For more than a decade, companies and start-ups all over the world have been outsourcing IT staff and projects. The truth is that not only can outsourcing help you reduce production costs and enter the market faster, but it can be difficult to find tech talent in the United States, where the salaries are always high. These are the reasons to outsource software development, but what are the factors that shape this important decision?
Factors that drive Outsourcing Rates:
According to *Accelerance’s The 2018 Guide To Global Software Outsourcing Rates, there are 5 key elements that drive outsourcing rates:
- Location: The more developed the local economy is and the closer to America or Western Europe, the higher the hourly rates for a team of engineers.
- Tech Stack: You will pay more for new or unconventional technologies, or for skills that are in high demand.
- Seniority / Work Experience: It is very simple – senior developers with solid current experience will cost more than junior developers.
- Team Size: Usually, the bigger the team, the lower the average rate will be.
- Length of Engagement: If you are willing to commit to a longer-term engagement (e.g. more than a year), you should be able to negotiate lower rates.
Where to look for Nearshore/Offshore software developers?
Accelerance’s The 2018 Guide To Global Software Outsourcing Rates is a great guide to compare average rates based on job title; but there are other things to consider in addition to the rates, with the defining feature being location.
Different cultures, time zones, salaries, and levels of experience all have major implications for outsourcing. Here is some additional information about the trends and benefits of outsourcing in each of these key regions, to help you in your decision-making process.
- Eastern Europe: This is a region with a large number of on-demand IT specialists. TEAM has 3 delivery centers in Ukraine and Poland, our very first center was opened in Kharkiv, Ukraine. We leverage our long-standing relationships in Eastern Europe and our partnerships with local educational institutions to meet the increasing requests for engineers proficient in English, highly educated, and with advanced programming skills.
- Latin America: This region is very desirable due to the cultural and geographical proximity to the US. The top locations are Argentina, Mexico, Brazil, and Colombia. TEAM International has its presence in Colombia, the second largest IT outsourcing destination in Latin America – among Gartner’s Top 30 Outsourcing Destinations, due to the large pool of highly skilled technology talent, the 100% business day overlap with North America, and English competency.
- Asia: This is a region with many factors and countries to consider when thinking outsourcing development. Due to a vast pool of resources, India tends to be inexpensive, however, with low prices comes lower project quality and it could be difficult due to time zone disparity and cultural differences to impact factors like level of urgency for project issues. Other countries in Asia such as China, Vietnam, Malaysia, and Indonesia offer similar services.
About TEAM International:
Established in 1991, TEAM International is a U.S. owned Nearshore / Offshore software development company delivering Custom Software Development and other technology and business services to global IT organizations.
Why choose TEAM International?
- Access to vast IT talent pools and certified software engineers.
- Competitive rates reducing overall costs.
- 91% staff retention rate.
- 25 years of experience and knowledge cultivating a long-term strategic partnership for your business needs.
To learn more, visit teaminternational.com
*Source: Accelerance’s The 2018 Guide To Global Software Outsourcing Rates
