Offshore software development cost

In 2026, offshore developers typically cost $24-$41 an hour in Asia, $33-$75 in Latin America and $31-$76 in European outsourcing markets, depending on seniority (Accelerance, Nov 2025). A U.S. software developer’s median salary of $135,980 works out to about $65 an hour before benefits (BLS, May 2025).

Rates by region

Region Junior developer Senior developer
Asia (e.g. India, Vietnam, Philippines) $24-$31/hr $31-$41/hr
Europe (outsourcing markets) $31-$39/hr $64-$76/hr
Latin America $33-$45/hr $60-$75/hr
U.S. in-house (median salary $135,980, before benefits) - about $65/hr

Outsourcing rates: Accelerance, 2026 outsourcing rate trends (Nov 2025). U.S.: Bureau of Labor Statistics median annual pay for software developers, May 2025 (÷ 2,080 hours).

Rates dipped slightly in 2025: Accelerance reported year-over-year declines of about 8% in Asia, 7.1% in Latin America and 4.4% in Europe.

What moves the price

  • Seniority: the gap between junior and senior is widest in Europe and Latin America.
  • Stack: niche skills (AI/ML, Salesforce, SAP, security) cost more.
  • Engagement model: long-term dedicated teams get better rates than short projects.
  • Time-zone overlap: nearshore Latin America costs more than Asia but shares U.S. hours.

The hidden costs

Budget for management time (product owner, code review), onboarding, communication overhead and occasional turnover. A realistic plan adds 10-20% to the hourly math.

Compare your team with the cost calculator.

Frequently asked questions

Is offshore development really cheaper?

Usually: Asia-based senior developers cost well under half a fully loaded U.S. hire. The savings narrow with senior nearshore talent and if management overhead is high.

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