Hourly Rates by Country Guide: Comparing Software Developers Globally

Many businesses find lower monthly salaries and hourly rates in many countries very appealing..

Thriving economies like the United States have much higher salaries and hourly rates, which makes it harder to compete globally. 

Outsourcing or offshoring to low-income countries generally seems like a great idea. In this guide, we’ve put together a list of hourly rates for software development globally, but, based on our experience, we’ll also provide an introduction to why it doesn’t matter.

Or, put differently, we’d like to save you from making a mistake that thousands of IT companies make every year – hunting for the lowest hourly rate, just to end up disappointed.

Because the question shouldn’t be which location is the best way to get lower hourly rates. 

You should ask yourself:

• which country can deliver the best results-per-dollar ratio,
• rather than focusing solely on more hours per dollar.

We, the Euvic Group, with a team of more than 5000, continue to grow fast. Our specialists are mainly based in Poland – which isn’t the cheapest if you were to only consider the hourly rate.

Still, our clients get the best possible rates for their projects, as our main focus is providing the best quality and highly competitive value for dollar spent. 

Please note that the numbers are based on the effective rates calculated for a blended team, not for single contractors. Source: Guide to Global Outsourcing Rates by Accelerance.

North America: 

• Junior developer $55 – $80 per hour
• Intermediate developer $65 – $90 per hour
• Senior developer $78 – $125 per hour

Central Europe:

• Junior developer $32 – $50 per hour
• Intermediate developer $36 – $70 per hour
• Senior developer $45 – $80 per hour

Eastern Europe: 

• Junior developer $22 – $31 per hour
• Intermediate developer $27 – $40 per hour
• Senior developer $30 – $59 per hour

Latin America: 

• Junior developer $28 – $55 per hour
• Intermediate developer $27 – $60 per hour
• Senior developer $32 – $65 per hour

South Asia: 

• Junior developer $21 – $30 per hour
• Intermediate developer $22 – $35 per hour
• Senior developer $25 – $50 per hour

Southeast Asia: 

• Junior developer $20 – $25 per hour
• Intermediate developer $25 – $30 per hour
• Senior developer $24 – $33 per hour

As mentioned above, the hourly rate is only one of the factors determining the cost-to-results or cost-to-value ratio when choosing the right country to offshore your software development to.

Focusing solely on low numbers of hourly charges can be a costly or even deadly mistake. You can pay for 1000 hours of work without getting a solid product, or you can pay for 100 hours at a higher hourly rate and get your project delivered on time and to complete satisfaction.

Speaking from experience, these are the main factors determining the quality and results per dollar when choosing the right country to outsource your IT work.

If the hourly rate is affordable but the service provider is located on the opposite side of the world, you’re bound to encounter problems in handling time zone overlaps. Working with a 12-hour time zone difference from the US will pose an ongoing challenge and further complicate monitoring the progress.

Countries with the lowest hourly rates often struggle with basic infrastructure such as electricity, internet connection, and other essentials. Oftentimes companies are unaware of the real conditions prevailing in these locations and the situations faced by the workers.

This point is crucial. Communication extends beyond just language. While you can often find people worldwide who can speak English sufficiently, that doesn’t guarantee effective communication.

Some cultures can be particularly tricky for communication, especially for Westerners, due to significant cultural differences. People might say they understand the assignment or claim they’re qualified for tasks they don’t in fact grasp. This can severely impact project quality to the point where the end result is unusable.

Ideally, you should work with a team of developers who don’t just follow instructions blindly but are also eager to challenge their tasks when they see potential for better alternatives. Our Polish teams are known for their proactive approach, working to deliver optimal results.

Certain countries have established strong reputations for their expertise in IT. This plays a crucial role in determining the quality, speed, and agility of the services they offer.

It’s not just the degree that counts; it’s the overall educational environment and its global standing that matter. Developers who have worked in advanced and adaptable settings often possess the ability to cross-pollinate, merging different perspectives and expertise levels. This skill can be vital for complex projects.

The final quality of the deliverable, the agility during the project, the technologies employed, and ultimately, the speed, all hinge on this factor.

As you can see, it’s not about the hourly rate alone to determine cost-for-value or cost-for-results. 

Euvic US, located in New Jersey, is the US-based branch of the Euvic Group. We’ve been in the business of IT and outsourcing for years, and we’re confident that Poland is one of the best locations, if not THE best, for US companies to outsource their work to. This is mainly due to the high quality of Polish software development, education, and cultural similarities.

Here are some of the reasons why we are confident in choosing Poland:

• The talent and expertise of Polish programmers are recognized in the top-5 globally.
• According to HackerRank, Polish developers rank 3rd in terms of success.

• Polish programmers excel in talent and qualifications, starting their coding journey at a young age (7.7% begin between ages 5-10).
  
• Poland produces approximately 70,000 IT graduates annually, guaranteeing a steady supply of skilled professionals for outsourcing projects.

• Polish specialists exhibit strong English language skills, enabling smooth communication with international partners. Poland ranks #16 in the English Proficiency Index.
  
• Moreover, the shared cultural values between Poland and countries like the US contribute to a deeper understanding and seamless cooperation.

• Poland is an EU member, ranked #6 globally in The Cyber Defence Index 2022/23.
• The US Chamber of Commerce’s IP Index 2020 awarded Poland a high score of 70.56 out of 100, recognizing it as one of the safest among popular outsourcing destinations.
• Polish firms have a strong grasp of intellectual property protection, copyright laws, and data security practices that align with US standards.

• Combining affordability and high-quality work. Expertise and specialization at a competitive price.
• Lower labor costs in Poland compared to other outsourcing destinations, offering cost advantages.

• High proficiency in the Agile methodology for effective project management, timely delivery, and efficient project execution.
• Poland hosts important Agile events such as the ACE! Conference.

• IT services contribute nearly 10% of the Polish GDP, with further growth projected.
• Expertise and success in Fintech Projects – Polish developers possess extensive experience in working on Fintech projects, ensuring secure, bug-free solutions.
• The significance of Poland’s expertise in the Fintech domain can be supported by its status as the largest FinTech market in Central and Eastern Europe.
• Some of the companies outsourcing in Poland include Google, IBM, Accenture, Citibank, HSBC, UBS, and Microsoft.

Are you currently searching for the right partner for your software development or IT project?

We’d like to support you during this process. Our experts can help you gain clarity on the challenges for your projects and provide a free consultation to give you an estimate regarding overall scope and cost.