How Much Does It Cost to Hire a Programmer from Offshoring Company
Here we are about to discuss the difference between outsourcing and offshoring and what dedicated developer wages are fair nowadays.
“Outsourcing” and “offshoring” have been interchangeable when it comes to business, however, these are different concepts. “Outsourcing” is more about having a third party take over the processes that a business handled before, while “offshoring” relate to moving the processes of a business to a different location, usually abroad. They are not synonymous to each other; business can outsource, and not offshore, their processes, and vice versa. In the IT industry context, offshoring is when companies would have their services, such as call center and customer support, be based in a country abroad. Mobile app development agency usually offshore their services in order to lessen production costs, enter new markets, or utilize locally unavailable or inaccessible skills.
Challenges to Offshoring and How to Overcome Them
Just like other business strategies, offshoring has its disadvantages. Here are some of those obstacles that you may encounter when venturing into offshoring and how you can overcome them.
Working with third party companies will have the risk of exposing confidential or internal information. Do your research beforehand, ensure that you are working with a credible offshoring services provider and define the limitations on the volume and scope of data and information to be shared.
Cultural and Social Differences
The world is made up of diverse cultures, and partnering with offshore companies will bring cultural and social barriers; language and timezones being some of them. Discuss with your partners on how to best utilize these to benefit the project. If they work in a different timezone, workplan or deliverables may be planned out to accommodate the time difference and still be able to produce the required output.
Lack of Customer Focus
Offshore services providers work mostly with multiple customers at a time, this could affect the developers focus on your project. To mitigate this, ensure that deliverables, timelines, level of effort, and other details regarding your partnership are outlined and understood by both parties. Also, monitor your project to guarantee that goals are met.
Those mentioned may have added doubts, however, there are definite advantages to offshoring your development project.
- Cost of developer and dedicated developer wages are less compared to that of local programmers.
- With reduced cost, there is a high potential for financial savings for you and your company.
- Access to a global pool of skilled and experienced developers.
- Remote teams bring are versatile and have diverse skills and experience.
- Financial risks from the complexity and cost of setting up physical and local teams are averted.
Below you may find a quote of our remote developer talking about challenges and issues he had to face during his work:
This imposed some limitations on implementation. The system was completely asynchronous and it was often difficult to get a timely response from CRM and notify about any problems with the system user. We had to come up with delayed data insertion algorithms, because the sales manager could not waste time getting and confirming the processed information. In the rest, technically, the system was rather simple, without complicated algorithmic approaches.
Senior Frontend Developer
Cost of Hiring Programmers for Offshoring
As mentioned, one of the major advantages of offshoring is reduced cost. Hiring offshore developers, as opposed to local developers, is an area where you can save the most. So how much does it cost to hire an engineer for your project? The US Bureau of Labor Statistics cited that, in 2016, the annual median web programmer salary was $66,130, while the average programmer salary was $79,840. With programmer software salary being high as it is locally, most US IT companies utilize offshore development services providers.
Below are just some of the average software programmer salary from various countries.
- Ukraine: $29,163
- United Kingdom: £24,833 ($34,600)
- United States: $58,000
- France: €30,000 ($37,000)
- Australia: AU$60,000 ($47,000)
- Singapore: S$39,000 ($29,600)
- Germany: €36,500 ($45,000)
- Canada: C$50,000 ($40,000)
Evidently, programmer wages in Ukraine are the most practical option if you are to hire a programmer offshore.
Offshore Developers in Ukraine
Aside from cost-efficient computer programmer pay, Ukraine also possess quality education, high level programming capability, as well as great English skills. You can expect quality development and reasonable costs when you hire offshore developers from Ukraine. Mobilunity, an IT development services provider in Ukraine, can provide you with expert and experienced dedicated development teams to collaborate with you in achieving your project needs.