How to Hire Offshore Software Developers: Top Locations, Strategies, and Rates

Looking to expand your team with experienced offshore developers? And you’re not alone, as nearly 64% of companies find use of offshore/nearshore locations for software development. To hire skilled offshore programmers, you need to know where to source talent, how to deal with time zone differences and remote workflow, and at the same time save the development budget.

But don’t worry, this article is your go-to guide for all you need to know to make a successful offshore hire. Below, you will find:

Keep reading to find out how to hire offshore software developers who fit your budget and company culture.

Offshore developers are IT specialists who work in countries far from the company’s headquarters. They often operate overseas remotely with a time zone gap and lower labor costs.

For example, if your company functions in the US, you can hire offshore developers from India or Eastern Europe. At the same time, if your business is located in Western Europe, you can choose LATAM developers as offshore workers.

Hiring overseas developers has many advantages, so let’s take a look at how you can benefit from this model.

1. Cost savings

One of the most significant benefits of hiring offshore developers is cost efficiency. It allows your company to bring on more highly skilled professionals for the same or even a lower budget compared to local IT recruitment services.

First of all, offshore locations have lower living costs and less tax burden. For example, Eastern European senior software developers earn $50-$99/hour vs $250-$380 in the US.

And the second factor is that you can eliminate overhead expenses related to office space and save on benefits (often, the savings are directly proportional to the difference in the rate).

Thus, offshore development reduces labor costs by 40-60% compared to hiring in-house or in high-wage regions like North America.

2. Access to a global talent pool

With 28.7 million software engineers worldwide in 2024, nearly 15% of them are located in the US. But, at the same time, over 47% of recruiters report challenges finding qualified candidates. And 1 in 6 businesses can’t stand out from other companies to attract the talent. This is where offshore hiring comes in.

The Central and Eastern European region alone boasts over 1 million software developers, with 401 thousand in Poland and 200 thousand in Ukraine. Latin America also provides 835 thousand coders. And how not to mention one of the largest offshore hubs, India, with 5+ million developers.

These regions have significant human resources in modern technologies and emerging fields such as AI/ML and blockchain that may be scarce locally. And hiring here is usually less competitive. So it’s easier to find the perfect fit for your project’s needs.

3. Faster time-to-market

Offshore talent can accelerate development cycles if managed properly. For example, handoffs between Asian and European teams enable 18-hour productivity windows. And if you have an in-house team in the US, you can have day and night shifts with real-time collaboration for morning meetings and evening debriefs.

Moreover, offshore teams usually have ready-made expertise processes. Experienced talent vendors can reduce onboarding time by 30–50% compared to building in-house teams.

Developers with varied cultural backgrounds can better adapt to market shifts. Eastern European developers, for example, blend technical rigor with creative problem-solving, while Latin American teams excel in agile, customer-centric workflows.

Now, let’s have a further look at countries’ differences when hiring offshore developers.

To conduct an effective search for the best offshore developers, we recommend you select one target region to start with. There are many popular offshore locations, and hiring processes here can be quite different.

So, let’s first analyze offshore developer regions and then move on to a granular country-by-country comparison.

But, if you hire offshore developers for full-time roles, you should also consider salary expectations. While hourly rates help estimate project costs, annual salaries provide insights into the long-term financial commitment.

Below is the gross annual salary breakdown by experience level for offshore developers compared to North America:

Salaries in Eastern Europe and Latin America are 40–60% lower than in North America. So, these regions are attractive options for hiring skilled developers at reduced costs.

Mid-career developers in Eastern Europe typically earn $35k–$45k per year, while in Latin America, they earn $25k–$30k per year. This makes Latin America the most budget-friendly option for companies looking to hire affordable yet competent developers.

Asia remains the most cost-effective region, with mid-career salaries ranging from $20k to $25k per year. However, businesses can experience limited tech proficiency and communication barriers with some Asian talent, which often impacts productivity for US and European-based businesses.

English Proficiency Metrics by Region

English proficiency is also one of the most important factors for great collaboration with offshore developers. A strong command of English helps developers understand project requirements and participate in discussions.

The EF English Proficiency Index (EF EPI) ranks countries by the English skills of those who took the EF Standard English Test (EFSET).

Here are EF EPI scores by region as of the latest 2024 rating:

So, if your company operates on the United States East Coast (EST), the time difference with Poland is +6 hours. Thus, you will get around 4-6 overlapping working hours for real-time collaboration.

Moreover, it’s popular to hire offshore software developers from Eastern Europe to work split shifts (7 AM–12 PM and 5 PM–9 PM local) to maximize overlap.

In contrast, working with developers in Asia presents more significant time challenges. India, for instance, is +10.5 hours ahead of EST, while the Philippines is +13 hours ahead. This time gap can make real-time communication difficult and can delay project timelines.