Software developers: freelancer vs. India outsourcing

Are you in a difficult search for a software developer? Freelancer, permanent employee or outsourcing to a specialised company are the three traditional scenarios which you have surely already considered.

The ever-increasing IT skills shortage will only complicate the search in all three approaches. According to the German industry association of the information and telecommunications branch, BITKOM, there were 43,000 vacant IT specialist positions in 2015. This is a significant increase when compared to 2014 – and there is no end in sight.

It’s no wonder that outsourcing to IT agencies or freelancers is gaining in popularity. The costs for such external providers are accordingly high due to the large demand. With regards to their salary, it surpasses even your permanently employed staff.

According to BITKOM, 60% of all IT companies now see a shortage in IT, meaning more than every second company is affected. And the majority of the companies surveyed expect the number to increase in the coming years.

Software developers – freelancers at home and abroad

If you have already decided to take the step to cover your lack of software developers with freelancers, you shouldn’t limit yourself to your own country. By outsourcing to external providers you have already made a big decision, the step toward offshore providers which are significantly cheaper is much smaller in comparison.

Here’s a small example calculation: a PHP developer in Germany with a computer science degree and three years of experience will receive a salary of approximately €60,000 – not including extra costs and holidays.

Software developers for other popular languages such as C++, Python or Java receive significantly more, just like everywhere else in the world. A comparison from Gooroo Insights shows a very good overview of the relative differences in salary between the programming languages.

But let’s get back to our example with the PHP developer. If you hire a German PHP professional as a freelancer out of necessity, you can assume they will charge an hourly rate of 65 euros. If you compare that to an equally qualified Indian PHP developer, they will only charge an hourly rate of 20 euros. It is clear just how much offshore outsourcing can benefit you when looking for a developer with such drastic cost differences.

Software developers: freelancer or agency from India

Whether you decide on a company specialised in IT outsourcing or an Indian freelancer makes no difference. Depending on the scope of the project and the expertise required one or the other model can be used.

outsourcing4work is happy to take over the time-consuming search for you, and to provide you with a highly qualified Indian software developer. Freelancers sometimes require a bit more coordination than agencies. However, you will not need to worry thanks to our comprehensive service.

We ensure precise implementation according to your wants thanks to our own project managers who specialise in Scrum/Agile. Therefore, you will always have a knowledgeable contact partner in Europe who will understand the technical details at a glance. You will also conclude the contract with us instead of one of our Indian partners, which will guarantee you legal certainty and less red tape.