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6 Cost Variables of Offshore Custom Software Development Understanding the key factors that impact offshore development costs.
1. Developer Rates by Location - Offshore rates vary by country. - Example rates per hour: - India & Pakistan: $20-$50 - Eastern Europe: $30-$70 - South America: $30-$80 - Tip: Balance cost and quality when selecting a location.
2. Project Complexity & Team Structure - Simple apps are cheaper; enterprise-level solutions cost more. - Complex features (AI, IoT) increase costs. - Key roles in a project team: - Developers - Designers - Project Managers - QA Testers - Hiring an experienced team can prevent costly errors.
3. Development Time & Technology Stack - Tight deadlines can increase costs. - Faster delivery may require more developers. - Common tech stacks (MERN, .NET) are cost-effective. - Advanced tech (Blockchain, AI) requires higher budgets. - Choose the right stack for scalability and affordability.
4. Post-Development Costs & Optimization Tips - Ongoing costs include: - Maintenance & updates - Cloud hosting fees ($500-$2,000 monthly) - Customer support - Cost Optimization Tips: - Define clear requirements - Choose the right outsourcing model - Consider hybrid teams (offshore + in-house)