May 14, 2020
February 11, 2020

How Much Money Can Outsourcing Software Development Offshore Really Save Me?

Steve is sad. 

He wanted to develop his software project here in the United States, but he can’t afford that. 

In the U.S. decision-makers like Steve spend $125-$175/hr to hire a small local software agency to take on projects between $50,000 and $5,000,000. 

At a bigger software agency, it can be between for projects ranging between $125,000 to over $5,000,000. 

Steve is fictional and so are his woes. but yours are real. 

Building software locally is maddeningly expensive or outright cost-prohibitive. 

Cutting costs, without compromising on quality is challenging and time-consuming. 

In the worst-case scenario, you could end up with a locally built (still expensive) “you get what you paid for” kind of project.  

Developing offshore, on the other hand, could be the key to getting your project done well while saving on costs.  

But what country should you choose? Here’s a helpful summary of the best countries to outsource your project to in 2020. 

Best here means high-ratio of quality for cost. We’ll look at what programmers make on average as agencies don’t usually disclose their rates online. I say that but working with a lone-wolf developer adds risk to your project and it’s always best to hire an agency or dev team instead. 

Reputable software development agencies in these countries are known globally for providing affordable rates, stellar service, and quality assurance. 

Best countries to outsource your project to in 2020

1. India

India has emerged as the best of the offshore software development countries. As the second-largest English-speaking country on the globe, you don’t have to worry about a language barrier when you hire a software developer in India.

You also don’t have to worry about draining your budget. Indian software developers earn an average of $7.21 an hour in U.S. dollars.

But what about quality? Can you trust your project to an Indian offshore development company? 

In a word, “Yes.” 

Many of the developers have the same skills you’ll find in the United States or Northern European countries, so you can feel confident when you hand your project over. 

  • Average rate of $7.21 an hour
  • Work with English-speaking software developers
  • Developers have similar training and knowledge as U.S. software developers.

However, keep in mind that the time zone differences are significant. With 10 hours between the US and India, you’re starting your workday while your offshore team will be getting ready for bed. 

Without efficient scheduling, management skills, and team coordination, a time zone difference with your team behind your day by 10 hours can put a big lag on the project. 

Another important difference to note is that India is a high context culture, while the United States, Australia, the UK and mostly all of Europe are considered a low context culture. 

These cultural differences can play a big role in how the project goes. Work style differences can pose a challenge to collaboration and it is very important to be aware of them. To learn more about what low/high text culture is and why it matters, check out our guide to finding an all-star agency offshore in 2020


2. Ukraine

Did you know there were 192,000 software developers in Ukraine in 2019? That is  8,000 more software engineers than they had back in 2018.

These developers are skilled in Java, Python, PHP, Kotlin, HashiCorp Configuration, Go, Javascript and many others. 

English. English is a required subject in Ukrainian schools from first grade to senior year and studying is generally continued in university. If portfolio shows work has been done for international clients it’s a good indicator that the team is competent in English. Software agencies in Ukraine often partner with marketplaces and English speaking account managers. Here at Make It In UA our account managers and staff are bilingual, some trilingual. We make sure your needs and questions are understood and addressed every time. Nothing will get lost in translation. 

The average hourly rate is $0.66 an hour, according to PayScale, but internationally recognized and award-winning software agencies will pay up to $30 an hour for talented developers, or more based on experience. Developers are trained and familiar with all coding languages.

  • Younger developers and those who work for well-known software development agencies are more likely to speak English. 
  • Rates are $15-30 an hour on average
  • Hiring a reputable agency gets you the same high quality product that you’d build back home. Except it’ll be three times cheaper if you make it in Ukraine. 

Since Ukraine is on Eastern European Standard Time, you’ll have some daylight overlap with the offshore software development company you choose. 

Easily schedule a time to speak with your Ukrainian team. That’s a big win. 

Like we mentioned in “how to get offshore in 2020” the top outsourcing agencies in Ukraine usually have full time zone coverage, someone is always on call so the 7 hour  difference is never an issue.  

Since this is our home turf, send any of your questions our way. Or jot down the best place to reach you here. We’ll send you a free quote so you can see how easily you can start outsourcing to Ukraine. 

Now back to the list.

3. Poland

If you stay on top of outsourcing trends, you’ll notice that a lot of successful entrepreneurs are sending their work to Polish developers. Poland is known as one of the top countries regarding programming talent, thanks in large part to an outstanding education system that is focused on technology.

To put it simply, you can expect a high-quality piece of software when you outsource to Poland, regardless of its complexity.

That’s good to know, but will you need to learn Polish to outsource to Poland?

Not unless you really want to. While Polish is the native language, English is 2nd most spoken. Close to 30 percent of Poles are English speakers, so you can find a team to work with for sure. 

Here’s the best part. You get access to talent for an average of $16.17 an hour. Of course it could spend more, depending on your project’ scope requirements. 

Even so, you’ll get your project done for much less than you would onshore. Also known as back home. 

  • Poland is a top country for programming talent.
  • Approximately 30 percent of residents speak English.
  • Programmers charge an average of $16.17 an hour.

4. Romania

A high-quality education system and a dedication to technology make Romania an excellent option for offshore software development. While the hourly rates are affordable for companies in the United States the best software engineers make considerably more than the average Romanian. That’s made software development attractive for nationals, enticing countless young people to enter the fray.

Romanian software developers are highly proficient in programming languages, databases, security, algorithms, and more, and they offer their services at a price you can afford.

Just how much can you expect to pay if you outsource your software development project to Romania?

How does $3.69 an hour sound?

As with other countries, the price may increase based on your needs and the developer’s experience level. Still, you won’t break the bank if you choose Romania.

You also won’t have to break out your English-to-Romanian dictionary. Close to 90 percent of Romania’s IT sector (including software developers) speak English.

  • Talented developers can work on difficult or extensive projects.
  • 90 percent of software developers speak English.
  • Time zone overlap makes it easy to collaborate.
  • Average cost of $3.69 an hour.

Choosing an Offshore Software Development Company

Now you know the best offshore software development countries, but how do you choose the right company? 

Check out our guide to outsourcing software development offshore where you’ll learn what to look for in an agency offshore, how to interview and assess competence, and ho to hire for your project. 

Author
Shad Paterson
About author
Shad's been a digital nomad since he was 16, living and working remotely. After working in marketing and selling crap to people constantly, he decided to change his life and do something good. Now he helps other people transform their lives, by landing them high-paying jobs across the world.

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