Honest comparison of software development hourly rates and project costs across 15+ countries — US, UK, India, Eastern Europe, Latin America, and more. Real numbers, not marketing ranges.
What determines software development rates? Software development rates vary by country primarily due to cost-of-living differences, not skill differences. A senior developer in Bangalore and one in San Francisco may have identical skills, but their salary expectations differ by 3–5x because rent, food, and healthcare cost fundamentally different amounts. Additional factors include local demand, specialization, English proficiency, and timezone convenience.
Every article about software development rates gives you the same recycled ranges from 2019 with a new year slapped on the title. This one is different because we're a studio in India that competes globally — we know exactly what the market looks like from the inside.
| Country | Junior (0–2 yrs) | Mid-Level (3–5 yrs) | Senior (6+ yrs) | Tech Lead/Architect |
|---|---|---|---|---|
| United States | $80–$130 | $130–$200 | $180–$300 | $250–$400+ |
| Canada | $70–$110 | $100–$160 | $140–$220 | $200–$300 |
| United Kingdom | $70–$120 | $110–$170 | $160–$250 | $220–$350 |
| Germany | $65–$100 | $90–$150 | $130–$220 | $180–$300 |
| Australia | $70–$110 | $100–$160 | $150–$230 | $200–$320 |
| Poland | $35–$55 | $50–$80 | $70–$120 | $100–$160 |
| Ukraine | $30–$50 | $45–$75 | $65–$110 | $90–$150 |
| Romania | $30–$50 | $45–$70 | $60–$100 | $85–$140 |
| India | $15–$30 | $30–$55 | $45–$85 | $70–$120 |
| Brazil | $30–$50 | $45–$75 | $65–$110 | $90–$150 |
| Mexico | $30–$50 | $45–$70 | $60–$100 | $85–$140 |
| Argentina | $25–$45 | $40–$65 | $55–$95 | $75–$130 |
| Philippines | $12–$25 | $25–$45 | $35–$65 | $50–$90 |
| Vietnam | $12–$25 | $22–$40 | $35–$60 | $50–$85 |
| Nigeria | $10–$20 | $18–$35 | $30–$55 | $45–$75 |
The US rate includes everything. American freelancers charge $150–$300/hr and that covers their health insurance, retirement, taxes, office space, and time between projects. When you outsource at $50/hr, you're not getting a worse developer — you're getting someone whose life costs less to live.
The cheapest rate is never the cheapest project. This is the single most important thing in this guide. A $15/hr developer who takes 6 months to deliver poorly is more expensive than a $60/hr developer who ships in 2 weeks. We've rebuilt more projects from budget vendors than we can count.
Rates within a country vary enormously. In India alone, rates range from $10/hr (a college graduate freelancing on Upwork) to $100+/hr (a senior architect at a premium consultancy). The country tells you the range; the specific vendor tells you the quality.
Some skills cost more everywhere:
| Specialization | Rate Premium | Why |
|---|---|---|
| AI/ML Engineering | +40–80% | Supply-demand imbalance, specialized knowledge |
| DevOps/Cloud Architecture | +25–50% | Critical infrastructure, fewer specialists |
| Mobile (React Native/Flutter) | +15–30% | Cross-platform expertise is scarce |
| Blockchain/Web3 | +30–60% | Niche, volatile demand |
| Full-Stack (React + Node.js) | Baseline | Most common skill combination |
| Frontend (React/Vue) | -5–10% | Larger talent pool |
| WordPress/PHP | -20–40% | Commoditized, massive supply |
Strengths: No timezone issues for North American clients. Strong IP protection. Deep senior talent pool. Easy communication. Weaknesses: Highest cost by far. Many consultancies bill for overhead, not just development time. Best for: Companies that need real-time collaboration, have compliance requirements (HIPAA, SOX), or when the project IS the competitive advantage.
Strengths: Strong engineering culture. GDPR-aware by default. Reasonable timezone overlap with US East Coast. Weaknesses: Almost as expensive as the US. Availability can be limited. Best for: European companies, GDPR-sensitive projects, companies that value process rigor.
Strengths: Strong technical education systems. Good English proficiency. Reasonable rates. Proven track record (Netguru, STX Next, and many others operate from here). Weaknesses: Geopolitical instability in some regions. Timezone is 6–8 hours ahead of US East Coast. Best for: European companies, US companies that don't need real-time overlap, technically complex projects.
Strengths: Largest English-speaking developer population. Widest rate range (budget to premium). Strong ecosystem (IT parks, startup hubs in Bangalore, Hyderabad, Pune). 9.5-hour timezone offset from US East enables "follow the sun" development. Weaknesses: Quality variance is the highest of any market. The oversaturation makes vendor selection critical. Cultural tendency to overpromise. Best for: Cost-conscious companies with clear requirements, projects that benefit from timezone offset, companies willing to invest in vendor selection. Read more: Outsourcing to India — what you actually need to know
Strengths: Same or similar timezones as US. Growing tech ecosystem. Competitive rates. Cultural alignment with US companies. Weaknesses: Smaller talent pool than India or Eastern Europe. English proficiency varies widely. Infrastructure can be inconsistent. Best for: US companies that prioritize timezone overlap over cost, startups looking for nearshore options.
Strengths: Lowest rates. Growing talent pool. Strong work ethic. Weaknesses: Language barriers can be significant. Senior talent is scarce. Process maturity is still developing. Best for: Simple, well-defined projects. Companies with strong technical leadership who can provide detailed specifications.
Hourly rates tell part of the story. Here's what a real project actually costs:
Scope: User auth, dashboard with data visualization, API integrations, admin panel, responsive design.
| US Agency | Eastern Europe Studio | India (Quality Studio) | India (Budget Shop) | |
|---|---|---|---|---|
| Estimated hours | 400–600 | 400–600 | 400–600 | 800–1,200* |
| Hourly rate | $180 | $80 | $55 | $18 |
| Project cost | $72K–$108K | $32K–$48K | $22K–$33K | $14K–$22K |
| Timeline | 8–12 weeks | 6–10 weeks | 4–8 weeks | 12–20 weeks |
| Rework cost | Low | Low | Low | $10K–$25K |
| True total cost | $72K–$108K | $32K–$48K | $22K–$33K | $24K–$47K |
*Budget shops take 2–3x longer because of skill gaps, poor architecture, and rework cycles. The "true total cost" includes the rebuild or major fixes that almost always follow.
The lesson: A quality Indian studio offers 60–70% savings over US agencies with comparable outcomes. A budget Indian shop offers 80% headline savings but the true cost is often only 30–40% less — with worse results and 3x the timeline.
If a vendor quotes you hours × rate, they have an incentive to take longer. A fixed-price quote means they absorb the risk of estimation errors. This is how we work at Hunchbite — you know the total cost before we write a line of code.
CMMI Level 5 certifications and ISO badges tell you about process documentation, not code quality. Ask to see actual software they've built. Use it. Is it fast? Is it well-designed? Does it work?
Don't commit to a 6-month engagement based on a sales call. Start with a small, defined project (2–4 weeks). Evaluate the code, the communication, and the process. Then decide.
The cheapest build is meaningless if you spend 6 months fixing it. Factor in:
If you're optimizing for cost: India (quality studio tier) or Eastern Europe. Both offer 60–70% savings over US/UK with strong results.
If you're optimizing for timezone overlap: Latin America (for US companies) or Eastern Europe (for European companies).
If you're optimizing for speed: India or Eastern Europe — both have large, experienced talent pools that can start quickly.
If you're optimizing for risk minimization: Onshore or nearshore with a fixed-price contract.
The country matters less than the specific team. A great studio in India will outperform a mediocre agency in San Francisco every time. Focus on finding the right partner, not the right country.
Ready to compare options? Book a free discovery call — we'll give you an honest assessment and a fixed quote, so you have a real data point to compare against.
If this guide resonated with your situation, let's talk. We offer a free 30-minute discovery call — no pitch, just honest advice on your specific project.
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