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Offshore Software Developers Rates in 2021

With modern technologies, you can outsource software development to an overseas programmer team and thus save costs. Offshore outsourcing also opens doors to global talent pools. However, the average cost of software development services still dramatically varies from country to country. Therefore, in this article, we will analyze the offshore software development rates by continent, region, and country and provide you with some tips on how to hire Offshore Software Developers.

Offshore Software Developers | Savvycom

1. What Does It Mean To Hire Offshore Software Developers?

“In software engineering, offshore custom software development consists in offshoring the software development process in a country where production costs are lower, thus decreasing budget spending. Offshore software development can include following services: product design and architecture, coding and testing; develops SaaS, Internet/Intranet solutions, e-commerce, CRM, project management and other special web-services (including Web 2.0 solutions)” – Wikipedia
Offshore software development is hiring an external company or team to build software outside of the customer’s country. Hiring a team of software developers for your project is a challenging task. It usually takes many resources to find a perfect candidate for a reasonable price, especially when you’re a start-up and cannot afford to overspend. Yet, to speed up the process and avoid unexpected expenses, you can hire an offshore software development company.
Outsourcing and offshoring concepts are often used interchangeably. However, offshoring is instead a part of outsourcing. Offshoring involves partial relocation of a business to a distant country.

2. The difference between Offshore and Onshore, Nearshore

Basically, the difference between these 3 types comes from the location of outsourcing:

  • Offshore software development means that the company of providers is located in a country far away from customers’, even in another continent.
  • Onshore outsourcing means when the company decides to hire software developers within their own country, maybe different in region.
  • Nearshore outsourcing is services existing among countries with the same time zone. Though these types of outsourcing are more convenient and approachable, they sometimes limit customers’ range of options.

3. Benefits of Hiring Offshore Software Developers in 2021

3.1 Inexpensive Approach

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Why you should choose Offshore Software Development!

Quartz reports stated that 46% of start-ups fail as they run out of money in their starting phase. If you are a startup and searching for offshore developers for hire, you won’t have to face such a situation.
It’s because by choosing an affordable offshore development team you won’t have to spend your capital on overhead costs such as office rent, salaries, insurance benefits, recruitment fees, etc.
Instead, you will be spending your funds on your business growth.

3.2 Improved Productivity and Quality

Offshore developers not only reduce the cost but also improves the development process, thereby saving time. It means that when you go for agile development with an offshore team on your side, there is no need to spend extra time training new employees.
Why? Because the offshore software developers you will hire will be experts in their field. Therefore, by saving time and money on your team training, you can focus on your core business objectives.

3.3 Flexibility

Changing the technology stack becomes a challenge with an in-house team. However, when you are associated with a reliable offshore outsourcing company, you can easily switch between the different development teams (for instance, from iOS app developers to React Native developers).
In fact, you will get the freedom to add or remove a developer to your offshore team. You just have to inform your partnered offshore development center prior to making any changes.

3.4 Accessibility to More Talent

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Outsourcing offer access to more professionals

Offshore outsourcing offers access to a large talent pool of professionals. Both web and mobile app development have numerous technology stacks, so it’s impossible to get the developers for all technologies under one roof. And offshore outsourcing solves this problem by giving you access to hire offshore web developers as well as app developers.

3.5 Seize New Market Opportunities

As new technologies are emerging, companies look for ways to establish their presence before their competitors. For example, AstraZeneca – Research-based BioPharmaceutical Company has tapped into the booming Chinese pharmaceutical market by investing in agile development with an offshore team.
In terms of software and mobile app development, AI and Blockchain are two emerging technologies. And if you don’t have an in-house team of AI developers or Blockchain developers, it is a good idea to build one in an offshore location and get an edge over your competitors.

3.6 Tax Savings

When you hire offshore app developers in countries such as Vietnam (Vietnam Pocket Tax Book by PWC), you can take advantage of the tax incentives offered by them.

Never Miss A Deadline With Savvycom?
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4. The latest trends in Offshore Software Development

4.1 Cloud computing

Cloud computing plays an important role in offshore software development by optimizing scalability and flexibility. If companies are well aware of the benefits of cloud computing and take advantage of it in a proper way, their mounting needs can be addressed effectively.

4.2 Automation

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Automation – a Good Option for Reducing Labor Costs

Automation is undeniably beneficial for businesses, especially which realized the importance of hassle-free software development services. It can increase independence from human effort, cut down on costs and risks in connection with manual labor force. Furthermore, automation can respond to human needs faster to gain competitive advantage.

4.3 AI

For the purpose of developing better software, AI technologies can be used to improve the quality of code and test.

5. Factors impacting Software Developer Hourly Rates

5.1 Location

In 2008, Manpower published a survey showing almost half of employers in the US and Western Europe face the challenge of acquiring skillful employees in engineering and IT. Therefore, in recent years, candidates from Eastern Europe and Asia seem to be more attractive for the positions

5.2 Technology Stacks

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Hiring senior developers will cost you more

A lot of new frameworks are not in the school curriculum. Hiring developers with all-around skills costs much more than the single-skill one. An expert in Machine Learning and Artificial Intelligence will always command a much higher wage than the applicant in the front-end position.

5.3 Experience Level

The applicants with a few years of work always demand higher wages than the freshers because they do not need the company’s training and can contribute more value from their own experiences.

6. Offshore Software Developer Hourly Rates in 2021

First, let’s take a look at a brief summary of the average software developers hourly rate by continent. We’ll be reviewing America, Europe, Africa, and Asia.


America Europe Africa Asia
$46.03 $49.75 $28.00 $25.83

Average hourly rate for software development, 2021

Now we’ll give a detailed analysis of offshore software development rates by region and country to help you make a more informed decision when hiring from overseas.

6.1 Offshore Software Development Rates in America

North America

According to Indeed.com, the average base hourly rate of a software engineer in North America makes up $46.4 per hour as of 2021. This number may vary depending not only on the experience and technology but also on location. 
Here are some examples of rates in various states:

  • California: $56.40
  • District of Columbia: $49.09
  • New York: $55.94
  • Texas: $44.78
  • Washington: $53.59

Latin America

According to IDC, the Latin American IT industry will be growing in 2021 despite political uncertainty and low economic growth. As predicted by Ricardo Villate, vice president of the consultancy for the region, the IT market reached 4.8% in 2020. IDC reports an increase in business spending on technologies related to AR/VR, AI, IoT, 3D printing, cloud, security, and robotics.
The latest data shows that the average software developer hourly rate in Latin American countries as of 2021 is $45.7. Hence, the rates for each countries are:

  • Argentina: $55
  • Brazil: $40
  • Bolivia: $30
  • Costa Rica: $40
  • Chile: $50
  • Mexico: $55
  • Peru: $35
  • Uruguay: $55

READ MORE: Offshore Development Centre (ODC): How To Set It Up?


6.2 Offshore Software Development Rates in Europe

Western Europe

Offshore Software Developers | Savvycom -8

Due to the high cost and covid-19 outbreak, it is not ideal to choose offshore developers from the EU

According to IDC,  the IT spending in Western Europe is increasing by 1.9% year-on-year. Despite growing at a small portion, the cost for hiring developers in this region is significantly high – averagely $67.2 – due to the high living standard. 
Just as America, in Western Europe, the rates vary greatly by country:

  • Germany: $56
  • France: $82
  • United Kingdom: $71
  • Sweden: $67
  • Netherlands: $60

Eastern Europe

According to a report issued by AVentures Capital, Aventis Capital, and Capital Times at the beginning of 2019, Eastern European countries such as Ukraine, Belarus, Poland, and Romania are growing fast as the total volume of IT exports from these countries was approximately $13 billion. 
However, that comes with a great cost for hiring software developers: averagely $32.3. The average hourly rate for software developer talent in some Eastern European countries is as follows:

  • Belarus: $28
  • Bulgaria: $34
  • Croatia: $25
  • Czech Republic: $34
  • Hungary: $39
  • Poland: $40
  • Romania: $26
  • Ukraine: $37
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6.3 Offshore Software Development Rates in Africa in 2021

Africa’s IT outsourcing market is only emerging. However, it is predicted that the increasing number of the region’s young population will drive demand for high-quality service sector jobs and the country will soon enter the list of the best countries to outsource software development.
The recent data shows that the software engineer hourly rate in African countries is:

  • Egypt: $20
  • Kenya: $20
  • Morocco: $20
  • Nigeria: $40
  • South Africa: $40

6.4 Offshore Software Development Rates in Asia

South and East Asia

A pioneer of software outsourcing,  Asia boasts the biggest number of offshore software developers as compared with other regions. Within it, South Asia and East Asia accounted for a large portion thanks to India and China’ aggressive growth in technology.
However, there are several concerns with China. First, only 10 million out of China’s 1.45 billion residents speak English, presenting a large communication barrier for many international employers. Second, China is known to have lax enforcement on Intellectual Property (IP) laws, which doubts many foreign companies looking to offshore to China. 
The average cost for offshoring software services in these regions is $26.5.
In detail, the 2021 offshore hire rates in South and East Asian countries are as follows:

  • India: $30
  • China: $25
  • Bangladesh: $25
  • Nepal: $25
  • Sri Lanka: $25
  • Japan: $27
  • Korea: $25

Southeast Asia

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Vietnam – A promising land for Offshore Development

Southeast Asia has eclipsed China as the region most likely to produce the best investment returns, according to a survey at the Asian Financial Forum 2019. Enjoying such an overall growth, the IT industry in Southeast Asia is promising to grow at 6% CAGR during 2021 – 2025, making this region one of the most attractive software offshoring markets. 
The reason for that was that Southeast Asia enjoys strong demographic fundamentals. The majority of countries in the region have a low average age which allows its human resources to be more adaptive, innovative and quicker-to-learn than most parts of the world. The average cost for offshoring software developers in this region is around $23.
Among offshoring countries in Southeast Asia, Vietnam is considered one of the most lucrative opportunities. Some of the key facts about Vietnam include: 

  • Offshoring software to Vietnam is about 90% cheaper than developing software in America.
  • IT services in Vietnam cost 50% less than the rivals from India and China. 
  • It is estimated that outsourcing per person in Vietnam is only $20,000 per person a year compared to $40,000 per person in India.
  • The IT workforce in Vietnam is in the Top 7 countries in Asia with the highest EF EPI Average.
  • 60% of the population is under 30. Young, dynamic and tech-savvy are the right words to describe the workforce in Vietnam.
READ MORE: Vietnam – The Offshore IT Outsourcing Heaven For Tech Dominants

Apart from Vietnam ($18/hour), the rates for software services in some other Southeast Asian countries are:

  • Philippines: $25
  • Malaysia: $30
  • Singapore: $35
  • Thailand: $20

6.5 Key Takeaways

  • Among 4 continents, Asia has the lowest cost per developer per hour ($25.63).
  • Among 6 mentioned regions, Southeast Asia has the lowest average cost per developer per hour ($23).
  • Among all notable countries for software offshoring, Vietnam has the lowest average cost per developer per hour ($18) – equipped with strong IT workforce competency.

7. How to hire Offshore Software Developers

After calculating the cost, we proceed to the recruitment steps. There are several ways to hire offshore software developers, such as:

7.1 Savvycom

As a leading software solution provider, Savvycom focuses on minimizing the barriers to hire for our clients and improving their experience while using our services. We innovate our process in a way that combine the advantages of an outsourcing agency and a freelance portal, while eliminating all the disadvantages: 

  • Reliability: our heritage for the last 11 years has proved our commitment to our clients and the quality of our deliverables. 
  • Quick hiring: with Savvycom, it will take you minutes to shortlist your ideal developers, one day to sign the contract, and a couple of weeks to kick off the project. 
  • Direct communication: in Savvycom, Agile methodology is widely applied – meaning that you will be considered as part of the development team and be able to closely interact with us as much as you want to keep track of the process. Whatever you need from us, you can tell us directly – we will make sure the final product is well adjusted to your requirements.
  • Financial and legal security: It’s our job to work with the legal systems to guarantee your payment. 
  • Committed and dedicated teams: Commitment is one of our core values. And we have been making sure that it happens to 100+ clients.
  • Scalability: Need to extend your team? No problem – you’ll get more HR whenever you want.
  • Flexible pricing: We have an individual approach to each client and are open to discussions regarding the payment and discounts.

7.2 Freelance Portals

Hiring remote developers at freelance portals seems to be quite an attractive option and here’s why:

  • Vast tech talent pool: for example, Upwork features more than tens of thousands of profiles of offshore developers.
  • Remote cooperation: you pay only for the development services and do not incur any overhead costs.
  • Direct communication: you can talk or video chat with your team at the safe space provided by your freelance portal.

At the same time, the cons involve:

  • Unreliability: freelancers can leave your project at any time because they are not bound by any official agreements.
  • Commission fee: you have to pay a processing fee for every payment you make through freelance portals.
  • Lack of commitment: freelancers can work on other projects except yours, so you cannot be sure that they will dedicate all of their time to your project only.
Interested in hiring Offshore Software Developers?
Invent, build, integrate, scale and upgrade your Software Development with Savvycom! Since 2009, Savvycom has been harnessing digital technologies for the benefit of businesses, mid and large enterprises, and startups across the variety of industries. We can help you to build high-quality software solutions and products as well as deliver a wide range of related professional services.
Savvycom is right where you need. Contact us now for further consultation:

  • Phone: +84 24 3202 9222
  • Hotline: +1 408 663 8600 (US); +612 8006 1349 (AUS); +84 32 675 2886 (VN)
  • Email: [email protected]

Year of the Mouse 2020: Lunar New Year’s greetings

savvycom_hpny
 
Dear our valued Clients, Partners, and Savvycom Staff,
2019 marked the end of a splendid decade for our humanity when countless technological advancement was successfully discovered and delivered. 2019 was also the end of an excellent decade for Savvycom, when multiple milestones were made, lots of tears and laughter were burst into as we thrived to actualise our dream: creating a better world enabled by technology. 
As another chapter is coming to its closure, I would like to send my sincerest gratitude to every Savvycom’s employee, partner and client for accompanying Savvycom throughout those long years. We have conquered many challenges together, and thanks to you, the company has stood up from scratch and rose far beyond our expectations. Without you, Savvycom couldn’t have gone this far, and the last year could never be such a success.
Today, on the threshold of a new year as well as a new decade, may I wish you happiness and prosperity in 2020. May you be well assured in each of your life decision. May the future grant us more opportunities to work and grow together with our wonderful Clients, Partners, and team members.
Cheers to the new year, and to many wonderful years to come.
 
Dang Thi Thanh Van – Savvycom CEO

How Savvycom excels at human management

Corporate culture has always been one of Savvycom’s pride. With an average employee retention rate of 90% annually, the company positioned itself as a home for every creative and techy and guarantee to deliver the finest values to all stakeholders. Thanks to the relentless endeavour of our people, the company has gradually made it to the top. Therefore, ever since the company establishment, HR has been the investment we never regret making.

savvycom_2019_achievements

A grasp of Savvycom milestones in 2019 alone

Such cultural success was a result of 10 years relentlessly looking beyond employee cognitive needs to find out their hidden demand and serve them right: Right people, at the right time, in the right place. The recipe was simple, but also required a lot of strategic moves to create a consistent system throughout the company.
In this article, we are going to share our 4 best HR strategies, the keys to our last 10 years of excellence – and still counting. Take your pen out, cause’ there will be some good insights to note down!

Goal-setting is not solely board of director’s task

Many people have a misconception that goals must be top-down instead of bottom-up. Although it’s not wrong, it doesn’t tell the whole story. Traditional goal setting, where goals are set at the top level of the organization and then broken into subgoals for each level of the organization, might be convenient and easy to execute – yet it lacks transparency and unity among different levels in the company. 
Also, because traditional goal-setting fixates on the assumption that top managers know what is best because of their ability to see the “big picture”, it passes on the dimensionality of the problem. Therefore, the top management fails to engage everyone with the same motivation, hence, result in the increasing resistance as the goals pass down.

savvycom_mbo

Source: Pearson

In order to prevent the germ of collapse resulted from the ineffective corporation goal-setting, Savvycom has switched from the traditional strategy to MBO (Management by Objectives), where specific performance goals are jointly determined by employees, in association with  BSC (Balance scorecards) to maximise the efficiency of company goal accomplishments. 
That being said, employees are then allowed to contribute to the overall wealthiness of the company – directly. This leads to 3 major impacts to both employees and the company, which happens to lie in 10 most important reasons why employees will stay, as per Nielsen research:

  1. Transparency of strategy from upper sits to lower-level positions.
  2. A sense of leadership, a feeling of inclusion, a deeper level of commitment.
  3. Empowerment.

Right after applying MBO, Savvycom’s employee satisfaction, as recorded and reviewed by internal surveys, recognised a new record of 83%. The speed towards goal achievement was also 18% faster than that of traditional goal-setting. The figures continue to improve up til’ today, after 10 years of development and 4 years since goal-setting strategy alteration.

Off-the-job behaviours are of concern

There is always a blur, grey line between work and life. Lots of psychological research has pointed out the link of behaviour among different circumstances – that includes workplace ones as well. For example, a woman who tends to binge eating at home has a high possibility to also binge eating at work, regardless of how she argues that she only overeating at home because she has nothing to do since her habit is probably bound to be. Therefore, managers shall also roll their eyes to employee’s off-the-job behaviours in order to create a comfortable working environment and smarter task allocation, to which their daily habit may align. 
Understanding such a connection, Savvycom encourages managers from all departments to care more about the off-the-job behaviours with an aim to generate more values to the employees. 
Still, we keep in mind that caring about their out-of-office convention and sneaking into their personal life are two different stories. A tactful manager knows how to analyze normal office gossips and combine them with employees’ behaviours at work to derive essential information without causing them a sense of being overcontrolled. Therefore, Savvycom managers always try to show that we truly care about our employees instead of caging them to give them senses of comfort.
After applying the tactics, Savvycom employees’ task completion rate shows a significant improvement as they finished the tasks faster and more precisely.

Learning – together

Knowledge and skills are, by figurativeness, food for our souls. Humans need foods to survive, and know-how to grow. However, they are also social creatures that depend heavily on their community to act actively and efficiently. According to research, nearly 70% of people show more impressive results at work under “group learning”, which proves the power of learning together in corporative contexts. 
Given the finding, Savvycom HR team started to engage employees with weekly workshops, where they are encouraged to share their knowledge, discuss multiple technological trends in the world and learn new skills in order to broaden their views. The company also focuses on organising in-depth supplementary classes with an updated syllabus and recent intelligence – using group discussion and mock projects as the main teaching method – for employees to co-learn and compete with each other to excel new skills. 

savvycom_hr_strategy_learning

Savvycom focuses on building a co-learning hub for employees

It’s also a good activity to improve employees’ ability to confront and absorb new ideas – even the opposing ones, as well as to accept that their solid beliefs could be wrong and welcome intellectual humility. Those skills will eventually benefit them in communicating and negotiating with our clients, who often pose contrary opinions against development teams. The partnership will, therefore, be strengthened and later result in excellent product delivery.

“The most impressive thing about Savvycom is that they satisfied all requirements we expected our outsource company to be: skillsets, culture, communication and the desired partnership. It’s collaboration. I really don’t look at it as I’m dealing with a vendor but a partner.”

David Cheng – iHeart Local founder

Physique and intelligence are equally prioritised

Finding that software development is somewhat the “unhealthy” type of work that requires intense focus and extensive hours of working, Savvycom applies the philosophy that “Physical stamina is the energy to reduce the toxin of the hard work” into building the company culture. Savvycom upholds not only a tradition of “brain sharpening” as manifested by weekly workshops and learning subsidiaries, but also a culture of physical wellness.
As such, Savvycom spares a large amount of budget in organizing gym activities in order to create a “physical training” commotion within the company. The activities include periodic outing days, sponsoring gym membership and weekly “happy Friday” where employees are regaled with fruits and clean food. By doing so, Savvycom expects all employees to be healthy – inside and out, therefore, contribute more to their jobs and the development of the whole company. 

savvycom_hr_strategy_physical_health

Savvycom holds periodic wellness events to improve employees’ physical and mental health

Up til’ today, more than 50 outing events have been organized, each delivered different health-improving games that satisfied over 95% of employees as recorded by internal satisfaction surveys. The “gym club” of Savvycom, after running for 4 years, has attracted more than 60% of employees to register and training together on the company subsidiary. A reward system is also developed in order to recognise people who actively engaged in the company’s wellness movement, so that they have the motivation to commit more.
Savvycom keeps the faith that humans are the one thing leading the company to sustainability. No matter how many times the products may fail, how many crises the business may be snowed under – as long as our people are there, we can always see the light. Therefore, treasuring our talents and nurture them through proper “watering” to solve complex problems for clients will always be our doctrine for excellence.
Contact us for job opportunities and sustainable partnerships:

 

Savvycom CEO – Top Outstanding Young Startup Entrepreneurs 2016

Savvycom is delighted to announce that Savvycom CEO – Ms. Van Dang – has been nominated among Top Most Outstanding Vietnam Start-up Entrepreneurs in 2016. The award is the Vietnamese government’s recognition for her relentless efforts in striving the company to success for the past 6 years.

Ms. Van Dang in ao dai

Ms. Van Dang wearing “aodai” – a Vietnamese women traditional costume – when receive the award

This award is one of our government’s long-term attempts to boost the entreprenurs spirit and can-do attitude among the Vietnamese youngsters. Every year, it shines a light on the best individuals with outstanding business achievement across various economic categories. 2016 nominated candidates has contributed to Vietnam 2015 total revenue of about 4,554 billion, a 47.4% growth compared to 2014. It is so fascinating that all of this contribution are made by many CEO, Board of Directors with the age under 35, holding a key role in their growing businesses. Van Dang, Savvycom CEO commented; “I am honoured to be nominated for this prestigious award. It is also a statement to my endeavors in bringing high service quality to my clients. I hope that this accomplishment, my success today, would encourage women to unhesitately chase their dreams, no matter how many difficulties ahead”.

Savvycom CEO - Ms. Van Dang

Savvycom CEO – Ms. Van Dang

6 years ago, Van Dang – current Savvycom CEO – had made a life-changing decision, yet stayed true to her heart: to establish an offshore software vendor aiming at becoming a long-term strategic partner by delivering high quality services. Despite many objections about how risky it is for a women to build her own company, and how unreal the idea may be, Van still stayed affirmed with her passion. After 6 years, the achivement of her non-stop journey with the founder team has shown how right her choice was. More than 300 successful projects delivered, 92% returning clients and all client’s positive feedbacks are the most powerful evidences showing how far Van has gone. Despite being the only women in Savvycom leadership team, she was the one who has carried the whole company through ups and downs, then strived to greatness. In this men-oriented, tough industry; Van has created a miracle. “This woman has an amazing determation. Van would try effortlessly to achieve whatever she commited to do. We all admire her for that.” – said Savvycom COO, Minh Nguyen. Today, Van is among only a few young Vietnam women entrepreneurs that achive success in the IT Industry. She has truly become a model for woman success – who rose beyond the society perception of women, and relentlessly chased her dreams.

Ms. Van with her beloved Savvycom family in its sixth birthday.

Ms. Van with her beloved Savvycom family in its sixth birthday.

About Savvycom We are Vietnam leading IT company specializing in offshore software development. Aiming at automated software testing, mobile app testing services, website development and mobile application development, Savvycom has strived higher and higher to bring success to our clients. With a fully-integrated team of strategists, technologists and designers driven with passion, creativity and a relentless commitment to excellence, Savvycom has offered business value to 50+ clients all over the world, provided high-quality services with 300+ successful projects in industry verticals including Business Service, Health Care, Education, E-commerce, Retailing, Finance, Transportation and Entertainment. For further information, check out: >> Savvycom CEO Profile >> Savvycom Services >> Savvycom Successful Projects

Reach us via: 

  • Phone: +84 24 3202 9222
  • Hotline: +1 408 663 8600 (US); +612 8006 1349 (AUS); +84 32 675 2886 (VN)
  • Email: [email protected]
  • Visit us at our website!

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