2. Introduction
In late 2017, Accelerance reviewed available
research on current software challenges,
technology growth, and software development
outsourcing from top tier players, publications,
associations, including: Deloitte, CompTIA and
IDG.
The overarching theme we identified is that the
top technology growth inhibitors are labor
costs and the availability of skilled workers.
With the Accelerance 2018 Guide to Global
Software Outsourcing Rates, we’re pleased to
present our findings from more than 700
software development companies who
reported blended hourly rates to us in 2017,
combined with our own experience helping
clients and partners with the right mix of skills,
experience, location and cost.
LABOR COSTS:
THE #1 INHIBITOR TO
TECHNOLOGY GROWTH
THE 2018 GUIDE TO GLOBAL SOFTWARE OUTSOURCING RATES
3. Onshore vs Nearshore vs Offshore
ONSHORE
Outsourcing to software
development partner in
your own country.
NEARSHORE
Outsourcing to firms two to
four timezones away, possibly
located in bordering countries
to your own or just a short
distance away.
OFFSHORE
Regions that are oversees or
more than four timezones
away.
THE 2018 GUIDE TO GLOBAL SOFTWARE OUTSOURCING RATES
4. Nearshore and Offshore
Saves 40% for US Firms
In-house Developer
Offshore/Nearshore
Developer
Number of Developers 10 10
Man Hours Needed 20,000 20,000
Hourly Rate $60 $35
Employee Benefits
Taxes
Training, Retention
Travel
Estimated Cost $1.6 Million Minimum $700k + Travel
THE 2018 GUIDE TO GLOBAL SOFTWARE OUTSOURCING RATES
5. Sample Cost Savings From Outsourcing
THE 2018 GUIDE TO GLOBAL SOFTWARE OUTSOURCING RATES
6. 5 Factors That Drive Outsourcing Rates
Location
Team Size
Seniority / Work Experience
Tech Stack
Length of Engagement
THE 2018 GUIDE TO GLOBAL SOFTWARE OUTSOURCING RATES
8. North America Latin America Eastern Europe Asia
$24
$35
$30
$132
2018 Global Outsourcing
Rates: Mid-level Developer
THE 2018 GUIDE TO GLOBAL SOFTWARE OUTSOURCING RATES
9. 2018 Global Outsourcing
Rates: Sr. Developer
North America Latin America Eastern Europe Asia
$30
$45$45
$154
THE 2018 GUIDE TO GLOBAL SOFTWARE OUTSOURCING RATES
10. 2018 Global Outsourcing
Rates: Lead Developer
North America Latin America Eastern Europe Asia
$30
$45
$50
$176
THE 2018 GUIDE TO GLOBAL SOFTWARE OUTSOURCING RATES
11. 2018 Global Outsourcing
Rates: Graphic Designer
North America Latin America Eastern Europe Asia
$25
$35
$40
$79
THE 2018 GUIDE TO GLOBAL SOFTWARE OUTSOURCING RATES