As the world goes through digitization, the demand for software developers also rises. According to the US Bureau of Labor Statistics, the need for software developers will be 25% higher in the next ten years.
Every industry is in dire need of developers to help them keep up with these changes. However, many still don’t know the true cost of hiring a software developer in the world. Businesses must learn this data to prepare for the expenses involved in it. Likewise, software developers must know this data to understand how much to charge for their work.
The problem is that software developer rates vary in so many cases and factors. Thus, it’s crucial to analyze the actual cost. Keep reading to learn more.
🔑 Key Takeaways
- The true cost of hiring a software developer in the world ranges from as low as $12,000 but it can be as high as over $44,000.
- North American and European countries have the highest salary rates for software developers. Most of these countries offer around $65 to $70 per hour.
- Asian and African countries offer the lowest rates for software developers. Rates in Nigeria and India are only $3 to $5 per hour.
- Besides the salary, hiring a software developer also includes sourcing, recruitment, and training.
How Much Does It Cost to Hire a Software Developer in the World?
The average cost of hiring a software developer can be as low as $11,660, or it can be as high as over $44,960, including taxes. This costing range only includes the hiring process expenses.
If you will add the salary, expect to pay around $20-$80 per hour. This estimated salary range depends on the location. It also depends on the project type and the developer’s experience.
Some software developers get paid less than $20 per hour, while others earn over $80. Another major factor that affects the rates is the scope of the development project.
💡 Did You Know? The lowest software developer salary is in Nigeria and India. These two countries have low salary offers at only around $7,255 and $7,725 per year. When computed hourly, these salaries fall at less than $4 per hour. |
Average Hourly Rate for a Software Developer By Country
Every country or region has its rate for software developers. Some countries have more resources and demand for these workers, so they are ready to pay higher rates. Meanwhile, some areas are still growing, meaning their rates are lower.
Here’s a quick overview of the average hourly rate for software developers:
The software developer’s salary is the main factor in the cost of hiring. Thus, it’s crucial to understand these rates. With this data, both businesses and developers can check how much they should spend or charge, respectively.
💡 Did You Know? A significant part of the software development process concerns testing. Developers generally spend 20% to 40% of their time on testing. Thus, investing in software testing tools can save more of the developer’s time and save less in the long run. |
North American Countries: Highest Salary Rates for Software Developers
Some North American countries pay the highest software developer salary rates. In this area, the cost to hire a developer is around $30 to $80 per hour.
North American businesses would need to spend more to accommodate the pay grade. For software developers, it’s the best place due to its high pay grades and work opportunities.
You can expect these salary ranges in most North American countries:
As of 2023, the US has 4.4 million software developers. Companies in this country are always willing to pay a generous salary for such workers. However, some North American countries like Haiti and Costa Rica only pay around $13 per hour. These countries also tend to have higher tax rates. It’s something to consider for both businesses and software developers.
The US offers software developers an average salary of $107,331 annually, around $51.60 per hour. This average salary already includes taxes and other benefits. Entry-level software developer positions start at around $85,000 annually. Meanwhile, senior positions can make almost $150,000.
💡 Did You Know? The top 5 highest salaries for software developers are in the United States: – California: $146,770 – Washington: $145,150 – Maryland: $131,240 – New York: $129,950 – Rhode Island: $128,790 Based on this annual salary, software developers in these states would enjoy at least $67 to $77 per hour. |
Besides the US, Mexico and Canada are also two other options for software developers.Canada is excellent for software developers due to its growing tech industry. It’s also a welcoming country for immigrants and has a high quality of life.
Another North American country for software developers is Mexico. While the country has a lower average salary, it’s still a prime location for such workers.
South American Countries: Growing Software Developer Hub
South America is home to some of the best countries for businesses that need software developers. The continent, consisting mainly of Latin America, grew its software industry over the years.
Several governments of South American countries improved their telecom and offered affordable connections. Thus, software developers will find accessible resources while working here.
You can expect these salary ranges in most South American countries:
The continent’s lowest average salaries are around $20 per hour, while the highest is $50 per hour. With generally low software developer salaries, South America becomes the best option for companies to seek workers.
Predictions show that these countries will generate over $78 billion by the end of 2023. Thus, it is an excellent choice for software developers looking for opportunities.
Brazil is among the highest-paying countries for software developers in South America. It has an average annual rate of over $50,000.Besides Brazil, countries like Argentina, Chile, and Columbia also top the list for software developers.
Asian Countries: High Software Developer Talent Pool
Asia is the most attractive place to look for software developers due to their low salary ranges. Despite the low salaries, developers still consider working here due to low living costs.
You can expect these salary ranges in most Asian countries:
India has the most demand for software development since it has the lowest rates. The average cost to hire a software developer in India is around $7 to $10 per hour. Based on predictions, 12 million opportunities will be available in India within five years.
Singapore is also ideal due to its highest salary range for software developers in Asia. A software developer’s current average salary in Singapore is almost $70,000 annually.
📝 Note Singapore’s cost of living is higher than other neighboring countries. Thus, the higher salary has little impact on software developers. |
Besides India and Singapore, Vietnam and Thailand also enjoy growth in the tech industry. These two countries also have a high demand for software developers.
European Countries: For Excellent Software Developer Salary Range
European countries are often the go-to destination for software developers. The main reason is the continent’s high compensation rates that match its cost of living.
Sweden, Denmark, and the UK are the European countries with a high demand for software developers. While the software developer salaries in Europe are lower than in the United States, it’s still higher than in other regions.
Here’s a quick look at the average software developer rates in Europe:
European countries differ in compensation for software developers. Some salaries can be as low as $15 to $24 per hour. Meanwhile, it can be as high as over $60 per hour.
When it comes to salary, Switzerland has the highest offer, averaging at over $115,000. Italy has the lowest, offering less than $30,000 on average. Besides Switzerland, the UK, Ukraine, Austria, and Germany are also ideal for software developers.
African Countries: Lowest Rates for Software Developers
Africa is one of the locations that are yet to reach its maturity in software development. For instance, even the senior software developer hourly rate is less than $20. Thus, you can expect some of the lowest compensation for developers in its countries.
Here’s an overview of the average salary for software developers in African countries:
The average salary in these countries is staggeringly low at around $3 to $12 per hour. While the cost of living here is cheaper, it’s still a low price that doesn’t match the complexity of this job.
Niger and Nigeria are the two countries with the lowest rates at only around $3 per hour. Meanwhile, Kenya and South Africa have the best salaries at $8 to $12 per hour.
While it’s not the best choice for native African residents, the countries attract more companies to outsource. With lower compensation, African countries now become a breeding ground for developers. Companies with software development projects can find skills and frameworks in their countries.
Oceanian Countries: Excellent Software Development Training
Despite being the smallest continent, Oceania boasts of excellent opportunities for software developers. The countries in this continent offer a high salary range for all software developers.
Its countries, especially Australia, have a high demand for developers. The increased demand also means a pay grade worth considering for every software developer.
Here’s a quick overview of the average salary in Oceania for software developers:
Some countries in Oceania offer as low as $8 per hour. However, Australia can also be the best, with an average salary of as high as $59 per hour.
New Zealand is also an ideal country for software developers, with salaries of around $21 per hour.
Overall, countries in Oceania offer excellent pay, conducive work culture, and exceptional training. These things continue to attract more developers to stay and work for companies here.
Additional Costs and Time It Takes to Hire a Software Developer
The salary is only one of many things to consider when hiring a software developer. The hiring process itself takes some time, and it also entails extra expenses.
Here’s a quick overview of the expenses and the time it takes for a hiring process of software developers:
Process | Cost | Time |
Sourcing | ||
Job Posting | $1000 ($100 per day) | 2 Weeks |
Applicant Tracking | $200 | 1 Month |
Recruiting | ||
Recruiting Costs | $1000-$30000 | 1 Week to 1 Month |
Assessment | $60 (per applicant) | 1 hour per applicant |
Interview | $200 | 10-20 Hours (1-2 Hours per applicant) |
Training | ||
Productivity Loss | $5,000-$8,000 (per applicant) | 1 Month |
On-Boarding and Training | $4,200-$5,500 | |
Total | $11,660-$44,960 | 3-4 months |
*The rates included in this table is only an estimate and may vary depending on the company, work, or project.
Hiring a software developer includes sourcing, recruiting, and training. The salary and other compensation will only start once an applicant passes.
Sourcing
Average Time | Average Cost |
1 month | $1200 |
Expect to spend around $1,200 a month for sourcing. These steps involved posting for the vacant position for applicants to apply.
Posting on platforms like LinkedIn means you have to pay for it. You’ll need more than a day to find potential candidates. The general rule of thumb is to be at least ten days.
You’ll also need to pay for applicant tracking. Whether it’s a person or an app, you’ll have to pay for it.
Recruiting
Average Time | Average Cost |
10 days to 1 month | $1260 to $30,260 |
The recruitment process can cost as little as under $1,300, but it can also go as high as over $30,000. It depends on whether you’ll do it yourself or get an external recruiter.
Depending on the recruiter, the process can take as little as one week or over a month.
This step also involves assessments and interviews. The general estimate here would be at least an hour per applicant for evaluation.
You must also allot two hours since there are initial and final interviews.For the assessment and interviews, your HR will do it for you, but it will take time. Thus, expect to spend at least $100 per hour for one applicant.
Training
Average Time | Average Cost |
1 month | $9,200 to $13,500 |
Once the recruitment is through, you’ll have potential candidates to train.
Generally, applicants are only around 25% productive during the training. Some applicants are unfit, meaning you’ll have to find others.
It’s not an expense but a productivity loss. Generally, that can cost around $5,000 to $8,000 per applicant. The same time for onboarding and training, costing around $4,200 to $5,500.
The entire training can take at least a month, meaning spending $9,200 to $13,500.
Of course, these numbers and duration are dependent on each factor. It can be cheaper and shorter or more expensive and longer. It depends on how you process hiring software developers.
Conclusion
Hiring a software developer these days is crucial for every business. With a developer, any business can stay competitive, be more productive, and save costs in the long run. It’s also crucial since software development processes can create unique solutions to problems.
One problem is that the true cost of hiring a software developer in the world varies for every business. With this guide, you can have a starting point on a reasonable salary depending on where you are.
If you’re a business owner, you’ll know how much it costs, and you can prepare for it. If you’re a software developer, you’ll know how much your services and skills are worth.
FAQs on Software Developer Hiring Costs
Which country has the cheapest software developers?
Nigeria has the lowest salary for software developers, with only $7,255/year, less than $4/hour. India also has the lowest rates for software developers at around ₹ 361, averaging less than $5 per hour.
What is the average software developer salary around the world?
The average software developer’s salary around the world varies per country. The usual range is around $30 to $60 per hour. However, some countries can earn as much as $80 per hour or as low as less than $4 per hour.
Which country is no 1 in software development?
With almost 7 million developers, China is the best in software development. This country has a large human resource pool. It also has a vast market that allows developers to mature without pressure.
Which country has the most demand for software developers?
The United States is the country with the highest demand for software developers. As the hub for innovation and tech advancements, software developers are always in need. Moreover, US companies know the value of developers and are willing to pay hefty rates for the talent.
By Harsha Kiran
Harsha Kiran is the founder and innovator of Techjury.net. He started it as a personal passion project in 2019 to share expertise in internet marketing and experiences with gadgets and it soon turned into a full-scale tech blog with specialization in security, privacy, web dev, and cloud computing.