Outsourcing software development: the options
As a business owner you don't have to build everything yourself. But where do you outsource? The three options are: local, nearshore (Eastern Europe) and offshore (Asia).
Option 1: A local agency
Hourly rate: €80 – €150/hour
Time zone: no difference
Communication: your own language, face-to-face possible
Pros:
Cons:
Option 2: Nearshore (Poland, Romania, Ukraine)
Hourly rate: €35 – €70/hour
Time zone: 0-2 hours difference
Communication: English
Pros:
Cons:
Option 3: Offshore (India, Philippines, Vietnam)
Hourly rate: €15 – €35/hour
Time zone: 4-7 hours difference
Communication: English
Pros:
Cons:
The hidden costs of offshore
The hourly rates are lower, but there are hidden costs:
Our recommendation
For complex, business-critical projects: choose a local agency. The higher hourly rates are more than offset by better communication, less rework and faster delivery.
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