Software Development Hourly Rate: World-Wide Comparison 2020

Dariia Herasymova
#research
software developer hourly rate comparison

To remain competitive in the tech-savvy marketplace, most companies are shelling out for personalized full-fledged products to boost performance and productive capacity, start unit launches, and keep pace with cutting-edge technologies.

But how much is personalized software worth and can your business budget cover an average software developer hourly rate? Should you opt for a freelancer or a middle-sized lT consulting company? Or should you follow the safest path and turn to one of the trusted front-players? (Sometimes it seems like it’s the only game in town, right?). But can you hire dedicated developers without going bust? We all know that their rates can scrape the sky. And why not just decide on offshoring and nearshoring? Why pay monstrous bills when you can order the same solutions for half a price?

As you see, there are a plethora of alternatives when it comes to creating a tech solution for your business. That is why we have come up with this comparison article to help you make the right call.

  1. Offshore Software Development Rates By Country
  2. What Determines An Hourly Rate For a Software Developer?
  3. Hiring A Freelancer VS A Software Development Company
  4. How to Choose The Best Pricing Model?
  5. Top 4 Criteria For Choosing A Software Company
  6. The Bottom Line

Offshore Software Development Rates By Country

Our article is based on the research that attempts to define an average hourly pay for a programmer. The report provides detailed information regarding the major factors influencing the fee and briefs our readers on the general IT services market in the chosen region. Our experts have fetched valuable data from such trusted and reputable resources as Indeed.com, Neuvoo.co.uk, and others.

The insights obtained allowed us to present a breakdown of an average coder hourly rate in 7 regions. The places of interest include North and South America, Asia, Eastern, and Western Europe as well as Africa, Australia, and New Zealand. You’ll find data on the minimum and maximum rate that junior, middle and senior coders charge. To make the information more digestible, we present all salary data in USD.

  1. North America
  2. Australia and New Zealand
  3. Western Europe
  4. Eastern Europe
  5. South America
  6. Asia
  7. Africa

North America

Overall, North America is deemed to have the strongest economy in the world. Few episodes in human history can compare in their glory and impressiveness with the economic turnaround of North America since the 16th century. What once used to be an agricultural hub, has grown into a stately region with a well-developed economy.

As for the IT market spotlight, North America is known for the most cutting-edge software services industry in the world. More than 40 percent of the $5 trillion global IT market is here, mainly in the US. As CompTIA states, there are more than 520,000 software companies in the United States alone.

North American IT companies navigate a harmonized market and are well-known for presenting stalwart and viable solutions that dominate the marketplace. The keen interest in technological know-how, competitive approach, and ever-growing demand for custom-software will incentivize the growth of the IT sector in North America.

SE hourly rate in USA and Canada

The USA

The United States is undoubtedly the major tech player in the world, accounting for 32% of the total, or about $1.7 trillion for 2020. In the U.S. the tech sector has a notable cascading effect on the economy. Prompting revenue growth and employing coders at a high median rate, the software industry sector also helps other sectors increase performance and innovate faster.

Software developer hourly pay in the USA varies broadly across the cities. In Tampa, a junior software engineer earns between $30 and $37 per hour, while a middle developer charges $38 to $47. As for senior coders, they can make from $44 to $57 based on their experience.
LA junior coders charge between $42-$50, whereas a senior specialist can earn up to $73 per hour. The hourly rate of a mid-level software developer in LA equals $54 with a maximum of $65. In Alabama, you may hire a junior SE for $30-$37, paying around $33-$44,5 for a middle-level developer. As for a senior specialist, his hourly services may cost somewhere between $42-$55 depending on the expertise and scope of work.

In Carson, the hourly programmer rate equals $37-$48 (junior) and $36-47 for a middle-level coder. Senior-level programmers, on the other hand, may get paid as much as $50-$64 for an hour worth of coding.

In Dallas, the hourly rate of interns who work under the guidance of experienced colleagues reaches $18-$27. Entry-level coders charge $29 to $37 per hour for their services whereas middle and senior-level specialists can earn $39-$46 and $47-$61,5 respectively.

Software developers in Michigan charge $25-$34 for a junior level, $36-$43 for a middle level, and senior-level specialists earn as much as $45-$61 for an hour. The hourly wage is almost the same in Milwaukee with junior coders making $34 max per hour, whereas middle and senior specialists can make up to $45 and $57,5 respectively.

An average developer salary in San Diego ranges from $32 to $36 for junior-level specialists, while middle-level coders typically charge $41 to $56 for their services here. As for experienced coders, they can charge up to $61 for their work per hour.

In Portland, wages vary from $30-$38 for junior programmers to $45-$61 for senior-level specialists. Middle developers usually ask for $40-$54 per hour. Chicago wages are almost the same as in Portland, with junior specialists charging $31 to $39 on average, middle-level experts requiring $40 to $52 and senior programmers earning $49-$63 for their work.

Colorado earnings are average, related to other regions, with payment for junior-level developers ranging from $30 to $37 and experienced coders pricing their work at $50,5 to $64. Middle-level specialists with over 3 years of experience make $40 to $49,5 for an hour. If you are an intern, you can ask for $24-$32 per hour which is an average number for the region.

An average hourly wage of a junior-level developer in California is $33-$42 but if you have a bigger experience, you can charge $46-$57 for hourly services. If you have mastered the art of coding, you can earn $53-$68 an hour in CA.

In San Francisco, the payment for a junior-level programmer starts at $37 and reaches $54, while for a middle-level specialist this number equals $54-$67 for the same period. As for senior-level jobs, they are paid at $64-$87 per hour.

Finally, programmer earnings in NYC are a bit lower, with entry-level specialists earning $34-$45, middle-level coders making $46-$61, and senior experts requiring $60-$71 for their work.

Canada

Canada is rightly called one of the richest countries in the world. Indeed, this highly advanced country is blessed with natural and human resources. During its rich and vibrant history, Canada has been prosperous in many senses. Today, it is one of the world’s richest nations, with a highly-developed economy and the first-rate quality of living.

If we shift the focus to the tech industry, Canada keeps up with the latest technologies as well. Its tech sector energizes the general economy, provides high-paying positions for tech gurus, and continues to grow tremendously, surpassing most sectors along its way. If we look at the top tech markets in North America, we’ll see four Canadian hubs making it to the top 20. All this makes Canada shine as a beacon of economic stability and a country of the untapped tech talent pool.

Now let us have a closer look at the average software developer hourly rate in the fertile ground of Canada.

Once a dark horse, Toronto has gained recognition in the global software development world. Today, this beautiful city has emerged as a tech superpower fuelled by excellent technical education. If you start your coding path as a junior developer, you can expect to earn from $19 to $31 per hour. Once you have programming experience under your belt, your payment will grow up to $33,5-$42. Senior-level specialists make $44-$52 for their services.

Ottawa, which is a global epicenter of high-tech, boasts higher hourly rates compared to Toronto. Thus, according to our research, a senior developer salary in Ottawa ranges from $41 to $59, with junior specialists getting from $20 to $32 per hour. As for middle-level programmers, they receive up to $45,5 for their coding services.

And last but not least goes Montreal which is another alternative to Silicon Valley in Canada. Montreal has always benefited from its geographical location, however hourly software salary there is seemingly lower than in other technically advanced cities of Canada. Thus, you can expect to hire a newcomer for $18-$30, whereas more experienced specialists earn between $28,5-$38,5 for their services. Finally, senior coders charge logically higher with an average of $35-$50,5 for the same period.

Australia and New Zealand

Both Australia and New Zealand are widely known as countries of breathtaking views and unique lifestyle. They boast a well-developed economy and are rich in natural resources. As for the IT sector, it is diverse and advanced in both locales. This creates a breeding ground for investments and helps compete successfully on the world tech stage.

SE rates in Australia

Australia

In Australia, the highest demand for coders is obvious in Sydney, Melbourne, and Perth. An average hourly developer salary in Sydney ranges from $20 to $31 for junior-level specialists, while middle-level coders typically charge $30 to $42 for their services here. As for senior developers, their hourly wage reaches $51-$58.

In Melbourne, wages vary from $20-$31 for junior programmers to $55,5 for senior-level specialists. Middle-level programmers get $28-$43 for their hourly work.

Perth earnings are a bit higher, with junior specialists charging $22 to $30 on average, and middle experts requiring $34 to $40,5 for their services. Senior specialists charge up to $39-$51.

New Zealand

Payscale and Teleport data suggest that Auckland software coder salary per hour equals $15 to $20 for junior specialists, whereas middle specialists price their work at $21 to $30 per hour.

Finally, Wellington developers’ earnings equal $15,5 to $22 for junior-level coding projects and $24,4-$30,7 for middle-level programming jobs. Senior-level specialists typically charge from $28,33 to $40,5 for their hourly services.

Western Europe

The region of Western Europe is one of the richest locations in the world. After several periods of uncertainty, the region has leaped where it is now – strong, positive, and well-advanced economically-wise. Today, the continent of Europe and the Western area in particular are considered one of the most prosperous global locales.

Average developer rate in UK Germany Norway

Germany

Germany is one of the most favorite IT destinations in Europe and for a good reason. The country is home to around a quarter of the European market by value. Cutting-edge technology comes as a staple in the tech industry known for a flourishing Mittelstand of small and average-sized businesses.

According to Payscale and Glassdoor resources, an average developer salary per hour in Berlin ranges from $18 to $27 for junior-level specialists. Middle-level and senior pros require $25-$35 to $35-$50 for their hourly services respectively.

Senior-level experts charge $32 to $48 on average, whereas the hourly wage for coders with less experience reaches $25-$35. Entry-level specialists typically charge around $17 to $26.

The third-largest hiring hub of Munich features the remuneration of $17 to $24 for junior-level talent, with experts’ salaries reaching from $34 to $48 on average. Middle-level developers charge their services for $26 to $37 per hour.

Norway

Opposed to Norway’s traditional hubs – petroleum, maritime, seafood – the Norwegian tech sector, though huge, money-generating, and knowledge-driven, does not consider itself as a hub and does not act like one. Nevertheless, a large and fast-paced industry is becoming increasingly prominent in the Norwegian economy.

According to Payscale, Glassdoor, and Teleport, an average hourly developer salary in Bergen starts at $14-$21 for entry-level positions to $24,5-$33 for middle-level projects. Seasoned coders charge their services for $32-$38 per hour.

Junior-level programmers in Oslo price their services at $18-$24, while developers with a bigger experience charge $28-$36 per hour. Senior-level programmers make up to $46 per hour with a minimum of $36.

Spain

Boasting more than 34,000 ICT companies, Spain is undoubtedly one of the most notable ICT markets by volume in Europe.

Payment for software programming in Madrid starts at $9-$15 for junior-level work and reaches $27-$29 for senior-level positions. Middle-level developers price their work at $16-$24,5.

In Barcelona, coders charge around $12-$16 hourly for junior-level specialists, while 2-3 years of experience let developers raise their wages to $20-$27. Maximum wages for senior programming talent reach $27 to $33.

United Kingdom

At the beginning of 2020, the British IT industry has generated a revenue of around 2.565 billion British pounds. Therefore, the tech sector in the UK grows faster than the overall economy of the country. Although COVID-19 has bitten the IT hiring landscape, the industry itself has found the way of least disruption.

Three major IT hubs in which businesses are actively hiring developers include London, Manchester, and Liverpool.
Data from Neuvoo, Totaljobs, and Cwjobs show that the UK software developer hourly rate in London ranges from $18 to $24 (for interns), while junior specialists charge between $22 and $33. As for middle-level and senior specialists they typically make $34-$46 and $41-$56,5 respectively.

In Manchester, junior developers price their services at $17-$21 per hour, while senior talent is available for $34-$44. Middle-level coders get $23-$35 for their services.

Software programmers in Liverpool charge from $17-$23 (junior specialists with around 1 year of experience) to $32-$51 (senior programmers). Developers with 3 years of experience under their belts charge as much as $24-$35.

Eastern Europe

The economic situation in Eastern Europe has been grabbing headlines over the last 5 years. Unfortunately, we can observe a marked surge in the jobless rate and weaker salary dynamics. Besides, unforeseen flare-ups of the pandemic befog the outlook like in any other part of the world. The IT industry, on the contrary, is experiencing reigniting growth, making Eastern Europe one of the top IT outsourcing destinations in the world.

Software developer hourly rates in Ukraine Poland Russia

Poland

Vast human resources and high-quality IT specialists, in particular, have been the driving force behind the Polish IT industry. The country has leaped to establish itself as a tech hub enticing significant expertise and resources from foreign countries.

Data from Glassdoor and Payscale show that in Krakow, most junior software developers make $9-$13 for their hourly services. As for middle and senior-level coders, they receive up to $13-$21 and $19-$29 per hour respectively.

In Warsaw, an intern developer’s payment reaches $4,5-$6, with junior-level devs getting from $9 to $13. Whereas middle and senior specialists receive up to $24 and $32 respectively.

Wroclaw statistics suggest junior-level earnings from $6 to $10 rising to $17-$25 for senior specialists. Middle-level programmers get an hourly salary of $11 to $19.

Russia

Much has been written about the Russian strategic importance of programming technologies. The IT sector takes a special place in the Russian economy, as its growth rate excels in the GDP dynamics, and this tendency is likely to gain momentum. Excellent and broad education, talented and motivated people have contributed to IT becoming a full-fledged branch in Russia.

As for an average hourly rate for software developers, Moscow has the highest salaries as well as the highest price of life. Thus, a junior coder In Moscow typically gets from $7 to $9 per hour, while middle and senior developers charge from $9,625 to $23 minimum for coding services.

In St Petersburg, interns and junior programmers cost a company from $6 up to $8. More experienced coders make from $7 to $15 for middle level and $20-$24 for senior specialists.

Wages in Nizhny Novgorod can be estimated at $5-$7 for junior talent, $12-$16 for middle-level experts, and senior coders usually charge up to $16-$22 for their services.

Ukraine

Ukraine is hightailing it for leadership in the modern outsourcing era. With low-priced resources galore, this country has come out at the top as an A-list IT sourcing destination which inspires good business investment. Boasting over 4,000 tech firms, Ukraine is the emerging Europe tech hub.

In Kyiv, developer earnings are the highest, with an entry-level coder salary ranging from $5 to $10, and middle-level programmers requiring $12-$21 for their work. According to Djinni, senior coders can expect their hourly wage to equal $21-$27.

In Kharkiv, software programmers price their work at $3-$9 for entry-level jobs, $12 to $21 for middle-level experts and $22-$26 for senior-level projects.

Lviv salaries start at $2-$8 for juniors to $12-$20 per hour (middle-level coders) and up to $21,5625-$23,5 hourly for senior-level projects.

South America

Next on our list of offshore software development rates is the charming region of South America. South America boasts a great biological and geographic diversity that is the result of the vast land surface this area accounts for. The proximity to the US allows South America to be proactive in various industries, especially manufacturing. However, as we all know from history classes, the turbulent history of this region has led to unrest, the huge cleft between the rich and poor, and general dissatisfaction with the government.

But despite the faltering economy, South American countries got involved in the technological race. Since the IT industry doesn’t call for brick and mortar institutions and developed infrastructure, it is more than logical to expect a growing role of the software industry in the region. According to research, The IT services market size in South America will grow by USD 61.35 billion during 2018-2022. Moreover, the vast talent pool, less competitiveness, and the rise in IT startups make South America click with international companies and advance its attractiveness.

Programmer average rates in Mexico Argentina Brasil

Argentina

With a GDP of $450 billion, Argentina has one of the largest economies in South America. Boasting large natural resources, this country is a leader in agriculture and food production. Like Brazil, Argentina has a vast amount of untapped economic possibilities, but the historical volatility of economic growth have impeded the country’s economic growth. Once being almost the richest nation in the world, it has gone boom to bust over the recent years.

Luckily for the IT world, Argentina is stepping up as a country of web developers. Recent dynamics in the software and IT services has brought this land to generating $7.33 billion annually by 2020. Today, Argentina is one of the major offshore IT destinations, with tech superpowers flocking to Buenos Aires and Cordoba.

In Buenos Aires, junior developers charge between $3 and $5, while middle-level coders’ services cost around $6 to 9 per month. As for senior programmers, they get between $9 and $12.

Software specialists in Cordoba charge between $3-$4 (junior) to $7-$9 (senior). Middle-level coders require up to $8 for their hourly services.

Brasil

Brazil is a nation with some of the world’s most remarkable natural wonders not to mention beautiful people. Unfortunately, this country is also home to a less remarkable economy. However, Brazil surely has the potential to leap from developing to developed and stack up against economic superpowers across the globe.

But how much do software engineers make an hour in Brazil? San Paulo salaries start at $4 for entry-level coding work to $9-$15 per hour for senior-level developers. Middle-level experts typically get $7-$10 for their hourly services.

In Rio de Janeiro, intern developer earnings start at $2, whereas junior programmers can require $4-$7 for their work. Middle-level developer salary starts at $8 to $11, and senior-level specialists get between $11 and $16.

Mexico

Over the past few years, Mexico has reinvented itself as a technology hub. This IT destination is ranked 41st globally and has its IT industry edit out to rekindle its startup scene. This accelerating market is hosting a vanguard of visionaries hunting for business opportunities outside the high-priced, competitive bounds of Silicon Valley.

In Mexico City, developer earnings may seem quite modest. An entry-level developer salary ranges from $2 to $5, more experienced specialists can make up to $5-$9 and senior-level programmers require $9-$17 for their services.

In Guadalajara, the hourly payment situation is almost the same with junior programmers pricing their work at $2-$4,5, $5-$8 for middle-level jobs, and $7-$13 for senior-level coders.

Asia

While the economies of most Asian countries can be described as well-advanced, there is a colossal disparity among them. The region is home to the countries with the buoyancy of the economy, Japan, and several regions that are poverty-stricken, such as Afghanistan and Cambodia.

SE rates in Asia

India

The IT industry in India is an essential part of the country’s economy that is now around $70 billion with 2.8 million employees working as tech specialists.

The IT market is an area that is experiencing an uprise and is reshaping Indian business standards. This industry entails programming development, consultancies, business process outsourcing (BPO), and other branches.

The average hourly rate for a software developer in India is seemingly lower than in other locales. This makes India an affordable offshore destination for IT services. Thus, an entry-level programmer in Bangalore earns approximately $2-$5 for every worked hour, whereas a middle-developer usually requires $5-$11. A more experienced specialist gets an hourly payment up to $18.

The second-largest hiring hub in Hyderabad, features the remuneration of $2 to $5 for junior-level talent, with middle-level experts’ salaries ranging from $4 to $10 on average. Senior coders raise their pay to $7-$15.

Payment for programming in Kolkata starts at $1,5-$5 for junior-level work and reaches $12 for senior-level positions. Minimum and maximum wages for middle developers range from $4 to $7 respectively.

Philippines

The Philippines is another Asian country renowned for booming IT verticals. The tech sector has showcased enormous growth for revenues. The surge is impelled by obtaining FDI from foreign businesses and various job opportunities available for Filipinos.

According to data from Teleport and Bestjobs, the junior developer salary in Manila ranges from $3 to $5, with middle specialists getting $9 per hour on average. Senior coders can expect their hourly wage to be $8-$11.

As for Quezon, a junior-level dev gets from $3 to $6, while senior specialists receive up to $7-$10. Middle-level programmers’ earnings, on the other hand, are in the $5-$9 range.

Cebu statistics suggest junior-level earnings from $4 to $5 rising to $6-$10 for more experienced developers. Masters of coding art make as much as $8-$11 for their services.

Vietnam

Vietnam’s IT sector sees a high growth rate, backed up by affordable costs and trained specialists. Today, this locale has become the eighth largest provider of tech services in the world. The IT market has flourished due to government taxes and labor incentives.

Our resources suggest that a software developer hourly pay in Vietnam is relatively on the same level as in India and the Philippines. The entry-level developer salary in Hanoi ranges from $2 to $4, while senior-level specialists charge between $7 and $13. Middle-level developers charge from $5 to $7.

In Ho Chi Minh, junior developers price their services at $2-$4, while middle bright minds are accessible for $4-$7. Seasoned specialists charge from $7 to $11.

Africa

Africa’s viable economic and social development is a top global priority. Before the pandemic, the economic outlook for Africa was positive, although it is now fogged with uncertainty. Moreover, only about a third of local countries reached comprehensive growth, fighting both poverty and inequality.

Software developer hourly rate in Africa

Egypt

Egypt is widely known as a tourist mecca, whereas there are less widely known facts considering its economy. For example, the ICT industry is the fastest-growing one with a total of $2,6 billion in 2019.

Programmer earnings in Cairo are modest, with entry-level specialists earning $0,95-$4,5 and senior experts requiring $4-$7 for their work. Middle-level developers charge $2,5-$5,5 for their hourly services.

Alexandria stands a step lower, with beginners asking for $0,6-$3 per hour, while more experienced coders are paid from $3 to $5. As for middle-level coders, they make around $2,2-$4,1.

Nigeria

Nigeria’s IT sector has experienced several turbulent years, with rapid currency devaluation and a macroeconomic decline hampering profitability. However, this industry is still a key non-oil engine of growth backed up by young talent.

In Kano, intern developers’ hourly wage starts at $0,4-$0,75, whereas junior-level developer earnings are higher with an average of $0,7-$1. Middle-level salary ranges from $1 to $2, and senior-level programmers require $2-$5 for their work.

In Abuja, junior programmers price their work at $0,7-$1 and $1,5-$3 for middle-level projects. Senior specialists typically require $3-$5 for their services.

South Africa

The IT industry in South Africa is forecast to gain momentum despite the general bleak state of the economy. As businesses continue to invest in the technology market, it demonstrates a consistent growth rate.

Software developers are mostly hired by companies located in Capetown and Johannesburg.

An average salary of a junior-level developer in Capetown is $4-$9, while if you possess a bigger experience, you can charge $8-$14 per hour. If you are the code smith then your hourly wage rises to $12-$20.

In Johannesburg, the payment for junior-level programming starts at $3 and reaches $10, while senior-level jobs are paid at $16-$22 per hour. Middle-level specialists make around $11 to $16.

What Determines An Hourly Rate For a Software Developer?

As you must have noticed an average hourly wage varies significantly in each IT location. Let us break down the main factors impacting the rates:

  • Region
    As for the location factor, for example, the cost of hiring a programmer in Ukraine will vary from the cost of hiring the same developer in the USA. As our data suggest, the hourly coder rate is significantly less in Europe, Africa, and South America compared to Canada and the USA. Therefore, the majority of companies end up hiring offshore tech services, since the quality-price ratio is the best in less high-flying IT companies.
  • The size of an IT services company
    It’s common knowledge that there are more hoops at a large IT company than at a small or middle-sized one. Huge businesses have more bureaucracy and more complexity. On the other hand, being small means better customer knowledge and more flexibility. Last but not least, hourly software salary is significantly less in a smaller company.
    As you see, when deciding on the size, it all comes down to a specific software case and your priorities.
  • Soft skills
    Undoubtedly, technical skills are key in the software world, but in today’s tech society, soft skills are more valued than ever before. Developers that have upgraded their communication, adaptability, and social skills and have a noteworthy tech skill set tend to charge higher than those with tech skills only. Their skills and specialties encourage them to outperform others, hence the salary raise.
  • Technology
    Technology is another cost factor to consider while trying the water for your project. The stacks of technology vary as well. While some projects require a single API, others need front-end combined with a back-end. So, if you need a complex project that entails various technologies, be ready for higher financial rewards.
  • Experience
    As you may see from our research, rates correlate with the years of experience. The impact of learning has always been significant for earning potential. The IT industry is no exception. An entry-level coder that has little to no experience will cost you less than a guru of programming. Logically, complex and comprehensive projects are not the best suit for junior-level coders.
  • The complexity of your project
    Highly complex projects rich in types of technology add significant challenges for your employees. If your product idea has an intricate logic, it means that it is more difficult to develop, test, and deploy it. Whether it’s a technological complexity or the complexity of the design, the hourly rates will grow in proportion to the number of features.
  • The time frame
    The finish time is one of the core factors to consider before assigning a task. If you are pressed for time, this means either a bigger team or more working hours for a company. On the other hand, if your software needs more than seven months, it will cost more than the one that needs five months’ worth of work. In any case, whether you are short of time or need a bigger time frame, hiring a software developer will make you collect some bills.

Hiring A Freelancer VS A Software Development Company

When turning your product idea into a full-fledged product, the cost is not the only question that lingers in your head. As there are a lot of hiring opportunities, businesses often find themselves lost in a puzzle: Should I go for a freelancer or a company? Well, let us break all the pros down for you.

Freelancers are self-employed workers or independent contractors who usually work from home, and are usually hired by several clients on various projects at the same time. Here are the benefits that you can anticipate hiring the one:

  • Low hourly rate. As there are no extra costs like health insurance, you can generally expect an experienced freelancer’s hourly pay to appear higher than at a software development company.
  • Plugged in one specific area. As people in charge of their own business spend much time honing up their skills, freelancers are usually great at one specific task.
  • More flexibility. Self-employed developers can squeeze more work if needed within one day. So if you need the task to be completed fast, hiring a freelancer is a good idea.

As for a software development company, it usually offers professional full-cycle services from consulting to product deployment. Here are the advantages of hiring a company:

  • More suitable for big and complex products. When you reach out to a company, you get a professional team of designers, devs, managers, QAs, and other software gurus. Unlike freelancers, who are a one-man or one-woman show, each employee plays a unique role at a company.
  • Diverse experience. Hiring a company presupposes that you have a team of professionals at your service. Having various skills and knowledge, their experience total beats the one of a freelancer.
  • Keep with new trends. Software development companies are constantly perfecting and improving. To stay on top of the IT industry, they have to follow current software trends and explore new programming languages.

Of course, this is not an excessive list of benefits that both freelancers and companies offer. Anyway, there is no definite question concerning the best hiring opportunity. Everything comes down to your specific product idea.

How to Choose The Best Pricing Model?

As a customer, you must have monetary concerns, with costs being a deciding factor. While it’s hard to choose a fixed price when the scope of the project is misty, giving a carte blanche with an hourly pricing model may be counter-profitable.

  • Hourly rate
    An hourly rate works better with hiring a developer when the work scope is hard to predict. It is also a safer path to choose when the job’s parameters are uncertain. Your potential employees will know that any overtime will be paid, which means profound work with excellent results. However, hourly pay is also associated with dragging out a project that is why all working time should be monitored and accounted for.
  • Fixed price
    A fixed price is ideal for a project with outlined deliverables and a clear scope you can foresee. It allows companies to stay on budget and set expectations. However, as IT is a creative industry, the deliverables may be vague in the beginning stages. This can lead to increased work time.
  • Salary + fee
    As for a salaried pay, everything depends on the task nature as well. If you need an employee that wears multiple hats and has a combo of skills then a fixed salary would be a mutually beneficial decision. Unlike hourly wages that can put off some candidates, salaried pay has definite working hours and scope of tasks.

Again, there is no surefire pricing formula for paying your employees. Hence, you should sketch out all objectives and goals otherwise you will end up losing money or sacrificing results.

Top 4 Criteria For Choosing A Software Company

Before digging up information on software developer hourly rates, you should make a choice. Whether it’s a freelancer or a company, a salary or an hourly rate, here are some criteria that will determine your success on a thorny software path:

  1. Location
    The modern world blurs the borders throwing a wide range of options at your feet. Offshoring, nearshoring or local services? Location is a key factor to consider.
  2. Tech expertise
    You won’t have any problems with developing a simple software solution. However, if you are looking to hire a developer with ubiquitous techniques, tech expertise is something to think about.
  3. Company size
    Each company size entails individual strengths and hidden challenges. Small companies, for instance, are agile and customer-oriented, whereas big companies have the resources for scaling.
  4. Pricing
    As it’s the topic of our article, pricing is the last but not least criterion to evaluate. Nobody likes the cheapest service, but everyone wants the most cost-effective one. Once you outline the scope of your project, you’ll have the general cost image in your head.

The Bottom Line

Choosing the right software developer is an uphill struggle, especially as the tech market has become oversaturated. From hourly coder rates to the complexity of your project, there are countless details to take notice of. Whether you opt for an independent contractor or a software company, make sure your choice is based on the purpose of the custom software application. Thus, you will avoid possible roadblocks and make the right choice.

Dariia Herasymova

Recruitment Team Lead

Dariia Herasymova is a Recruitment Team Lead at Devox Software. She hires software development teams for startups, small businesses, and enterprises. She carries out a full cycle of recruitment; creates job descriptions based on talks with clients, searches and interviews candidates, and onboards the newcomers. Dariia knows how to build HR and recruitment processes from scratch. She strives to find a person with appropriate technical and soft skills who will share the company's values. When she has free time, she writes articles on various outsourcing models for our blog.

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