Hiring an offshore development team has become a part of the startup business. Hiring offshore developers becoming more and more popular in today’s trends. But why it is happening, why do many startup ecosystems prefer to hire offshore developers? Well, to be honest, offshore developers or professionals are affordable and well-versed with their desired technologies. It is quite beneficial for organizations to outsource their software development projects.
This is where the practice of outsourcing the project plays a significant role. Modern technology has the ability to provide top-quality and efficient products to the business with high-class communication and development tools that make it more convenient to outsource software development projects. But here’s a snatch! The average cost of outsourcing a software development project is not the same for all countries, each country extracts a different price.
So, how to make an informed decision in such a scenario? Let’s discuss the complete guide on hiring an offshore development team.
Let’s start with the offshore software development rates by region –
Before we proceed to discuss the offshore development hourly rates, firstly let’s discuss the software development hourly rates in the USA and the regions of Western European countries. In these countries, there is a very high demand for offshore development which will help us to see a clear picture of differences in the cost of offshore development among the several regions.
Have a look at the following points that will clear the picture of offshore development rates in different regions.
Offshore development rate in North America and Western Europe
In light of the information accessible from Indeed.com, a programmer procures a typical hourly base pace of $47.59 in The USA starting around 2020. The number might shift relying on the experience of the individual, the innovation accessible as well as the area of work.
A few instances of area-based rates are as per the following:
In this, we discuss some North American countries’ names with the hourly development rate. The countries are California: $58.96, New York: $58.44, Texas: $46.11, and Washington: $55.01
In this, we discuss some Western Europe countries’ names with the hourly development rate. The countries are Germany: $56, France: $82, United Kingdom: $71, Sweden: $67, and the Netherlands: $60.
Presently let us audit the development rates in offshore nations.
Disclaimer: The offshore development team rates introduced beneath act as a harsh aid for organizations as they don’t think about the distinctions in collaboration models. You can figure out the genuine rates by straightforwardly speaking with the merchants.
Offshore development rate in Eastern Europe
With more than 1 million programming developers, Eastern Europe is one of the major outsourcing destinations. It just so happens, the yearly number of tech moves on from these nations remains at around 60,000. This guarantees an ability pool that is profoundly taught, knowledgeable in the English language, and has high-level abilities to program. This large number of variables added to an ever-evolving expansion in the interest of Eastern European designers in the USA and western European nations.
The scope of Normal Hourly rates in the accompanying top Eastern European nations is $25 – $50 and it includes Belarus, Ukraine, Poland, Romania, Hungary, Estonia, and so on.
Offshore software development rate in Latin America
Latin America is one of the leading IT industries around the world. The popular destinations for outsourcing software development projects include Argentina, Panama, and Brazil. Among them, Brazil becomes the leading outsourcing country with 400,000 software developers. Due to its close connections with North America many Software development companies prefers to establish an organization there.
The scope of Normal Hourly rates in the accompanying Latin American country is $30 – $50 and it includes Argentina, Brazil, Chile, Columbia, Panama, Peru, Mexico, and Costa Rica countries.
Offshore software development rate in Asia
Asian countries often tend to be identified as the pioneer of outsourcing software developers as compared to other regions. India, China, and the Philippines are the most preferred countries in Asia when it comes to outsourcing software. India has a vast number of software developers whereas China gained a positive reputation in the era of Hacker Rank challenges.
Asian Countries also present challenges like poor working, timezone imbalance, cultural differences, and so on. This may affect the work and quality of the project. Despite all challenges, Asian countries still remain the top outsourcing destination for many software companies and their average price for development is lower than the other countries.
The average hourly rate in accompanying Asia is $18-$40 and it includes India, China, Pakistan, Bangladesh, the Philippines, Indonesia, Vietnam, Malaysia, Nepal, and Thailand Countries.
Why Does India be Still Globally Favorite for Offshore Development?
By consistently providing top-quality services at competitive prices, India has now grown into a support system for most of the software companies in the western world. India’s reputation as the most favored outsourcing destination is confirmed by its #1 position on the Global Services Location Index.
Popular Outsourcing Engagement Models
Staff Augmentation Model
This model is also known as lengthening the development team. In the Staff Augmentation model, organizations receive assistance by adding the number of developers to their in-house team as per their requirements. This model allows developers to enhance the efficiency of the business. Ultimately, the authority of getting results falls on the native companies.
Benefits of the Augmentation Model
- Improvement in development quality and output.
- Basic reduction in HR operations and development costs.
- Flexibility and Scalability.
- Benefits of expertise and top talent pool.
When to use the Staff Augmentation model?
- At the point when your in-house development group highlights significant ability and specialized authority.
- At the point when your in-house development group lacks a specific degree of ability.
- When your organization is needing extra specialized ability.
Dedicated Development Team Model
This model is also known as Managed Team Model, it presents the company with highly experienced professionals and well-trained software development professionals. In the dedicated development team model, the offshore development team works independently and is managed by the outsourced Project Manager who is liable to report to the native company.
In this model, both the native companies and the offshore team take the risks and responsibilities equally but the final decision is taken by the native company.
Benefits of Dedicated Development Team Model
- Higher control over development
- Assurance of quality in results
- Time-saving for the in-house team
- Effective communication
- Elimination of risk element
When to use the Dedicated Development Team model?
- When you already have strong hand on experience project manager for an in-house team.
- To fulfill the need for technical expertise in a specific area.
- When you agree to lead the decision-making and development process.
Project Based Model
This model is also known as the Outsourced Product Development model, it is one of the most significant that allows developers to be free from the entire development method. The offshore team took care of and handles the entire development process and delivers the results as per the predetermined specifications.
In this model, the final authority of achieving the desired result will fall upon the offshore team. Also, your impact on project management is limited and only includes providing details and specifications.
Benefits of Project BasedModel
- Perfect understanding of the timeline and outcomes of the project.
- Reduce time commitment on your part.
- Shift your burden to the offshore development team.
- Effective communication
When to use the Project Based model?
- When you need to build a project that’s not your own core project.
- When your in-house capabilities are limited.
- When the scope of your project is pretty static and you don’t want the burden of project management
According to Wikipedia, An effective virtual team generally begins with a plan. You want to set aside some margin to sort out what you really want and need from this team, and what your ultimate objectives are. When you have a decent comprehension of that, you can begin to search for a team that has insight into agile programming. In the event that they can show you a decent track record and quality norms, as well as make sense of their code and cost models, then you realize you’ve viewed them as a solid match.