Do you know the global software development outsourcing rates?

Jun 14, 2018

The #1 inhibitor to business growth is all about Labor costs and the shortage of software developer talent in the U.S. That’s why software development outsourcing is more popular than ever. According to statistics provided by Accelerance, we will help you find answers for questions:

How are software development outsourcing rates quoted? 

How much does it cost to outsource software development?

For the 1st question: how software development outsourcing rates are quotes: 

Comparing one market or provider to another, buyers tend to compare a blended hourly rate of 6 – 8 person scrum team and assume full-time employment (FTE) of that team for 12 months or more. Naturally, actual rates will vary by skill level, technical specialty and both the term and commitment of the engagement.

Actual engagements can be structured one of three ways, ordered from most desirable to least.

Option 1: Dedicated Team

This is where the partner commits individuals to you full time and you pay for them on a per month basis. Developers are part of your team, will sit together and will integrate with your development activities. You will build maximum rapport with your team and, importantly, they will feel like they are part of something bigger.

Option 2: Staff Augmentation

Staff augmentation is a relationship that you hire engineers to augment activities domestically and pay them hourly. This model can be valuable when you need resources temporarily, but you’ll need to track and approve hours carefully and will have to work harder to keep the engineers engaged and on task, as they will not feel the connection to your team.

Option 3: Fixed Bid

It occurs when you deliver the partner a detailed project spec and they commit to complete it for a fixed price. This setup can work with smaller and highly specified projects (e.g. developing a mobile app or MVP). However, it is not well suited to agile development processes since larger projects tend to be defined as they progress.

 

Moving to Question 2: How much does software development outsourcing cost?

Accelerance has investigated more than 7,000 software companies around the world. Rates as reported below according to this survey.

Vietnam was ranked No. 1 BPO and Shared Service Location in the world, according to Cushman & Wakefield (2016).

Vietnam in APAC’s Top 6 Primary Locations of Global Delivery Country Destinations, according to Gartner 2016.

HCMC was ranked #2 in Top 10 global City Momentum Index (CMI).

That’s a rewarding endorsement and the motivation for Inapps Technology to be one of Leading Software Development Outsourcing Company in Vietnam – Asia Tier 1 Delivery Destination.

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