Breaking Down the Cost of Outsourcing Custom Software Development

Breaking Down the Cost of Outsourcing Custom Software Development

There used to be a time when software development was considered an expensive affair. Hiring a bunch of software developers to work in-house and having them develop custom software for the company certainly involves various types of expenses that can make even the simplest of software development requirements costly to manage. But since outsourcing custom software development has come into the picture, the situation has changed dramatically. Now all you have to do is find a suitable custom software development company and delegate them the task of developing the software for you. Whether you are a small-scale business or large-size enterprise, it’s very much likely for you to enjoy great benefits that come along with software outsourcing, mainly in terms of costs.

When you hire custom software development services to take care of your application development requirements, you end up saving a lot of money that would otherwise be consumed in project management and operational costs. The custom software development company that you hire does all the work for you and delivers the product within a reasonable price range.

This brings us to the question: how much does it actually cost to outsource custom software development? Well, the truth is that there is no one definite answer to this question simply because there are just too many factors that need to be considered for cost estimation. The cost of outsourcing software development will depend on:

  • Region to which you are outsourcing.
  • Type of application that you are looking to build.
  • Technology that you want to build your application upon.
  • Skill set and experience level of the offshore developers that you are hiring.
  • Specific requirements of your project, and so on.

We’ll look at some of these factors in more detail below:

Cost According to Region


There are many countries in Asian region offering web development services at affordable rates. These include India, China, Indonesia, Philippines, Vietnam, Thailand, etc. The average hourly rate of hiring a software developer from these countries can range anywhere from $15 to $40.

Eastern Europe

When we talk about Eastern Europe, we mean countries like Poland, Russia, Slovakia, Ukraine, Bulgaria, Latvia, Czech Republic, Estonia, Romania, and others. If you choose to hire a developer from these countries, then you can expect the average hourly rate to be anywhere between $25 to $50.


Africa is another popular region for hiring custom software development services from. The countries in this region that you can outsource to include Nigeria, Egypt, Morocco, South Africa, Kenya, etc. The average hourly cost of software developers would vary across these countries. But, broadly speaking, the range is $20 to $50.

Latin America

With Latin America, we come to the end of our list of global regions that are most popular for software development outsourcing. Mexico, Chile, Argentina, Brazil are some prominent countries in this region. Be ready to pay on an average $30 to $50 per hour when you hire a software developer from here.

Read the blog- Best Ways to Cut Down the Cost of custom Software Development

Cost According to Project

We have looked at how the cost of outsourcing custom software development varies according to region. Now it’s time to look at how this cost varies on the basis of the type of application that you want the custom software development company to build for you. The cost of building a mobile application will be different from the cost of building a web application. Similarly, the cost of developing a simple web application with basic functionalities will differ from the cost of developing a more intricate application with state-of-the-art features.

The technologies that you choose for your project would have a say too in the overall cost. Using a common technology will cost less as compared to using a niche technology. Simply because developers who are skilled in the common technologies will cost less than the developers who have acquired expertise in the cutting-edge, niche technologies. Then again, based on the difficulty level of your project, you’re going to have to hire developers with the right experience and knowledge pool. Hiring junior developers to work on a project of big magnitude just doesn’t cut it. Here, you do need the advanced knowledge and experience of senior developers on the table. On the other hand, if your project is simple and basic enough, the expertise of junior developers may be all that the project needs.


As you can see, the answer to how much custom software development outsourcing costs has many layers to it. Nevertheless, it is safe to say that outsourcing is a cost-efficient route to software development. You can hire custom software development services as per your needs and pay accordingly. You just need to be careful in hiring your custom software development company, making sure that it is trustworthy and professional. Once you hire web development services from a company with a good reputation, you can rest assured about your project.