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How to Outsource Web Development: Guide, Costs, and Tips

Maksym Babych

Maksym Babych

CEO

24 min

Outsourcing web development has become increasingly popular in recent years. Every industry can benefit from partnering with an outsourcing provider to design and build custom web applications.

Outsourcing is an especially attractive option for creating minimum viable products (MVPs) quickly and cost-effectively.

In this article, we’ll describe best practices for successfully outsourcing web development.

As digital transformation continues across all industries, an online presence has become a necessity for businesses of all sizes.

However, not every company has the internal resources or bandwidth to build websites and web apps in-house. This is where outsourcing providers come in.

Outsourcing makes custom web development accessible for organizations that lack specialized technical teams.

Large enterprises have relied on outsourcing for years to scale software engineering capacity. Thanks to advancing technologies, outsourcing web development is also a viable option for small and mid-sized businesses.

Recent research shows that 55% of companies outsource some or all of their application development needs.

This article provides practical guidance on partnering with the right provider to outsource web development strategically and cost-effectively.

We’ll explain the benefits of outsourcing, walk through the step-by-step process, and provide tips for finding a qualified outsource development company to build your MVP or custom web app.

We’ll also compare popular outsourcing destinations around the world, exploring the cost structures and key advantages of each region.

Let’s get started!

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Why Companies Outsource

While the main reasons for outsourcing may vary depending on the field of the company’s specialization, there are three ultimate motives.

According to Deloitte’s research:

  1. The primary reason for a company to outsource software development jobs is to save costs – 59%.
  2. The second reason is that outsourcing allows companies to focus on their core competencies – 57%.
  3. 47% of companies outsource tasks like web development or web design to solve capacity issues.

Among other reasons why companies prefer outsourcing tasks like software development is the ability to have access to intellectual capital.

Why do companies outcorce

Specifically referring to outsource web development services, this option gives small and medium-size businesses an ability to use the technologies such as Java, Python, etc. without building them from scratch which are essential for web development.

The need and importance of outsourcing is hard to overestimate. It provides access to a larger pool of talents while giving entrepreneurs an ability to cut labor costs.

With outsourcing growth expected, 72% of IT companies are already outsourcing.

You can be a nontechnical founder with a groundbreaking idea. But to build a web or mobile application, you will need a team of developers anyway. And that’s why important to ask how to outsource web development successfully.

The best option for every entrepreneur who hasn’t got a team yet is to outsource app development to a contractor. An outsourced web development company will build your application professionally and in the shortest possible period of time.

A good point to start your search is to use a website crawler tool to make sure you work with people who invest in their own business as well.

When you get a ready-made application, you can launch it and then hire an in-house team to take over your project. You can also continue to scale the outsourced team to make web design cheaper.

Middle-sized and some small firms choose to outsource companies internationally in order to work with experienced professionals in web development. In reduces the amount of risks involved in web development services and the cost of MVP design.

Benefits of Outsourcing

There are a lot of reasons why outsourcing is good for your business. Here is a list of the main benefits and how to in outsourcing web development:

BenefitDetailed description
Outsourcing allows to save costsCost-effectiveness in software development is one of the major benefits of outsourcing for small businesses. 

Outsourcing can save companies 20-75% of the estimated budget, depending on a region they outsource web app creation to.

Apart from favorable outsource rates of web development services in particular countries, an outsourced team doesn’t require a hiring process and training. 

One of the benefits outsourcing gives you is that you don’t need to hire an HR and office manager, pay a rental charge, or buy equipment and furniture.

Access to larger pool of talentsAn outsource is not only about reducing the cost of web development services, it is also about finding the best specialists for your project. 

Building your project in-house usually ends up having the most skilled staff you can afford.

Meanwhile, outsourcing web development services offshore allows finding particular specialists your project requires. 

It provides you with an opportunity to choose, giving you access to a much larger pool of talented specialists.

Scale your projectOne of the main advantages of outsourcing a web development company is that it allows scaling a project more quickly. 

An outsourcing company is experienced in scalability and is able to add more specialists to the developers’ team if needed. When you have an in-house team, every new specialist takes too many resources. 

That’s one of the main reasons to research pitfalls and how to avoid them while looking for outsourced web development.

Reduce risks and stressOutsourcing allows for a development team of specialists under the leadership of the project manager. 

This person eliminates all the risks related to the development. He or she bears the responsibility of planning the project building, communicate with a client and solve inner issues. 

Whatever happens, an outsourced development team has time limits and restrictions and is obliged to follow the signed contract. It’s a crucial part of outsourcing web development.

Secure your projectIT outsourcing companies always sign a Non-Disclosure Agreement with their clients. They also use Gitlab security repositories and securely hosted services. 

Thus, you can be sure that your outsource web design project and idea are in good hands.

Focus on your core competenciesThe main advantage of outsourcing software development is that it allows you to focus on generating profit

As an entrepreneur, you know that sometimes it’s just not enough hours in a day to get things done. Outsource gives you the ability to devote yourself entirely to the concept of web design, user experience, marketing, sales, testing of business hypotheses, or other important processes your business needs.

Once you find an outsourcing vendor, you settle the project lifecycle and set time frames. From that moment you, as a client, only approve the work of your team and comment on it.

And when you are familiar with how to outsource it’s easier to check the final results of each web development and design sprint.

Receive supportThe experienced outsourcing companies always look for a long-term commitment with their partners. Thus, they will handle not only the tech part of your project but help you run the related business processes.

Here in SpdLoad, for example, we are always conducting market/user research and analyze potential competitors. It is vital for making your product successful and profitable on the market. 

Thus if you look for how to outsource web development, make sure the team conducts the project discovery phase.

Speed up process organization and developmentThe market is overwhelmed with the number of applications. If you want to differentiate, develop, and launch an idea faster than your competitors, you need to be smart and fast.

Outsourcing a website or web app development is a smart option to consider.

Outsourcing web development software allows you to delegate app building and focus on marketing and sales. 

It also offers access to innovative technologies that companies otherwise are unlikely to get. Outsourcing speeds up the organization and development processes.

The outsourced development team usually works in accordance with some development methodology. This means that your web application is developed quickly and efficiently, with minimum changes involved.

Main Benefits of Web Outsourcing

How to Outsource Web Development

When considering outsourcing, a firm should be sure to avoid making hasty decisions. It is important to get a clear picture of the key web development stages that your project will have to go through, then study your options for outsourcing web development services.

Don’t start with posting a job offer on the first collaboration platform you see. One of the challenges of outsourcing the creation of an MVP is to choose the best company and ensure that your team knows how to start the project effectively.

To understand how outsourcing works, you should examine its framework. It comprises 8 steps:

1. Determine Your Goals

Before outsourcing, you should formulate expectations of web development services and know your final goal and project needs. The undefined expectations will result in time and money-wasting, even for an outsource development and design

You need to start by making up a written description of your web application.

Answer the following questions:

  • What is the final goal of my project?
  • What are the project needs?
Define your business goals before start to look for how to outsource web developmnent

2. Define the Project Scope

The next step is to think about your business goals and tech requirements for outsourcing web development. Try to be as specific as possible answering the following questions:

  • What are the business goals?
  • What are the tech requirements for my project?
  • What is the technological stack I would like to apply to the project?

Don’t be afraid to disclose all the functionality of your project. It will help a future outsourcing team to understand your idea and estimate the software creation budget and timeframe.

It helps you to find out how to outsource web development works in a budget-wisely way. Working on features scope and sprints usually means cutting off unnecessary features from the very start.

Define requirements for the project to outsource development effectively

3. Estimate Budget and Timeline

Since every outsource region has its own rates for web development services, the estimated budget will help you choose the one that suits you the best.

But it is also important not to hire the first vendor at the cheapest price. Set your budget and expectations for choosing the best outsourcing web development and design team that suits you.

You should also clarify the length of the project. Think of its time-frame and set the deadlines. Here are two main questions you need to answer:

  • How much am I ready to pay for the outsourced development of my project?
  • What are the dates of the delivery of my project?

4. Select Outsourcing Model

To search for outsourced web development services vendors wisely and efficiently, you should first decide on the type of outsourcing you need.

There are exist a few types of outsource web development companies to choose from: onshore, nearshore, and offshore development teams

There are three main types of outsourcing:

1. Onshore outsourcing

When a client looks for how to outsource web development operations to another country located in the client’s country or region it is called onshore outsourcing. 

If you outsource to a company locally, you can reduce the risks and costs of training your own team to create an app and forget about language and cultural barriers.

However, if a client wants to save money, an onshore outsourced web development company isn’t the best option. It will also influence the speed of outsourcing design or development

Since the cost of building web products is high enough, a client will be facing difficulties with building marketing and sales processes with no offshore outsourcing.

The quality of onshore outsource web developers may be good enough, but nearshore and offshore options certainly open up far more attractive prospects.

2. Nearshore outsourcing

Outsourcing to a company located in the same time zone is referred to as this type of sourcing software development. The main advantage of nearshore outsourcing is that a client and an outsourcing vendor have similar cultures and language skills.

If we compare how to outsource to nearshore or to onshore, the first one allows us to save more money during web development and thus speed up business processes.

Nevertheless, nearshore outsourcing still doesn’t allow you to choose the vendor with the expertise of the highest quality.

3. Offshore outsourcing

Offshore or international outsourcing means that a client hires an outsourced web engineering team, which is located in a foreign country.

It is highly probable that a client and offshore outsourced web development company speak different languages and have different cultures. However, most offshore vendors speak English.

There are numerous advantages of offshore outsourcing software development

Hiring an offshore company to outsource the building of a web platform allows a client to access the largest pool of talented specialists without spending too much money. It also promotes a boost of all ongoing processes.

Type of Outsourcing

CharacteristicsOnshoreNearshoreOffshore
Cost-EffectivenessLowMediumHigh
SpeedMediumMediumHigh
Quality/ExpertiseLowMediumHigh
RisksLowMediumMedium

Consider these types of IT outsourcing and choose the best option that fits your particular needs and business goals.

5. Research Vendors

Once you have chosen a type of outsourcing and prepared software development project specifications, you can start looking for a web development vendor. 

You can use such platforms as Clutch.co, GoodFirms.co, check the search engine results or ask your business network for a recommendation.

The next step is to make a list of potential companies you would like to work with. It’s crucial to know how to outsource web development experience successfully. 

But don’t choose the first outsourced web programming company that came along. List 10-15 best outsourcing candidates that seem to meet your expectations for web development and design, have a reputation and correspond with your project needs.

6. Interview Potential Vendors

Now, when you have chosen candidates for your software development outsourcing, try to collect as many details about them as possible.

How to Choose an Outsourcing Company?

The most efficient way to choose a software development outsourcing provider is to conduct video interviews. Prepare the questions for interviewing outsourcing partners beforehand.

Don’t be afraid to ask any questions you consider to be important. What factors should be considered when making the decision on how to outsource web development?

Ask aboutDetail description
ExperienceAsk a company’s representative if the team developed projects for a similar experience of outsource building of web platforms in a similar industry to your before.
Years on the marketHow long does the company exist on the market and provide outsource web development services?
PortfolioCheck the projects the company has already built as an outsource web development vendor.
Tech StackIs the company experienced in the technologies needed for your project? Check the tech stack and capabilities of your potential vendor.
Company’s Website.Sometimes it can be informative to check the outsource web development company’s website or social media to better understand its potential. 

You can also read some articles in the blog section if the company has one. 

FeedbackCheck the reviews of the previous clients. What do they say about the team and the cooperation results?
TeamCheck the skill level and experience of the key team members. Ask the company’s representative about the procedure of hiring personnel. Find out the employee turnover rates and check what the former employees tell about the company. 

The relevant experience is one of key benefits that makes how to outsource worth to look for in terms of outsource development.

Internal WorkflowAsk a vendor about the methodologies used and support provided. Find out how the company runs the QA process and fixes bugs during the process of building a digital product.
CommunicationIt is a key to successful web development. Thus, you need to find an outsourcing vendor, who speaks your language. Ensure that a Project Manager of your future team is fluent in English. Pay attention to cultural aspects as well.
SecurityAsk your outsourcing vendor about the protective measures they usually take to secure the projects. Ensure that the company can sign a Non-disclosure Agreement with you. Find out the payment methods the company can offer.

Note that the best web development outsourcing company would be interested in all the project specifications to offer you the best solution. It is an important aspect to pay attention to. 

Check all the information carefully and note all the details. I recommend you to write down all the answers to these questions in a Google document to ease the screening process. 

This will give a deep understanding of how to outsource and how it should work in the process of working on a product to not deviate from the implementation of priority tasks.

All the collected information will help you to narrow down the list of potential outsourcing vendors to start software development. Thus, you will be able to choose one partner that fits you the best.

7. Select a Vendor

Once you have chosen a company to start outsource product building, create a statement of a contract. It should reflect the amount of services provided, the timeframe of their provision, and payment details. 

Set up clear terms for outsourcing web engineering and development services delivery of pieces of work and an entire outsourced project. Specify the deliverables and milestones. Negotiate payment terms and methods.

It is better to establish a financial penalty to reduce risks. Thus, if your outsourcing partner fails to meet the requirements stated in the contract, he or she will bear losses.

Before getting down to work, insist on signing an NDA contract to avoid leak of data.

All these points make looking for how to outsource web development reasonably and safe.

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8. Maintain Clear Communication

Communication is key to successful outsource development. Especially if you are hiring an offshore outsourced web development company. Time difference can become a problem, but only if you are hiring an inexperienced team.

Experienced companies know how to provide smooth communication and shift their schedule to fit your timezone while outsource the development of the web product.

Take into account time differences and work schedules to arrange efficient communication when thinking about how to outsource web development. You can use chats or video chats in such tools as Slack, Skype or WhatsApp.

Experienced teams always work under the control of the PM (Project Manager). PM is in charge of reporting to the client with updates. Being a client, you can contact a PM as regularly as you wish, ask any questions and comment on the deliverables.

It helps to create the best customer experience with outsourcing and ensure the high quality of web design and web development services.

Make sure that your team and you are on the same page. It will help to reduce mistakes and revisions in the process of software development and eliminate additional expenses and miscomprehension of outsourcing.

Once the workflow is established, you can reap the benefits of outsourcing the software development lifecycle and focus on your core competencies.

Step-by Step Process to Outsource Web Development

Factors Impacting Outsourcing Costs

There are several factors that define the cost of outsourced web development and design for each company:

  • Project’s complexity and tech stack.
  • The number of specialists needed for the project.
  • Average hourly rates for each specialist in a country you are going to outsource web development to.
  • Time frame for the project.

Minimum Outsourcing Team Requirements

The minimum set of the web development team should consist of:

RoleDescription
Project ManagerA project manager (or PM) is like a conductor of the development team. This specialist can make your product be developed the way you want. 

A PM is always on your side but also understands the team and listens to its opinion. 

Being in charge of the entire product creation cycle and keeping track of your budget and time, a project manager can make your symphony sound the way it will impress others. 

The presence of such a person is one of the main answers to the question of how to outsource web development.

Back-end DeveloperThe back-end developer is a key specialist for outsourcing software development. He or she is in charge of the server side of your project. 

A skilled back-end developer can come up with effective solutions that will make your product highly productive, customizable, and scalable. 

Poor back-end will certainly affect the product performance and turn any idea into a disaster.

Front-end DeveloperThe front-end developer is in charge of the client side of your application. It’s a specialist who stands between coding and design. 

Being skilled in technologies, front-end developer is able to bring to life a design of any complexity. He or she ensures that your application comes up correctly in different browsers, operating systems, and devices. 

It’s a specialist who plays an indispensable role in web development services when you decide to outsource.

DesignerOutsourcing of web coding is a part of MVP creation. The designer is in charge of making your product attractive to the customer. 

I don’t talk about UI or UX design intentionally since software development teams usually provide applications with both good look and user-experience on outsourcing.

 A high-skilled designer helps to embody an entire concept of your idea and show the clients what they are eager to see. And having design greatly simplifies outsource web development services.

Top Countries for Web Development Outsourcing

Outsourcing software development is easy today since there are plenty of countries offering these services.

When companies decide to outsource, as a matter of priority, they aim to save money. Not every destination can offer the same quality of software creation for a favorable price for outsourcing. 

Thus, I would like you to check my detailed research on the prices of outsourced web programming companies in different countries. 

It would help to answer the question of how to outsource web development in the most complex way.

Let’s consider Eastern Europe, Asia, Latin, and North America as the best countries to outsource software development or web design.

Eastern Europe

Eastern Europe is one of the best regions you can outsource web & app engineering to. Countries such as Ukraine, Poland, and Romania can offer highly skilled developers and IT specialists for projects of any complexity.

Overivew of outsource web development companies in Eastern Europe.

 

Here are the main reasons the US and Western European companies choose Eastern Europe (especially Ukraine and Poland) for outsourcing web development services:

  • Low prices for top-notch specialists
  • A large pool of talents
  • English proficiency and cultural affinity

In 2019, Eastern Europe has become a leading outsourced development region, with more than 1 million software developers educated and trained here each year.

Favorable prices and strong programming skills make Eastern Europe one of the most attractive destinations for outsourcing software development. An average hourly rate for an outsource specialist here is $30-$70. 

If we compare Eastern Europe to Asia, the cultural differences with the US are minimal. The country demonstrates the closest mentality to the Western region. It’s a huge benefit to find here reliable outsourced web engineering partnerships.

The time difference between the US and European countries is only 6-7 hours.

The most popular countries to outsource are Ukraine, Poland and Romania with strong web development services. Let’s take a closer look at their advantages and rates.

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IT outsourcing in Ukraine

Ukraine is a leading East European country with a large pool of talented IT specialists. The country is listed in the WIPO Global Innovation Index. 50% of Ukrainian outsourcing companies revenue comes from the US market.

78% of Ukrainian outsourcing companies make money on web programming, and 64% – on mobile applications development. 

The country has more than 170,000 IT specialists. The annual number of IT graduates is 23,000, and this number is growing annually.

Ukrainian specialists are considered to score in the:

  • Web and mobile Development
  • Building of Cloud and SaaS platforms
  • Content Creation
  • Graphic Design
  • Web Analytics

Gartner research notes that Ukraine is the most cost-effective destination among post-soviet countries to look for outsourced web development services. Statista research showed that Ukraine had entered the list of the World’s Most Attractive Countries for offshoring in 2020.

Despite the low rates of Ukrainian outsourced web development companies are low, they are easy to work with. More than 80% of Ukrainian IT specialists have an intermediate level of English or higher. 

Those of them who don’t, usually work under the leadership of project managers, who are always fluent in English. Thus, take a closer look at Ukrainian companies if you are interested in how to outsource web development successfully.

The major outsourcing teams focused on software development and design are located in Kyiv (118), Kharkiv (68), Lviv (64) and Odesa. (41).

Average Hourly Rate

CountryProject ManagerBack-end DeveloperFront-end DeveloperDesigner
Ukraine$20-$70$30-$80$25-$75$30-$60

Poland

The IT industry is growing fast in Poland.  This country has a large pool of skilled specialists and is considered to be one of the most attractive countries to look for web development services in terms of outsourcing.

Also, it is an interesting option to start outsourcing building a web project.

Poland is the fifth most technology-advanced country in Europe, with its main competence in computer networking and security engineering. In 2019, it was also ranked 15th among the top 50 Digital Nations.

Yet, taking into account how popular this destination is, today Poland is the most expensive Eastern European country for outsourcing software development to.

Average Hourly Rate

CountryProject ManagerBack-end DeveloperFront-end DeveloperDesigner
Poland$25-$90$40-$95$30-$85$35-$68

Romania

Romania is also a popular destination for finding outsourced web development services vendors. This country has more than 80,000 developers with competitive software engineering skills.

IT specialists here are skilled in PHP, Java and other languages. The main IT hubs are located in Cluj-Napoca and Bucharest. 

Average Hourly Rate

CountryProject ManagerBack-end DeveloperFront-end DeveloperDesigner
Romania$28-$93$45-$95$30-$85$35-$75

Latin America

According to Coursera Skill Index Research, most of the 11 Latin American countries have below-average skilled specialists for outsourcing in the area of software development. 

Nevertheless, the region lacks an innovative environment and profound education in maths and science.

The overview of outsource web developers in Latin America

Being a relatively new outsourcing development destination, Latin America can offer services at low prices. The workforce of this region is quite impressive but still lacks technical knowledge.

Each founder interested in cost-wise app creation should take a look at Google to learn how to outsource web development or design in Latin America. 

The countries of Latin America are only at a starting point of building business processes and upbringing tech-savvy specialists. 

Such a region as Eastern Europe can be more beneficial for companies looking for a trustful outsourcing company with high-quality and low-cost web programming services.

Yet, US companies can be attracted to Latin America due to almost fully overlapping working hours, intermediate English skills, cultural similarities, and geographical proximity.

The best countries for outsourcing software development in this region are Brazil, Mexico, and Argentina.

Mexico

Being one of the top Latin American destinations, Mexico is ranked number 43 in technology. The number of specialists in this country is constantly growing.

Mexico shows good results in HCI, with a skill level of 54% in this field. However, software engineering here is still lagging (only 17%).

The US companies can benefit from outsourcing web development to Mexico since both parties will be able to work and communicate in the same timeline and arrange face-to-face meetings in the process of outsourcing the software engineering lifecycle.

The top Mexican IT hubs are Mexico City, Guadalajara, Monterrey, and Tijuana. The destination is still considered to be risky but offers favorable prices for various services, for example, outsourcing web programming.

Let’s take a look on the average outsourced web development company in Mexico:

Average Hourly Rate
CountryProject ManagerBack-end DeveloperFront-end DeveloperDesigner
Mexico$35-$100$45-$190$40-$110$45-$110

Brazil

Being the largest economic center of Latin America, Brazil is ranked to be the 30th best technologically advanced country.

Brazil has the highest skill potential in the region but still can’t compete with such destinations as Eastern Europe, Asia, and North America.

High level of youth unemployment (25%) and reduction in prices for AI technologies makes Brazil vulnerable in the outsourcing market.

The main IT hubs of Brazil are São Paulo, Rio de Janeiro, Belo Horizonte and Florianópolis.

Average Hourly Rate
CountryProject ManagerBack-end DeveloperFront-end DeveloperDesigner
Brazil$50-$120$50-$200$50-$100$45-$110

Argentina

Coursera Global Skill Index ranked Argentina the number 1 tech Latin American country in 2019. The country has the best results in software engineering, statistics, accounting, and marketing.

While the prices for web development in Argentina are quite high (higher than in Eastern Europe), it is still an attractive country for US companies.

The most popular programming languages in this country are PHP (78%) and ASP.NET (21%).

Let’s explore the rates of an average outsourced web development company in Argentina:

Average Hourly Rate
CountryProject ManagerBack-end DeveloperFront-end DeveloperDesigner
Argentina$45-$110$50-$180$40-$100$35-$100

Asia

Being one of the most cost-saving regions for outsourcing web development services, Asia can offer a large pool of talent.

Asia is a top-rated outsourcing destination. Such famous IT companies as Google or IBM outsourcing software development to this region.

How to outsource web development in Asia? Find out rates and in-depth market overivew of Asian outsource teams

 

But we should not forget that tech giants can afford to hire in-house managers who know Asian culture, interpreters, and other specialists. Meanwhile, small businesses may face cultural differences that will be too hard to overcome.

So, if you are interested in an Asian-based vendor, it is better to find out how to outsource web development in this region due to a specific partnership culture.

The main countries in this region are India, China, and Malaysia.

India

India is one of the most popular destinations for outsourcing development. But it is mostly related to its low salary rates and relatively high level of English.

India has a large pool of IT specialists and high number of STEM graduates. The main tech cities of India are Mumbai, Bangalore, and Hyderabad.

As the research says, India is ranked 44th among Asian countries in the technology sector. It shows the best results in databases (37%) and security engineering (32%).

Nevertheless, outsourcing to India is a rather controversial issue due to the complexity of software development. 

An extremely low price for web programming and cultural differences sometimes lead to poor quality of the delivered products and services of outsource building of a web product.

Let’s consider the costs of service in the average outsourced web development company in India.

Average Hourly Rate

CountryProject ManagerBack-end DeveloperFront-end DeveloperDesigner
India$20-$60$30-$75$20-$70$20-$60

China

In 2016 China had 4.7 million STEM graduates. And it is not surprising, since this country has an innovative education model.

China accounts for about one-third of global unicorn startups, incubating dynamic business models, especially related to the digital economy. The research shows that China is a tech-driven country with skilled specialists and innovative vision.

Hence, web development services presented in a wide variety in the ratio of price and quality in terms of outsource.

Since China is ahead of IT market today, salary rates in this country are increasing significantly, being now the highest in Asia. The level of English language and cultural differences may cause difficulties as well.

The main Chinese IT hubs are Beijing, Hangzhou, and Shenzhen.

Average Hourly Rate

CountryProject ManagerBack-end DeveloperFront-end DeveloperDesigner
China$30-$60$40-$75$35-$60$25-$70

Malaysia

Malaysia is the third most attractive Asian country for outsourcing web development services. It represents about 1.7% of the total BPO market in the Asia Pacific. The main competence of this country is in the field of databases and computer networking.

Take a look at the table of costs of the services in the average Malaysian outsourced web development company.

Average Hourly Rate

CountryProject ManagerBack-end DeveloperFront-end DeveloperDesigner
Malaysia$35-$60$35-$75$30-$60$28-$50

North America

A region of North America has the most educated population in the world. Thus, it is not surprising that it scores in technology and data science.

Find out why outsource development to USA and Canada isn't the good option for your startup

The strongest performers of this destination are the US and Canada. Both countries are leading in business and IT field.  

Yet, if you are interested in how to outsource web development to North America – it is not the best idea. An average hourly rate of outsourced specialist is $140-$210.

The US

Being the birthplace of Silicon Valley, the US is one the most famous software development countries in the world. It provides a particularly high level of IT services. In 2019 New York is reported to become a potential digital leader.

A recent Softomotive survey says that 46% of middle-sized businesses in the US adopted RPA.

Yet, extremely high prices for education and a lack of developers for web development services make outsource to the US too costly.

Average Hourly Rate

CountryProject ManagerBack-end DeveloperFront-end DeveloperDesigner
US$150-$215$180-$275$160-$265$80-$150

Canada

English fluency, comfortable time zones and cultural similarities make Canada attractive for the US companies. Moreover, the cost of outsourcing here is lower than in the US.

Nevertheless, outsourcing web development to Canada is still too expensive, especially for small businesses.

There you’ll find the costs to build an MVP with an outsourced web development company in Canada.

Average Hourly Rate

CountryProject ManagerBack-end DeveloperFront-end DeveloperDesigner
Canada$140-$205$170-$250$145-$220$70-$140

Outsourcing Costs by Country

An average hourly rate for outsource web development services in Eastern Europe is $30-$70. The web developer rates slightly change relatively to the country. Ukraine ⁠— $25-$75, Poland ⁠—  $35-$85 and Romania ⁠— $30-$75.

An average hourly cost of outsourced web development in Latin America is $40-$100, namely in Brazil ⁠— $50-$120, Argentina ⁠— $40-$100, and Mexico ⁠— $40-$110.

An average cost of outsourcing software development in Asia is $30-$60 per hour. China charges about $35-$60. Outsourcing app development India cost is $20-$70 per hour. Malaysia rates $35-$60 per hour.

Being the most expensive destination, North America hourly rates are about $140-$200. The US and Canada charges $150-$215 and $135-$190 accordingly.

Below you can see a comparative table that demonstrates the cost of outsourcing software development in different regions/countries and time difference to New York City.

RegionCountryOverall Average Hourly RateTime Difference to NYC (The US)
Eastern EuropeUkraine$25-$757
Poland$35-$856
Romania$30-$757
Latin AmericaBrazil$50-$1202
Argentina$40-$1002
Mexico$40-$1101
AsiaChina$35-$6013
India$20-$7011
Malaysia$35-$6013
North AmericaThe US$150-$2150
Canada$135-$1900

The results of comparing the main destinations help you to make reasonable decisions on how to outsource web development and is there a good fit for your startup.

The conducted research shows that Asian countries can offer cost-effective solutions, however the time and cultural differences can be an obstacle for productive communication and cooperation.

If we talk about cultural affinity and the most insignificant time differences, Latin America is a top choice. However, the prices for web development in this region are higher than average.

The same can be said about North America. A high level of IT specialists and open-mindedness to various innovative approaches don’t exceed the high rates the region offers.

According to the research, Eastern European countries are the best option for outsourcing web development. While the prices for outsourcing software development are relatively low in this region, the pool of skilled specialists is very large.

Ready to Outsource Your Web Development?

The SpdLoad team has been successfully working on the product development market since 2013. Our clients range from big enterprises to startups at an early stage.

We have great expertise in developing SaaS for many different industries – from ticketing platforms to HIPAA-compliant apps.

Our clients have faced many technical challenges – and we found an elegant solution for each of them. From the creation of a HIPAA Compliant database for healthcare app to the unique case of implementing the HR system in a complex but outdated enterprise CRM. Feel free to check out our case studies to learn more about our web development practices. 

There are many talented developers on the market. What sets us apart is the development of market-driven products. 

Before we start writing code, we will conduct market, users, competitors’ research. We will figure out what minimal functionality is needed and how to implement the idea in order to earn money from the first days.

So, if you are looking for a reliable partner to create a profitable, scalable, and cool product – let’s talk.

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Have a question? Look here

Why should I consider outsourcing web development?
It allows you to access a larger talent pool, often at more competitive rates compared to hiring locally. Outsourcing can also save time and resources by leveraging specialized expertise and focusing your team on core business activities.
How do I choose the right outsourcing partner for web development?
Start by evaluating their portfolio, experience, and client reviews. Look for a partner with expertise in your technology stack and industry. Communication is key, so ensure they have a transparent process and are responsive to your needs. Consider factors like timezone compatibility and cultural fit for smoother collaboration.
What are the typical costs associated with outsourcing web development?
The costs of outsourcing web development can vary widely depending on the scope of your project, complexity, and the location of the outsourcing company. Offshore firms in countries like India or Eastern Europe may offer lower rates than firms in the US or Western Europe. Hourly rates can range from $25 to $150+ per hour, depending on expertise and location.
How can I ensure the quality of work when outsourcing web development?
You need to start with a detailed project scope and requirements document. Regular communication and feedback sessions throughout the project are essential. Implement milestones or checkpoints to review progress. Consider using project management tools to track tasks and timelines. It's also important to have a clear agreement on deliverables, timelines, and quality standards in the contract.
How can I ensure the quality of work when outsourcing web development?
There could be issues with cultural differences affecting work dynamics. Quality control can also be challenging, especially if there are misunderstandings about project requirements. Additionally, data security and intellectual property protection must be addressed through clear agreements and non-disclosure clauses.

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