What do Whatsapp, Uber, and Calendly have in common? They all outsourced their development to offshore specialists at some point. This way, they got access to skilled professionals with solid experience in required technologies and minimized app development costs. It’s the dream of any entrepreneur!
If you’re looking into outsourcing the development yourself and wondering what an average salary for an offshore developer is, read on: we’ve prepared a detailed guide on rates for remote devs across the globe to help you make an informed decision.
Understanding of the rates calls for in-depth analysis of these contributing factors — and that’s exactly what we did with this guide. Read on to see us look into several most popular locations for offshore development and offer the latest data on rates charged by developers specializing in specific technologies based on their seniority level as well as talent availability in the region. So, let’s dive into the offshore software development rates by country.
Romania boasts nearly 192,000 software developers and their number is reported to be growing year on year. The IT sector in Romania is worth 3.2 billion euros as of 2022 thanks to rapidly developing tech centers that attract technology giants to hire tech talent from the region.
Romania is home to more than 400 custom software development companies, according to Clutch. At least 145 of them are in the capital city of Bucharest.
Besides an impressive talent pool, Romania also offers a stable business environment and favorable conditions for new business development. Finally, thanks to a lower cost of living, professionals from this region charge half or a third of what an average US developer would charge for the same job.
Official sources typically show a lower salary range which is significantly different from a real picture. Since we used official sources for all the countries on our list except for Ukraine (for which we conducted our own field research), when looking for tech talent in mentioned countries, you will most likely face higher than mentioned salary expectations.
.Net: Junior (19,800 USD) – Senior (32,100 USD)
Java: Junior (20,700 USD) – Senior (46,000 USD)
PHP: Junior (17,500 USD) – Senior (31,600 USD)
React: Junior (17,300 USD) – Senior (42,000 USD)
AI engineer: Junior (20,250 USD) – Senior (35,900 USD)
Python: Junior (16,600 USD) – Senior (38,000 USD)
Source: DevJob, Salary Explorer, Salary Expert.
In 2022, Ukraine was ranked 4th on the list of countries while its capital, Kyiv, was ranked 2nd on the list of cities that offer the best developers in the world, according to a detailed study by Pentalog. The ranking is based on the results of tests and quizzes passed by IT specialists from countries and places from around the world, thus, ensuring the fairness and transparency of the decision-making.
Ukraine is home to more than 240,000 skillful developers. At least 100 of Fortune 500 companies use their services to scale their business. As a result of such high demand, Ukrainian IT specialists brought home around $7.3 billion in 2022 alone (despite the barbaric russian invasion of the country).
Ukrainian developers are a good cultural fit for any Western company, thanks to their European mentality. They boast great English skills and have proven time and again to be beyond motivated, showing impeccable morale and work ethic even in the darkest of times.
.Net: Junior (21,000 USD) – Senior (66,000 USD)
Java: Junior (21,000 USD) – Senior (68,000 USD)
PHP: Junior (12,000 USD) – Senior (60,000 USD)
React: Junior (7,200 USD) – Senior (70,000 USD)
AI engineer: Junior (22,000 USD) – Senior (80,000 USD)
Python: Junior (7,200 USD) – Senior (70,000 USD)
Source: Djinny, StartupSoft.
Poland is proudly one of the top 10 countries to find the best developers to build your product. Located right in the heart of Europe, it boasts at least 250,000 developers and $12.4 billion worth of IT market. In 2022, Poland ranked 38 on the Global Innovation Index, demonstrating the commitment of the country to the innovation-driven growth of the region.
19 higher education institutions in Poland made it to the QS World University Ranking in 2022. These and other HE establishments release around 15,000 IT graduates a year ready to jump in and scale your business.
Even though Poland is one of the most expensive outsrouce development destinations in Eastern Europe, it’s attracting more and more tech giants and growing startups in search of quality tech talent outside the US.
.Net: Junior (22, 278 USD) – Senior (59, 564 USD)
Java: Junior (23,111 USD) – Senior (64,543 USD)
PHP: Junior (19,776 USD) – Senior (51,753 USD)
React: Junior (21 719 USD) – Senior (60,100 USD)
AI engineer: Junior (22,524 USD) – Senior (57,234 USD)
Python: Junior (21,780 USD) – Senior (66,075 USD)
Source: pracuj.pl., benchmark.p, justjoin.it.
Another worthy outsourcing destination in Europe is the UK with its 300,000 IT professionals working in the sector. In 2021, Tholons Services Globalization Index reported that the UK is the 7th top destination in the world and 2nd in Europe. More than 40,000 tech companies are based in London alone.
The UK is also home to a number of top educational institutions, and as a result, it ranks 2nd for computer science and IT, according to the QS World University Rankings. This strong educational base, absence of language barriers, favorable time zone, and a vast pool of available tech talent make the UK one of the top offshore destinations in the world.
However, these factors also translate into higher-than-average offshore rates for software development.
.Net: Junior (59,028 USD) – Senior (83,883 USD)
Java: Junior (65,242 USD) – Senior (96,311 USD)
PHP: Junior (46,603 USD) – Senior (80,894USD)
React: Junior (59,028 USD) – Senior (90,098 USD)
AI engineer: Junior (46,603 USD) – Senior (71,197 USD)
Python: Junior (65,242 USD) – Senior (102,523 USD)
Source: cwjobs.co.uk, Glassdoor.
We could have just said that Germany has a pool of 850,000 IT professionals working in the sector and stop right there. That would be a good enough selling point in itself. While other markets struggle to find good talent, Germany has enough to cover their needs and then some.
However, there’s more to it.
HackerRank reported that in 2021, German developers ranked 5th out of 100 countries based on their skills and expertise. Besides, the country introduced very strong data protection laws ensuring the security of sensitive data for companies that are doing business within the country.
On the other hand, German developers’ rates are among top highest ranking ones. And that’s one thing potential clients have to take into account.
.Net: Junior (41,777 USD) – Senior (68,806 USD)
Java: Junior (58.224 USD) – Senior (78,408 USD)
PHP: Junior (43,662 USD) – Senior (70,900) USD
React: Junior (44,572 USD) – Senior (69,898 USD)
AI engineer: Junior (43,100 USD) – Senior (65,600 USD)
Python: Junior (53,834 USD) – Senior (67,054USD)
Source: gehalt, absolventa, get-in-it, jobtensor.
Portugal ranks 11th on the list of countries with the highest education standards, including those in the field of software development. This translates into highly-educated workforce available for hire. This plus English language proficiency and political and economic stability of the country help them rank high on our list of great choices.
There are around 120,000 developers in Portugal, specializing in both mainstream and rare technologies. While the talent pool might not be as extensive as that of other Western countries, Portuguese devs have another ace up their sleeves: average rates of developers from this region are lower than those of their Western European counterparts, which makes them a popular choice among companies looking to hire affordable talent.
Junior developers — $14.076-$37,536
Middle developers — $21,114-$58,650
Senior developers — $19.941-$66,864
.Net: Junior ($14.076) – Senior ($66,864)
Java: Junior ($14.076) – Senior ($66,864)
PHP: Junior ($14.076) – Senior ($66,864)
React: Junior ($14.076) – Senior ($66,864)
AI engineer: Junior ($14.076) – Senior ($66,864)
Python: Junior ($14.076) – Senior ($66,864)
India needs no introduction: they have long become one of the top outsource destination with giants like CISCO, Dell, Oracle, and Microsoft entrusting their software development to the local talent.
One of the main reasons why companies outsource to India is to reduce costs associated with development. It’s not a secret that the cost of hiring a seasoned professional here would be just a fraction of the cost of hiring a professional of the same level back in the US, while the quality is often just as decent.
India is home to more than 5.2 million IT specialists. This whopping number makes them the world’s largest tech talent pool. Now, let’s look into their average rates.
Junior — $625-$1,250
Middle — $1,250-$1,875
Senior — $1,875-$4,000
Junior — $625-$1,875
Middle — $1,875-$2,500
Senior — $2,500-$4,750
.Net: Junior ($1,250) – Senior ($4,000)
Java: Junior ($1,250) – Senior ($4,000)
PHP: Junior ($1,250) – Senior ($4,000)
React: Junior ($1,250) – Senior ($4,000)
AI engineer: Junior ($1,875) – Senior $4,750)
Python: Junior ($1,250) – Senior ($4,000)
Source: softermi, talentjdi.com.
Vietnam has been expanding the number of technology parks and incubators as low rates and vast availability of tech talent has been attracting more and more Western companies to outsource software development to the region.
The talent pool of the country comprises 430,000 specialists which is smaller than their Indian counterpart yet still quite significant.
The downside to outsourcing here is the time difference between North America and Southern Asia. However, with proper time and communication management, this obstacle is easy to overcome.
Average hourly rates:
Junior — $500-$1,000
Middle — $1,000-$1,500
Senior — $1,500-+$3,500
Junior — $500-$1,500
Middle — $1,500-$2,000
Senior — $2,000-+$3,700
.Net: Junior ($1,000) – Senior ($3,500)
Java: Junior ($1,000) – Senior ($3,500)
PHP: Junior ($1,000) – Senior ($3,500)
React: Junior ($1,000) – Senior ($3,500)
AI engineer: Junior ($1,500) – Senior ($3,700)
Python: Junior ($1,000) – Senior ($3,500)
Source: Talentjdi Tviec.com.
The most affordable of Asia outsourcing destinations, the Philippines is home to more than 190,000 IT specialists, reports the Philippine Software Industry Association. Besides competitive rates and a vast pool of skilled professionals, the Philippines also offer a variety of incentives and benefits for businesses outsourcing services to the country.
This combined with excellent work ethics, cultural and time zone compatibility as well as high level of customer service attract multitudes of enterprises looking for remote tech talent.
Last but not least, the Philippines are one of the most affordable outsourcing destinations in Asia where you can hire a seasoned professional for a fraction of a cost you would pay for the same level of expertise back in the US.
However, note that there’s a 12-hour time difference between the Philippines and the US which can complicate the communication within your development team.
Average hourly rates:
Junior – $400-$900
Middle – $900-$1,200
Senior – $1,200-$3,100
Junior – $400-$1,200
Middle – $1,200-$1,800
Senior – $1,800-$3,300
.Net: Junior ($900) – Senior ($3,100)
Java: Junior ($900) – Senior ($3,100)
PHP: Junior ($900) – Senior ($3,100)
React: Junior ($900) – Senior ($3,100)
AI engineer: Junior ($1,200) – Senior ($3,300)
Python: Junior ($900) – Senior ($3,100)
Source: Talentjdi, PayScale.
Offshore software development is certainly an attractive option for your business with all the benefits it offers, including access to a large pool of great talent, lower rates when compared to the rates charged by professionals in the US, and the flexibility of a hybrid team. If you believe this is the right choice for you, the best countries to hire remote tech talent will be:
– Ukraine, Romania and Poland in Eastern Europe;
-Germany, Portugal and the UK in Western Europe;
-Vietnam, India and the Philippines in Asia.
However, if you’re not familiar with the market, hiring offshore can be daunting and time-consuming. With ongoing recession, the amount of available talent on the market is at an all-time high. So, searching for the right fit will most likely take long weeks of searching, interviewing, and screening the candidates. Besides, you’re likely to face some unexpected expenses along the way. It’s tough and overwhelming.
Check out our materials to make the right staffing decision