Popular Offshore Software Development Locations and Their Comparison!

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Business doesn’t consider software development outsourcing as a trend anymore, it’s a certified cost-optimization strategy and way to access a huge talent pool. A skilled dedicated team can be an excellent approach for a new start-up project as well as a ready-to-go product.

For instance, an offshore software development company like TatvaSoft & Vrinsoft are a great source to access the pool of experts, adaptability, time-saving, and availability of essential development services. And, managing offshore software development has become easy, as cloud technology, project management and development tools are some of the biggest help throughout the process.

Also, cost optimization is known as one of the best benefits of outsourcing software development. However, when we estimate the cost of software development, from where to offshore the services, this questions the biggest role to determine the countries that will work in your favour.

And to help you to determine those countries, we have analyzed the characteristics of the best countries for offshore software development by the patterns that will help you to form the right decision as per your preferences.

A-List of offshore and nearshore locations


Asia is considered a paradise for businesses all across the world to hire top-class offshore software development companies. In Asia, there are around 7 million software developers and the common rate of these offshore software developers varies from $20 to $40 per hour. This is the list of successful Asian countries for outsourcing:

  • India
  • China
  • Malaysia
  • Nepal
  • Vietnam
  • Indonesia
  • Philippines
  • Sri Lanka
  • Pakistan
  • Bangladesh

And among these, India is one of the biggest commercial destinations across the world for outsourcing, because of its budget-friendly rates, a lot of skilled developers, developed infrastructure, advantageous government policies, etc.

Now, the technology and engineering bachelors in India are approximately 2.6 million. Moreover, India involves about 5 million expert software developers and their prices are relatively moderate ranging from $20 to $30 per hour. Because of all such purposes, now, about half of the fortune 500 companies prefer India.

Latin America

Latin America’s top offshore development nations are successful outsourcing destinations for North American tech firms. US firms essentially outsource software development because of considerably more economical software developer charges in Latin America, excellent English proficiency, and time zone difference.

Besides different outsourcing destinations in Latin America, such as Colombia, Costa Rica, Chile, Panama, Peru, and other countries, the best offshore development nations in the region are:

  • Argentina
  • Brazil

Eastern Europe

Talking about the most desirable lands to outsource software development, several Eastern European nations such as Ukraine, Belarus, Poland, etc., are worldwide known as the best destinations for offshore custom software development.

Eastern European offshore developers have extensive business expertise and are well-versed in multiple programming languages. For instance, Ukrainian software technicians are perceived to be proficient at Java, JavaScript, and Python. As we know, PHP is the commonly used programming language, including Java and .Net.

There are approximately 1 million expert software developers in Eastern Europe. Continually prices of offshore developers in Eastern Europe price between $25 and $40/hour, according to the developer’s talents and knowledge and the plan complexity.

These prices may look more costly than in other countries, like Asia, but still, it’s cheaper than North America and Western Europe, where software development services can require you over $100/hour.

Offshoring software development to Eastern Europe also seems engaging because of the least cultural diversity between this country and Western Europe and the USA.


Recently, Africa hasn’t transpired amongst successful offshore development purposes. After Microsoft spent $100 million on the continent’s experts, the African IT offshore software development rates began to increase rapidly. Essential IT hubs here are considered Kenya, South Africa, Morocco, Egypt and Nigeria. Offshore software development rates usually range from $20 to $45 per hour.

South Africa manages the continent’s IT business. In 2021, the nation was involved in the top 50 digital states, standing in 20th. The position also provides to the region’s evolving IT market — South Africa’s future zones project with the largest of the European countries.

The greatest IT outsourcing hub in the East section of Africa is Kenya. One of the benefits of this range is great English knowledge amongst developers. That’s recognition to the country’s management which declared English an established language in Kenya.

Also, South Africa, the Northern division of the region also experiences time zones with the largest European countries. Offshore developer prices here don’t change from the base of the continent.

Essential IT outsourcing countries such as Morocco and Egypt. A few of the greatest worldwide telecommunication providers even put their R&D hubs in Egypt.

For West Africa, the top area for offshore development is Nigeria. The country’s IT business is only beginning but has a high potential and expertise pool.

Recognizing the advantages of an excellent local IT industry, the Nigerian state actively advances in improving the market and training developers. Because of the difference in the time zones, it might grow difficult to schedule conflicts and render maintenance to their clients.


Australia has amazingly developed as a favoured zone for outsourcing software services. As contrasted to other Asian nations, Australia has geographical benefits.

Also, their primary language is English, which is a great huge profit. However, the hourly price of an expert can be quite high ranking from $100 per hour to $180 per hour.

How are software development costs estimated?

These are the 3 aspects that we can use to the best standard our reasonable effort and thus software cost.

  1. Type of Software Project

These are some of the high levels of typical software development commitments, let’s explore one by one:

  • New Software Development: The new software, including custom development.
  • Software Change– Improvement of existing software.
  • Software Integration – Custom code to combine capacity or blend current software into other methods.
  • Web Development – Custom web-based software development

Each of these types of software projects usually has a diverse team structure and needs a diverse quantity of development work. Knowing the type of plan is the first move in forming a cost estimate. This data will be utilised in order with the scope of the project and the project partners to manage the last estimate.

  1. Size of Software Project

The next action is to define the size of a project. Extent is a part of a gut appeal. There requires a strong relationship between the complexity of a project and its scope, but that isn’t constantly the case. Usually, project areas fall into these categories:

Small: A small project normally includes small changes.

Medium: These actions are more important than a little tweak but possibly have a well-defined range of deliverables and are usually standalone clarifications or integrations.

Large: These solutions involve more profundity and complexity.

Enterprise: This extent would be a comprehensive project on a big scale. Enterprise-level projects are nearly completely developed upon an underlying framework.

  1. Development Team Size 

As the project is described in phases of type and size, the next part to be prepared is the team size. Every project needs at least 3 experts– a Project Manager, a Developer, and a QA Tester. Although, that does not define that each role relates to one team source. Some sources can perform more than one role.


Now you know that there are some of the best countries to outsource software development. The pricing and specifications are moderately subjective and can not grant you an exhaustive portrayal but understanding what to anticipate can be the originally important step towards your accomplishment.


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