How much should to pay for software outsourcing

Outsourcing software development has been advertised as the best way of reducing company costs for a while now. After all the articles proving that theory, everyone is aware that outsourcing web development is cost-efficient and a much better practice than actually employing a whole team of IT specialsits.

However, there is always the matter of the quality-to-price ratio. Where should you look for the best developers and how much should you pay for software outsourcing?

Two ways of outsourcing

Outsourcing is usually associated with getting people from India or China to write your code. However, such outsourcing, also called offshoring, is not the only way. Domestic outsourcing is equally as popular. What’s the difference between those two? Labor and livings costs are the answer. Working in high living cost country, domestic outsourcing can be quite costly and thus it won’t really differ from actually hiring a team of experts. It is not a surprise as homegrown software houses need to bear all the same costs as a company would when managing their own in-house team. That’s why outsourcing is usually viable if it’s done offshore, with developers living in low living cost countries.

Where should you look for developers

For the longest time, China and India were the leading countries delivering software outsourcing to other countries. However, the quality of the code provided by them was not satisfactory, contrary to western European countries. Right now, the cheapest regions in Europe when it comes to software development services are post-Soviet countries, the Balkans and eastern Europe.

How much should you pay for outsourcing

As mentioned before, low living cost countries like India are the best bet if your only concern is the price and you don’t care about quality of the code you would get.

However, if you want your project to be successful and not necessarily come with the need for constant improvements, try to look for developers from Central and Eastern Europe and countries such as Poland. Here, the costs are around $35 to $45 per hour and the quality is one of the best in the world – you check out more in this place at Pro4People.

Outsourcing means you get to pay just for the time developers work. This allows you to lower the costs of software development, since hiring your own developers would mean paying them for full hours, regardless of the volume of work. Also, you won’t need to create a large and costly working environment. Summing up all that, proper outsourcing gives you the best results at reasonable price.