Offshore software development rates by country in 2025

Offshore software development means hiring a team from another country to build your software. Many businesses choose this approach to reduce costs, access global talent, speed up delivery, and scale their teams without the need to hire full-time employees.

Offshore development rates are not the same across all countries. In 2025, these rates vary based on several factors like the local cost of living, software developer skill levels, popular technologies in that region, and market demand. Some countries also offer better time zone and language compatibility, which can affect pricing.

In this blog, we’ll explore how offshore software development rate differ across popular offshore locations. You’ll learn what to expect in terms of hourly costs, what drives those differences, and how to choose the best region for your budget and business needs.

Offshore software development costs change from country to country. The price depends on many factors. Here are the main things that affect the rates:

India remains one of the most preferred offshore software development destinations in the world. With a massive talent pool, competitive rates, and proven global delivery models, India continues to lead the offshore outsourcing market.

Average Rates by Developer Seniority

• Junior Developers: $15–$25 per hour
• Mid-Level Developers: $25–$40 per hour
• Senior Developers: $35–$60 per hour

Strengths of Offshore Development in India

• Extensive Talent Pool: India has one of the largest populations of software engineer in the world, with strong expertise in almost every modern technology stack.
• Cost Efficiency Without Compromise: Competitive rates paired with skilled developers allow businesses to reduce costs while still getting high-quality output.
• Fluent English Communication: Developers and project managers are generally fluent in English, reducing miscommunication risks.
• Mature Outsourcing Ecosystem: India has decades of experience in working with global clients, with established processes and industry certifications (like ISO, CMMI).
• Time Zone Advantage for 24/7 Delivery: Enables round-the-clock productivity for businesses in the US, UK, and beyond.

Risks to Consider

• Time Zone Differences: Requires overlap management for real-time collaboration with US-based teams.
• High Demand: Top developers are in demand, so early engagement and planning help secure the right resources.

India is a Strong Fit for

• Enterprise-Grade Projects: Especially custom software for healthcare, finance, logistics, and e-commerce sectors.
• Long-Term Dedicated Teams: Ideal for scaling development with retained, high-performing teams.
• Digital Transformation Projects: Includes legacy modernization, cloud migration, and system integration.
• End-to-End Product Development: From idea to MVP to scalable product.

Poland stands out as a prominent destination for offshore software development in Eastern Europe. The country's competitive pricing, coupled with a robust tech ecosystem, makes it an attractive option for businesses seeking quality software development services.

Average Rates by Developer Seniority

• Junior Developers: $25–$40 per hour
• Mid-Level Developers: $40–$70 per hour
• Senior Developers: $70–$110 per hour

Strengths of Offshore Development in Poland

• Highly Skilled Workforce: Poland boasts a significant number of IT professionals, with over 650,000 tech experts, and is home to more than 17,000 software development companies.
• Educational Excellence: The country produces over 74,000 ICT graduates annually, ensuring a steady influx of fresh talent.
• Cultural Compatibility: Polish developers are known for their strong work ethic and alignment with Western business practices.
• EU Membership: As part of the European Union, Poland offers legal and regulatory frameworks that facilitate smoother business operations.

Risks to Consider

• Higher Costs: While more affordable than Western Europe, Poland's rates are higher compared to some other Eastern European countries.
• Economic Fluctuations: Economic changes within the EU can impact operational costs.

Poland is Well-Suited for

• Enterprise Solutions: Developing large-scale, complex applications.
• Fintech Applications: Building secure and scalable financial platforms.
• AI and Machine Learning Projects: Implementing advanced data analytics and AI solutions.
• Cloud-Based Applications: Designing scalable cloud infrastructure and services.

Brazil is a popular offshore software development destination in Latin America. It offers competitive rates combined with a growing pool of skilled IT professionals. The country’s cultural alignment with North America and similar time zones make it an attractive choice for many businesses.

Average Rates by Developer Seniority

• Junior Developers: $20–$35 per hour
• Mid-Level Developers: $35–$60 per hour
• Senior Developers: $60–$90 per hour

Strengths of Offshore Development in Brazil

• Large Talent Pool: Brazil has a strong IT workforce, with many universities producing qualified software engineers every year.
• Cultural and Time Zone Compatibility: Close to US time zones, which eases communication and collaboration for North American companies.
• Growing Tech Ecosystem: The country is investing heavily in technology hubs and startup growth, which improves innovation and technical skills.
• Language Skills: Many developers are proficient in English, aiding smooth communication.

Risks to Consider

• Infrastructure Variability: Some regions may have inconsistent internet or power infrastructure, though major cities are well-equipped.
• Economic Instability: Occasional political and economic fluctuations can impact business conditions.
• Higher Taxes and Regulations: These can add to overall project costs in some cases.

Brazil is Ideal for

• Mobile and Web Applications: Particularly for startups and mid-sized companies.
• Custom Software Solutions: For industries like finance, healthcare, and e-commerce.
• Agile Development Projects: Where close collaboration and fast iteration are needed.
• Nearshore Software Outsourcing: Especially for US-based companies seeking time zone advantages.

The Philippines is a well-known offshore destination, especially for customer service and back-office operations, but it has also become increasingly competitive in software development. It offers cost-effective rates and a workforce known for strong communication skills.

Average Rates by Developer Seniority

• Junior Developers: $15–$25 per hour
• Mid-Level Developers: $25–$40 per hour
• Senior Developers: $40–$60 per hour

Strengths of Offshore Development in Philippines

• High English Proficiency: The Philippines ranks among the top Asian countries for English fluency, making communication seamless.
• Cultural Compatibility: Strong Western influence, especially with U.S. culture, due to historical ties.
• Cost-Effective Labor: Development costs are among the lowest in Asia, making it attractive for budget-conscious businesses.
• Government Support: The IT-BPO industry is a priority sector, with incentives and infrastructure development support from the government.

Risks to Consider

• Limited Tech Talent Pool: Compared to India or Eastern Europe, the number of highly skilled software developers is relatively smaller.
• Infrastructure Challenges: Internet speed and reliability may vary, especially outside metro areas.
• Natural Disasters: The region is prone to typhoons and earthquakes, which can affect business continuity.

The Philippines is Ideal for

• Front-End and Mobile App Development: Especially when paired with strong UI/UX needs.
• Maintenance and Support Services: Post-launch updates and monitoring.
• Small to Mid-Sized Projects: Particularly for startups or companies with tight budgets.
• Back-End Integrations: API work, database support, and simple system builds.

Ukraine has long been a top choice for offshore software development in Eastern Europe. It offers a strong technical education system, a deep talent pool, and offshore developer with advanced coding skills.

Average Rates by Developer Seniority

• Junior Developers: $20–$30 per hour
• Mid-Level Developers: $30–$50 per hour
• Senior Developers: $50–$70 per hour

Strengths of Offshore Development in Ukraine

• Highly Skilled Workforce: Ukrainian developers are known for strong problem-solving skills and deep knowledge of languages like Java, Python, .NET, and JavaScript.
• Strong STEM Education: The country has a solid university system that produces thousands of engineering graduates annually.
• Cultural Fit: Offshore developer often have experience working with Western clients, particularly in the U.S., UK, and EU.
• Time Zone Advantage: For European countries, Ukraine offers close or overlapping working hours.

Risks to Consider

• Geopolitical Instability: Ongoing conflicts and regional instability may impact project continuity or raise concerns for long-term partnerships.
• Talent Competition: High demand for Ukrainian developers can lead to fast turnover or rising rates.
• Infrastructure Disruptions: Occasional internet and power interruptions due to external factors.

Ukraine is Best Suited for

• Complex Web and Mobile Apps: Including enterprise-grade platforms and SaaS products.
• AI/ML and Data Engineering Projects: Thanks to the country’s strong mathematics background.
• End-to-End Development: Teams capable of handling full product lifecycle—from design to launch.
• Staff Augmentation: For scaling in-house teams with reliable, English-speaking developers.

Romania is a leading Eastern European destination for offshore software development, known for its high-quality engineering talent and strong alignment with EU standards.

Average Rates by Developer Seniority

• Junior Developers: $25–$35 per hour
• Mid-Level Developers: $35–$55 per hour
• Senior Developers: $55–$75 per hour

Strengths of Offshore Development in Romania

• Strong Technical Education: Romania produces thousands of IT and engineering graduates annually, with solid programming and analytical skills.
• EU Membership: Being part of the EU ensures compliance with data protection and legal standards, making it easier for European clients to engage.
• Cultural Compatibility: Western work culture influence and widespread English proficiency support smooth collaboration.
• Time Zone Advantage: Favorable time overlap with both Western Europe and parts of the U.S.

Risks to Consider

• Rising Demand: With increasing demand for Romanian developers, costs are gradually rising.
• Limited Talent Pool for Niche Skills: For highly specialized technologies, availability may be narrower than in larger markets.
• Urban-Centric Talent: Most skilled developers are concentrated in major cities like Bucharest, Cluj-Napoca, and Timișoara.

Romania is Best Suited for

• Web and Enterprise Applications: Ideal for building robust and scalable platforms.
• Fintech, Healthcare & LegalTech: Thanks to local experience in regulated industries.
• Long-Term Partnerships: Great for clients seeking EU-compliant vendors with cultural and communication alignment.
• Agile Development: Romanian teams are familiar with agile methodologies and modern DevOps practices.

Vietnam is emerging as a popular offshore software development destination in Asia, offering a competitive mix of affordability, growing tech talent, and solid infrastructure.

Average Rates by Developer Seniority

• Junior Developers: $15–$25 per hour
• Mid-Level Developers: $25–$40 per hour
• Senior Developers: $40–$60 per hour

Strengths of Offshore Development in Vietnam

• Cost-Effective Talent: Vietnam offers some of the most affordable rates in Asia, making it ideal for startups and cost-sensitive projects.
• Young and Growing Talent Pool: The country produces thousands of tech graduates annually, with strong government support for the IT sector.
• Improving English Proficiency: While not universal, English skills are improving, especially in urban centers and among developers.
• Stable Infrastructure: Good internet connectivity and modern workspaces are common in cities like Ho Chi Minh City and Hanoi.

Risks to Consider

• Language & Cultural Gaps: Communication challenges may arise with complex projects or clients unfamiliar with Asian work cultures.
• Time Zone Differences: Can be a hurdle for North American companies if not planned well.
• Limited Senior Talent: While the junior and mid-level pool is large, finding highly experienced developers may take longer.

Vietnam is Well Suited for

• Mobile App Development: Especially Android and cross-platform apps.
• MVPs and Startup Projects: Great for early-stage companies needing quick, cost-effective builds.
• E-commerce and CMS Platforms: Familiarity with popular tools like Magento, Shopify, and WordPress.
• Dedicated Teams: Ideal for businesses looking to build long-term, scalable offshore teams.

India remains a leading destination for offshore software development. It offers a perfect mix of talent, cost savings, and flexibility for businesses worldwide.

Different technologies influence offshore software development rates in various ways. Understanding these can help you plan your budget better.

Chennai stands out as one of the best cities in India for offshore software development. It offers a strong mix of skilled talent, infrastructure, and cost-efficiency—all ideal for global businesses.

Hiring offshore developers from Congruent Software is simple, fast, and flexible. We focus on delivering high-quality software solutions while keeping your budget in mind. Here’s how you can get started:

• Share your Requirements

  Start by telling us what you need. Whether it’s a single developer or a full team, we’ll listen to your goals, timeline, and preferred tech stack. You can reach out via our contact page or request a callback.

• Get a Tailored Proposal

  Our team will analyze your project and suggest the right team structure. We’ll send a customized proposal that includes estimated timelines, resource mix, and transparent pricing.

• Choose the Engagement Model

  Pick the model that works best for you.

  • Dedicated developers for long-term support
  • Staff augmentation to extend your in-house team
  • Project-based engagement if you need complete delivery ownership

  We’re flexible with contracts and scalable as your needs grow.

• Meet and Approve your Team

  You’ll get to interview shortlisted developers before the project begins. We ensure the right technical fit and strong communication skills.

• Kick-Off with Full Support

  Once approved, your offshore team from Chennai will start immediately. We handle onboarding, infrastructure, and support — you focus on results.

For a detailed walkthrough of the process, check out our complete guide to hiring offshore developers.

While offshore software development rates vary from country to country, choosing the right partner is not just about finding the lowest cost. It’s about balancing affordability with the value you receive.

India, especially cities like Chennai, stands out not only for its competitive pricing but also for its deep talent pool, technical expertise, and strong communication skills. Countries like Poland, Vietnam, and the Philippines also offer solid alternatives depending on your project needs.

When selecting an offshore team, consider:

• Long-term reliability
• Scalability of the team
• Alignment with your business goals
• Ease of collaboration

At Congruent Software, we combine cost-effective development with high-quality delivery, making us a preferred offshore partner for businesses across the globe. Whether you’re just exploring offshore options or ready to build your team, we’re here to help you turn your budget into measurable value.