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Cost Guide

What Offshore Development Really Costs in 2026

Senior developer rates by region, what an in-house hire costs once everything is added up, and the costs that never appear on a vendor's quote.

The rate figures on this page are market ranges from published industry rate cards, not our prices. We quote our own rate in writing after a short call, because a three-month React contract and a year-long data engineering engagement shouldn't cost the same.

Most rate comparisons are written by an agency to make that agency look cheap. This one tries to be useful instead. It covers senior engineers only, since that is all we place, and it puts the hourly rate next to the numbers that matter more: how long the hire takes, how much of your team’s time it uses, and what happens when it goes wrong.

Market Rates

Senior Developer Rates by Region

Typical hourly rates for senior engineers hired through vendors and agencies, in US dollars.

RegionSenior engineer, per hour
United States $110–171
United Kingdom $68–106
Germany $61–94
Eastern Europe $65–101
Latin America $57–89
Vietnam $40–95
Philippines $32–80
India $30–72

Source: Second Talent offshore developer rate card, September 2026. Freelance marketplaces usually run lower and niche specialisms higher. Rates move every year, so treat any figure more than a year old with caution, including these.

The In-House Comparison

The US Bureau of Labor Statistics puts the median salary for software developers at $135,980 (May 2025 data), and the 75th percentile at $171,980. Senior engineers sit at or above the upper figure in most cities.

Salary is only the start. Payroll taxes, health cover, retirement contributions, equipment, software licences and office costs usually take a full-time hire to 1.25–1.4 times base salary. For a median developer that is roughly $170,000 to $190,000 a year. Spread over about 1,800 productive hours, once holidays and leave come out, it works out at $95–105 an hour before you have paid a recruiter.

That is the honest benchmark for an offshore rate. Comparing a vendor’s hourly figure with a salary divided by 2,080 hours flatters the in-house option every time.

Costs That Don't Show Up in the Rate

Time to hire. A senior role filled locally often takes three to six months. Every month it stays open is a month of roadmap you don’t get back. A slightly higher rate that starts in two weeks usually wins.

Your team’s time. Every new engineer needs onboarding, code review and someone to answer questions. That cost is the same wherever the engineer sits. Plan for it, because it is the most common thing buyers leave out.

Rework. A cheap developer whose code has to be rewritten is the most expensive option on the table. Three months of work redone at $20 an hour is a $10,000 loss plus the schedule slip, and the slip is usually the bigger half.

Turnover. Ask any vendor what happens when an engineer leaves. If the answer is vague, you are carrying that risk yourself.

Overlap hours. If nobody on your side is awake when your engineer has a question, work stalls. A few hours of daily overlap fixes most of this, but it should be agreed before the engagement starts.

What Moves the Price

Seniority comes first. The gap between a mid-level and a senior engineer is bigger than the gap between most regions at the same level. A senior engineer in India often costs about the same as a mid-level one in Eastern Europe, and is usually the better buy.

Specialisation. AI and ML, Kubernetes, security, SAP and data engineering cost more in every market. If someone quotes a general full-stack rate for a specialist role, ask who exactly they plan to send.

Engagement length and shape. Longer engagements and larger teams usually price lower per hour. A fixed-scope project prices differently again, because the delivery risk moves to the vendor. Our engagement models page explains the trade-offs.

What is included. Replacement cover, account management, equipment and compliance are sometimes in the rate and sometimes billed on top. Ask for the full list in writing.

A Worked Example

Say you need one senior React engineer for six months, around 960 working hours.

In-house in the US: at $95–105 per productive hour fully loaded, that is roughly $91,000–101,000 for the six months, plus a recruiter fee and the months it takes to hire.

Offshore from India: at $50 an hour, the middle of the senior range, the same six months is about $48,000, with someone typically contributing inside two weeks.

The saving is real, but it isn’t the whole story. You still spend your own team’s time on onboarding and review, and you need someone on your side who owns the work. If you don’t have that, a dedicated team or a fixed-scope project will serve you better than a cheaper hourly rate.

Want a real number for your role? Tell us the stack and we will quote in writing.

Get a Quote

How to Compare Two Quotes

  • Who is the engineer, and can you interview them before anything is signed?
  • How many years of hands-on experience do they have in your stack, not in software generally?
  • Who employs them, and what happens if they leave mid-engagement?
  • What is the replacement policy, in writing, and how quickly does it work?
  • How many hours of overlap with your team are guaranteed each day?
  • Who owns the code and IP, and is an NDA signed before access is granted?
  • What is the notice period, and is there any exit penalty?
  • Is anything billed on top of the hourly rate?

A vendor who answers all eight clearly is usually cheaper in practice than one with a lower rate and vague answers.

How We Price

Three things set our rate: the stack and specialisation, seniority, and how long the engagement runs. You get a firm rate in writing after the first call, before you commit to anything, with no onboarding fees or surcharges added later.

The rate covers the engineer’s time, account management, replacement cover as set out in the engagement agreement, and all payroll and compliance on our side. Every engagement runs month to month. There is no lock-in and no exit penalty, so if the rate stops making sense for you, you stop.

FAQs

Common Questions

Why don't you publish your own rates?

Because one number would be wrong for most enquiries. Stack, seniority and engagement length all change the price, so we quote after a short call. The quote comes in writing and it is the rate you pay.

Is the cheapest region the best value?

Rarely. Rework, slow hiring and poor overlap cost more than a few dollars an hour. Compare total cost over six months, including your own team time, not the headline rate.

Do your rates include taxes?

Our invoices are for services exported from India. Depending on your country, your business may need to account for VAT or GST on imported services under a reverse charge. Your accountant can confirm how that applies to you.

Are there setup or onboarding fees?

No. You pay the agreed rate for the hours worked. Nothing is added for onboarding, replacement or account management.

Is there a minimum engagement?

No minimum term. Engagements run month to month, and you can stop with the notice period agreed in your contract.

How quickly does the saving start?

Usually within the first month. You typically get a shortlist within 72 hours, and most engineers are contributing inside two weeks of being chosen.

Get a Rate for Your Role

Tell us the stack, seniority and timeline. We'll send a written quote and a shortlist, with no obligation.