With the growth of technology and globalization, more people have started working from home. This has created a demand for people who can work remotely. In the past few years, some countries have become hubs for remote workforces such as Iceland, the USA, and Canada to name a few.
Hiring a remote team is considered one of the best ways to solve a specific problem. The process itself isn’t difficult, but if you’ve been in this field for a long time, you may ask questions such as: Which countries are good? What is the right platform to work on? How do I know if an employer is serious and committed to hiring talented people full-time?
Hiring a remote team has its advantages and disadvantages. Hiring one of the best remote teams is not easy though, as there are various factors to consider before hiring a global workforce.
If you are planning to hire a remote team, it is best to do your homework first. A very small percentage of people out there have the right skills and experience that would make them a match for your needs. In other words, you need to find the right talent before making that first important decision. While this might not be as crucial as it was 10 or 20 years ago, the trends show a decrease in job security and an increase in poor-quality workers within organizations, which could lead to issues down the road.
The average cost of offshore software development services
The cost of offshore software development services depends on the size of the project, how long it will take to complete it, and what skills are needed to complete the project. In general, the cost of offshore software development services is much lower than that of onshore services because offshore developers work from home or other remote locations, reducing their expenses for rent, utilities, insurance, and transportation. They also tend to use better technologies than those used in-house by most companies.
Several factors impact the cost of offshore software development services, including
- The type of project
- The size and complexity of the task
- The location where the work is performed
- The experience level of the person performing the task
- Hardware and software costs
- Administrative overhead costs (such as rent)
- Freelance fees for specialized skills and knowledge
- Paid time off for employees who aren’t working full-time
Costs of offshore software development services vary from company to company, depending on a variety of factors. However, one thing remains true: the cost of offshore software development is similar to the cost of in-house development.
Let’s examine some of these factors and how they influence your final cost.
The first factor that influences your cost is the level of customization required by your application. If you’re developing an e-commerce website, for example, you may need to build a custom search engine that can handle thousands of products without slowing down or crashing. This level of customization will impact your overall costs because it requires additional time and effort.
Another factor that impacts costs is project size. If you have a small project (such as creating an internal app) instead of a large one (such as creating an e-commerce website), then your overall cost will be lower than if you were working on something large scale like building an entirely new website from scratch.
The current situation in the IT hiring market
The IT hiring market has been growing at an accelerated rate in the last few years. The demand for IT professionals is higher than ever, and the supply of available talent is not keeping up with it. In the past year, we’ve seen a surge in demand for programmers and developers but also for cloud engineers. This is because companies are trying to hire people who can help them scale their businesses quickly, as businesses continue to grow and become more complex.
The number of open positions for IT professionals continues to increase, but there aren’t enough qualified applicants to fill all of those jobs. As a result, employers are having trouble finding the best candidates and have begun paying more money for them—a trend that will likely continue into 2023 as well.
According to a report by the Bureau of Labor Statistics, there were 3.9 million open IT jobs last year. The number of open IT jobs has remained relatively stable over the last few years, at around 3 million. But because there are so many more people looking for work than there are available positions, the competition for these positions is fierce.
How did offshore software development rates change over the last year?
A recent survey found that companies are increasingly turning to offshore software development over onshore because of the cost savings, quality of life, and flexibility that it offers. Several factors contribute to this increase in offshore software development rates.
An increasing number of companies are looking to hire more employees with skills in software development and IT fields. As a result of this increased demand, more companies are outsourcing their IT projects to offshore companies. This has led to an increase in the number of offshore companies offering IT services to customers.
Over the last year, offshore software development rates have increased by nearly 11%. This increase is due to a variety of factors including the growing demand for services and projects, as well as a growing talent pool available for hire around the world.
In 2020, the average rate for a full-time software developer was $150 per hour. In 2021, this number dropped to $100 per hour—a decrease of 20%. This was due to a large number of developers migrating to cheaper locations such as India and Brazil.
However, in 2022, the rate increased again by 15% to reach $125 per hour. This is because many companies were still unable or unwilling to relocate their operations overseas due to the high costs associated with doing so.
Software development hourly rates by region in 2022
Software development hourly rates vary greatly across the world. In some regions, software developers can expect to earn $65 per hour and in others, they can earn just $10 per hour. The reasons for these differences are many, but it is important to know what factors influence those rates so that the worker can make an informed decision about where they want to live and work.
North America
As of 2022, Indeed.com estimates that the average base hourly wage for a software engineer in the United States is $50.64. This figure may change depending on the region as well as the experience and technology. Also, you should be aware that the rate only accounts for the developer’s earnings and excludes taxes and other out-of-pocket costs. Examples of rates from various states are as follows:
| Seattle, WA: $65/hr | $65/hr |
| Washington, DC | $65/hr |
| Austin, TX | $70/hr |
| New York City, NY | $75/hr |
| Chicago, IL | $85/hr |
| Toronto, ON | $95/hr |
| San Francisco Bay Area, CA | $105/hr |
| Los Angeles, CA | $115/hr |
| Montreal, QC | $125-135/hr |
| Canada | $62/hr |
Western Europe
| France | $54/hr |
| Germany | $61/hr |
| Netherlands | $69/hr |
| Sweden | $52/hr |
| UK | $53/hr |
Ukraine, Belarus, Poland, and Romania are among the best locations for software development worldwide today. Around $13 billion worth of Technology was exported from these nations overall.
Moldova, the Czech Republic, Hungary, Bulgaria, Serbia, and other notable nations in this area are also significant players.
Further data on the state of the IT sector in Eastern Europe is provided below:
- The combined revenue of the 477 IT companies that took part in the study was $5 billion.
- There are 700,000 IT professionals in the area (since this report, the number of IT talent has reached 900,000 professionals and is constantly growing).
- 60,000 graduates from tech universities per year.
- Annual revenue increase in the area is 20–25%.
| Bulgaria | $54/hr |
| Croatia | $58/hr |
| Czech Republic | $60/hr |
| Hungary | $57/hr |
| Poland | $59/hr |
| Romania | $56/hr |
| Ukraine | $59/hr |
| Argentina | $51/hr |
| Bolivia | $33/hr |
| Brazil | $44/hr |
| Columbia | $51/hr |
| Costa Rica | $44/hr |
| Chile | $55/hr |
| Mexico | $61/hr |
| Peru | $39/hr |
| Uruguay | $61/hr |
| Bangladesh | $28/hr |
| China | $28/hr |
| India | $29/hr |
| Malaysia | $33/hr |
| Nepal | $28/hr |
| Pakistan | $25/hr |
| Philippines | $28/hr |
| Sri Lanka | $28/hr |
Benefits of hiring offshore developers in 2023
There are several key benefits to consider when hiring offshore developers.
- Offshore developers are much cheaper than their onshore counterparts. This is why you should consider hiring an offshore developer to help you get your project done in less time. Offshore developers can be hired for as little as $10/hour, whereas onshore developers can cost between $20 and $30/hour.
- Offshore developers are also more reliable than onshore developers because they’re working from home and don’t have to worry about getting paid on time or working in an office environment with other people around them (which can make it harder to concentrate).
- Offshore developers are generally more experienced than their onshore counterparts, so they’ll understand how to solve problems quickly and efficiently without wasting any time doing unnecessary research or gathering information from multiple sources before coming up with an answer (which is often what happens with onshore developers).
- Offshore developers have access to resources that aren’t available in the US (like databases), but because they’re located abroad they may be able to find these databases faster than if they were located here (especially if they have enough RAM or CPU power).
How to hire offshore developers in 2023
There are a lot of places to hire offshore developers, but the most common choice is to use an agency. The main benefit of using an agency is the wide range of services and expertise that it can provide. An agency can handle all aspects of the project from beginning to end–from choosing the right code framework for your project to building out a full-fledged back-end application with it.
Another option for hiring developers is through talent hubs like Prodigies.dev. This platform connects businesses with remote developers who are willing to take on projects like yours and complete them with uncompromised quality.
Freelance portals:
Here are some reasons why hiring remote engineers through freelance portals sounds like a good idea:
- Huge digital talent pool: Upwork, for instance, has more than tens of thousands of offshore developer profiles.
- Quick hiring: You may assemble an offshore development team of independent contractors and enter into agreements with them in less than a week.
- Remote collaboration: You only pay for development services; there are no overhead expenses.
- Direct communication: In the secure environment offered by your freelance site, you can speak or video chat with your team.
- Low rates: A freelancer needs to add tasks to their portfolio to establish a reputation on a freelance marketplace. Although their fees “in real life” are normally greater, they frequently accept low-budget projects to accomplish this.
On the contrary, there are some disadvantages too-
- Unreliability: freelancers are not subject to any binding contracts, thus they are free to abandon your project at any time.
- Time zone differences: having to catch up with your team when you are in a different time zone can be a hassle for everyone.
- Commission Fee: Each time you receive payment through a freelance portal, you must pay a processing charge.
- Lack of commitment: You cannot be certain that freelancers will devote all of their time to your project alone since they may work on other projects in addition to yours.
Outsourcing Companies:
The traditional method of creating an offshore development team is through collaboration with outsourcing businesses. These businesses provide software development services to the client’s project requirements and operate with international clients. You will have the following advantages:
- Since the employment will be legitimate and governed by formal agreements, the developers won’t be able to abandon the project at any time, as would happen with freelancers.
- There are no overhead charges because the outsourcing company will cover all costs.
- The developers will give their whole attention to your project till it is finished.
The disadvantages of outsourcing businesses include
- Slow hiring process—it could take months to assemble a team for your project owing to bureaucracy.
- Lack of communication—in most cases, the communication is handled by a local project manager.
Hire from Prodigies
Each tech stack can find resources at Prodigies. Our vetted developers are skilled at taking on challenging projects and beating deadlines in a variety of sectors. They are suitable for demanding work environments because of their ability to solve problems and depend on professionalism.
Prodigies links trustworthy developers with businesses all across the world. Our talent pool guarantees engineering maturity, self-reliance, and preparation for difficult assignments. Top resources for each talent you require, from frontend or backend to DevOps, are found within our network.
Average developer hourly rate hiring platforms in 2023
The average developer hourly rate for a new job posting on a major hiring platform is $61.40, according to the research. The highest-paid developer was paid $64 an hour, while the lowest-paid was paid $52 an hour.
The average developer hourly rate on most hiring platforms is $17.3K per year. The average developer hourly rate on Gigs, Freelance, and Upwork is $18.6K per year. The median developer hourly rate for all developers on these platforms was $61 an hour in 2022.
| Upwork rate per hour | TopTal rate per hour | |
| Web development | 15-136 | 17-105 |
| Mobile development | 25-150 | 21-113 |
| Front-end development | 15-100 | 32-100 |
| Back-end development | 15-150 | 36-105 |
Developer hourly rate in 2022 based on technology and experience
| Average Rate, $ | Median Rate, $ | |
| .NET | 51 | 49 |
| AngularJS | 56 | 49 |
| C# | 53 | 50 |
| C++ | 53 | 52 |
| CSS | 52 | 51 |
| DevOps | 58 | 56 |
| Java | 56 | 51 |
| JavaScript | 51 | 50 |
| Node.js | 53 | 52 |
| PHP | 51 | 47 |
| Python | 52 | 54 |
| React Native | 53 | 51 |
| React.js | 53 | 51 |
Conclusion
It can be difficult to make a team of software engineers for your project. This is particularly valid if you’re in Western Europe or the United States and are looking for tech talent in your area. Finding ideal people at competitive pricing could take quite some time. However, you can engage an offshore programming team to expedite the process and prevent unexpected costs.
You can access a large pool of tech talent through freelance portals. You’ll be able to speak with your team immediately during the hiring process, which will be quite short. Aside from that, even for highly qualified freelancers, the costs can be pretty modest. This is because they are new to the portal and must first establish a reputation. At the same time, freelance portals are unreliable, and while freelancers can work on multiple projects at once, you need to give your project everything you’ve got.
An outsourcing company is more dependable. They might need months to assemble a team for you, though. Additionally, you won’t frequently have the chance to scale the team or have a direct connection with your staff. We have the best solution for you at Prodigies.
Get in touch with us right away, and we’ll be pleased to give you additional information about managing outsourced development.