What Hourly Rate Do You Pay Your Offshore Developers? India? Eastern Europe? Vietnam?

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Dave’s answer to this Quora.com question:

Certainly, it’s true that there is a wide range of prices between offshore vendors. We’ve been in the offshore business for years and we’ve put together a methodology for determining how much to pay your offshore developers. It works like this:

  1. You can’t really answer the rate question until you understand what kind of vendor the client needs. it’s much easier to produce price ranges if you know the region and the vendor type, such as a boutique shop, a large enterprise vendor, a premium vendor, upstarts, freelancers, etc. we start by categorizing vendors accordingly
  2. Now you need to understand the profile of the client, to ensure that they are choosing a vendor type that they’ll be successful with. for example, a chaotic startup that doesn’t have time for managing offshore teams needs a fully managed shop, not a bunch of freelancers or an ODC.
  3. Once we understand the client profile and have matched them to a right-fit vendor, we choose a target region and we can produce pricing info.

We get calls almost every day at SourceSeek asking ‘how much do offshore developers cost’ but we’ve learned that it’s nearly impossible to answer that question without quoting wild ranges. But, we can usually dial in a customer profile in 15 minutes or so and help them out.

We developed a video series that will take clients through this quick process and give them some real pricing numbers (for 2014) very quickly. You can see it here: Find the Best Offshore Developer, Pay the Best Price

You can also download a walk-through of a similar process here: 2015 Market Pricing Guide.

Or you can give us a call and we can give you some more specifics.

Asking ‘how much it will cost’ is tough, but if you ask something like, “How much should I pay on a monthly for a managed team of 3 Ruby developers with agile experience and good spoken English skills, ideally in E Europe” it’s much easier!

Originally published as SourceSeek’s answer to the Quora question: What hourly rate do you pay your offshore developers? India? Eastern Europe? Vietnam?? See Original Post

Dave Hecker

Co-Founder at SourceSeek at SourceSeek
Dave is a seasoned technology executive focused software delivery, quality, process, and helping clients succeed at international software outsourcing.