Software development is becoming more expensive each day. The pay discrepancy between the services of similar quality can be immensely disproportionate. This is one of the main reasons that various types of outsourcing are becoming increasingly popular.
New projects emerge all the time, and with them comes the need for software developers. Despite this, the gap is very real and instead of shrinking, it keeps growing. There are simply not enough developers in a company’s country of origin to choose from, hence the growth of outsourcing. The number of software developers in the world is on the rise, but the growth is, apparently, not fast enough.
Rates and demand for software developers keep increasing and if you are wondering, “How much do software developers make?” – here’s a rate/salary comparison by region and country. All of the data is provided via Salary Expert and PayScale.
Software development in North America
North America is the leading technological continent. That is due to the prevalence of places like Silicon Valley and the huge US-based companies like Apple, Microsoft, and Amazon. Likewise, there exists a large market for software developers, meaning that there are many job opportunities, as well as potential software developers for hire.
With the USA being such a vast country, the average software developer salary in USA differs somewhat from state to state. As the USA is one of the world’s wealthiest economies, the salary is accordingly large.
The top 10 states and areas (in no particular order) in the USA for software development jobs are:
- Washington, where the average annual salary is $115K, with the pay for the lowest 10 percent from $80K up to $152K for the highest 10 percent earn. The location quotient in Washington is by far the highest at 2.31. The location quotient is a metric that determines how concentrated a particular industry is in a given state, in comparison to the overall country. It means that the software development industry is 2.31 times more prominent in Washington than in the rest of the country. They don’t have that many developers though, as the number is about 140K. It enables you to find a job in the industry easier.
- California is next, with an average annual salary of almost $107K. The junior software developer salary count is $72K, while the senior software developer salary is $145K. In comparison to the state of Washington, the number of developers here exceeds 620K, which is the highest of all in the USA. The fact that California contains the most innovative and the largest IT and technological hub in the world, Silicon Valley, makes for tons of job opportunities.
- The third area worth mentioning is the District of Columbia, situated in Washington, where the average salary also exceeds $100K, with it ranging from $80K up to $150K. The location quotient is noteworthy here, as it’s at 1.67. Here, software developer salary can be as much as 6.46% of all the job market, which is the highest value anywhere in the USA. This statistic makes for an excellent environment for finding a job in software development and earning new, valuable skills. The costs of living there are pretty high, though.
- Up next is New York with a mean salary of $105K, where the lowest 10 percent earn $75K, whereas the highest average software developer salary is $140K. New York contains 218K software developers, which is the third-highest amount in the USA. New York’s Silicon Alley is also an excellent spot for job seeking, as it’s a place where many of Manhattan’s top high-tech companies are located.
- Virginia has an average salary of $100K, with it ranging from $70K to $135K. The location quotient is relatively high there too at 1.51. Virginia is the fourth in terms of the number of software developers at 204K. In Virginia, the number of software development jobs comprises 4.43%, which is the highest of any state. Virginia’s cities such as Richmond, Newport, and Fairfax all have a developed IT community.
- In sixth place comes the state of Massachusetts, where the salary is almost $95K on average, with ranges from $67K to $130K. The proximity of the Massachusetts Institute of Technology, one of the largest technological hubs, is another advantage. The Boston College and University are excellent schools for software developers as well.
- Up next is Texas with a large number of potential jobs, but also high competition, as the number of software developers there is more than 320K. The average software developer salary in Texas is $81K. The lowest 10 percent earn $60K, while the highest earn $110K. Austin is one of the fastest-growing technological hub spots in the world.
- Maryland is another state worth mentioning, as its location quotient is 1.45. There are many job opportunities there, with less competition compared to other states, as the number of software developers in Maryland is about 147K. The mean salary is $80K, with it ranging from $60K to $110K. In Maryland, software development jobs make as much as 4.41% of the overall labor market.
- The state of New Jersey has a mean salary of $85K; it ranges from $62K to $115K. Software development has a fair share of 3.40% of all the jobs in the New Jersey market, which makes it a quality place for work opportunities.
- Lastly, Illinois is also a good place to look for work as a software developer. The average salary there is $95K, with ranges from $65K up to $118K. The number of software specialists there is relatively high, though, at almost 200K, which might make looking for a job a little more challenging. The city of Chicago is another great hot spot for technology. If you have what it takes, it’s also a location worth considering.
In Canada, the median salary is at $50K. The count of Junior software developer salary is about $36K, while the more experienced ones can expect to be paid up to $70K.
North America is a region that’s the most expensive; there isn’t much potential for outsourcing there. In contrast, a lot of companies based in North America tend to outsource a lot of their projects. It’s because the rates are much cheaper in Eastern Europe and Asia.
Software development in Europe
Europe is one of the most technologically advanced continents in the world, with a significant number of opportunities for employment, as well as for hiring software developers for outsourcing. There is a massive demand for software engineers, developers, and designers alike. Europe has recently been heading in the direction of automation, namely AI, virtual, augmented and mixed reality, and IoT.
The boom of innovation there is real, as 6 out of the top 12 countries with the most startups are in Europe. This continent has some of the best conditions for new projects and startups to thrive and prosper. A stable economy and currency, a good geopolitical situation, and the shortage of developers all provide an excellent environment for this industry.
The salaries in Europe vary from region to region; there is a large discrepancy between countries. The rates can be as much as three or four times greater for one country in comparison to others.
Western Europe is very expensive when it comes to software development. In fact, it is one of the most costly regions worldwide. The software developer salary per hour of an outsource rates on average about $55-$80.
- In Germany, the median salary is $60K. Inexperienced developers can make $36K, while the senior, large city-based professionals can earn as much as $70K.
- In France, the median salary exceeds $45K. The junior software developer salary ranges from $30K and goes up to $60K for Paris-based, full-stack, and senior developers.
- As for The United Kingdom, the median is $38K. The average software developer salary can range from $28K, even up to $70K.
- In Scandinavia, specifically Sweden, the median does not exceed $50K. The salary varies from $20K up to $67K.
Countries with the most prominence and the biggest growth in the software development industry include Poland, Ukraine, Belarus, Czech Republic, Romania, Hungary, and Bulgaria. The rates for outsourcing average about $25-$50 hourly. It opens a possibility for cheap, quality nearshoring services. These countries are among the most popular for hiring your software development team.
- In Poland, arguably the best country from which to outsource your software development, the median salary is about $25K annually. Poland is one of the leading countries in IT development in all of Europe. Every fourth software developer in Central and Eastern Europe comes from Poland. As for the salaries, for entry-level workers, the pay averages $15K, while for seniors and full-stacks it can be as much as $50K. The average hourly rate for hire is $40.
- Poland has one of the best programmers in the world, and according to the HackerRank report, only Russian and Chinese developers rank higher.
- Ukraine is another country that’s extremely viable for outsourcing. Here, depending on the experience level, the salaries can range from $18.000 up to $50K for Kyiv-based full-stack developers. This averages about $24K annually. The average software developer salary per hour is $37.
- In the Czech Republic, the median annual salary is $25K. For early-career developers, the pay is about $18K, whilst for the experienced ones, it can be as much as $60K.
- In Belarus, the payment is somewhat less than that of other Eastern European countries. Here, the average is just $17K annually. The hourly rate is as little as $28.
- In Romania, the salary averages $16K-$18K. The entry level software developer salary is less than that at about $12-$14K, while for the more experienced senior and full-stack developers it can be as high as $35K. The average Romanian rate for hire is $26, which is one of the cheapest in the region.
- As for Hungary, the median salary is $20K. For entry-level developers, it averages $16K, while for seniors and full stacks it can be up to $40K, with an hourly rate for hire at $39.
- Lastly, Bulgaria’s median pays almost $18K as software developers salary. For experienced developers, the salary can exceed $30K. The hourly rate for hire is $34.
Software development in Latin America
Latin America has one of the fastest-growing IT markets in the world right now. According to Technavio, it is estimated that the Latin American IT market will have grown by $61 billion between 2018-2022. Latin America has gained a significant shift in reputation lately, as countries are shifting from outsourcing in the East to the South.
Brazil is the leading country in the continent when it comes to IT. The IT investments in Brazil surpassed the world average in 2019. It’s one of the fastest digitally growing countries in the world at the moment with a lot of potential for future projects and startups.
The rates and salaries in the most prominent IT countries are as follows:
- In Brazil, the average hourly rate for hiring a developer is $40. As for the salary, the median is $22k, and it ranges from $15K as junior software developer salary while up to $30-35K as senior software developer salary.
- For Argentina, the second most developed country in the region as far as IT goes, the median salary is $12K, which is considerably less than Brazil. For entry-level developers, it’s as little as $9K, while the senior software developer doesn’t exceed $20K. As of the time of writing, the hourly rate for hire is $55.
- Panama, the country which has made one of the biggest IT leaps recently, boasts quite significant salaries. For entry-level developers, it’s $28K on average, while the senior software developer salary is up to $50K. The median salary is $39K.
- Another noteworthy country in terms of IT development in Colombia which contributes as many as 13.000 software developers annually to the market. The median salary there doesn’t exceed $12K, which is relatively low. Entry-level developers can only count on $9K, while seniors can demand $15K.
- Chile is another country that has seen considerable growth in its IT, according to this study. Most of the country’s IT power is in their capital, Santiago. The rates at which you can hire a software developer there are at $50 right now. As for the entry-level developer salary one can expect $23K, which is a quite considerable sum, while seniors can get as much as $40K. The salary median is $32K.
Software development in Asia
Asian software development has always been an industry that has sustained growth in market share and reputation. There are tons of opportunities for outsourcing your projects to these countries. You can expect reliability, cheap services, and outstanding quality of end-products from this territory. Asia can be considered the “tiger” of software development, as many large companies choose them for hire.
India is probably the leader when it comes to offshoring, offering low prices and many possibilities.
- India’s software developers are renowned for their high skills in their industry. Along with this, they have modest rates at $15 on average, which is one of the most inexpensive worldwide. Apart from that, they have long-term experience in delivering IT services. The median salary for India is $10K. Inexperienced developers can earn $7K, while senior software developer salary in India is $13K.
- Vietnam is one of the countries which is most notable for its IT expertise. It hosts companies such as Nokia, Microsoft, IBM, Intel, and Samsung. The hourly rate there starts at $20. The median salary is $20K, and it ranges from $15K up to $25K.
- China’s software developers are among the most skilled in the world. Hiring a Chinese IT professional will cost you $50 an hour up to $100 for the best professionals. China is booming with thousands of such professionals boasting the capability of creating great end-products. The salary there is a whopping $40K. It ranges from $28K for entry-level and junior software developer salary and exceeds $50K as senior software developer salary.
- The Philippines is another cheap country, as the rates there usually don’t exceed $20 an hour. They are the third-largest English-speaking country in the world. The Philippines produce as many as 30000 alumni ready to do IT work. The salary there is relatively small, as the median is $11K. It ranges from $8K up to $15K.
- Thailand is one of the most talent-rich countries when it comes to IT. They have excellent infrastructure for IT experts and specialists, and their education system keeps on giving back to the market. The salary there averages at $21K and varies from $15K up to $26K.
Software development in the Middle East
The Middle East is currently enjoying a substantial IT-boom. The demand for services is currently higher than ever. Middle East countries such as the UAE, Qatar, Kuwait, Saudi Arabia, and Israel and, these territories are likely to become influential players in the software development industry.
Rates in the Middle East span from $20 up to $50 for an hour of their service, with Israel being the most expensive at $25-$60. Israel is the leader of the Middle Eastern region as far as IT skills go. Israeli youth has an option to apply for learning institutes and obtain skills needed for programming and development. The salaries for software developers are as follows:
- Israel’s median pay is relatively significant at $67K. It ranges from $47K up to as much as $82K.
- UAE’s median pay is one of the largest out of all the countries listed. It oscillates at around $75K. Entry-level developers can count on as much as $52K. Senior developers can fare much better than that at $93K.
- Saudi Arabia also has a large median salary – $50K. It can vary from $35K to $60K.
The demand for software developers is more significant than ever. Whilst their rates keep steadily growing, the gap remains more or less static. Each day the importance of software developers becomes more vital.
The discrepancy in pay and quality of services is substantial. One must do a large amount of research to hire the best software developer for himself, as there are lots of factors to examine. Although there are many to choose from, there still exists a large deficit, which likely will never be filled.