How Much Does It Cost To Outsource Software Development?
Outsourcing software development has become a much more common practice than it was 10 years ago. Companies have learned to derive the most value out of outsourcing services by focusing on their key business strategies while external specialists carry out specific projects for them. Among the great number of advantages that come from outsourcing, such as better effectiveness and productivity, access to a vast pool of talent, and flexibility, cost reduction remains the best driver.
Using offshore programmer services eliminates the need for an open vacancy, employee training, and investment in staff rotation. It also reduces risks and consequently increases revenue. Now the question has switched from whether or not businesses should outsource to how much they should outsource. That’s why we decided to create an outsourcing calculator of software development that estimates offshore development pricing. You select only the features you would like to use to get an idea of how much you will need to invest.
Outsourcing provides the opportunity to find a suitable agency that will take care of your project while you focus on the larger picture of your business. Depending on your budget, offshore outsourcing services end up saving a great amount of money for companies, as they no longer have to invest in operations and management. Outsource development services take the responsibility for the project and deliver it according to your business’s price levels.
If you are interested in outsourcing software development, our outsourcing calculator will provide you with software development hourly rates that will allow you to estimate the budget your project’s realization will require. Moreover, it is an extremely useful tool if you want to compare the prices of local and offshore developers in order to find the best solutions for your project case.
By selecting the experience level and technology your project requires, our outsourcing calculator shows the software developer cost per hour. Additionally, you can see the cost estimate by choosing the number of developers that you may need for a certain period of time.
It is difficult to accurately identify the cost of outsourcing software development, as a number of factors influence the price range. Indeed, offshore billing rates for software engineers largely depend on the technology used for the development of the project, the developer’s experience level, location, the type of software you need to build, and so on. Obviously, the specifics of the project will influence the overall price too.
Outsourcing Models And Services
One of the main reasons why companies outsource is because it gives them instant access to a vast scope of global software engineering talent. It is the perfect opportunity to find developers for projects that require specific and high-quality expertise.
Furthermore, there are different outsourcing models that companies find very handy, as they are given the possibility to find a service that will match their project’s requirements. Location-based outsourcing is divided into onshore development, nearshore development, and offshore development, and each one is useful for specific projects. The same thing happens with relationship-based outsourcing, which includes staff augmentation, dedicated teams, and a project-based model.
Offshore outsourcing is used all over the world because it is budget-friendly. It is much easier for businesses to find offshore development overseas that matches their investment preferences. Thus, depending on the specifics of your project, there are various types of offshore development services to choose from.
Remote Developers For Hire
Hiring remote developers brings a number of advantages to employers, such as cost reduction, access to a global talent pool, and flexibility. However, employers may face difficulties such as identifying quality candidates, managing job postings from different platforms, and language barriers. Remote developers are easy to find, but it can be tedious work locating the ideal candidate to meet the specifics of your project.
Full-Stack Developers For Hire
There are countless advantages with hiring full-stack developers, as they are experts in front-end and back-end development. With investing skills, proficiency, and years of experience, they create agile software projects with a deep understanding of all the server-side and client-side processes. In fact, it is one of the most in-demand jobs recently, as even startups with a tight budget can hire a full-stack developer instead of a number of specialists for all the necessary processes.
Freelance Offshore Developers
Working with freelance coders, you have the ability to only pay for the expertise you need; however, it does take effort to identify quality candidates. There are a number of online platforms where you can find suitable freelancers for your projects, such as Upwork, Fiverr, and Codementor. The price range of freelance offshore developers will differ among these.
Dedicated Offshore Development Team
When hiring a dedicated development team, businesses partner with outsourcing agencies that provide fully committed specialists to fulfill their goals and objectives. It is the most established and secure way to form an offshore development team. Hiring offshore programmers by outsourcing gives you instant access to the most qualified candidates; thus, it provides flexibility and a fast start while reducing risks. If you need to hire a dedicated development team for your business project, or you need to augment your in-house staff, our outsourcing calculator can show you the pricing rates of all the coders your project may require.
Software development outsourcing has become a common practice, particularly because of its cost-effectiveness and the ability to find specialists all over the world. The average offshore software development cost differs according to the region, so your product development cost will mostly depend on the country from which you hire.
In addition, offshore developer rates vary according to the outsourcing model that you choose for the realization of your project. Depending on the specifics of your case, you may need a larger team of dedicated mid-level developers; otherwise, augmenting your staff with one senior developer may be enough. By using our outsourcing calculator, you can see the minimum and maximum rates of a different number of coders of all levels of experience as well as the maximum and minimum salary of the selected features of developers.
Extend Software Development Team
Software team extension and traditional outsourcing share a number of similar benefits, such as access to a global pool of talent and rapid and productive team scalability. However, if you aren’t ready to hand over all the development processes to an outside team, you can hire offshore software developers and just extend your team.
One of the greatest advantages of extending your software development team is that your in-house and remote coders can work closely together. Such a way of hiring offers you the possibility of complete transparency around the work being done. Moreover, by partnering with an outsourcing agency, you get the chance to instantly onboard the best specialists.
In fact, some companies from the United States manage to cut their costs up to 40% by extending their teams to European countries. Having developers working on your projects remotely, there is no need to buy equipment, maintain an office space, invest in employee benefits, and much more. Nevertheless, you will obtain a dedicated and invested team.