Outsourcing Software Development: An Overview of the Cost

Software development is an integral part of the modern world, owing to the growing digitization and increasing reliance on digital tools, apps, etc. Amid this continually evolving phenomenon, one thing has remained constant: Outsourcing software development projects. The concept of outsourcing is beneficial for software development due to the countless benefits it brings to the table. It includes reduced costs, access to advanced skill sets from all over the world, decreasing hassles, and so much more. However, before one can take it up, there is much to consider, especially the cost.

The cost of outsourcing software development is dependent on a variety of factors, such as how much of the development project you want to or are willing to outsource, the experience and skill of the developer, geographical region where the development team is located, your project’s requirements, and so forth. A developer with fewer years of experience on the resume will be much more affordable than a more experienced programmer, for starters. But keep in mind, with more experience comes better quality, a better place, and so much more.

So, yes, the cost is subjective; but that doesn’t mean you have to be entirely unprepared. Let us take a look at one of the critical factors that decide cost — Location.

1. Europe: If your developer is based out of Europe, be prepared to pay anything between $20 to $170 per hour. However, if you want to be more specific than that: Eastern Europe is the most affordable lot, whereas developers from Western Europe are the most expensive. And don’t fret about the language differences, since English will get you through the process of finding and hiring a developer in Europe just fine.
2. North America: Home to one of the most sought-after lots of developers globally, you will pay the highest charges when hiring a developer in North America, especially from the US. On average, developers here command an hourly rate of $50 to $100, which is too much for those with slightly less experience. If you pick an experienced developer, be prepared to shell out about $140 to $200 per hour.
3. Asia: Often referred to as the software development outsourcing hub of the world, Asia offers not only some of the most highly skilled programmers in the market but also some of the most affordable. No, really; hourly rates can start at as low as $10 and usually max out at about $60 - $70 per hour. However, based on your requirements and skillsets involved, it can also go up to about $150 per hour. It is highly subjective, quite frankly.

To cut a long story short, before engaging in a software company partner program, it is vital to consider your budget and all the many factors discussed above to get a better sense of how much this exercise will cost you and if it is worth the investment.