How Much Does It Cost To Outsource Software Development?
1 month ago in Plain Text
We all have seen the rise in demand for skilled remote software developers on various technologies during and post pandemic times. And as per Gartner, it is reported that by 2027, the software market is expected to hit $17.79 billion with a growth rate of 10.85% YoY. This is because the huge volume of B2C Software Applications that are being used these days are only increasing from here. This means, the demand for Quality Software Developers will be higher too, and since not one country alone can procure for all the software development demand of the world, the significance and benefits of having an awesome Remote Software Developers Team will be all time higher for next 10 years safely. And, India will remain as one of the top destinations for hiring high quality Remote Software Developers hands down.
That being said, in order for finding out How much would it cost to hire a remote software development Team, you need to define your requirements in terms of Technology you need, number of people, offshoring destination, years of experience, domain expertise and much more. Let us briefly discuss the factors affecting theCost of Offshore Remote Software Developers.
Remote Developer Cost – Location of Remote Software Developers Team
You outsource to India the cost will revolve around $ 20 to $ 40/ hour, you go to Ukraine it will be up to $ 100/ hr, you go to Latin America it will in the mid of the two, while it will be cheaper in Bangladesh or Philippines.
Remote Developer Cost – Freelancer/ Part Timer Vs Agency/ Offshore Software Development Company
When you hire remote developers from an Agency, you basically make the Agency accountable i.e., they are the ones having their brand at stake and they involve many more personnel and infrastructure than just the developer in order to make sure things run smoothly every single day and you get every bang out of your buck. That means, they’ll spread over such quintessential cost over their total price and you may find it costlier VS when you hire a freelancer who may burn midnight oil after their day job and offer their service in way lesser price. There is a trade-off ofcourse and then, there is a reason corresponding to hiring both of them.
When you need a team, several different skills and a binding thread in terms of a supervisor or a project manager you have to go with an offshore development company for long term benefits. Also, for complex works that need not just a developer but architects, testers, technical guides, domain experts, delivery managers Agency is the best bet
General Terms of Hiring a Remote Developers Team from Agicent
Let us go public on this, here are the general terms (not Gospel though) that we usually propose to our clients when they hire one or more Software Developers from us:
The Developers will work for minimum 160 hours a month or 40 hours a week. They can exceed the work hours to 176 at the time of need.
The Offshore Developers usually work up to 12:00 Noon Eastern Time Zone (USA) so ample overlap time will be provided. If needed, we’ll change their work hours in order to have more overlapping time with the EST time zone. We can also offer developers who can work 100 % during your time zone if your project size and duration allows us to do so.
Developers can directly report to the client or a supervisor can be introduced for the coordination if needed.
Developers will be equipped with necessary Hardware (macbook, testing devices, windows system) and regular development licenses. Any non-regular licenses or API licenses or tools will be procured by the client or Agicent.
The developers will be proficient in communicating in written, verbal English and be able to take calls (video/ Audio) regularly.
Developers will be well versed in using productivity and management tools like Jira, Basecamp, Trello, CI/CD tools, Communication tools like Skype, Slack, Whatsapp and so on.
Agicent will be available to add new members in the team within 2 weeks of client asking for the same. Similarly, we’ll be able to remove a member of the team with 1 month notice period.
Developers will update code in any code repository the client assigns them to, or Agicent can suggest them the one perfect for their project.
Basic Commercial Terms for Offshore Remote Developers Team
1) 40 % of total monthly fee/ developer is to be transferred within 1st week of work commencement. Remaining 60 % at month completion and the cycle continues.
2) Payments can be transferred using Bank Wire Transfer or Payoneer or any other trustworthy payment method online.
3) Payments will be transferred to Agicent’s Indian Bank Account.
General Process of Engagement for Offshore Developers Team
Requirement Capturing (Business Analyst) - Project Manager/ Business analyst will work with you to capture requirements and convert those into meaning full specifications for developer and designers.
Execution – Designer will then convert specification into design screens, and developers (iOS, Android, Backend) will execute the task.
Interim Release – Once task is completed or weekly sprint is done, PC/BA will release you an interim build for your testing after getting it testing by our tester.
Shipping – once you approve the interim release or ask for changes and those are incorporate, a version upgrade will then be pushed to the corresponding App stores.
Task Priority – PM/ BA will understand the overall vision of the project and will do the sequentialization the tasks after your approval (basis on the business/ time to market requirements).
PM Tools – Our PM/ BA will use tools like Trello or Jira for project management and bug tracking.
Version Control and repository – we’ll use bitbucket private repository to version control the software development as it progresses.
Data Backup, Security, Recovery – The team will do periodical data backup in order to keep the customer data safe from any hacking threat situation.
Testing - Tester will execute UAT, if no issues, the feature is moved shall be labelled as closed.
Delivery and Code repository – Developers will submit the code every fortnight to the repository prescribed by the client along with the object form of the code.