Best offshore software development countries
Offshore software development is delegating technological jobs to overseas software development companies or developers. By empaneling these offshore developers, businesses can optimize their fixed labor costs without compromising on quality. For instance, an average per hour billing rate for a seasoned developer in the US starts at $60 per hour, while in India its $18 per hour. One can imagine the quantum that tech companies can save by offshoring software development.
Offshore software development billing rates vary from country tocountry. For instance, the rate per hour of tech pool in Asian countries like India, China, Philippines is somewhere between $18-$40. This means that a junior techy could charge $18 per hour and a seasoned techy could charge $40 per hour. The infographic given below indicates the average billing rates per hour in various countries. African countries like Egypt, South Africa, Nigeria, Kenya, Morocco charge on an average $20-$40 per hour. Latin American countries like Brazil, Argentina, Peru, Mexico, Columbia, Chile charge on an average $30-$50 per hour and Eastern European countries like Bulgaria, Poland, Ukraine, Poland, Romania, Hungary charge around $25-$50 per hour. The rates provided here are rough figures, the actual figures might differ with skill sets, experience, market rates, project specifications and other factors.
Here are certain parameters that will aid in choosing the best offshore development countries:
There are many guides online that provide offshore developer rates, which can assist in having a better hiring information on pay scales of various countries. One can ascertain for themselves the pay scales for different skill sets in different countries from websites like Upwork that offer resources for offshoring requirements.
Quality of technical education
It has an important implication on the hires. Literacy rates, model of education, language medium, level, quality, support of technical education matters a lot when choosing a country for offshoring. In India, due to historic inferences, a western approach to education is followed and the Government has approved 100% FDI under
automatic route in education institutions and the All India Council for Technical education (AICTE) has been putting efforts to create synergy between Indian and Foreign Universities. That’s the kind of room the government has created for technical education.
Countries like Poland shine high in QA and usability standards. Ukraine provides advanced technical training to its tech population during their educational phase of their career. It is always important to look at the education standpoint.
Concentration of tech talent pool
It is important to focus on where the tech talent hub is concentrated i.e. where is most of the population located and what are the state-of-the-art technology platforms being imparted. The demographics play a vital role here- Number of technical graduates that a country churns out every year and their age group also to be considered while choosing the offshoring software development country.
Difference in time zones
The World Wide Web can easily flash the difference in time zones, and it is critical to identify them and choose the country with lesser gaps. Even with a far away zone, if a country is prepared to handle the smooth transitioning of the project with a good team and proper communication platforms, yes it’s a feasible option.
Look out for alluring tax benefits like exemptions of VAT for software development, amicable corporate and other collateral taxes that governments of various countries offer in order to attract job opportunities within. It can help reduce costs.
There could be a delay in completion of projects in certain countries since the operational and ongoing procedures for offshoring are complex and time-consuming involving too much paperwork. Association with countries with simple operational procedures, governance could prove to be hassle free in the long run.
Skill rankings by expert agencies
The Topcoder ratings, HackerRank Programming Olympics can offer insights on how skilled software developers are across locations. It can act as a compass to choose the best country.
This aspect cannot be overseen. English is one of the common platforms for communication. A minor miscommunication or typo error could leave behind grave errors. It is important to choose countries, whose developers are proficient in the language, in order to send and receive the communication without losing its context and originality of the intended content.
Research and advisory companies like Gartner provide cultural compatibility of various countries which could prove to be a useful tool to choose the offshoring partner. Higher the compatibility, higher is the success of the project.
Hence these are some of the points to be kept in mind while contemplating on the best offshore software development countries. It is no complex rocket science, but just an attention- to-detail activity that unwraps the gift of success.