With emerging technologies, companies are outsourcing software development to offshore IT teams and thus saving substantial costs. Offshoring gives you access to a larger pool of talent with the same high-quality services, but at a low cost. However, the average software development rates vary from country to country. Additionally, they change depending on the seniority of a developer, technology stack, and the hiring model.
Country-wise Software Development Cost
The IT outsourcing market is expected to generate more than 359 billion dollars by 2021. This increase is a result of quality development services from different IT hubs of the world and at very reasonable costs. Each country varies in cost, culture, and time zone.
Below is a detailed overview of the IT outsourcing price list and software developer costs by country.
Latin America
Latin America is one of the most popular offshore software development destinations. Tech companies from all across the world outsource projects as they offer high-quality development services at affordable costs. One of the reasons that US companies outsource to Latin America is a very minor time difference.
Software developer hourly rates in the US are very high and therefore when it comes to nearshore outsourcing, IT companies consider the ones residing in Latin America. Geographically as well the destination is close to the American clients that make it a more suitable outsourcing region. The hourly software developer cost in Latin America is $35-$70. The countries include Brazil, Argentina, Colombia, Mexico, and Peru.
Eastern Europe
Another popular destination of IT outsourcing is in Eastern Europe. The region is well-known for its larger pool of talent. Tech companies in Eastern Europe offer cheaper software development services across the globe.
Software developer hourly rate in Europe is $30-$65. The countries include Hungary, Ukraine, Romania, Poland, Belarus, and Bulgaria.
Africa
Africa offers very low rates for software development services. If you are looking for hiring a junior, you will get the developers at $25 per hour. The rate increases with the seniority of the developer. However, in African countries, there is a limited pool of software developers.
The hourly rate of software developers in Africa is $25-$45. The countries include Kenya, Egypt, Nigeria, Morocco, and South Africa.
Asia
If you are looking for high-quality software development services at the cheapest rates, consider Asian countries. Asia has a huge pool of talented software engineers, designers, and testers. The tech companies settled in Asia have dedicated IT teams that work 24/7/365 to meet deadlines and mitigate the time difference issues.
Software developer hourly rates in India and Pakistan are very cheap. In the past few years, Asian countries have gained ground on leading technologies and contribute to the development of the IT industry in the world. Software developer hourly rate in Asia is $20-$45. The countries include Pakistan, India, China, Philippines, Bangladesh, Nepal, Indonesia, and Malaysia.
Why Is Pakistan the Best IT Outsourcing Destination?
Pakistan is one of the top countries to hire IT teams for software development services.
Emerging IT Professionals
One of the main reasons is that the education system of Pakistan is yielding amazing talent every year. About 20,000 IT graduates are produced in Pakistan each year. From software developers to QA engineers and UI/UX designers, Pakistan has one of the largest pools of IT professionals.
The developers in Pakistan have a firm grip over innovative technologies such as Artificial Intelligence, Machine Learning, Cloud Computing, Virtual Reality, Robotics, and Big Data. With more than 300,000 IT professionals in Pakistan, the IT industry is nurturing and specializes in the latest tools and programming languages.
Zero Income Tax
There is no income tax on IT exports till June 2025. This enables countries with high tax liabilities to outsource their software projects to Pakistan and reduce product development costs. The government is also investing in IT-enabled infrastructure and IT parks with advanced redundant facilities.
Quality Standards
Due to increased competition, IT companies in Pakistan have the ultimate focus on maintaining the quality standards of the development services. IT companies in Pakistan work on predefined business operations that plan, gather, develop and deploy the software according to the tailored need of clients. Software developer hourly rate in Pakistan is the lowest as compared to other countries and the quality standards, response time, availability and project delivery meets the clientele expectations.
Nurturing Startup Environment
IT professionals in Pakistan have expertise in emerging IT products and technologies. According to the Pakistan Vision 2025 and the Digital policy of Pakistan 2018, the ICT industry size of Pakistan is expected to reach $20 billion by 2025. Pakistan has a huge IT network and areas to invest which include but are not limited to E-Commerce, M-Commerce, software houses, IT parks, and incubation centers.
