How To Find an Outsourcing Partner With Affordable Software Outsourcing Rate
Cutting down costs is the top reason companies outsource. About 6 out of 10 business leaders outsource to cut down costs. Software outsourcing rates are more cost-effective than doing the project in-house. Others outsource to take advantage of the pool of talent or boost productivity. Some businesses turn to outsourcing to get access to the latest technology.
It isn’t surprising that the outsourcing industry is a booming business. IT outsourcing spending is expected to balloon to $519 billion in 2023. This is a 22% increase from four years ago. But how do you find competitive pricing without sacrificing quality?
How Much Does Outsourcing Software Development Cost?
There is no fixed price for software development. There are several factors that outsourcing vendors consider. Here are some of them:
Type of Software Development
The first thing to consider is the kind of software project you need. Are you looking to build a simple app, or do you need a custom eCommerce website?
Size of Development
Do you need a small, mid-size, large, or enterprise-size project?
Team Size
How many developers or engineers do you need to finish the job? The more team members you need, the bigger the price tag.
Time Required and Complexity of Software
The longer the development process takes, the more costly it gets.
Average Software Outsourcing Rates Around the World
Eastern Europe: $30-$65 per hour
Eastern Europe is a popular destination because it has some of the best programmers. Slovakia, Czech Republic, Hungary, Poland, and Ukraine rank in SkillValue's world ranking report.
Asia: $20-$45
Asia is an outsourcing hub where businesses can build their software projects at a low price. India and China are the two most popular outsourcing destinations in this region.
Latin America: $50-$70
This region has the highest software outsourcing rates on our list. This is due to its proximity to the US. It is the preferred destination for nearshore outsourcing.
Africa: $25-$45
Africa is new to the outsourcing market, but the region has a promising IT industry. Nigeria and South Africa have higher rates for offshore software development. This is because their job markets aren’t as full.
How to Choose Your Outsourcing Partner
Now that you know the different outsourcing rates, the next step is to choose your vendor. It may be tempting to choose solutions providers that offer low fees. But this does not mean that they deliver high-quality services. Here are some tips to keep in mind when choosing an outsourcing company.
- Compare average IT service prices
- Check the IT outsourcing company’s performance
- Take the time difference into account
- Determine if you fit the culture
Cheaper doesn’t always mean better. You need to establish a balance between cost and quality. At BIT Studios, we give our clients both quality and value for their money. We have worked with hundreds of businesses around the world for the past 29 years. Our diverse portfolio speaks of our expertise and experience.
Book an appointment today to get a FREE quote.
