What’s the Best Country to Outsource Software Development?

More people now use mobile phones instead of laptops and desktops.  In fact, more than 50% of all website traffic comes from mobile phones as of November 2021.  Of course, these figures are hardly surprising when there are an estimated 6.64 billion smartphone users across the globe as of February 2022.  That’s 83.89% of the world’s population!

According to a survey spanning 10 countries conducted by app monitoring firm data.ai (formerly App Annie), people spend an average of 4.8 hours a day on mobile apps.  This hardly comes as a shock since around 2.89 million apps are available for download on the Google Play Store, while the Apple App Store has 2.22 million apps.

There are apps for your favorite social media websites, mobile banking, gaming, for stepping up your photography game, and for keeping track of your fitness goals.  In short, there’s an app for almost everything.  There’s even one that does absolutely nothing—and it has 50,000+ downloads and a rating of 4.5 out of 5 on the app store.

All in all, people spent $170 billion on 230 billion mobile app downloads in 2021.  And by 2023, mobile apps are expected to generate over $935 billion in revenue.  Based on all the data collected, it’s no wonder that the demand for software developers continues to climb.

If you’re an entrepreneur looking for developers, chances are you’ll find recruitment to be a challenge.  This is because both competition and rates for software developers are extremely high.  In fact, American software developers charge three times as much as software developers from other regions do.

With the rising cost, what’s a business owner to do?

The answer is outsource.

In this guide, we discuss what outsourcing is, why you should be doing it, and which country is the best country to outsource software development.

Want to find out how to get your app built now?  Click here to skip ahead to the section: Finding the best country to outsource software development.

 

Why outsource software development

Outsourcing is the process of hiring an individual or agency to perform services for your business.  Often, businesses turn to freelance developers to build applications because this strategy is more cost-effective than keeping an in-house software department.

Like all business strategies, outsourcing comes with its own set of risks:

• Communication can become a challenge.  Companies that outsource software development often turn to freelancers or agencies outside of the US.  Outsourcing software developers aren’t like outsourcing writers.  Chances are, your potential employees won’t have perfect English.  Additionally, time zone differences can be a problem.  So make sure you find developers who are willing to have video calls at a time that works for you.
• Company culture is affected.  If the majority of your employees are from the US, and then you bring in someone who isn’t, there’s likely going to be an adjustment period before everyone will start to get along.  So your best bet is to hire someone outside the US who is in tune with Western culture, or better yet, outsource all your employees from one country.

These possible setbacks, however, are outweighed by the advantages of outsourcing.

 

What Exactly Will Outsourcing Software Development To Freelancers Do For Your Business?

Outsourcing saves you money

Hiring freelance software developers means there’s no markup in employee salary.  Agencies also need to earn a profit, so what you pay them is split between the developers and the agency itself.  Direct hiring will minimize recruitment costs.

Outsourcing to freelancers also means you don’t need to invest in a high-end computer set-up at your office.  Freelancers have their own hardware, so they can start working as soon as you hire them.

Outsourcing ensures project transparency

If you’re not careful when outsourcing to an agency, you may end up not having full access to your software code.  Software development agencies will convince you to leave all the coding to them, and since you’re busy overseeing business operations, you may be tempted to agree.  However, this can lead to slower development.  When you don’t see what’s going on, you can’t provide feedback.

Hiring a freelance employee versus an agency means that your software developer will report directly to you or your project managers.  This way, their work is available for your review at any time.

Outsourcing allows for flexibility

Getting freelancers to work for you means you can build your team, change team members, and downsize your team according to the demands of the project and the resources of the company.

 

Hiring the best software developers

Whether you’re looking for an individual software developer or building a team, here are the criteria to consider, rated from most important to least important:

1. Willingness to learn.  Technology is advancing faster than ever.  What you know now may be obsolete in less than a decade.  Finding a software developer who enjoys learning is essential if you want to keep them long-term.
2. Cultural fit.  Software development is collaborative.  Even if you hire just one developer, they will need to be in constant contact with other departments, like marketing, for example.  You may want to hire a developer who can get along well with the rest of your team.
3. Technical skill evaluation results.  Some companies have technical skill evaluations.  While this may not be necessary for smaller projects, it’s a good way to gauge if your potential developer is as skilled as his resume says he is.
4. Work experience.  If you can hire a developer who has worked on a project similar to yours, then don’t pass up on the opportunity.  They’re familiar with what can go wrong and how to fix it, and they’re likely more comfortable working on your project than other developers who haven’t worked on similar projects.
5. Soft skills (communication skills, critical thinking, leadership, etc.).  Different business owners have different standards when it comes to soft skills.  Some want employees who aren’t afraid to challenge how things are being done, while others simply want a team that knows how to communicate promptly.  Whatever your standards are, make sure your software developer fits.
6. Portfolio of side projects.  A portfolio that shows their past projects will allow you to assess how knowledgeable and skilled job applicants are.
7. Performance in a test project or task.  Similar to hiring for other positions, you can learn a lot about the software developers you’re thinking of hiring if you ask them to do a paid task.  This will show you how well your potential employees handle high-pressure situations while allowing them to demonstrate their skills.
8. College degree.  For some employers, a college degree is an assurance that their developer is skilled.  While a degree certainly helps, it’s also good to remember that many talented developers are self-taught.
9. Certifications.  Some software developers invest their time and money on online classes precisely so they can present certifications as they go job-hunting.

 

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Finding the best country to outsource software development

When hiring the best software developer for your business, you need to consider someone who:

• can accomplish what needs to be done in a timely manner
• is comfortable with having a transparent working relationship
• is ready to work the hours you need them to
• can work for you on the budget you allotted

Fortunately, there are skilled and talented developers all over the world.  So, if you’re a starting or a small-to-medium scale business, your biggest concern should be finding the developer whose rates will fit your budget.

Here’s a comparison table of the hourly rates of developers from different regions according to the Accelerance Software Outsourcing Guide 2022:

Hiring software developers from Asia

Asia’s rates are impossible to beat if you’re a business owner looking to minimize costs.  Because of lower standards of living, Asian countries are able to charge fees that are a lot less than the other regions.

The Philippines

The Philippines edges out the competition in Asia by having some of the lowest hourly rates combined with a high English proficiency score.  Additionally, the Philippines happens to have the most westernized culture in Asia, making it the best country to outsource software development.

Filipinos are completely in tune with American politics, pop culture, and slang.  In fact, the average Filipino software developer probably watches more Netflix than you do.

The best places on the internet to find software developers

Now that you know how to spot a good software developer and where in the world to find them, it’s time to narrow down your search.

The first thing you need to do is decide how you want to find your freelancer.

Do you want to…

1. Have someone else find you a freelancer?
2. Post a job ad?
3. Browse resumes?
4. Do all of the above?

Have someone else find you a software developer

If you get someone else to find you a software developer, you can save time and energy.  However, it will cost you additional fees.  Moreover, since the recruitment service will naturally offer their best candidates, you will likely be connected with freelancers who charge higher prices.  This will come at a premium cost.

Services that find you a freelancer include:

Matchist – will match their top freelancers with your project description.  Matchist only accepts 15 percent of developers, making it a highly competitive market.

Toptal – will match you with the top 3 percent of freelancers who best match the description of your project.  You will have 2 weeks to decide if you want to hire any of the freelancers.

Gun.io – matches your project description with freelancers who are significant contributors to the open software community.  ‘Open software’ refers to the belief and practice that all software codes should be open to the public.

Post a job ad

By posting a job ad, interested developers can simply send you an email and apply for the position.  Of course, you’ll still have to filter through job applications and interview people on your own.

Here are websites where you can easily post a job ad:

Stack Overflow Careers – a place where you can find developers who are also part of the Stack overflow community.

FindBacon – a job board exclusively for professional web designers and developers.

GitHub Jobs – similar to Stack Overflow Careers, this website is where you can find developers who are part of the GitHub community.

Browse resumes

By browsing resumes, you can find people at your own pace and based on your preferences.  It’s easy to find freelancers who fit your budget and who specialize in the area you need for your project if you do it this way.

You will, however, need some patience when browsing thousands of resumes and developer profiles.  You’ll also need to send them a message to offer them a job, which may give them some leverage to ask for a higher rate.

Websites where you can browse resumes include:

Upwork – this job board website has a database of freelancers in all industries from all over the globe.  However, they have fees for every transaction you make.  They also deduct a percentage of employee salaries for every transaction.

Freelancer – as the name suggests, Freelancer is a website where you can browse freelancer resumes.  You can also post jobs and even hold a contest.  Similar to Upwork, Freelancer requires you to pay an additional fee for every transaction.

All of the above

Onlinejobs.ph is a job board website exclusive to Filipino jobseekers.  At Onlinejobs.ph, you can browse resumes, post job ads, or you can ask them to find a software developer for you.  And given that the Philippines is arguably the best country to outsource software development, Onlinejobs.ph is the perfect place to start your search.

All you need to do is create an account, pay for a $69/month subscription, and start hiring.  You can cancel the subscription as soon as you find a freelancer.  And given that you can find a Filipino freelancer in less than two weeks, it’s almost like a one-time payment for a long-term working relationship.

* Disclosure: The link above is an affiliate link, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.  To find out more about our view on affiliate products, please see this page.

Outsource to grow your business

Outsourcing lets you scale your business.  So why stop at outsourcing software development?

Think we missed an important tip for outsourcing software development?  Share in the comments below!

 

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