The Actual Cost of Outsourcing Software Development Overseas

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Hiring the overseas programmers who offer their services at much lower prices is a popular practice in the modern world. In the end, you might not need a permanent help of an in-house professional, so outsourcing projects become your best decision. Unfortunately, the products designed by offshore developers do not always hit the mark. That is why many IT companies reject dealing with outsourcing services for good.

At this point, your main aim as a businessperson is to set the priorities adequately. The principle “the cheaper the better” has nothing to do with software development. In some grievous cases, the cheap software will not work at all. Let’s look at the optimal range of costs for hiring in-house and offshore programmers.

The situation has changed since we have many other ways to create software aside from recruiting an entire team of programmers and locating it in your office. You can outsource development to the team of programmers both overseas and within your country.

Talking about domestic outsourcing. The USA can be a good example, even though programmers’ salaries and cost of living vary from state to state. Here’s the range of prospective salaries:

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You might be wondering why the difference between the third and the fourth columns is so big. The firms that provide outsourcing services have to pay their employees as well as the clients. Therefore, working with domestic outsourcing, you pay double. The main reason why you may prefer domestic outsourcing is that you will have almost no troubles with communication, which usually leads to a high-quality result. Nonetheless, it may be too pricey for a small company. That is why modern entrepreneurs often consider outsourcing software development overseas. Clearly, you will not have that much of a control over the development process. But it will cost half as much as hiring a domestic company. If you compare programmers’ salaries in the USA with other countries, you will see a great difference – outsourced projects cost several times cheaper than American analogs. Of course, experienced trustworthy offshore teams will still have additional expenses apart from salaries. Here’s the range of prospective salaries:

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As a conclusion, we would like to point out that low prices might come along with tragically useless outcomes and large additional expenses. Think twice before dealing with the cheapest overseas developers on the market!

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