Digital transformation acceleration, emerging technologies like Gen AI, and growing demand for top-notch talents are among the main drivers for software development service providers. Which region, America or Europe, can be your next spot to outsource to achieve development goals for better price and quality? We are going to explain here.
Yuriy Dobrianskiy, the author of this piece, is a Founder and CEO of Devler.io and Co-Founder and CEO of Innovation Feel. Yuriy’s wide experience as a Ruby On Rails software engineer helped him to establish strong teams which act like a digital bridge between clients and developers allowing both parties to collaborate easily.
American VS European IT market highlight
The IT markets of the United States and Europe have thrived over the last few years, which is expected to continue. Following Statista, global IT outsourcing market revenue will reach over $512 bn in 2024 and grow exponentially, resulting in more than $777 bn by 2028
Factors such as the increasing demand for custom software development, cloud services, and the emergence of 5G technology, AI, and IoT are expected to drive the growth. The business desire to deliver an excellent customer experience also fuels the European IT market this year.
Difference between American and European software developers
Both American and European engineers are expected to maintain high standards in web development and adhere to industry best practices. They must also possess strong problem-solving and communication skills and be able to work independently as well as on teams.
Of course, there are some differences between US and European developers. Let’s look at some highlighted statements below.
Timezone
When it comes to hiring skilled developers, American and European time zones are an important consideration. While the United States West Coast is typically less than 10 hours away from Europe, the time zone difference can be a major factor in how well programmers can collaborate.
European web developers have the advantage of being located in a convenient time zone, making it easier for businesses to coordinate with them. Additionally, the cultural similarities between Eastern Europe and Western Europe make it easier for remote teams to understand each other and work together.
English
The English proficiency of American and European developers varies greatly. Many developers in America come from diverse backgrounds and have different English dialects. American coders, on average, have a higher level of conversational English being native speakers. In contrast, European developers have a higher level of reading and writing English because it’s a second language for most of them.
Skills
American software development engineers tend to be more proficient in modern software development approaches such as Agile and Scrum and languages like Java, C++, JavaScript, etc.
European software development coders, on the other hand, are generally more experienced in using traditional software coding techniques, such as object-oriented programming and systems design. They often have a stronger background in mathematics and problem-solving, which can be beneficial in debugging complex software issues.
Rates
The cost of software development based in the United States is likely higher than that of a developer based in Europe, and the rate of a more experienced developer may be more than double that of a less experienced developer.
the average hourly rate for a software engineer in the USA is $77, and the hourly rate for a software developer in parts of Europe differs. For example, the average hourly cost in Western European countries is $75; in Eastern Europe, it can be around $58.
Total cost for software development services
By choosing remote software development services, you can choose a country with salaries within your range. For a Middle Software Engineer, rates for IT services can vary from $1,700 per month in Bulgaria to $8,000 per month in the United States.
Let’s see how offshore development monthly costs vary by region and level of expertise:
| Region/Level | Junior | Middle | Senior |
| USA | $6,160 | $8,800 | $12,320 |
| Brazil | $704 | $2,640 | $4,928 |
| Germany | $3,520 | $6,160 | $8,800 |
| Poland | $1,584 | $2,640 | $4,576 |
Data from source
Except for software programmers, you might have other team members, such as QA engineers, business analysts, etc.
| Region | Quality Assurance | Project Manager/Scrum Master | Business Analyst | Software Architect |
| USA | $4,800 | $8,300 | $7,300 | $18,548 |
| UK | $3,214 | $4,800 | $4,438 | $6,741 |
| Ukraine | $1,872 | $3,750 | $2,083 | $13,541 |
Source: Glassdoor
Is Europe a highly promising spot to hire developers?
Yes, it is. European software developers are in high demand due to their strong background in coding and technological skills. They bring cutting-edge and innovative ideas to the table that can help organizations, businesses, and companies stay ahead of the competition. Moreover, their agility, flexibility, and ability to adapt quickly to changing industry trends can help businesses create better solutions faster.
Europe is a place with:
- rich talent pool of 3 million programmers;
- excellent higher education systems and a literacy rate of 99%;
- excelling in English proficiency in the EF EPI ranking;
- expertise in Python, Ruby, JavaScript, and their frameworks;
- suitable time zone;
- fair hourly rates.
Why is Ukraine a development “shiny jewel” in Europe?
Ukraine is a great place to hire programmers and offshoring development agencies despite the ongoing war in the country. Which factors make Ukrainian software development so attractive?
First, the Ukrainian economy largely depends on the IT outsourcing industry, and there is a ready-made pool of qualified and experienced professionals. With the right business setup, the talent pool is ready to be tapped into.
Second, the cost of living in Ukraine is relatively low, resulting in lower operation costs for software development companies. This means businesses can get more value for their money when they outsource to Ukraine.
Third, Ukraine has excellent infrastructure for speedy communication and client collaboration. This is especially beneficial for large software projects, as it ensures that there is no significant delay in the completion of tasks.
Finally, Ukraine has a rich cultural heritage and diverse population, making it easy for companies to find qualified, experienced professionals who understand the local culture and language. This increases the success rate of software projects, as the professionals can quickly adapt to the client’s needs.
As of May-June 2022, between 50,000 and 57,000 IT specialists had left the country due to the war, according to IT Research Resilience. Most of them are in Europe and working for global software companies now. This only increases the attractiveness of the European Region.
To sum up, hiring quality developers for your company can be time-consuming and expensive, especially if you want to fill multiple positions. Fortunately, an alternative solution such as Devler.io can match you with vetted, qualified software developers from all over Europe.