MARKETING REPORT: COMPARISON OF

GLOBAL HOURLY RATES FOR SOFTWARE

DEVELOPERS
CONTENTS

03
HOW MUCH DOES IT COST TO
EMPLOY A SOFTWARE
DEVELOPER?

04
CURRENT GLOBAL OFFSHORING
SOFTWARE DEVELOPMENT
SITUATION

05
VALUE OVER PRICE

06
SOFTWARE DEVELOPER HOURLY
RATE IN UNITED STATES

17
SOFTWARE DEVELOPMENT
HOURLY RATE IN AFRICA
 HOW MUCH DOES IT COST TO
EMPLOY A SOFTWARE
DEVELOPER?

Here is a list of the top outsourcing nations in Asia, Europe, Latin America,
and Africa, along with a pricing comparison for hiring software engineers
in 2023.

Destination Average Hourly Rates

North America
$38- $63
United States, Canada

Eastern Europe
Ukraine, Poland,
$20 – $50
Romania, Hungary,
Bulgaria

Western Europe
Germany, Netherlands,
$25 – $60
Switzerland, Austria,
Belgium

Latin America
Brazil, Mexico, Argentina, $30-$50
Chile, Columbia, Peru

Africa
Morocco, Kenya, Nigeria, $20 -$40
Egypt, South Africa

Asia
$18- $40
India, China, Philippines

PAGE 03
CURRENT GLOBAL
OFFSHORING
SOFTWARE
DEVELOPMENT
SITUATION

Introduction
The outsourcing business has
transformed several industries since it
was founded in the early 2000s.

We may better grasp the situation of

global outsourcing software
development by keeping an eye on a
key trends that are contributing to the
growth of outsourcing:

In 2021, the market evaluated for IT

outsourcing was estimated to be
worth USD 526.6 billion. By 2027, it
is anticipated to reach USD 682.3
billion, growing at a CAGR of 4.13%
from 2022 to 2027 (referred to as
the forecast period).

During the projection period, the

business process outsourcing
market is anticipated to rise by
USD 76.90 billion, expanding at a
CAGR of over 7%.
From 2019 to 2024, incremental
growth of 76.90 billion USD, up
1.69% from 2020, is anticipated.
Multiple companies are present in
a fragmented market, and the
influence is minimal.

PAGE 04
 Change In Software Development
VALUE OVER Rates Over The Previous Years

PRICE Both the market trends and the

pace of software development in
previous years have altered
significantly.
Outsourcing, as we all know, has been Surprisingly, the payment for app
on the rise since the early 1980s. The developers' services would climb
offshore development situation of across all technologies, with
today, however, is very different from increases of up to 4% expected.
the preceding models. Python, React Native, ReactJS,
NodeJS, Java, and PHP all have
In addition to the numerous additional tremendous rate increases.
reasons listed below, businesses Software Development
moving toward outsourcing software
development are significantly Hourly Rate In North
emphasizing the acquisition of America
qualified personnel to cut costs, The highest hourly wages are
strengthen key business operations, found in the United States, where
increase service quality, and drive they can range from $38 to 63
transformation dollars. Taxes and perks are
included in the compensation,
which might be anything from
$137k and $173k.
Despite the high cost of recruiting
in the United States, there are
several advantages, like less
linguistic obstacles and fewer
miscommunications.
PAGE 05
 WHY DO
COMPANIES
OUTSOURCE?

SOFTWARE DEVELOPER HOURLY

RATE IN UNITED STATES
The average hourly pay for software engineers in several American cities is shown
in the table below:

Average Hourly Rate In United

$36-$43
States of Software Developers

Hourly Rate In United States of

$35-$60
Mobile App Developer

Hourly Rate In United States of

$28-$39
Web Developer

Hourly Rate In United States of

$38-$47
RPA Developer

Hourly Rate In the United

States For Cloud Computing & $49-$57
Tech Migration

PAGE 06
SOFTWARE DEVELOPER
HOURLY RATE IN
CANADA
The average hourly pay for software engineers in several
American cities is shown in the table below:

Average Hourly Rate In

Canada for Software $36- $52
Developers

Hourly Rate In  Canada for

$49-$97
Mobile App Developers

Hourly Rate In  Canada for

$30-$41
Web Developers

Hourly Rate In  Canada for RPA

$27- $50
Developers

Hourly Rate In  Canada For

Cloud Computing & Tech $30- $46
Migration

PAGE 07
SOFTWARE DEVELOPER HOURLY
RATE IN ASIAN COUNTRIES

With 10 million, Asia is the region with the greatest concentration of software engineers
and a leading location for software outsourcing. The hourly wages of software engineers
on the continent are influenced by a number of factors and vary greatly from nation to
nation.

PAGE 08
SOFTWARE DEVELOPER HOURLY
RATE IN INDIA
Hiring Indian developers is a viable option for business owners looking to put their
ideas into action by creating excellent solutions at competitive prices. One of the
finest places to outsource software needs is India.

Hiring an offshore developer from Asian countries is the most budget-friendly

option. Explicitly speaking about India, the range to hire developers starts from
$18 for a junior developer and goes up to $40/hr.

Average Hourly Rate In India for

$18- $25
Software Developers

Hourly Rate In  India for Mobile

$18- $39
App Developer

Hourly Rate In  India for Web

$16- $30
Developers

Hourly Rate In  India for RPA

$20- $40
Developer

Hourly Rate In  India For Cloud

$18- $35
Computing & Tech Migration

PAGE 09
SOFTWARE DEVELOPMENT HOURLY
RATE IN THE PHILIPPINES
Another nation with the fastest-growing IT sector is the Philippines. 94000
technical roles, more than 200 offshore software businesses. According to
information provided by Teleport & Best Jobs, Software Developer Hourly Rates,
junior software engineers in the Philippines may expect to make between $3.5 and
$7 per hour.

Although the Philippines has affordable prices, working there may provide
difficulties due to things like a developing IT industry, inadequate infrastructure,
natural disasters, etc.

Average Hourly Rate In

Philippines of Software $4.2- $6.61
Developers

Hourly Rate In the Philippines of

$4- $7
Mobile App Developer

Hourly Rate In  Philippines of Web

$3- $5
Developers

Hourly Rate In Philippines of RPA

$3- $6
Developer

Hourly Rate In  Philippines  For

Cloud Computing & Tech $3- $7
Migration

PAGE 10
SOFTWARE DEVELOPER HOURLY
RATE IN CHINA
China is regarded as one of the best locations for hiring web developers or mobile app
developers among other Asian nations. In China, the software development sector's entire
revenue is anticipated to rise 6.9% during the next five years, reaching $1.2 trillion.

Average Hourly Rate In China for

$5- $12
Software Developers

Hourly Rate In  China for Mobile

$14- $44
App Developers

Hourly Rate In  China for Web

$20- $23
Developers

Hourly Rate In China for RPA

$23- $54
Developers

Hourly Rate In  China  For Cloud

$23- $30
Computing & Tech Migration

SOFTWARE DEVELOPER HOURLY

RATE IN EUROPE
The hourly wage for developers varies from nation to nation in Europe. For instance,
Ukrainian developers charge far less than Polish software engineers. However, the hourly
rate for junior developers in Europe is from $25 to $50.

PAGE 11
WESTERN EUROPE
One of the most costly places in the world for software development is
Western Europe. The average hourly compensation for a software
engineer is likewise expensive because of the high cost of living,
complex taxes laws, and skilled workers.

Western European hourly wages range from $25 to $65 on average,

with yearly earnings of roughly $60,000.

Average Hourly Rate In Western

$68-$99
Europe for Software Developers

Hourly Rate In  Western Europe

$40- $60
for Mobile App Developers

Hourly Rate In  Western Europe

$42- $53
for Web Developers

Hourly Rate In Western Europe for

$30- $75
RPA Developers

Hourly Rate In  Western Europe

For Cloud Computing & Tech $70- $149
Migration

EASTERN EUROPE
The start-up culture epicenter is said to be in Eastern Europe. The programmers are knowledgeable in
a variety of software platforms and coding languages, including Python, C/C++, Java, JavaScript,.NET,
and Java.

In Eastern Europe, software engineering services are priced per hourly between $20 and $45.
Software engineers typically earn between $40k and $70k per year, with Poland being the most costly
nation.

According to Coursera's Global Skills Index 2020, Belarus, the Czech Republic, Hungary, and
Ukraine are the top four technology-producing nations in the world.
In Ukraine, software developer services are paid an hourly cost of $26. The hourly salary for a
software engineer ranges from $25 to $50, and the time zone is the same as that of the majority of
western European nations.

PAGE 12
AVERAGE HOURLY RATES OF
EASTERN EUROPE

Countries Average hourly rates

France $42

Germany $32

The United Kingdom $28

Bulgaria $32

Romania $35

Average Hourly Rate In Eastern Europe for

$25-$49
Software Developers

Hourly Rate In Eastern Europe for Mobile App

$30- $50
Developer

Hourly Rate In Eastern Europe for Web

$25- $50
Developers

Hourly Rate In Eastern Europe for RPA Developer $30- $75

Hourly Rate In Eastern Europe For Cloud

$36- $96
Computing & Tech Migration

PAGE 13
 SOFTWARE DEVELOPER HOURLY
RATE IN LATIN AMERICA
Leading nations include Brazil, Argentina, Colombia, and Costa Rica

Latin America has also become a popular outsourcing location in recent years. In Latin
America, software engineers often make $25 to $50 per hour.

Argentina, Columbia, Mexico, and Brazil are some of the top locations in Latin America for IT
outsourcing.

Average Hourly Rate In Latin

$23-$50
America for Software Developers

Hourly Rate In Latin America for

$27-$39
Mobile App Developers

Hourly Rate In  Latin America for

$33-$51
Web Developers

Hourly Rate In Latin America for

$52- $107
RPA Developer

Hourly Rate In  Latin America For

Cloud Computing & Tech $37- $42
Migration

Costs of Outsourcing Development in Latin America

Junior Developer: $25 – $34/hour
Mid-level Developer: $50 – $80/hour
Senior Developer: $100 – $120/hour

PAGE 14
ARGENTINA
The IT market in Argentina is significantly influenced by European trends. Argentina has
cultural ties to Europe in addition to economic ones. The region's most costly IT
development teams are located there. In the meanwhile, this is due to the creators'
extensive expertise dealing with western nations.

COLOMBIA
Every year, 13,000 software developers are born in the nation; the majority work for
organizations in other countries. However, businesses that have benefited from American
influence are CMMI certified.

BRAZIL
One of the top outsourcing locations for software development is Brazil. Additionally, Rio de
Janeiro is a hub for IT worldwide, and the city is home to 8 of the top 10 technological
colleges, which annually graduate 14,000 students. Due to this reality, many US businesses
favor hiring Brazilian talent.

Countries Average hourly rates

Argentina $6.49

Colombia $6.65

Brazil $7.56

PAGE 15
SOFTWARE DEVELOPMENT HOURLY
RATE IN AFRICA
Although it is still in its infancy, Africa's IT sector is beginning to show signs of significant
expansion. Additionally, the nation is already starting to draw tourists from all around the world.

Countries Average hourly rates

Egypt $20

Kenya $20

Nigeria $40

Morocco $40

PAGE 16
SOFTWARE DEVELOPMENT HOURLY
RATE IN AFRICA
According to the e-Conomy Africa 2020 research, Africa's IT market is expected to grow to $180
billion by 2025. Its GDP will be 5.2%. The business is predicted to generate $712 billion in sales by
the year 2050, accounting for 8.5% of the continent's GDP.

Countries in North Africa, including Egypt, Morocco, and Tunisia, have swiftly gained
recognition as having strong offshore developers. Companies employ software developers
from North Africa because they are knowledgeable in Python, Ruby, and SQL.
Due of its high level of competency in languages like English, German, and Dutch, South Africa
is the chosen option. The Tholons Digital Nations and Super Cities rankings have previously
included them. The best programmers are proficient in C++, PHP, and SQL.

Average Hourly Rate In Africa for Software

$23-$50
Developers

Hourly Rate In Africa for Mobile App Developers $25-$50

Hourly Rate In Africa for Web Developers $23-$50

Hourly Rate In Africa for RPA Developer $30-$60

Hourly Rate In  Africa For Cloud Computing & Tech

$23-$50
Migration

PAGE 17