Cost Of Hire Dedicated Developers in 2024

Today, companies actively invest in software product development. In 2020, the software dev market amounted to about $931 billion. In 2025, it is expected to reach almost $1.5 trillion.

Let’s say you also have an idea for a digital product and want to invest in it. Perhaps, you even planned the software development down to the smallest detail. Then, why wait? Just hire a programmer and start generating code.

Yet, it’s not that simple. Calculating the project budget is a rather challenging process. How many specialists do you need to build your product? Which cooperation model will work best for you? And how much will the project cost?

Continue reading to choose the most suitable services at the most reasonable prices. JPLoft, a company that has already provided dedicated teams for over a hundred projects, knows about the cost of hiring dedicated Developers.

Software Development Statistics & Facts 

As a business owner, it is okay that you need custom software development, but you need first to analyze the cost will be? Can you afford it or not?

And other questions. Suppose you have decided to take the services from a high-ranked software development company, but- Is it possible to handle the sky-hour rates if you are a start-up or medium scale business?

In addition, you should also note that software development includes website development, mobile app development, web development, and PWA development. All these solutions have separate development costs. Before we proceed to the further points, let’s check out some statistics-

• • Enterprise software global spending is 6tr USD

  • The CAGR for software development is 4%

  • 68% of software is built using JavaScript

  • In 2020, global IT outsourcing was estimated at $342.9 billion, which is expected to reach $410.2 billion by 2027.

For diving deep to find out the cost to hire a software developer, the following section represents the different types of software development companies in the market that you can consider hiring for your next enterprise software development.

Hiring a Dedicated Development Team Costs

Hire a dedicated development team that involves long-term cooperation between the client and the development services provider.

The service provider usually works remotely from their office on a standard full-time schedule. A dedicated vendor also assembles the team according to the client’s requirements. It may consist of experts with a particular specialization, such as engineers. Or it may be a full-stack team including business analysts, project managers, UI/UX designers, developers, and QA specialists.

Also Read: Top Consideration of Cost To Hire Software Developers

The client can independently control the development process or delegate this task to the appointed project manager. A dedicated team is the best option for companies with no well-defined project scope and requirements. With this cooperation model, the client can compensate for the lack of experts and get specialists who will devote all their time and resources to the project.

The cost of hiring a dedicated development team is quite transparent. It depends on each team member’s salary and the service provider’s commission, which also covers all administrative fees. Depending on the dedicated vendor’s location, the cost will vary from $5,000 to $25,000 per month.

Cost of Hiring a Software Development Company

A more widespread option is hiring a professional software development company. The cost of hiring such a company starts at $10,000 a project and can go as high as $500,000, and that’s not even the limit. Such amplitude in prices is dictated by the types of both the development companies and the digital solutions they offer.

• • Hiring smaller to medium-sized companies can cost from $82 to $137 an hour, and due to a limited number of employees, their expertise is limited to a few specific software development areas they are most experienced with.

  • Bigger companies can charge way more ($110 to $220 an hour) since they have a larger variety of specialists on board.

  • For hiring employees from enterprise-level businesses, be ready to spend a minimum of $250 an hour.

Cost of Hiring Freelance Software Developers

Hiring freelancers might be a better option for smaller projects that don’t require a whole team of professionals. Generally, a freelance developer can be either a beginner (fresh out of university, boot camps, or professional courses) or a seasoned pro with a few years of experience behind them and a knowledge of at least a few programming languages.

The former will have the average rate of $50 an hour, while the pro will charge no less than $100 to $300 an hour. On Upwork, for instance, hiring freelance software developers will cost $15–$30/hour. Web developers charge $30-120+ per hour, mobile app specialists have similar rates, while hiring freelance DevOps will cost a minimum of $60/hour.

Cost of Hiring In-house Software Developers

To establish the cost of hiring in-house developers, you’ll have to consider various factors. First, the person’s salary. In the United States, the average annual salary for, let’s say, a senior software developer is around $117,000. In the UK, expect about $95,000 equivalent for the same position. In developing countries, you can hire for much less.

Also Read: Hire Dedicated Developers: Cost and Tips

Mind that those are just the approximate wages typical for that level of seniority and those countries. In reality, based on a person’s experience and expertise, those numbers can go up or down significantly. Besides salaries, don’t forget various benefits, including insurance, paid leave, overtime pay, etc.

But salaries are just one part of the picture. To maintain in-house employees, you need to rent office space and pay for the office infrastructure, such as computers, desks, chairs, and other appliances. That’s why maintaining an in-house employee might cost you, in general, a minimum of $100,000 - $200,000 a year.

How Much Does It Cost To Hire an API Developer?

Hiring an experienced professional specializing in application programming interface development will result in $10,000 to 15,000 per project - again, depending on the scope of the solution, its complexity, the level of infrastructure, etc.

An hourly salary starts at about $15-$20, and for a more complex API, expect to pay at least $50/hour. To hire an API developer on Upwork, the average rates go between $20 and $250 per hour.

How Much Does It Cost To Hire A Web Developer

If we were to temporarily disregard such crucial factors as the web developer’s location and technology stack, then, based on seniority, the average annual salary level is the following:

• • For entry-level specialists, it would range from $40,000 to $45,000, with a median hourly rate of around $21

  • Hiring juniors would require, in general, $68,000, with the hourly rate going up to about $30 to $35

  • Intermediate-level developers could receive $80,000 to $90,000, around $40/hour

  • For seniors, the annual wage would be $100,000 to $130,000, $50-$60/hour

Global Software Development Cost- The Details You Do Not Want To Miss

Before we know about software development cost region-wise, you would need to understand two terms, i.e., On Shore, and Off Shore. Onshore development implies hiring developers from inside the country.

For example, suppose you are headquartered in the United States of America, so if you are going to hire software developers in the USA, it is onshore software development.

On the other hand, if you are going to hire dedicated developers from outside the business location, it is called software development outsourcing.

If you are also searching for the average cost of onshore and off-shore development, then you would like to read the following information –

• • Onshore Software Development Average Cost: $10-$20
  • Off-shore Software Development Average Cost: $20-$40

Let’s a dive into the average software development cost region-wise! 

The USA

There is no need to mention that the USA is a top-notch player in the software development industry. Its major destinations involved in software development are Vancouver, Washington, California, Texas, North Carolina, and New York, Massachusetts.

Another country in the North American region is Canada, and its key locations are Toronto, Ottawa, and Montreal. There are many software product development companies headquartered that also hold world players such as Microsoft and Google. The average cost to hire a dedicated software developer in the USA varies between $250- and $500/per hour.

Europe

The European region is divided into two, i.e., Western Europe, and Eastern Europe. The major players of Western Europe are Ireland, the UK, the Netherlands, Belgium, Germany, France, and Ireland.

On the other hand, major players of Eastern Europe are Poland, the Czech Republic, Slovakia, Hungary, Bulgaria, Romania, Ukraine, and Belarus. The average cost to hire a dedicated software developer in Europe varies between $150- and $300/per hour.

Asia

There are three key regions in Asia: Central Asia, East Asia, and South Asia. The important Central Asian countries involved in software development are Kazakhstan, Uzbekistan, and Tajikistan.

In addition, major East and South Asian countries are India, Japan, Vietnam, the Philippines, Malaysia, and Indonesia. India is now playing a crucial role in the worldwide software industry among these countries. There are several advantages of hiring a software engineer from India, such as here you can find comprehensively experienced developers from the custom software development company.

Another advantage is cost-effective mobile software development. From here, you can hire a developer at an average cost of $20-$40/ hour. The average cost to hire dedicated software developers in Asia varies between $15- $30/per hour.

Australia

The key players in the software industry in Australia are Sydney and Melbourne. Here you can also find software developers having experience. The companies and developers work according to the different time zones. However, the cost of hiring a software developer remains high. The average cost to hire a dedicated software developer in Australia varies between $200- and $300/per hour. 

Key Factors Influencing The Cost To Hire Dedicated Software Developer

Hiring software developers is a crucial activity, but you also need to focus on the factors or challenges that affect software development costs. Although it also applies to mobile app development. So let’s explore the list of factors one by one.

• •   USA: $70 / hour

  •   UK: $80 / hour

  •   France: $60 / hour

  •   UAE: $40 / hour

  •   Australia: $50 / hour

  •   Canada: $60 / hour

  •   India: $15 / hour

Complexity

It is one of the biggest factors that decide the cost of a software application. It works like more complex projects require more cost as they can only be handled by an experienced team of developers who have done the project before.

The complexity directly refers to implementing the top-level security mechanism, additional features & functionalities, and integrating the APIs and other components to develop high-quality products.

Human Resources

The top-notch factor that you can’t ignore while searching the challenges involved in software development. Suppose you are searching for SaaS application development, then it is such a challenge to find the appropriate human resources having practical experience in developing SaaS applications.

The point is that hiring proficient developers always remains expensive for junior-level developers, and it works as the universal truth. On the other hand, small businesses or start-ups can’t handle the more cost, so finding cost-effectiveness is such a tussle task.

API Integrations

For improving or equipping the software with some additional functionalities, API integration is the best option, but only a few APIs remain free.

You need to purchase the others and pay the integration cost to the developers. It increases the overall cost of hiring a software developer.

The other integrations that can be costly are third-party business applications, CRM, HR applications, business intelligence tools, payment methods, and many more.

Time

Time is one factor that remains a challenge for any business, including software development. Although basic application development can happen in less time, large & structured applications require more time.

If you have hired developers on an hourly basis, the cost will be higher as the development work can’t be on halt.

• • USA: $106,816

  • UK: $45,000

  • France: $50,000

  • UAE: $40,000

  • Australia: $50,000

  • Canada: $70,000

  • India: $10,000

Location

Another constraint affecting the cost to hire a dedicated developer is location. You have gone through all crucial details of region-wise cost in the upper section to this. As a business owner, you can easily understand why it is also counted as a challenge.

Type

The cost of hiring also depends on the type of application like website development, mobile app development, hybrid app development, or others. Usually, website development has less cost initially than mobile app development, and in some cases, the cost remains the same. At last, the cost is something that you can’t ignore because the need of the business always remains on the top.

Team of Developers

The software development cost is also affected by the persons involved. Directly you can understand it as Overall cost is directly proportional to the team size.

Usually, a development team involves junior-level developers, senior-level developers, project managers, team leaders, and QA professionals. Suppose if the project is large, then there will be more people involved so that the cost will be more.

Steps to Hire Dedicated Developers

You’re about to Hire Dedicated Developers or web developers for your business. Here are some steps to help you hire the right talent for your project development.

The first step is to agree with the developers. You’ll need to discuss what they’ll be working on, how much they’ll be paid, and when they’ll be available. Once you’ve agreed to these terms, you can move on to the next step.

The next step is creating a job posting outlining the skills and experience you’re looking for in a candidate. Please include information about your company and what makes it a great workplace. You can post this job online or in print, or you can use a recruitment agency.

Prepare Project Requirement Docs

Before anything else, you need to know what you want to build. It means putting together a clear and concise project requirements document outlining the work scope. Once you have this, you can start asking for quotes from mobile app development services—ballpark figures for what will cost to hire web developers or iPhone app developers for your project.

It would be best if you also considered hiring service providers like app maintenance & support. They offer maintenance packages, including features such as update notifications and bug fixes.

Finding, Screening, And Interviewing New Applicants

The costs of mobile app development services can range from a few hundred to several thousand dollars, depending on the size and scope of the project. To hire dedicated mobile developers, you’ll need to post a job ad, screen applicants, and interview candidates. The entire process can take several weeks or longer. But if you follow these steps, you’ll be able to find the right person for the job. Here are some quick tips to hire dedicated web developer:

• • Know your budget

  • Post an explicit job description

  • Include design requirements in your expectations

  • Offer competitive compensation packages

Setting A Salary Base (Determining Your Minimum Costs)

The first step is to set a salary base. It will determine your minimum costs. It would help if you accounted for the developers’ time, the cost of living in their area, and benefits. Once you have a salary base, you can start to look for developers.

Let’s look at some statistics to get an idea of how much it will cost to hire developers. The average salary for a software developer in the United States is $102,000 per year, and the average salary for a web developer is $84,000 per year. Additionally, the average salary for a mobile app developer is $94,000 per year. So, if you are looking to hire a developer, you can expect to pay at least $30,000.

Quotes Are Always Subjective

You’ve probably heard the quote; you get what you pay. And when it comes to hiring developers, this is true. To hire a top-notch developer, you will have to pay top dollar. However, that doesn’t mean that you have to break the bank. There are plenty of great developers out there who are charging reasonable rates. The key is knowing how to find them and ensuring they have the skills necessary for your project.

Finally, if you want to hire dedicated developers, this would depend on who the individual is. Still, there’s no harm in checking out rates at Freelancer so you can get a cost estimation.

Negotiating The Hiring Cost

When hiring developers, the cost can be negotiable depending on several factors. It includes the size of the project, the timeline, and the skills required. That being said, here are some average costs you can expect to pay for different types of developers:

• • App Maintenance & Support: $50-$100/hour

  • Mobile App Development Services: $100-$200/hour

  • Hire Web Developers: $80-$120/hour

  • Hire iPhone App Developers: $100-$150/hour

  • iOS Developer: $125-$175/hour

  • Android Developer: $125-$175/hour

  • Web Application Developer: $130-$160/hour

Conclusion

Before you hire dedicated developers, it’s essential to understand the cost implications of doing so. On average, businesses spend $100-$200 per hour on developer salaries.

However, the cost to hire dedicated web developers can vary depending on the experience level and location of the developer. Suppose you’re looking to hire a dedicated developer for your business.

In that case, it’s important first to understand your needs and what you’re looking to accomplish with your project. Once you clearly understand your needs, you can begin searching for developers who meet your criteria. When vetting potential candidates, ask about their experience, skillset, and rates.