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The Average Hourly Rate for Developers from All over the Globe – A 6-Month Study

By designs.codes June 4, 2017
Average Hourly Rate for Developers

Talent is the driving force behind today’s global economy. The team that is hired for launching a business or expanding it, plays the key role in bringing success to any organization. But, it can be truly difficult to find the right people to get the job done. You are going to require web and mobile app developers who are both qualified and engaged. There can be several issues in finding a professional and qualified developer. Chances are, there can be a shortage of locally available software developers or the average hourly rate for developers may not match according to the specific budget plans of the organization. This is the reason; a lot of companies opt to hire experienced offshore developers.

The primary concern when considering hiring offshore developers is to ensure that the investments pay off as well as what will be the average hourly rate for developers. In this blog, we have put together some of the most important factors that you need to consider while outsourcing web and app development. It will also help you in getting a clear perspective on the trends and average hourly rate for developers. Keeping up with the cost fluctuations will let you stay updated and make you feel more knowledgeable and comfortable. It’s true that we feel easy to deal with offshore developers when we are aware of the average hourly rate for developers. But at the same time, you need to keep in mind that the ranges provided are a consolidated overview. There can be certain exceptions because the offshore development marketplace is constantly changing.

Consider these Factors before Outsourcing Projects to Global Developers

To understand the average hourly rate for developers, it is important to know the factors that determine the rates. Here are the factors to consider:

Venue Plays a Significant Role: When it comes to knowing the average hourly rates for developers, the first thing to consider is the geography. Not all the countries or regions charge the same for the web and mobile development work. For instance, in Sydney, the average hourly rate for developers that are experienced is $140. On the other hand, the average hourly rate for developers in Russia is $40-$50. Thus, it is clear that there is a substantial difference in price between the two countries. The reason for this price difference is because the living expenses of Russia are comparatively lower than Sydney, Australia.

Focus on the Creative Aspect: This is one of the most important factors to consider before outsourcing projects. Yes, it’s true that outsourcing web and mobile app development transcends the world of money. Undoubtedly, money is a factor for all the projects outsourced. But the process of web and app development is a creative one. This is the reason, why you need to prioritize countries and developers that have got a great track record of innovative and effective work.

Working Under Same Time Zone: If you are planning to outsource web and mobile app development projects, then it is better to outsource work in a location that falls under the same timezone as you are in. The advantage of outsourcing work to a similar time zone is, it becomes easier for the web and mobile app developing organization to offer real-time updates and maintain the deadline easily. Although maintaining the deadline for a project solely depends on the efficiency and effectiveness of the web and mobile app development company. So, if the IT company is efficient enough, it is not at all difficult for them to maintain the deadline and offer updates on your project.

Consider the Platform and Category: Web and app development takes time. Not all the applications are developed at the same time. Along with that, it needs to be remembered that the open Android environment is much more diverse than Apple. This is why the average hourly rate for developers, especially in case of Android, is higher than the Apple or Mac app developers. In case of an Android application, you have to test the app on multiple devices and different versions of operating system. This not only takes longer, but the bugs are also more common. For instance, in case of Android, a Database Supported Application for Apple takes 140-210 hours. But, the same Database Supported Application for Android will take 170-250 hours. The average hourly rate for developers mostly depends on this factor.

Consider the Budget: Finally, you need to consider the budget. If you are restrained within a limited budget, then you need to simplify and keep the focus on the core feature. You need to be prepared to incorporate the existing interface designs, the code for which is already available or which are available through open source. This will make things easy for the developer. The result is similar to a minimum viable project. It allows you to validate your idea and have a clear insight whether there is enough demand for your app. Considering the demand, you can decide if you want to add features and fine-tune the app depending on the average hourly rate for developers.

Statistics on App Developers around the Globe

App development is one of the most important of the mobile ecosystem at present. App development profession has been in great demand in the past few years after the tremendous success of smartphones. The total number of software developers all over the world is around 19 million. Out of this, the total number of mobile app developer all over the world is 8.7 million. The region that comprises the maximum number of developers is, Asia. The number of developers is around 760 thousand. For iOS and Android applications, North America has the highest average hourly rate for developers. It is $150.

As we already mentioned above, Asia is in the 1st position considering the number of app developers. The rapid growth in communication technologies in South Korea and China enabled a fast growth in the economic condition of the countries. In 2013, the iOS platform alone had more than 500 thousand registered developers in China. At present, there are four major vectors in software development. They are desktop apps, mobile apps, Internet of Things and Cloud Services. It is not possible to create a single product nowadays that are not connected with one of these vectors. In every region, more than 90% of the developers are male.

It is interesting to note that even though Asia has the greatest number of web and mobile app developers, only 51% of them develop apps as their side projects or as a hobby. The youngest developers stay in Asia and Africa. The average age of app developers in those regions is just 27 years. There are total 6 software platforms at present. They are iOS, Android, HTML5 Mobile, Blackberry 10, Windows PC and Windows Phone. iOS has the majority of developers. The average hourly rate for developers of iOS developers belongs to the top-tier range. But iOS doesn’t have too many developers compared to Android.

Apart from that, more than 50% of the average hourly rate for developers of iOS is below the ‘app-poverty’ line. They make a profit of $500 in a month from an app development. Windows portrays the worst potential for income generation. The windows app developers generate a profit of less than $500 in a month. Considering the opportunity of generating profit, the business app development has a much better potential for the developers than the consumer app segment. 48% of the mobile app developers make less than $500 a month and for business app developers, this number is only 32%. On the other hand, 16% of the business app developers are able to make more than $500K in a month, but for the consumer segment, the number is only 6%.

The average hourly rate for developers and app development market are dominated by iOS and Android operating system. This duopoly is not going to end soon. There is a pretty interesting fact about the operating platforms, their apps, and their end users. When it comes to adopting Android applications, it is more popular in India than iOS. The reason is Apple has a dedicated customer base. On the other hand, considering the number of iOS and Android app development jobs in India, the situation is completely different. The number of app development jobs for both iOS and Android is equal. The average hourly rate for developers is for both the platforms is almost equal. The top 5 countries that have maximum iOS and Android development jobs are India, US, UK, Australia, and France.

A Global Overview of Average Hourly Rate for Developers

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1. Central Asia: Considering offshore outsourcing services, India, Indonesia, and the Philippines tend to be inexpensive. This is the reason, these are the first three countries that come to come to people’s minds. These central Asian countries have vast labor pool where the average hourly rates for developers is around $25. This region used to be the heart of outsourcing for a long period of time. But the scenario changed in 2017 and the average hourly rate for developers reduced drastically with Donald Trump threatening the industry in the USA. The average hourly rate for developers got reduced to as low as $15. But this doesn’t mean that the quality of work will deteriorate. Yes, it is true that time-zone issues can happen. But if you are able to get an efficient and professional web and mobile developer, the quality and time-zone issues won’t exist anymore.

2. East and South Asia: In the east and south Asia segment, China comprises of a wide pool of talented web and mobile developers, but the average hourly rate for developers is on the rise. For high-quality projects, China is firm on the prices and they are reluctant to negotiate. The average hourly rate for developers in China is around $50-$100 which is increasing. The countries of East and South Asia has a drastic split in prices. In Shanghai, the average hourly rate for developers is around $200. On the other hand, countries like Malaysia, Vietnam, and Indonesia, offer similar services within a price range of $30-$40. It is evident that you are going to observe the Chinese ambitiousness and Indian efficiency in all these countries like Indonesia, Vietnam, and Malaysia. This situation is identical to what Europe faced in the past – a drastic split of prices.

3. Western Europe: This includes countries the Netherlands, France, Belgium, The United Kingdom and Norway. The average hourly rate for developers in the Netherlands vary from $100 to $115. Surprisingly, the average hourly rate for developers in France is much less compared to the Netherlands. Developers in France charge around $15-$30 per hour. On the other hand, the average hourly rate for developers in Norway is somewhere in between the Netherlands and France. It is around $50-$99. The average hourly rate for developers in Belgium will come as a shock to you! It is around $25-$300 depending on the quality and urgency of work. Coming to the United Kingdom, the country charges a standard rate of average hourly rates for developers. The charges vary between $50-$100. The average hourly rate for developers in Ukraine ranges between $30-$40, which is neither suspiciously cheap nor they are unreasonably expensive.

4. Eastern Europe: Though geographically both Eastern and Western Europe is close, the two parts of the continent differ a lot when it comes to the average hourly rate of developers. The region includes countries like Romania, Poland, Moldova, Ukraine, Hungary, Estonia, etc. The developing economic condition of these countries comprises of high education level and noticeable contribution to the IT industry. But the salaries are relatively low. The average hourly rate for developers ranges from $25-$50. However, the developers in this region are reluctant to negotiate below $30. The average price remains between $30-$40 depending on the skill of developers. At present, Belarus, Russia, Ukraine, are the major outsourcing locations. These countries have outperformed countries like Poland, Czech Republic, Romania, Baltic, and Hungary on quality and price ratio.

5. South America: The IT market is relatively new in South America and it is growing rapidly. Major investments from neighboring countries like Canada and USA have created this pool of software developers and demand creates supply. Because of the demand for web and mobile developers in rich countries like the USA, the supply comes at a higher price. The average hourly rate for developers in South America is within the range of $20-$30, but in the last 6 months, there has been a price hike for the outsourced IT services. The prices have reached $55 at present. The proximity of Panama, Brazil, Mexico to the northern part of the continent makes it a very attractive destination for outsourcing IT projects irrespective of the rising prices. Considering all these factors, it can be expected that the price of offshore web and mobile development services will go up in future.

6. North America: A few years ago, the companies in North America were willing to work at $15/hour. Now, the average hourly rate for developers has increased as high as $150. This is what a software engineer intern charges in the cradle of information technologies, popularly known as the Silicon Valley. In some cases, the price can go as high as $190 depending on the efficiency and skills required. Canada is on the US trail and sometimes even outruns it. However, it is also true that the market is flooded with offshore development companies that have their actual addresses in Asia. Thus, the average hourly rates for developers can vary from $20 to $200.

7. Africa: At first glance, Africa seems to be cheap and growing destination for web and mobile app development. Africa can be called as a newly discovered IT continent and it pleases businessmen with affordable rates. But the problem is, the local market lacks experienced professionals and specialists because it is comparatively new in the overall IT services and offshore IT service business. Outsourcing web and mobile app development project is comparatively cheaper in the northern part of the continent where the prices are similar to Asia. The key outsourcing countries in Africa include Kenya, Egypt, Nigeria, Morocco and South Africa. The average hourly rate for developers in South Africa can be as high as $50 and sometimes it can reach up to $100. This fluctuation in price is due to the shortage of skilled professionals that the region is experiencing at the moment.

8. Australia: The problem with Australia is, it is isolated from all other continents. On one hand, there is an advantage of being isolated. Being remote from other continents, it protects from state wars. But the problem is, it also prevents the country from cultural exchanges and cooperation with the labor markets. Even though the digital era created innumerable job opportunities in remote work, still, Australia lacks qualified software engineers, programmers, professional web developers, and QA engineers. Thus, it is beyond doubt that the local software specialists are expensive where the average hourly rate for developers is $100. Some web and mobile developers might even charge more than $180 depending on the project and efficiency.

Conclusion

Web and mobile app development are one of the most promising and challenging branches of the software industry at present. It cannot be denied that the consumer segment has reached its saturation point and presently, the commercial app developers have more job opportunities and scope in comparison to other app developers. Among all the operating platforms, iOS is the most profitable one till date and Android offer the broadest scope for app developers. The next genre to explore is the Internet of Things (IoT). As of today, most of the developers consider IoT as a hobby and not really as a new opportunity for business expansion and make a profit.