The entrepreneurs who wish to execute their ideas by building top-notch solutions at affordable rates consider hiring Indian developers. India is one of the best countries to outsource software requirements.
Hiring an offshore developer from Asian countries is the most budget-friendly option. Explicitly speaking about India, the range to hire developers starts from $18 for a junior developer and goes up to $40/hr.
Here are why the country is one of the most preferred outsourcing choices:
- As per A.T Kearney Global Service Location Index 2019, India tops the list of the most attractive outsourcing destinations.
- The country has 100 million English-speaking people in the world. And by the end of this year, there will be more than 2 billion English speakers in the country.
- Approximately 1.5 million engineering graduates pass out of college every year.
- More than 200,000 IT graduates add up to the Indian workforce annually. Besides, the country has the youngest employable population globally.
- In the upcoming years, 40% of professionals will train themselves according to the latest technology to meet the advanced industry requirements.
Software Development Hourly Rate In Philippines
Philippines is another country with the fastest-growing IT industry. With more than 200 offshore software companies and 95000 technical positions, it is considered the second-best country to build software teams overseas.
According to the data by Teleport & Best jobs, the salary for junior software developers in Manila ranges from $3.5-$6 per hour, in Quezon ranges from $4-$7 per hour, and in Cebu, it goes anywhere between $5-$6 per hour.
Software Developer Hourly Rate In China
Among other Asian countries, China has considered s the third-best for hiring mobile app developers or web developers. Chinese developers are the first among all HackerRank challenges. Today, there are more than 50 science and technology industrial parks.
In China, the overall revenue in the software development industry is expected to increase by 6.9 percent in the upcoming five years, reaching $1.2 trillion.
To know about software developer hourly rates in other countries, read the original article.
Original Article: software developer hourly rates