Offshore Software Development Rates by Country: A Roadmap for 2025

Why does offshore software development attract businesses and entrepreneurs? The answer is simple-offshoring allows companies facing local talent shortages or high development costs to leverage skilled developers from global tech hubs. This approach provides top-tier development services at competitive rates, enabling businesses to bring their software ideas to life without compromising quality or budget.

As an offshore IT company with 13+ years of experience, Cleveroad is here to break down offshore development rates across regions and help you choose the best-fit for your business needs.

The main advantage of offshore software development is flexibility and the ability to effectively optimize spending by cooperating with top-tier experts. However, there are many more than that, and we’d like to briefly outline more advantages of remote collaboration.

Here are 3 fundamental ways in which you may benefit from choosing an offshore approach.

Around-the-clock development cycle

Offshore teams in different time zones enable a 24/7 development cycle, ensuring continuous progress on your project. While your in-house team rests, offshore developers keep working, leading to faster turnaround times and product launches without compromising quality. Additionally, considering offshore software development rates can help businesses optimize costs while maintaining access to skilled talent worldwide.

Diverse tech expertise

By deciding to hire offshore developers, businesses gain access to specialized skills and niche technologies that may not be available locally. Whether it’s AI, blockchain, or other technology of your choice, offshore developers bring rare yet affordable expertise, helping companies implement advanced solutions without losing in quality.

Scalability on demand

Offshore development offers flexibility to scale your team up or down based on project needs. Whether you need extra engineers for a tight deadline or a smaller team for maintenance, offshore outsourcing allows for seamless adjustments without the complexities of hiring and layoffs—all while benefiting from competitive offshore rates.

To underscore the value IT offshore outsourcing can bring to businesses, here’s interesting statistics:

• According to Business Research Insights, the offshore software development market was valued at approximately $160.9 billion in 2024 and is projected to reach $413 billion by 2033, with 12.5% CAGR
• A survey by Deloitte revealed that 70% of companies outsource primarily to reduce costs, indicating the financial advantages of offshore development
• ISG Executive Insights states that approximately 92% of G2000 companies utilize IT outsourcing services, indicating widespread reliance on offshore development to enhance operational efficiency

As you see, these datasets represent the enormous popularity of IT offshore outsourcing. Cost remains a key driver of this trend, so let’s get closer to the original topic and find out why offshore developers' rates may vary significantly.

Average software development rates differ depending on various factors. Let’s overview key aspects that usually impact the pricing.

The size and reputation of a software development company significantly impact its offshore rates. Established firms with a proven track record, strong client portfolios, and well-oiled development processes typically charge higher fees than smaller or less experienced companies. Their pricing reflects quality assurance, streamlined workflows, and access to top-tier developers. On the other hand, startups or mid-sized firms may offer more competitive rates but might require closer management and quality control.

The more advanced is a developer’s skill set, the higher is their hourly rate. Junior developers with limited experience charge less, while senior engineers and specialized experts demand premium rates due to their ability to handle complex architectures, integrations, performance optimizations, and high-level risk management skills due to extensive experience. Additionally, certain technologies like AI, blockchain, or cloud computing are in high demand, leading to higher costs for professionals skilled in these areas compared to those working with common frameworks and languages.

Developers with deep expertise in a specific industry or niche, such as fintech, healthcare, or real estate software, often charge more due to their domain knowledge and regulatory awareness. Businesses prefer these specialists because they understand industry-specific compliance requirements, security protocols, and industry trends, reducing the need for extra onboarding. Cost for offshore developers with basic skills may be more affordable, but they often require additional training to adapt to industry-specific challenges, potentially increasing long-term costs.

Geographic location is indeed one of the biggest factors affecting offshore development rates. Developers in North America or Western Europe tend to charge significantly more than those in Central and Eastern Europe, Asia, or South America due to differences in living costs, market demand, and local salary expectations. However, lower rates don’t always mean lower quality – countries like Estonia, Poland, and India have thriving tech ecosystems with highly skilled developers at more competitive prices compared to U.S. or UK-based firms.

Let’s talk numbers and take a closer look at the offshore developer rate in the most prominent destinations all over the world.

Here’s an overview of four popular IT outsourcing offshore destinations, highlighting software offshore development rates in key countries.

The Central and Eastern Europe (CEE region) is a golden mean in terms of offshore development. The IT sector is constantly developing here, while the number of software development companies grows each year. According to Clutch, there are 2,230 IT firms in Northern, Central, and Eastern Europe. The offshore development cost in this region (namely, Estonia, the main EU tech hub) is $30-60/hour.

The offshore software for your project depends on the company you choose. Small companies usually charge less, but the majority of them won’t offer full-cycle software development. Besides, they don’t have additional options like solutions architects or database engineers for complex projects. Below, we list examples of several countries in Northern, Central, and Eastern Europe and their peculiarities in comparison with Estonia, the leader of the IT sector in its region.

Estonia

Estonia is heading the leading position in IT-related services in Europe. The secret of the popularity of this region is quite simple: it mixes well-qualified specialists offering their top-quality IT services for an affordable cost, a comfortable business environment, and a direct entry to the European market.

With these aspects, Estonia is considered one of Europe's most fundamental IT hubs. With offshore software development rates typically varying from $20-60/hour and fast and high-quality project delivery — it may be an ideal option for outsourcing your product development to this region.

Poland

Poland is the second biggest outsourcing tech hub in Central and Eastern Europe. This country has created a favorable environment for the IT field. Today, Poland has 720 outsourcing IT companies and one of the biggest talent pools in Eastern Europe.

Offshore developer rates in Poland are almost twice as high as in Estonia. Programmers in this country charge $50-$99/hour. The difference in programmers’ salaries causes such a difference in the same region. Software developers in the middle of their careers earn $35,000/year and over. Still, you can cut your expenses when outsourcing to Poland. If you need to get a subtask of a large project done, you can outsource it to a team of junior developers. They usually charge lower offshore development rates and can manage small tasks.

Czech Republic

The situation with offshore development rates in the Czech Republic is very diversified. There’s a small number of software development companies in the country. According to Clutch, there are only about 70 of them. The majority of Czech companies are small and don’t have enough reviews, so they’re taking up all cases to expand the client base and gain more trust from potential contractors.

Still, the Czech Republic is an IT-oriented country. The majority of developers work on internal software projects for companies from various fields. The Czech Republic has the highest salaries for software engineers in Central and Eastern Europe. Experienced developers earn $35,000-$45,000 and over.

Romania

The last destination on our Central and Eastern European list. After Romania’s integration into the European Union, the country's IT sector underwent significant transformation. Large foreign investments pushed forward the offshore software development sector. As for now, the count of major outsourcing companies has reached the number of 300.

Romania is more attractive in terms of offshore software development rates than Poland or the Czech Republic. A considerable part of companies set their offshore software development rates to $25-$49/hour. However, there are some exceptions. Large companies charge $100-$149/hour and work on projects starting from $100,000 and more.

Western Europe is the region that attracts IT talents around the world. The Schengen Agreement created a relocate-friendly environment for developers from nearby countries. That’s why Western Europe became a motherland for more than 3,000 IT firms.

Germany

A successful labor migration politics, exceptional education, and stable economic growth brought Germany nearly 901,400 developers. That’s the highest count of developers in the entire Europe.

However, German offshore software development rates are the flip side of the coin. According to PayScale, a middle-tier developer with 2+ years experience earns around $64,000/year. Senior developers in large companies earn $90,000 and over. These salaries result in high offshore development rates. German companies charge $100-$149/hour on average. However, it also depends on the city where the company is located. For example, in Stuttgart, developers earn less than in Berlin, so the rates are lower.

United Kingdom

The United Kingdom holds the second place in the number of IT talents after Germany. Every thirteenth UK citizen is a software developer. Even though UK programmers' average salary is slightly lower than the German ones, around $55,000/year, the offshore development rates are still high. Companies without significant expertise and client reviews charge around $100/hour. Speaking of well-established companies, they charge up to $200/hour.

Netherlands

The Netherlands has emerged as a leading European tech hub, attracting startups and enterprises with its strong digital infrastructure, favorable business regulations, and innovative mindset. The country boasts a highly skilled developer pool of approximately 320,000 professionals, many of whom specialize in AI, fintech, and cloud computing.

Despite its advantages, software development costs in the Netherlands are relatively high. A mid-tier developer earns around $65,000/year, while senior engineers make over $95,000/year. Dutch IT service providers typically charge $80-$140/hour, depending on the company’s location, size, and expertise. Amsterdam, as a major tech hub, has the highest rates, while cities like Utrecht and Rotterdam offer slightly more affordable options.

Switzerland

Switzerland's reputation for innovation, precision, and stability makes it an attractive destination for software development. With top-tier universities, strong intellectual property laws, and a thriving tech ecosystem, the country has cultivated a highly skilled workforce. Switzerland is home to over 300,000 IT professionals, benefiting from world-class education and a business-friendly environment.

However, Switzerland's high cost of living and competitive salaries significantly impact offshore developers rates. A mid-level developer earns around $80,000/year, while senior experts command $120,000 and above. These figures translate into high hourly rates, with Swiss software development companies typically charging $100-$170/hour. Zurich and Geneva remain the most expensive tech hubs, while smaller cities offer slightly lower rates.

Asia is another popular outsourcing region known for its cost-effective offshore development rates and swiftly evolving level of tech expertise. Let’s overview the most demanded countries for offshore development.

India

India is the top favorite outsourcing region of both small entrepreneurs and large companies like Google and Amazon. India offers the lowest offshore rates range among all outsourcing hubs around the world. However, don’t fall for the cheapest option. The price is so low for a reason. India doesn’t have enough facilities where enthusiasts can get an education and become experienced developers. Indian developers lack expertise with various tools required for the project.

Smaller companies often charge less than $25/hour. But if you’re thinking of outsourcing your project to India, we advise you to find a big company with at least several reviews. Even though they charge $25-$50/hour, the fact that someone worked with them and stayed satisfied may save your project.

China

Right after India, China holds the second place in terms of IT outsourcing. A common stereotype about cheap labor and productive workers in China can be applied to this niche too. The Chinese IT sector is growing fast.

So, what about offshore software development rates in China? Actually, the price range is very versatile. Alongside affordable companies that charge less than $25/hour, you can find companies charging $149-$200/hour.

Philippines

The Philippines is another attractive outsourcing hub. One of the distinctive features of this country is its high level of English language. According to the English Proficiency Index, the Philippines scored 60.14 points, which is close to Belgium and Switzerland. Such proficiency is rather rare in the Asian region. Still, the Philippines is a small country that experiences a shortage of talent. This results in a poor choice of companies (According to Clutch, there are only 100 companies).

As for the offshore development rates in the Philippines, they are quite the same as in India. Companies with less than 50 employees charge $10-$25/hour, and companies with 50-250 employees set their rates to $25-$49/hour.

North and South America are two opposite sides in terms of the IT sector. While North America is the world-leading IT giant that gathered top-tier tech companies under the same roof, South America has a steadily evolving IT field with its own benefits. Both of these regions are worth mentioning.

North America

North America is the epicenter of technology. The USA attracts developers from different parts of the world. Companies are always in need of new tech employees. Besides, North American software engineers earn the highest salaries among developers in the world. Depending on the technology they work with, developers with 3+ years of experience earn $75,000-$100,000/year. Senior developers sometimes earn $150,000-$200,000/year.

There’s no doubt that such salaries and the overall demand of developers influence offshore development rates. With more than 3,000 outsourcing companies in the US, it’s hard to find one that delivers a quality product for a price of less than $150/hour. The majority of US-based companies set their offshore software development rates to $150-$300/hour. This price may be a disaster for large projects that require 3,000+ hours of development time. So, if you’re on a budget, it’s worth paying attention to options with lower offshore software development rates like Central and Eastern Europe.

The situation with Canadian IT outsourcing is similar to the US. The salaries of middle developers lie in a range of $65,000-$70,000/year. The rates fluctuate in the range between $100 and $200 per hour. However, the number of outsourcing software development companies is lower than in the neighboring USA.

South America

South America is gaining more popularity among entrepreneurs willing to pass software development to third parties. Geographical proximity to the USA lets entrepreneurs visit companies personally and stay updated about the project's condition. Also, the time zone difference between countries like Brazil and Los Angeles is only 4 hours. This helps to schedule meetings at a comfortable time for both parties.

Due to the non-settled state of South American IT, offshore rates for software development are much more attractive compared to North America. Brazilian developers earn $10,000 - $15,000/year, while the company’s rates lie in the range of $50 - $100/hour.

Summing up, here is a more structured offshore software development rates comparison:

The CEE region has become a rational choice for offshore software development outsourcing, offering skilled professionals at lower rates than Western markets. Companies benefit from reduced expenses without compromising quality, making it a very attractive option. Let’s overview the key factors contributing to these cost savings below.

The Central and Eastern European (CEE) region boasts a deep well of tech talent, with thousands of highly skilled developers entering the job market each year. Countries like Estonia, Poland, and Romania have strong educational systems that emphasize STEM fields, ensuring a steady supply of qualified engineers. Many of these professionals have hands-on experience working on international projects, making them well-versed in global development standards.

With such a diverse and highly trained workforce, businesses looking to offshore their software development can easily find specialists who match their project requirements. Mixed with attractive offshore rates, it makes the CEE region a perfect cost-to-quality ratio option. Apart from this, offshore enables businesses to reach experts with niche knowledge (e.g. AI, ML, IoT, blockchain, etc.) with reasonable price tags and high quality of service.

CEE strikes a perfect balance between affordability and expertise. While developer rates in the region are significantly lower than in Western Europe or North America, the quality of work remains high. This means businesses can access top-tier software development without overextending their budgets. The lower cost of living in CEE countries contributes to these competitive offshore software developer hourly rates, allowing companies to invest more in innovation, product development, and scaling their operations while still maintaining cost efficiency.

Many CEE governments actively support the growth of the tech sector through business-friendly policies, tax incentives, and investment programs. Countries like Estonia and Poland have simplified legal frameworks for foreign businesses, making it easier to establish partnerships with offshore development teams. Additionally, being part of or closely aligned with the European Union, many CEE nations adhere to strict data protection regulations, such as GDPR. This ensures a secure and compliant development environment, giving businesses peace of mind when outsourcing projects.

Note: Cleveroad is an IT partner certified with ISO/IEC 27001:2013, stating our ability to provide high-quality, reliable and secure software solutions in compliance with regulatory requirements.

One of the biggest challenges of offshore development is communication, but CEE developers have a clear advantage here. English proficiency is widespread across the region, eliminating language barriers that can slow down collaboration. Additionally, CEE’s time zones overlap with both Western Europe and the U.S., making real-time communication much easier. Beyond just language and time zones, CEE developers also share similar business ethics and work cultures with Western companies, which helps foster smooth, efficient collaboration without major cultural adjustments.

As we have already disclosed all the essentials regarding offshore development rates, the Cleveroad team would like to share with you tips on how you can cut on investments during offshoring.

Unclear roles can lead to duplicated work or missed tasks, both of which waste time and money. From the start, outline who is responsible for what and ensure every team member understands their duties. In this case, it’s vital to double-check, as it may significantly minimize the probability of extra expenses. Whether it’s developers, project managers, or QA engineers, setting clear expectations scales down confusion and optimizes workflow. This structured approach prevents costly consequences and ensures accountability throughout the development process.

A correct project management strategy decides the effectiveness, smoothness of collaboration, and success of solution delivery. For example, we at Cleveroad stick to Agile SDLC as this strategy ensures flexibility, transparency, and continuous improvement throughout the development process. Agile methodologies, such as Scrum and Kanban, promote iterative development, regular feedback loops, and cross-functional collaboration, reducing risks and enhancing productivity. By breaking projects into manageable sprints and maintaining clear communication, Agile helps us streamline workflows, ensuring that the final solution meets our clients’ business objectives.

Proper organization is key, otherwise, offshore development can quickly become chaotic. Using project management tools like Jira, Trello, or Asana helps keep tasks structured and teams aligned. These platforms offer real-time tracking, task prioritization, and deadline management, ensuring that work stays on schedule. When the development process is well-organized, businesses avoid costly overruns, unnecessary revisions, and productivity bottlenecks.

Miscommunication may commonly lead to costly mistakes and delays, so setting up transparent and structured communication is essential. Use clear guidelines, regular check-ins, and collaborative tools like Slack or Microsoft Teams to ensure smooth interaction. Encourage an open dialogue where developers can ask questions, provide updates, and clarify expectations. When everyone is on the same page, projects move faster, reducing inefficiencies and unnecessary expenses that may occur apart from paying offshore rates.

At Cleveroad, we prioritize seamless communication with our clients by conducting sprint reviews and regular meetings, scheduling them at convenient times for all parties involved.

Here’s what Breanne Butler, our US-based client, says about our mutual on creating QMS for medical devices manufacturers:

A lack of proper documentation can lead to misunderstandings, unnecessary rework, and time-consuming clarifications. A trustworthy tech vendor helps you ensure that project documentation stays well-structured, covering technical requirements, workflows, and key decisions. The documentation includes technical requirements, architecture overviews, development workflows, API documentation, user guides, and more.

These documents ensure clarity, facilitate smooth collaboration, and help teams efficiently scale and maintain the project. This not only streamlines onboarding for new team members but also prevents costly errors when updating or scaling the project. With a reliable partner managing documentation, businesses can maintain long-term efficiency and save valuable time and resources.

Not all offshore collaboration models work for every project – so your main task here is to assess what your business truly needs. Some businesses benefit from dedicated teams, while others prefer time-and-material or fixed-price contracts. By aligning your needs with the appropriate engagement model, you can avoid overspending while ensuring that the development team delivers precisely what your business requires.

For example, we provide two flexible cooperation models:

• IT staff augmentation services. This model allows you to augment your development capabilities by hiring offshore specialists you need for your product creation (e.g., UI/UX designer, web developer, QA engineer). Offshore staff becomes a part of your in-house team, and you can completely manage their work on all project stages.
• Dedicated team services. This model provides a scalable and flexible approach to software development by offering a full team of offshore specialists tailored to your project needs. This model ensures that developers, designers, QA engineers, and other experts work exclusively on your project, aligning with your goals and workflows.

Cleveroad is an outsourcing software development company from the CEE region (Estonia) with over 13 years of experience in the field. We provide businesses of different scales with a great variety of IT services, including custom software development services, UI/UX design, mobile and web development, software testing, legacy software modernization, and much more.

Here’s how you will benefit from cooperating with us:

• Free solution design workshop to define project goals, explore tailored strategies, and assess feasibility - risk-free and without any initial financial commitment
• Expert team of 280+ in-house engineers (75% senior and middle level) with 200+ successfully delivered software solutions
• Proficiency in integrating advanced tools, including API integrations, cloud-based CRM systems, secure payment processing solutions, data analytics platforms, and industry-specific enterprise software
• Guaranteed compliance with security standards and legal requirements including HIPAA, GDPR, PCI DSS, PIPEDA, FDA, KYC etc.
• R&D Centers in offshore collaboration provide clients with access to top-tier expertise without the overhead costs of in-house research ensuring continuous innovation, rapid adaptation to industry trends, and the development of scalable solutions, all while maintaining cost efficiency
• Project Management Office (PMO) that ensures structured project execution by managing timelines, mitigating risks, and optimizing resource allocation, guaranteeing smooth development processes

To prove our expertise, here’s the selection of our vibrant cases of offshore product delivery:

• Online Services Ecosystem for Managing Auto Insurance. A digital ecosystem for a U.S. insurance company featuring a web and mobile app for policy management, claims processing, and customer interactions, enhancing efficiency and user experience.
• Route Planning and Transport Management System. A cloud-based logistics platform for U.S. client that optimizes freight management, route planning, and real-time tracking, improving supply chain visibility and reducing operational costs.
• A Software System for Creators and Spectators of Sports Activities. A sports marketplace connecting retailers and customers for our client from USA, offering seamless order processing, inventory management, and personalized recommendations for an enhanced shopping experience.
• Powerful SaaS retail operations platform. A retail management system for our US-based customer, streamlining inventory tracking, supplier coordination, and sales analytics, helping businesses optimize operations and drive growth.

Here’s what Daniel Norman, CTO of RetailOps says about cooperating with Cleveroad on SaaS retail operation platform: