2020 Software Development Price Guide & Hourly Rate Comparison

Coming is the age of software in almost every field.

Businesses will feel a need for software in order to expand their market to touch the untapped market. The world is getting digital, so is every profession. With advancing technology, every professional is bound to reach up to applications and software in order to get moving with the digitalized world.

Websites are already available there but what is seen in surveys is that users are rapidly shifting to applications from websites. Say Amazon, it has a user base on its website on Google. But now users are moving towards the application version in high volume and are leaving the website version. With this major change that is seen in the market, a fine and decent custom software development service provider is required. But the question is how much does the custom software development company charge? What will be the prices of software development in 2020? What are their hourly prices?

Don't worry! We will solve your problem. We are bringing the 2020 software development price guide and hourly rate comparison. Different countries have different early rates based on their geographical and quality factors.

India is one of the largest outsourcing countries in Asia which charges around $30 - $40 each hour as an hourly rate. India is also one of the fastest-growing countries in technology. Sri Lanka, a neighboring country has an hourly rate of $25 - $35. Pakistan provides services at almost the same price as in Sri Lanka. In southeast Asia, Vietnam and the Philippines provide software development services in a range of $25 to $35. Mobile China is another biggest outsourcing country of software development in Asia. In Europe, Russia and Hungary are decent outsourcing countries for software development services. Poland is another decent outsourcing country in Europe.


SaaS application development stands for Software as a Service application development. This model provides fully optimized programs to the end-users, that too fully functional. SaaS is also a type of cloud computing service that is offered by cloud service providers. Cloud service providers also offer PaaS ( Platform as a Service ) and IaaS ( Infrastructure as a Service ) as per the business requirements of the client. SaaS application development services are most suitable for home consumers. This allows the users to access the customized applications that are not even on their machines. The benefit of SaaS is that it is secured and flexible. It is simple to use and to manage. Cloud Computing is scalable and even innovation is of high standards.

These services are provided by various bodies in the market which includes giants such as IBM and also includes local custom software development companies that are not so big. These services are also offered by freelancers which could be quite affordable.

Software Development Prices for 2020

There are various types of custom software development companies and their prices differ accordingly.

  • Enterprise-Class

The hourly price rates of 'Enterprise Class' generally lie between $300 and $800 for each are which also depends on the skill, experience and knowledge level of the developer on the other side. On a project basis, it even gets charged up to thousands of dollars or even more as per the time it takes and some other factors.

  • Big Business Class

The hourly price rate of 'Big Business Class’ is expected around $200 to $300 for each hour are and the project goes up mm of dollars and more as per the time it takes and some other factors.

Read the blog- Where To Look For A Software Development Outsourcing Partner?

  • Mid Market Class

The hourly price rate of 'Mid Market Class’ is expected around $125 to $175 for each hour are and the project goes up mm of dollars and more as per the time it takes and some other factors. This could be beneficial for a buyer who is budget-conscious by choosing a mid-market class company with quite a decent track record.

  • Small Class

Another type of custom software development company is 'Small Class'. The hourly price rate of 'Small Class’ is expected around $75 to $175 for each hour are and the project goes up mm of dollars and more as per the time it takes and some other factors. These companies are often booked out in advance for weeks and they will generally specialized and will be strong in one particular area.

  • Freelancers

Among freelancers also, there are different prices offered by freelance developers according to their experience and knowledge level. Here, you can get both fresh developers and even experienced developers who have experience in the corporate world.

The hourly prices of these press developers revolve around $50 to $75 for each hour and the size of the project gets around a few thousand dollars. The experienced developers who had been in the field of software development for quite a long time charge around $100 to $300 for each hour and the size of their project goes larger than those of fresh developers who entered into the field of freelance Software developing. Hiring a freelancer can open save money from your pocket. But it can also be a disaster if they draw a project in between.

  • Offshore Development Companies

Another provider of custom software development services includes 'Offshore Development Companies'. These companies have a large number of developers in them and often have a large size. Their hourly price rate is almost around $25 to $50 for each hour. The size of the projects get up to thousands and millions of dollars accordingly. This is very beneficial as they can be cost-effective, but at the same time has a risk of improper management. The Nearshore software development companies also provide their service with hourly rates of $40 to $75 for each hour. and the size of projects in this also gets up thousands and millions of dollars accordingly.

The average hourly rate for software development services in various regions :

  • South Asia : $26 to $35.00 approximately
  • East Asia : $26 to $37 approximately
  • East Europe : $25 to $50 approximately
  • Latin America : $30 to $60 approximately
  • Africa : $20 to $40 approximately

There are lots of advantages to outsourcing software development. It is cost-saving as well as it saves time. You have instant support from the professionals to guide and help you grow. The risks are reduced when you are attached to a genuinely faithful company. It will help you, in the long run, to be with a good custom software development company.