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The key factors impact on offshore software price

Author: Innotech Vietnam
Date: 19/08/2021

One of the most concerning issues when doing offshore software development is the price. How to find an offshore software development team at a reasonable price? What factors need to be considered? The following article will answer these questions for you.


Skills required for the offshore software project


The number of programmers is increasing, but there is still a serious shortage of high-quality programmers. Therefore, many customers will accept to spend more salary, or allowance to have a quality offshore software team.

Anywhere, projects that require knowledge of DevOps, AI, and data science… are sure to cost much more than projects that only require basic programming skills. If you spend an amount of money that is not commensurate with your requirements, you will definitely not find a good offshore development team.




Each region of the world has different prices for offshore software projects.

Latin American countries have the advantage of having the same time zone as US and Canadian companies. Besides, there are similarities in culture, law,… The price for hiring programmers in this area ranges from 21$ to 93$.

South Asia and Southeast Asia, including India, Vietnam, the Philippines,… have abundant and well-qualified labor resources. Prices for outsourcing projects are lower than in other regions of the world, from $14 to $75. However, this region is at a disadvantage in terms of time zones and cultural differences with European and American countries.

Eastern European countries provide high-quality programmers with good English communication skills. The price for programmers in this area is quite high, can be up to more than $ 100 per hour (as a report of Accelerance).


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Cooperation time


Offshore software companies are often interested in cooperation time before offering a price. When setting prices, long-term projects will often have more favorable prices. If you commit to a long-term project, you may receive incentives from a partner company.


Experience and language proficiency


The more experienced programmers are, the higher the salary demands. Of course, the ability to work must meet the requirements of the customer.
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Besides, foreign language communication skills are also very important in offshore software development, most commonly English. Besides the difference in time-zone or working culture, language barrier is one of the major difficulties when working with foreign outsourcing companies. Therefore, programmers who speak good English will also have a great influence on the price of the project.

We’re here to help and answer any question you might have. We look forward to hearing from you.