The Secrets of Cost Saving: Nearshore Software Development Rates in CEE and LATAM
Central and Eastern Europe (CEE) and Latin America (LATAM) are at the forefront of nearshoring. In contrast to in-house hiring, these regions let tech leaders build skilled teams while getting lower developer rates.
In this article, we’ve put together a comparison of nearshore software development rates among the most popular destinations for EU and North American businesses, including:
- Poland
- Ukraine
- Romania
- Czech Republic
- Mexico
- Argentina
- Brazil
- Colombia
We’ve analyzed the actual rates in these regions, using data from reputable sources such as Accelerance, Clutch, PayScale, Glassdoor, Indeed, CodersLink, LinkedIn, and Plane.com. We’ve also relied on our own speculation as well as 15+ years of experience as a software development company specializing in building tech teams in CEE and LATAM. Additionally, we’ve calculated the potential cost savings from relocating your software development projects to these tech hubs.
Understanding nearshore and offshore software development rates is crucial when choosing a location for your remote branch. Here’s a quick comparison based on our research:
However, the software development pricing won’t necessarily cost within that ballpark number in each case. The rates depend on several factors, including developer experience, location, and skill sets, as well as vendor fees. So, before nearshoring, it’s a good idea to look beyond hourly rates.
Nearshore software development rates in Central & Eastern Europe (CEE)
CEE is recognized as a second-to-none nearshore outsourcing destination on a global scale. The region provides flawless opportunities for nearshoring for the EU countries for multiple reasons:
- A strong reputation for solid quality-to-price ratio
- Regulatory, political, and cultural ties with the EU
- A robust innovation-focused center
- Alignment with Western business ethics
- Full workday overlap with the EU
- High English proficiency
What are the rates of software developers in this region? The average cost for hiring software developers in CEE, according to Accelerance Global Software Outsourcing Trends and Prices, is $26–$95, yet it varies from country to country and, as we’ve mentioned before, depends on developer seniority, vendor fees, project complexity, and other factors.
For quicker access, we’ve put together a table with average nearshore software development rates along with brief information about each tech hub’s time zone and talent availability.
To illustrate potential savings from nearshore development, we’ve used the benchmark rate in the EU that we previously established – approximately $70.
| Savings compared to in-house in the EU | Time zone | Talent pool | ||
| Poland | ~$45 | up to 35% | GMT+1-GMT+2 | 400,000+ |
| Ukraine | ~$30 | up to 60% | GMT+2-GMT+3 | 300,000+ |
| Romania | ~$35 | up to 50% | GMT+2-GMT+3 | 130,000+ |
| Czech Republic | ~$50 | up to 30% | GMT+1-GMT+2 | 140,000+ |
Now, let’s take a closer look at each country individually to gain a deeper understanding of nearshore software development pricing in the CEE region.
Poland
Tech hubs: Warsaw, Kraków, Wrocław
Developer availability: With 400,000+ software engineers, it’s the largest repository of technologists in CEE.
Top skills: Strong Java and Algorithm expertise along with excellence in JavaScript, SQL, Python, C#, and PHP.
The price for nearshore development per hour:
| Average nearshore software development/hourly rate | Talent availability | |
| AI/ML engineer | $25–$55 | 1,200+ |
| Java | $30–$40 | 90,000+ |
| JavaScript | $20–$35 | 112,000+ |
| Python | $25–$35 | 100,000+ |
| PHP | $15–$30 | 55,000+ |
| C# | $25–$40 | 60,000+ |
| .NET | $25–$35 | 35,000+ |
| Android | $25–$40 | 24,000+ |
| iOS | $25–$40 | 15,000+ |
| Quality Assurance (Automation) | $20–$25 | 20,000+ |
English proficiency: Poland earned 600 points on the English Proficiency Index, which places the country 13th (out of 111 countries)
Education: Local universities generate over 15,000 tech graduates annually
READ ALSO: Nearshoring to Poland in 2024: What Should you Know About it?
Ukraine
Tech hubs: Kyiv, Lviv, Odesa, Dnipro
Developer availability: The second-largest technology market in CEE – 300,000+ software engineers.
Top skills: Local developers excel at Java, C++, JavaScript, C#, Python, PHP, Swift, and Kotlin as well as are ranked #1 in Security and #4 in Mathematics, according to the report.
Nearshore software development rates per hour:
| Average nearshore software development/hourly rate | Talent availability | |
| AI/ML engineer | $20–$50 | 800+ |
| Java | $25–$35 | 45,000+ |
| JavaScript | $20–$30 | 94,000+ |
| Python | $30–$35 | 41,000+ |
| PHP | $20–$25 | 35,000+ |
| C# | $25–$35 | 32,000+ |
| .NET | $25–$30 | 20,000+ |
| Android | $20–$35 | 16,000+ |
| iOS | $20–$35 | 10,000+ |
| Quality Assurance (Automation) | $15–$20 | 15,000+ |
English: Ukraine holds the 35th position in the global EF English Proficiency Index (out of 111 countries).
Education: Ukrainian institutions generate 30,000 IT alumni per year.
READ ALSO: How to Build a Dedicated Development Team in Ukraine
Czech Republic
Tech hubs: Prague, Brno, Pardubice
Developer availability: 130,000+ software developers, working within a landscape of 7,700 IT companies.
Top skills: Excellence in Mathematics and Security. The prevailing technologies include Python, C#, SQL, JavaScript, HTML, and CSS.
Nearshore software development rates per hour:
| Average nearshore software development/hourly rate | Talent availability | |
| AI/ML engineer | $25–$50 | 500+ |
| Java | $25–$35 | 30,000+ |
| JavaScript | $20–$25 | 35,000+ |
| Python | $20–$35 | 35,000+ |
| PHP | $20–$25 | 23,000+ |
| C# | $25–$40 | 23,000+ |
| .NET | $25–$40 | 11,000+ |
| Android | $20–$40 | 7,000+ |
| iOS | $20–$40 | 6,000+ |
| Quality Assurance (Automation) | $20–$35 | 5,000+ |
English: The proficiency in the country is notably high, with it ranking 23rd (out of 111 countries) in the EF English Proficiency Index.
Education: The Czech Republic is home to 16,000+ newly minted IT professionals.
Romania
Tech hubs: Bucharest, Cluj-Napoca
Developer availability: Romania is home to 140,000 software developers, taking 3d place in CEE.
Top skills: SQL, Java, JavaScript, and Python are the most popular technologies.
Nearshore software development rates per hour:
| Average nearshore software development/hourly rate | Talent availability | |
| AI/ML engineer | $25–$45 | 600+ |
| Java | $20–$25 | 56,000+ |
| JavaScript | $15–$20 | 58,000+ |
| Python | $20–$25 | 43,000+ |
| PHP | $20–$25 | 25,000+ |
| C# | $20–$30 | 33,000+ |
| .NET | $20–$30 | 16,000+ |
| Android | $20–$30 | 12,000+ |
| iOS | $20–$30 | 6,000+ |
| Quality Assurance (Automation) | $15–$25 | 10,000+ |
Education: With 100+ institutions, 25,000+ students enroll in tech education each year
English: Romania holds 17th place (out of 111 countries) on the English Proficiency Index globally.
READ ALSO: Your Guide to Hiring Developers in Romania
How much does it cost to hire software developers in Latin America?
LATAM is keeping close with CEE in terms of popularity as a nearshoring development hotspot. What sets it apart as the ultimate destination for many North American businesses? Let’s take a look at the region’s competitive advantages:
- An expansively growing pool of skilled technologists
- A full workday overlap with North American companies
- Significant cost savings compared to other regions
- Geographical advantage for more convenient travel
- Cultural compatibility with Western approaches
- Access to bilingual tech specialists
The average pricing for nearshore development in LATAM, according to the Accelerance report, falls between $34 to $96 per hour, depending on the tech hub. Using $80 as the average US rate, we’ve created a table showing the potential savings achievable by nearshoring LATAM’s most skilled tech hubs.
| Savings compared to in-house in the US | Time zone | Talent pool | ||
| Mexico | ~$30 | up to 65% | GMT-5-GMT-7 | 220,000 |
| Argentina | ~$40 | up to 50% | GMT-3 | 115,000+ |
| Brazil | ~$35 | up to 60% | GMT-2-GMT-5 | 500,000+ |
| Colombia | ~$25 | up to 70% | GMT-5 | 65,000+ |
Let’s now examine each location in detail to size up the cost of nearshore software development outsourcing and opportunities in Latin America.
Mexico
Tech hubs: Mexico City, Guadalajara, Monterrey
Developer availability: With 220,000+ software engineers, it’s the second-largest pool in LATAM.
Top skills: Strong data science, machine learning, and statistics expertise as well as Python and C/C++ software development proficiency.
Nearshore software development rates per hour:
| Average nearshore software development/hourly rate | Talent availability | |
| AI/ML engineer | $15–$40 | 600+ |
| Java | $25–$50 | 100,000+ |
| JavaScript | $20–$45 | 110,000+ |
| Python | $25–$40 | 90,000+ |
| PHP | $25–$35 | 60,000+ |
| C# | $35–$55 | 60,000+ |
| .NET | $40–$55 | 33,000+ |
| Android | $35–$50 | 20,000+ |
| iOS | $35–$50 | 13,000+ |
| Quality Assurance (Automation) | $10–$30 | 30,000+ |
English proficiency: Low proficiency according to EF EPI index, yet huge potential to hire a bilingual team.
Education: 407,000 graduates annually from technical and technological secondary education.
READ ALSO: Nearshoring in Mexico: The Market, Companies, Talent Pool, and Salary Research
Argentina
Tech hubs: Buenos Aires, Córdoba, Rosario
Developer availability: 115,000+ software engineers with the potential to grow to 500,000 over the next 5 years.
Top skills: Mobile proficiency, data analysis, statistics as well as Python, and Java.
Nearshore software development rates per hour:
| Average nearshore software development/hourly rate | Talent availability | |
| AI/ML engineer | $20–$40 | 500+ |
| Java | $35–$45 | 85,000+ |
| JavaScript | $30–$40 | 120,000+ |
| Python | $30–$45 | 80,000+ |
| PHP | $25–$35 | 50,000+ |
| C# | $25–$40 | 45,000+ |
| .NET | $25–$50 | 30,000+ |
| Android | $25–$35 | 15,000+ |
| iOS | $30–$40 | 6,000+ |
| Quality Assurance (Automation) | $15–$25 | 22,000+ |
English proficiency: High proficiency, #1 for English skills in LATAM.
Education: Around 10,000 to 15,000 IT-related specialists graduate from Argentinian universities each year.
READ ALSO: Your Guide to Nearshoring in Argentina
Brazil
Tech hubs: São Paulo, Rio de Janeiro, Florianópolis
Developer availability: With 500,000+ software engineers, it’s the largest pool of tech experts in LATAM.
Top skills: Cloud, data, JavaScript, Node.js, Java, SQL, PHP and Python.
Cost of nearshore software development outsourcing per hour:
| Average nearshore software development/hourly rate | Talent availability | |
| AI/ML engineer | $20–$50 | 1,000+ |
| Java | $30–$40 | 400,000+ |
| JavaScript | $25–$45 | 450,000+ |
| Python | $30–$50 | 400,000+ |
| PHP | $25–$40 | 190,000+ |
| C# | $20–$40 | 170,000+ |
| .NET | $30–$50 | 90,000+ |
| Android | $25–$40 | 73,000+ |
| iOS | $30–$45 | 30,000+ |
| Quality Assurance (Automation) | $15–$30 | 55,000+ |
English proficiency: Low proficiency according to EF EPI index, making English an essential step during the interview process.
Education: Up to 60,000 IT-related graduates complete their studies each year.
Colombia
Tech hubs: Bogotá, Medellín, Cali
Developer availability: 65,000+ software engineers.
Top skills: Data analysis, statistics, mobile development, Python, Java, C++, Ruby
Cost of nearshore software development outsourcing per hour:
| Average nearshore software development/hourly rate | Talent availability | |
| AI/ML engineer | $20–$35 | 500+ |
| Java | $20–$30 | 60,000+ |
| JavaScript | $15–$35 | 50,000+ |
| Python | $20–$45 | 60,000+ |
| PHP | $20–$35 | 30,000+ |
| C# | $20–$45 | 20,000+ |
| .NET | $25–$40 | 18,000+ |
| Ruby | $20–$55 | 3,000 |
| Android | $25–$40 | 11,000+ |
| iOS | $25–$45 | 4,000+ |
| Quality Assurance (Automation) | $10–$25 | 11,000+ |
English proficiency: Low proficiency according to EF EPI index, although software engineers from large tech hubs tend to have adequate proficiency.
Education: Colombia accounts for approximately 13,000 to 15,000 IT-related graduates annually.
nCube is your trusted partner for nearshore and offshore development
We acknowledge that the nearshore software development pricing mentioned in the article are rough estimates based on current market trends. The final pricing is determined individually for each project, depending on the client’s specific preferences when it comes to seniority, skillset, location, etc. That said, feel free to reach out, and we’ll be happy to provide a detailed price breakdown.
nCube provides nearshore outsourcing solutions through our delivery offices in Eastern Europe (Poland, Ukraine) and Latin America (Brazil). With experience helping 122 EU and North American businesses build skilled nearshore development teams in top tech hubs, we handle everything from assembling a skilled team to providing office space, IT infrastructure, and ensuring employee comfort. We provide nearshore developers based on the following models:
- Staff Augmentation: Seamless integration of nearshore development specialists into your organization — aligned with your processes, culture, and management.
- Dedicated Team: A full-cycle nearshore software development team to accelerate the development process or handle separate projects under your management.
- R&D: A nearshore software outsourcing team housed under one roof, with full operational management handled by us. You focus solely on your product.
Our main benefits as a provider of software development services in CEE and LATAM are:
We hire from the top 1% of talent: We ensure you work with the best engineers by testing their tech skills, soft skills, and English proficiency. We only select highly skilled professionals who are reliable, eliminating any risk of hiring inconsistent individuals.
Talent retention focus: We don’t just build teams – we take care of them. Last year we achieved an impressive 2% of unforced retention due to the comfortable office/remote environment, competitive compensation and end employee bonus packages.
100% team integration: We embed our engineers seamlessly into your workflows, culture, and management structure to ensure deeper commitment to your goals. This level of integration allows our teams to operate as an extension of your own, driving efficiency, collaboration.
Traveling options: We are focused on strengthening relationships between the client and their team. Thus, we encourage our engineers to visit clients for kick-offs and Boot Camps, fostering better bonding and alignment. Our dedicated manager handles all logistics, so everything runs without a hitch.
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