Skip to main content

There’s no doubt that IT outsourcing has evolved to become a key strategy to meet the growing demand for qualified talent. That said, the last couple of years have been challenging us as to what region is the best fit for what our business needs. This is in terms of IT team capabilities, quality of delivery, vs. pandemic, war, and the worldwide upcoming economic recession.

The good news is that we have gathered all this information alongside regional benefits and current rates to help you in your decision-making. Keep reading to find out our insights into the IT market for this year!

Considerations for the 2023 Worldwide Talent Rate Increase

Before we jump into developers’ hourly prices, we believe it’s important to understand the global context of 2023. This way, we can see which countries are most affected and make smart decisions.

  • Post-Covid-19 Continues Being a Concern

Between 2020 and today, the pandemic has changed our lives in more ways than we can imagine. During this time, it has affected worldwide production volumes, supply chains, stock markets, company headcounts, and more. As a result, we will see a slowdown in major processes, even as economies try to recover.

  • Ukraine’s War Has Had Worse Consequences than First Thought

Due to the Ukraine War, some IT outsourcing high-demand locations in the region were lacking services or experienced additional delays. So, the companies that hire in those territories have been affected by tech talent scarcity, delayed, or stopped services and started looking for new providers. This changes the regional talent demand in an industry that will continue to be affected while the war continues.

  • Economic Recession with Technological Challenges and Few Hands

The aforementioned situations only get worse with the economic stagnation and faster inflation that the International Monetary Fund (IMF) forecasts for the next two years. In this scenario, large economies will surface with an increase in job layoffs and specialized talent scarcity which will open the door for new IT outsourcing opportunities.

That said, nearshore outsourcing will take the lead when compared to offshoring. In addition, the implementation of technologies like blockchain, AI, and ML will allow us to innovate and face the aforementioned challenges. So, getting closer to your region and finding niche high-skilled talent will help us surface this year.

Now, it’s time to talk about pricing!

Remote Teams in Latin America

In recent years, Latin America has gained popularity as a region in software development outsourcing with the top countries being Mexico, Argentina, and Brazil. As an advantage for the region, proximity to North America provides them with nearshoring outsourcing, cultural similarities and time zone overlap. The hourly rates for developers in that region are between $35 and $70 per hour.

As a plus, our Guide to Outsource Developers: Where to Hire Remote Teams? 2023 offers detailed talent pricing for developers in Mexico!

Tech Talent in Europe

Eastern Europe is well-known for its high-quality developers given their high number of tech universities, making Ukraine one of the three top regions for outsourcing. For the United States and Canada, this region would be considered offshore. As mentioned, the war increased the rates due to the scarcity of high-skilled talent to $45 and $85 per hour.

IT Outsourcing in Africa

This is currently a cheap and growing destination for software development outsourcing. It’s important to mention that in some territories it can be hard to find high-skilled software developers at efficient costs. This is due to an unfilled labor market.

In Africa, there are two major pricing focus. Egypt, Morocco, and Kenya, where hourly rates are around $30 or even less, depending on the service; and Nigeria and South Africa, which can cost around $60.

Talent Rates in Asia

Asia is the top region for outsourcing, with China and India the most popular territories given their huge populations. While this is true, the services don’t come with fewer challenges. These include major time zone and cultural differences in addition to language barriers.

When comparing offshore outsourcing services, India’s rates are at $30 to $80 per hour. Vietnam, Malaysia, and Indonesia rely on $50 per hour, which increases to around $75 per hour for top engineers. Finally, China has a wider pool of talent, but their hourly rates are increasing for high-quality projects.

More from Advancio as an Experienced IT Outsourcing Partner

Our Guide to Outsource Developers 2023 not only offers rates, but also key advice to consider when choosing an IT outsourcing partner. This year, we suggest focusing on value vs. cost in an economic recession scenario, which may make some partnerships more complex, especially those relying on offshore outsourcing if you’re an American or Canadian company.

Find out more detailed regional insights and key advice by downloading our guide!

it outsourcing


Subscribe to our newsletter

Get the latest news, trends, freebies, insights and never miss a beat.

Advancio Digital Marketing

Advancio's Marketing Team, in charge of bringing to life the creative ideas and the most useful insights directly to you.

Close Menu