Offshore software development has become increasingly popular in recent years, leading to a proliferation of companies around the globe promising the best service at the lowest price.
Offshore software development has become increasingly popular in recent years, leading to a proliferation of companies around the globe promising the best service at the lowest price.
But is building an offshore team really the cost-effective solution it seems?
In this article, we explore the factors that impact offshore development rates, the average costs of hiring developers in different countries, and strategies for getting the best value for your business. So let’s dive in!
A shortage of skilled developers in the US and Western Europe means companies must pay high talent prices. Hiring developers from Eastern Europe and Asia offers a more cost-effective solution due to their sizable talent pool and lower cost of living.
Hiring offshore developers with niche, in-demand skills will cost more due to the complexity of modern tech stacks. Developers skilled in multiple complementary disciplines will command higher wages.
Experienced developers demand higher wages. However, those who have delivered successful projects and demonstrated technical ability can also expect a higher salary.
The duration of a design is more applicable to outsourcing than offshoring. An coastal software development platoon is endless, and there's no' if you want it sooner, it will bring you more' pricing.
India and The Philippines are popular offshoring destinations thanks to their large pool of highly-skilled English-speaking engineers and lower costs compared to Europe. India is especially known for offering excellent value for money, with highly-trained engineers and a reputation for producing top-notch software engineers. The Philippines, on the other hand, is more focused on IT support and contact centres.
Building a nearshore team in Eastern Europe is a viable option for Western European companies. With similar rates to Asia (€20-45 per hour) and a more familiar time zone, countries like Ukraine, Poland, and Romania are becoming popular destinations.
North American businesses can benefit from offshoring to Latin America, which offers proximity and negligible time difference. Mexico, Argentina, and Brazil are among the countries with hourly rates averaging €25-45 per hour for developers, making them attractive options for companies looking for skilled talent at competitive rates.
When building an offshore team, companies often prioritise the location and rates of the country. However, partnering with the right offshore development team can be the key to maximising success. With their expertise and resources, an offshore development partner can help build and manage a highly effective team. So, it's essential to carefully consider the partner you choose before embarking on your offshoring journey.
With a staggering 1.5 million English-speaking engineers produced annually, India is at the forefront of the global tech industry. And the best part? This number is increasing. These highly skilled engineers undergo years of rigorous education and training, rivalling their counterparts from top tech hubs like the UK and France.
At The Scalers, we take pride in building top-notch offshore teams for businesses worldwide, right here in Bangalore. With India's unparalleled technological infrastructure and a never-ending stream of emerging talent, it's the most strategic location for offshoring globally.
If you're considering offshoring and have questions, head to our blog for expert insights or reach out to us directly. We’re here to help!
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