Offshore Software Development Rates by Country and Region 

In today’s landscape, where “every company is a tech company,” IT leaders are hard-pressed to accelerate product delivery, reduce operational costs, and drive higher ROI. Often, they are expected to do it all on a tight budget. That implies finding cost-effective ways to build scalable software development teams.

In this article, we’ll take a closer look at offshore software development rates by country, including such key regions as Eastern Europe, Latin America, Asia, and Africa. We’ll also explain key factors affecting offshore software development rates, potential hidden expenses, and 10 steps to start offshoring budgeting.

An overview of offshore software development rates by country

While offshoring can reduce your development budget by up to 50%, some locations are more cost-effective than others when it comes to offshore software development costs.

For instance, South and Southeast Asia typically offer the lowest rates and greater talent availability.

At the higher end, there’s Central & Eastern Europe (CEE), boasting steeper hourly costs but much stronger tech expertise.

Latin America, on the other hand, is the middle ground regarding cost and quality, with the added benefit of time zone overlap for North American companies.

Finally, African countries are emerging as budget-friendly locations with growing potential.

Before we dive into deeper offshore software development rates by country comparison, consider average hourly software development rates in each region. This will help you size up cost-saving potential so you can plan your budget wisely.

	Junior ($/h)	Middle ($/h)	Senior ($/h)
Central & Eastern Europe	25-40	40-60	60-100
Latin America	25-50	50-70	70-100
South Asia	15-30	30-50	50-80
South East Asia	10-25	25-40	40-70
Africa	15-30	30-50	50-80

Offshoring development rates: Central & Eastern Europe (CEE)

Key strengths:

• High price-quality ratio;
• Strong STEM education;
• High English proficiency;
• Cultural alignment;
• Innovation hub.

CEE countries like Poland, Ukraine, Romania, the Czech Republic, Bulgaria, Hungary, and others are known for a highly educated, skilled IT workforce. Most local engineers have experience working with EU-based and North American clients, so their English proficiency is high. More so, their work culture aligns closely with Western standards.

CEE has a strong reputation for innovation, with a focus on complex domains like AI/ML, Fintech, Healthcare, Cybersecurity, and Enterprise.

Below are offshore software development rates by country in CEE:

	Junior ($/hr)	Mid-Level ($/hr)	Senior ($/hr)
Ukraine	25-40	40-60	60-100
Poland	30-50	50-70	70-110
Romania	25-45	45-65	65-95
Bulgaria	20-40	40-60	60-90
Serbia	20-35	35-55	55-85
Hungary	30-50	50-70	70-110
Czech Republic	35-55	55-75	75-120
Slovakia	30-50	50-70	70-110
Croatia	25-45	45-65	65-100

Offshoring development rates: Asia

Key strengths:

• Cost-effective talent;
• Large IT workforce;
• A growing IT infrastructure;
• Quick scaling potential

Asia remains one of the most budget-friendly regions for offshoring. Countries like India, Vietnam, and the Philippines offer some of the lowest offshore development rates, alongside a vast pool of technologists. The region, particularly India, stands out with expertise in mobile development, cloud engineering, Data, and AI/ML.

While communication and time zone alignment are often seen as the biggest obstacles, the region has strong potential for building a tech team at record speed.

Here’s a breakdown of offshore software development rates by country in Asia’s most common destinations:

	Junior ($/hr)	Mid-Level ($/hr)	Senior ($/hr)
India	15-30	30-50	50-80
Pakistan	10-25	25-40	40-70
Bangladesh	10-20	20-35	35-60
Sri Lanka	12-25	25-40	40-65
Vietnam	10-25	25-40	40-70
Philippines	10-20	20-35	35-60
Indonesia	12-25	25-40	40-65
Malaysia	15-30	30-50	50-80
Thailand	15-35	35-55	55-85

Offshoring development rates: Latin America

Key strengths:

• Real-time collaboration with North America;
• A growing IT talent pool;
• Cultural compatibility.

Latin America is an attractive destination, especially for US and Canadian businesses looking for proximity to their external teams. With minimal time zone differences, developers from Argentina, Brazil, Colombia, and Mexico can work and communicate in real-time with North American headquarters.

Web development, DevOps, mobile development, and cloud technologies are the key areas of specialization of the local IT workforce.

Consider offshore software development rates by country in LATAM:

	Junior ($/hr)	Mid-Level ($/hr)	Senior ($/hr)
Brazil	25-45	45-65	65-90
Argentina	20-40	40-60	60-85
Mexico	25-50	50-70	70-100
Colombia	20-40	40-60	60-85
Chile	25-45	45-65	65-95

Offshoring development rates: Africa

Key strengths:

• Emerging IT hubs;
• Cost-effectiveness;
• A growing talent pool.

Egypt, Kenya, Nigeria, and South Africa are the leading nations in the region when it comes to local offshore software development. While the region is still in its early days compared to more established locations like CEE and LATAM, Africa is a cost-effective alternative with a rising number of skilled IT specialists.

Many African countries are investing heavily in STEM education and infrastructure. Nowadays, the region is starting to show strength in areas like web/mobile development and Data analytics.

Look at the review of offshore software development rates by country in Africa:

	Junior ($/hr)	Mid-Level ($/hr)	Senior ($/hr)
Egypt	15-30	30-50	50-80
Nigeria	10-25	25-40	40-65
Kenya	12-25	25-40	40-70
South Africa	20-40	40-60	60-100

Comparison of regional strengths

When you’re choosing a region for offshore development, it’s not just about hourly rates. Factors like tech expertise, communication, cultural fit, and the strength of IT infrastructure also play a big role in defining where to hire offshore developers.

Here’s how the major regions stack up outside offshore rates for software development.

	Software development expertise	English skills	Cultural compatibility	IT infrastructure
Central & Eastern Europe	High: Strong AI, fintech, enterprise software	High	Strong alignment with Western work culture	Well-developed, mature IT ecosystems
LATAM	High: Skilled in web, mobile, and cloud	Moderate	High compatibility with US teams	Rapidly developing, with strong urban hubs
Asia	Adequate: Strong in mobile, backend, QA, emerging tech	Low	Moderate: Some differences in work ethics and management approaches	Advanced in key hubs
Africa	Developing: Growing in web, mobile, data analytics	Moderate	Improving, focusing on global cooperation	Emerging, with growing investment in the IT sector

Key factors affecting offshore rates

Software development skills and experience

Offshore developers’ level of experience is one of the most significant drivers of offshore software development rates in any location. The difference between a Junior expert and a Senior developer who commands more competitive rates can drastically change your budget.

Choosing the right experience level depends on your project specifications, timeline, and how much support your internal team can offer.

Look at the average hourly rates by experience level you may come across in various regions:

Developer seniority	Central & Eastern Europe	LATAM	Asia	Africa
Junior	$20–$35/hr	$20–$30/hr	$10–$20/hr	$15–$25/hr
Medium	$40–$60/hr	$30–$45/hr	$20–$35/hr	$25–$35/hr
Senior	$60–$100+/hr	$45–$65/hr	$35–$50/hr	$35–$45/hr

Tech stack and specialization

Do you need widely used or highly specialized technologies for your project? Your chosen technology stack can significantly impact the cost of offshore software development.

Below is a review of standard vs. niche offshore developer rates:

	Offshore software development rates ($/h)	Notes
JavaScript	20–50	Common technology with a wide talent pool
Python/Java	25–55	Versatile technology for backend/full-stack
React Native/Flutter	25–60	In-demand tech stack for mobile development
DevOps/Cloud	40–80	Specialized tech stack with limited talent availability
Cybersecurity	50–100	Niche expertise, high-stakes role
AI/ML/Data	60–120	In-demand skill set, requiring advanced knowledge
Blockchain	60–110	Highly specialized role with limited availability

Cost vs. expertise: How to strike a balance?

• Choose common programming languages like JavaScript, Python, and Java when cost efficiency is a priority.
• Note that such roles as AI/ML, blockchain, DevOps, and Cybersecurity require highly skilled engineers, and the talent pool is smaller, leading to higher software development rates.
• If you need to integrate AI into your product, the competition for top developers will be much higher, driving up offshore software development rates.
• To manage your budget, adopt a hybrid approach, using Junior or Mid-level developers for common development tasks, which will save costs for specialists with deep technical expertise.

Country and regional differences

Offshore software development rates by country are heavily influenced by the economic landscape, local labor costs, and the maturity of the IT sector.

Here’s a comparison of offshore rates for software development in various regions:

	Average hourly rate	Factors defining offshore rates
Central & Eastern Europe	$35–$70	A mature IT industry Potential for innovation Strong reputation for quality software development services
Latin America	$30–$60	Time zone alignment A growing pool of offshore software talent Cultural fit
Asia	$20–$45	A massive talent pool Lower labor costs
Africa	$20–$40	Varying infrastructure levels An emerging IT sector Cost-effective labor

Key factors that define offshore rates across regions:

• Economic landscape: South Asia and Africa tend to be more affordable due to lower cost of living, thus reducing offshore rates for software development. Countries with higher living standards, on the other hand, including Poland, Czech Republic, or Chile, have correspondingly higher offshore rates.
• IT sector maturity: Reputable offshore software hubs like Poland, Romania, Ukraine, and Mexico offer well-developed IT ecosystems, strong IT talent, and experience working with global clients. Offshore software developers in such locations typically charge more than their counterparts in other locations.
• Government support: Tax breaks, favorable business laws, and investment in tech education can also impact offshore developer rates. For example, India and Vietnam offer tax breaks and government-backed investment in tech education. In addition, Poland provides incentives for R&D activities, while Colombia has introduced favorable laws to attract foreign investment.

Engagement model and project complexity

How you structure your offshore software partnership plays a big role in the ultimate development costs. Consider common engagement models and their pricing peculiarities:

Dedicated Teams: This model lets you build an offshore development team that works exclusively on your project, fully integrated into your company operations.

This model suits long-term projects or scenarios where you need to scale your development capacity rapidly.

The upfront cost for offshore software developers may be higher, especially when hiring senior engineers. However, this model typically leads to greater cost-efficiency over time.

As an example, read our doTerra success story, where we helped the company cut the cost of scaling their development efforts by 50% compared to hiring locally.

Fixed-Price model: This engagement is suitable for projects with a well-defined scope and budget. These projects often come with higher offshore development rates, as vendors factor in risks into the pricing.

For example, a mobile app built with clearly defined features over 6 weeks might be priced at $15,000, but the hourly rate of offshore developers is $60 per hour, which is slightly higher than baseline offshore rates.

Time & Material (T&M): In this model, you pay based on actual time spent and resources used on your project. It comes with greater flexibility than other models, especially if the scope is in constant flux. However, there’s also less predictability, and your budget can fluctuate if not carefully managed.

For example, a SaaS platform may start at $25 per hour for junior developers in Asia but could scale to $80 per hour if senior experts are needed later in the project.

Offshore Development Center: An ODC is a long-term, dedicated local entity set up through a local partner like nCube. It’s ideal for companies looking to establish a stable offshore presence.

Project complexity

The more specialized the solution, the higher software development hourly rates you’ll face. For instance:

• Simple apps or websites using common technologies like JavaScript or Python are relatively affordable, given that they can be handled by mid-level developers.
• Complex solutions with AI features as well as Fintech/Healthcare software, or enterprise-grade systems demand seasoned engineers with niche skills, which increases offshore developer rates and overall project cost.

Demand and market trends

When reviewing development rates by country, you’ll notice that they move with talent supply and demand, global hiring trends, and economic shifts. So, what factors are behind the cost of offshore software development today?

The rise of remote software development due to the pandemic: The CEE region stands at the helm of this trend, for example, the rates of Polish developers increased by 10–20% between 2021 and 2023 due to high demand and limited local supply.

Economic turbulence: Tech layoffs contributed to uncertainty, making companies consider other staffing options like offshore software development services as a means to lower the costs.
This has raised the cost of offshore software development in some regions, especially when it comes to in-demand talent like Data or IoT.

Freelancers vs. an offshore software development company: Freelancers typically offer lower offshore software development rates. However, they lose to more expensive options like vendors of software development services in terms of consistency, dedication, and long-term stability.

For instance, we at nCube offer structured communications, accountability, and competitive talent retention services, which are crucial for long-term, complex projects.

Hidden costs and additional expenses

While hourly rates are the most visible part of software development costs, additional expenses are also commonplace in this arrangement. They typically concern recruiting, onboarding, managing, and retaining remote developers.

Here’s an overview of common hidden costs and how they can impact the cost of offshore software development:

Cost factor	Estimated extra cost	Explanation
Recruitment & onboarding	5-10%	Staffing expenses, background checks, training, knowledge transfer
Management	10-20%	Resources spent on communication and project management tools
Infrastructure	5-15%	Cloud services, software licenses, security tools
Time Zone | Cultural alignment	5-10%	Productivity loss due to miscommunication or delays
Retention services	10-20%	Additional costs for replacing team members

At nCube, we don’t just help you reduce costs. We streamline onboarding and ensure tight team integration, so you can accelerate delivery and lower the cost of software development outsourcing in the long run.

Project management and communication overhead

Misunderstandings, delays in feedback, and a lack of transparency in communication often lead to rework and missed deadlines. Let’s review the common challenges you may face when you outsource software development:

Time zone differences: Located in offshore countries, your team has only a small time window for real-time communication. This may cause delays in feedback and decision-making.

Language and cultural barriers: While offshore developers with higher rates rarely lack fluency in English, they may lack familiarity with your culture and misinterpret feedback, leading to errors and rework.

Managerial effort: Managing an offshore development team requires strong Project Managers to ensure the project stays on track.

Tips we use at nCube to overcome communication challenges in offshore development:

• Schedule a 2-3 hour overlapping time window between your local team and offshore developers;
• Focus on English proficiency and cultural fit as a part of your staffing process;
• Adopt platforms like Jira, Asana, Trello, and other project management tools to manage daily tasks and streamline communication across time zones.
• Hire a dedicated Project Manager or Product Owner to serve as a point of contact between your headquarters and offshore developers.

IT infrastructure and tools expenses

Alongside rates by country, you should also consider infrastructure and tool-related costs. Often overlooked, these expenses include everything from Cloud to development tools and security protocols, and they can significantly expand your software development budget:

• Cloud Services, including platforms like AWS, Azure, and Google Cloud;
• Development tools and licenses: Tools like Jira, GitHub, code editors, and testing platforms;
• Cybersecurity costs like VPNs, endpoint protection, encrypted communication platforms, and compliance protocols like SOC 2 or GDPR.

All these expenses can potentially add 5–20% to the overall budget, depending on the project size.

Employee turnover and retention costs

Attrition is one of the costliest challenges in offshore development, as it leads to disrupted workflows, delays, and unexpected expenses for rehiring and onboarding.

To avoid these setbacks, it’s essential to partner with a reliable offshore software development company like nCube. We start by carefully selecting developers who are not just technically strong, but also the right cultural fit. That way, they’re more likely to stay with your team for the long haul, which lends its hand to a stable, committed team that can support your product for years, not months. Moreover, we also maintain a talent retention program, including:

• Competitive compensation and comprehensive employee benefits;
• Career growth opportunities;
• Comfortable and supportive work environment;
• Support from our HR, Legal, and Finance departments.

Training and upskilling expenses

Staying competitive in the offshore software development market requires keeping your skills sharp, which means direct and indirect costs for the company. The key hidden costs are:

Certifications: For instance, formal certifications for cloud platforms, cybersecurity, and DevOps, including:

• AWS Certified Solutions Architect: $150–$300 per team member;
• Google Cloud Professional Engineer: $200–$300 per team member;
• CISSP (Cybersecurity): $700+ per team member.

Upskilling through online learning: Platforms like Coursera and Udemy can cost $100–$500 yearly per employee.

Employee onboarding and knowledge transfer: New offshore developers need time to get familiar with the project, which can become a speed bump in the development process.

Compliance and legal expenses

When analyzing offshore software development rates by country, keep in mind offshore regulatory compliance like data protection, IP, and legal regulations. Here’s what you should consider as key regional compliance nuances:

• Data protection: GDPR, CCPA, and HIPAA require investing in encryption, secure data storage, access controls, and auditing.
• Legal and contractual fees: Leveraging offshore software development services requires custom contracts, NDAs, and local legal consultation to ensure labor law compliance.
• Intellectual Property (IP) Protection: Some offshore countries, particularly in Asia and Africa, have weaker IP enforcement, which may require you to invest in extra legal safeguards.

A guide to offshore software development planning and cost estimation

Step 1. Define project requirements and business goals

Project scope, team roles, and long-term goals are key factors in offshore software development cost. Note that the more complex your project, the higher the offshore software development rates will be.

Step 2. Compare offshore development destinations

Choosing the right country to hire offshore developers should be based on talent availability, hourly rates, IT infrastructure, and English proficiency.

Step 3. Estimate hourly rates based on region and skill level

As we’ve established above, average software development rates vary widely depending on experience level and geographic region, so take your time to thoroughly research and compare these distinctions.

Step 4. Select the right engagement model

Choosing the right structure depends on your project scope, budget, and long-term goals. We at nCube can help you with such options as a Dedicated Team tailored to your project, or expanding your existing team to close immediate skill gaps.

Step 5. Consider additional roles and their costs

Including supporting roles such as Project Managers, Product Owners, UX/UI designers, and Quality Assurance in your planning ensures more predictable budgeting.

Step 6. Identify hidden costs and additional expenses

Factoring in hidden costs related to IT infrastructure, collaboration tools, compliance, and talent retention helps you avoid unexpected expenses down the road.

Step 7. Estimate development timeline and impact on cost

The rule of thumb is that project duration defines the development cost: The longer the timeline, the more billable hours your offshore developers will invest. The development time, in turn, depends on:

• Project complexity: The number and complexity of needed features and integrations;
• Team member experience and team size: A smaller team may be more cost-effective, but larger teams can deliver results faster;
• Development methodology: Whether you choose Agile offshore development or Waterfall, this might affect project duration.

Step 8. Analyze market trends and their impact on pricing

Offshore software development rates are prone to shift considering changing market trends, economic conditions, and talent demand. It’s essential to stay on top of these trends to hire strategically and avoid overpaying during peak demand periods.

Step 9. Assess vendor reliability and cultural compatibility

Choosing the right partner always goes beyond looking at the offshore development rates they offer. It’s also crucial to consider their experience, communication, and culture among other factors. When evaluating vendors, consider:

• Proven track record: Review the vendor’s client testimonials, case studies, and third-party reviews. For instance, check our client testimonials on Clutch or dive into our success stories.
• Legal and security compliance: At nCube, we have proper employee contracts in place, follow proven cybersecurity standards, and offer IP protection in line with our client demands.
• Language, cultural, and time zone compatibility: Most of our team members speak English fluently, reducing the language barrier. We also prioritize communication quality and productivity across time zones by building reliable channels and processes between your offshore developers and internal staff.

Step 10. Calculate the total cost of offshore development

A realistic budget includes more than offshore software development rates. A comprehensive cost estimate should include:

• Hourly rates: Based on developer experience level and regional averages.
• Engagement model: Fixed-price, Time & Material, and Dedicated Team offer their own pricing structure.
• Additional roles and hidden costs: Factor in rates of project managers, QA engineers, UI/UX designers as well as infrastructure and talent retention expenses.

Software development offshoring with nCube

Access to the top 1% of engineers

We’ll help you build a team of highly skilled developers from our network of 125,000+ specialists across Eastern Europe, Latin America, and Asia. Whether you need mainstream tech skills or specialized talent with AI/ML, Cloud, Data, or IoT background, we’ll meet your exact tech stack needs.

2-6 weeks to build a team

We start assembling your offshore dedicated team within 24-48 hours of our first call. Most clients hire in 2–6 weeks. Just ask our client doTerra: We helped them hire 9 developers in just 6 weeks, cutting their time-to-hire by 70%.

Handpicked talent | Teams tailored to your needs

We do more than send CVs. Our rigorous screening process ensures each candidate is tested for technical proficiency, English & communication skills, and cultural fit, and meets your project specifications. You only meet developers who are ready to add value from day one.

98% talent retention

With a 98% unforced retention rate in 2024, we ensure your team stays focused, engaged, and consistent throughout the lifecycle of your project. We offer your engineers a comfortable environment that fosters loyalty, growth, and performance.

We handle team administration

We take care of the admin overhead like HR, infrastructure, team setup, and retention, so you can focus on delivery.

100% dedication to your project

Your team stays fully dedicated to your project and embedded in your company operations and local team. You’ll communicate with your engineers first-hand, excluding middlemen in project management.

If you’re interested in hearing more about offshore development in CEE or LATAM, let’s connect.