Today there are thousands of IT outsourcing companies, among which you can easily find acceptable options at your prices. Hourly rates for developers in the United States starting from $ 70 an hour, and in Eastern Europe, the same in Poland and Ukraine, the payment will start at about $ 30 an hour. The upper payment ceiling in these countries is about $ 50, while in the U.S. about $ 130.
Knowing this, you can very decently reduce the cost of development and not lose the quality of the final product. It is necessary to understand in which countries the development segment is better developed, where there are more specialists, the quality of human resources and the pace of software development.
According to statistical calculations, the total revenue of the IT outsourcing market in 2022 will be about $400 billion. This is 9.8% more than last year. So why is this market growing?
The main reason is obvious: many companies benefit from such services. Fees for offshore (remote) developers vary greatly in different parts of the world. Thus, with the right choice of contractor, you can significantly reduce your development budget.
Let’s compare the quality and rates of offshore software development for the most actively developing countries of Eastern Europe in the IT sector, as well as the average cost of specialist services in these countries.
Eastern Europe is the middle ground between all regions. There are many highly skilled developers in this region with lower rates and no risk of future product quality. The density of developers across the region varies, but overall there are about 1 million applicants in the market. Pretty impressive figures for such a small region.
Although these numbers should change due to the current situation in Eastern Europe. We will know in 2023. The IT market in Eastern Europe has shaken some specialists from Belarus and Russia due to the sanctions imposed on these countries.
Based on this information, our Alcor team can say that Eastern Europe is a very promising region with a large number of outsourced software developers. With nice prices for specialists’ remuneration, where the lower price ceiling is about $25 per hour, and the upper one is about $60 per hour. More precise pay rates by country differ from the regional average, let’s break this down.
Now we will take a detailed look at software development in Eastern Europe by country.
Developers From Poland
- Hourly rate: $35-55
- Most popular technologies: C++, Java, Python, SQL
- Largest IT hubs: Wroclaw, Warsaw, Lodz, Krakow
The hourly rate in Poland is higher than in cultural and geographical neighbors such as Ukraine and Belarus. But it is within the framework of Eastern Europe. This can be explained by the fact that Poland has a higher standard of living than these countries, as well as good training of specialists. In this country, the IT industry has a large percentage of capacity in relation to the economy and the number of employed specialists in the labor market. It is easy to find both an outsourcing company and a freelancer.
There are four main IT centers in Poland, where most applicants can be found. But in spite of that you can also find great professionals in other cities. There are also software development companies in Poland, in addition to outsourcing companies.
Developers From Romania
- Hourly rate: 25-45 $
- Major IT hubs: Bucharest, Cluj-Napoca, Iasi
Romanian developers are good at complex languages and excellent knowledge of databases, which allows them to produce excellent products.
According to Clutch.co, about 300 IT companies are registered in the country that specialize in software development.
In the 1990s, the country had a pleasant investment climate for technology companies. The biggest IT giants such as Google, Amazon, Microsoft and others invested here. But unfortunately the qualification of specialists is not as good as in Poland or Ukraine, and developers with high qualifications and experience are in short supply.
Developers From Ukraine
- Hourly rate: $25-50
- The most popular technologies: Python, Java, Ruby
- Largest IT hubs: Kyiv, Lviv, Odesa, Dnepr, Kharkov
Ukrainian companies have a reputation for providing high-quality software at a reasonable cost. Specifically, 11 Ukrainian companies were listed as having the best IT outsourcing companies in the world. This makes Ukraine one of the most beneficial countries for IT outsourcing in Eastern Europe, as well as the entire world.
The quality of the Ukrainian IT environment is demonstrated by the number of projects created by professionals from this country: WhatsApp, Grammarly, Viewdle, Reface, Preply and others.
The dynamics and potential for growth also support the quality of the IT outsourcing market in Ukraine. For example, the Ukrainian technology industry set a new record for investment in 2020, raising a staggering 571 million dollars. The future is also very promising, as Ukrainian universities produce approximately 16,000 computer engineers annually. Because of their extensive knowledge and low cost, Ukrainian developers are in high demand around the world.
Average Development Rates By Technology
The prices quoted by Alcor experts do not take into account many pricing factors. We have averaged them for better understanding. Below is information on the cost of offshore software development per hour depending on the technology used. It is based on publicly available information from nearly 300 outsourcing providers around the world
Node.js is used to create standard traditional server-side websites and services. A developer with knowledge of this technology will cost an average of $48 per hour.
Python is widely used for scripting for data analysis, web applications, software development, automation of processes and tasks. Specialists will cost an average of $51 per hour.