Top Software Development Companies

Having second thoughts about whether or not to hire software developers in 2025?

With low-code and no-code platforms mushrooming and AI development tools such as ChatGpt, Github Pilot, and more assisting software developers in a major way, the demand for software developers has grown dim, it may seem.

But then, nothing could be further from the truth. On the contrary, some reports suggest that the US is experiencing a software developer shortage, which means it has no choice but to open its doors to developers from other countries.

Businesses in the US are hiring software developers from cost-effective destinations. If you are wondering which cost-effective nations you should approach for your current or upcoming software development projects, this guide is specifically for you.

But before we give you an idea about the best places to hire software developers, let’s first understand the factors that drive software development costs in 2025 and how location plays a crucial role in cutting software development costs.

Several factors influence software development costs, such as the features and functionality required, the tech stack, experience, and the size of the software development team. Let's examine each one in detail.

Features & Functionality Requirements

Not all software development projects have the same features and functionality requirements. Generally, a software development project can be divided into three types regarding features and functionality requirements: simple, medium complex, and highly complex. Companies on a low budget start with a Minimal Viable Product (MVP), which contains only basic features to validate concepts and perform testing. The exact cost of your software development project depends on the density of the features and the complexity of the functionality it includes.

Platform Requirements

Are you planning to build a web app or a mobile application? If it is a mobile app, do you need a native app for Android and iOS platforms or a cross-platform mobile app? The answers to these questions can help you determine the cost of your software development project.

Techstack

A tech stack is a combination of technologies used to build software. Below are examples of backend and frontend technologies included in software development projects.

• Backend Development - Database, Framework, Programming Language, Server, Operating System
• Frontend Development - JavaScript, CSS, HTML, User's Device/Browser

The tech stack combines backend and frontend technologies that you select to build your software development project. The right technology selected by software developers can save time in the development process, ultimately reducing software development costs.

Size and Experience of the Software Development Team

A larger-sized software development team can cost more, but you can complete the project more quickly. A smaller software development team can cost less, but your project would take longer.

You can hire an experienced team of software developers to achieve flawless outcomes, but that will cost you more than hiring freshers. Hiring inexperienced software developers can increase the chances of reworking a project, which will again lead to increased costs.

Hiring overqualified developers or more developers can unnecessarily increase the cost of software development. On the other hand, hiring fewer developers or inexperienced developers can impact the quality of your software. You end up paying more for its testing and rework.

So, ultimately, you need to hire a team of software developers with skills, experience, and expertise that match your project requirements.

UI/UX Design Complexities

The complexities of UI/UX design can add to the final cost of your software development project. If you use pre-designed templates for your software, the total development cost would be lower. On the other hand, hiring a team of UI/UX developers to customize your software development product's design can increase your project's overall cost.

Pricing Model - (Hourly, Monthly, One-Time)

Software development companies follow different pricing models, such as hourly, monthly, and one-time. Let's learn more about these pricing models:

• Hourly: Software developers in the US are paid around $30-$70/hour. These rates can vary depending on the experience level of software developers and the country where they reside. For example, a junior-level software developer from the US can be more expensive to hire than a senior-level software developer from India.
• Monthly: Similar to hourly charges, many software developers prefer getting paid every month. The average monthly wage of a software builder in the US is around $7,500-$12,625, depending on their experience and specialized skills. The monthly salary of a software developer may vary depending on the country in which they reside.
• One-Time: Companies that follow this pricing model offer a fixed rate for the project, from design and development to maintenance. The fixed rate depends on the tech stack used, the number of team members working on the project, and the software developers' experience, expertise, and location.

Thus, the cost of your project depends on the pricing model you are following and the experience level and geographical location of the software developers you are hiring.

Testing

Investing in skilled quality assurance resources and tools may add to your overall software development cost, but saving on these costs can become stressful in the long run. Detecting and solving issues in the early stages of software development is better than fixing bugs in a finished software project. The latter option consumes more time and money. Rework in software functionality and fixing post-launch bugs requires investing more in robust QA tools and hiring experienced QA testers and thus can prove to be expensive.

Maintenance & Updates

Maintaining your software is important to ensure that it aligns with current and future market trends. After launching a software development project, it is required to spend on its maintenance and support services. Maintenance and update costs are integral to any software's consistent performance and success and, thus, should be an integral part of your software development cost budget plan.

Hiring Model - (In-House, Freelancers, Professional Company)

Businesses follow different hiring models. Let me give you some brief information about each one of them.

• Hiring In-House Software Developers: In this hiring model, companies hire software developers within their organization and pay them weekly, bi-weekly, or monthly.
• Hiring Freelance Software Developers: Companies hire freelancers for their software development projects and pay them hourly or a fixed price per project, as the freelancer and the project owner decide.
• Hiring a Software Development Company: In this hiring model, companies delegate their entire project to a professional software development company. The company quotes the project's cost, which is agreed upon by the project owner.

The exact cost of a software development project depends on whether you are hiring in-house software developers, freelancers, or outsourcing the entire project to a professional software development company. The cost also depends on the geographical location of the freelancers or software development company you are outsourcing your project to.

The hiring model is a major factor in the software development cost. Needless to say, hiring in-house software developers is a highly expensive proposition compared to outsourcing your software requirements to cost-effective destinations.

Why, you may ask? Here’s a detailed take on in-house hiring vs outsourcing software development needs.

Hiring in-house software developers is a costly proposition. You don’t have to manage recruitment, training, and salary costs alone; expenses such as office space and infrastructure must also be addressed.

Pros and Cons of Hiring In-House Software Developers

Pros

• Investment in skills profits businesses in the long run
• Shared working hours result in better collaboration
• Highly invested workforce
• Better control over the development process

Cons

• Continually growing overhead expense
• Lack of requisite skills
• Overtime can cause burnout

Pros and Cons of Outsourcing Software Development

Pros

• Cost-effective
• Hire developers as per your requirements
• Availability of expert developers
• Stickler to deadlines
• Reduced In-house workload

Cons

• Miscommunication
• Less control over the development process
• Less commitment from employees
• Impacts company culture negatively

Rough Cost Estimate to Hire In-house Software Developers in the US:

Recruiting & Training: $5,000 - $20,000 per developer

Salaries & Benefits: A Junior Developer charges $65,280 - $1,59,360 annually (based on the Texas junior developer cost). Benefits are 30-50% on top of salary.

Office Space & Infrastructure: A ballpark figure for a small team could be $5,000- $10,000 per month. The exact figure varies depending on location and team size.

Management Team Salary: Management salaries can range from $80,000 - $150,000 annually, depending on experience and team size.

Rough Cost Estimate When You Rope in Software Development Outsourcing Companies in India

Junior Developer: $15 - $35 per hour
Mid-Level Developer: $30 - $55 per hour
Senior Developer: $50+ per hour

Project Management cost: $10 - $20 per hour

Communication Overhead: Tools like Slack or Zoom might cost $5 - $10 per month per user.

Suppose your project runs for 6 months with 2 developers on site. Then, let’s see how the in-house team stacks up against the outsourcing team.

In-House (Team of 2 developers):

• Recruiting & Training: ($5,000 X2 developers) = $10,000
• Salaries & Benefits: $65,280 annual x 2 developer x 0.5 (6 months) = $65,280
• Benefits (30% on salary): $19,584
• Office Space & Infrastructure: $30,000 (assuming $5,000 per month)
• Management Overhead (assuming one manager): $40,000 (half of the annual salary)

Total Estimated Cost to hire in-house software developers: $134,894

Outsourced (Team of 2 developers - mid-level):

• Outsourcing Fees: $20 per hour x 2 developers x 8 hours/day x 20 days/month x 6 months = $38,400
• Project Management: $6.47 per hour  per hour x 2 developers 8 hours/day x 20 days/month x 6 months = $12,422.4
• Communication Overhead: $10 per month per user x 4 users (2 developers + 2 client side) x 6 months = $240 (total)

Total Estimated Cost when you rope in software development outsourcing companies in India: $51,052

Bottom line: India is 70% cheaper than the US when it comes to software development

The difference in cost between hiring in-house software developers and outsourcing to a team in India is almost like day and night, which is nearly impossible to bridge, no matter how hard you try. Outsourcing should be your go-to option for software development in 2025.

Besides India, here are the other best places to hire software developers.

Software Development is done worldwide, but not every country offers value for the money spent. Some countries have high living costs, which automatically translate into high software development costs and developer salaries. On the other hand, there are countries where the cost of living is low, so the developer costs and salaries are reasonable.

So, yes, businesses out there have a massive task at hand. That is zero down countries' software developers who offer high-end development services and are within a reasonable price range. I know it's easier said than done.

But then, guess what? GoodFirms has done all the heavy lifting for you by tracking down the best places to hire software developers globally.

Without further ado, here are the top destinations to hire software developers from GoodFirms.

Hire Software Developers in South Asia @$15-$55+ per hour

South Asia is a cost-effective destination, so hiring software developers from South Asia means you can develop your software at a meager cost. Software hubs in South Asia include India, Pakistan, Sri Lanka, and Nepal.

Why Hire Software Developers in India: 5 Facts

• India produces 1.5 million software engineers every year. No other country produces software engineers in such high numbers.
• English-speaking programmers galore
• The country is 70% cheaper than the U.S. when it comes to software development.
• Offers an environment that favors resilience and grit.
• Stable political and economic environment

Hire Software Developers in Southeast Asia @ $18 to $70 per hour

Southeast Asia is a growing software development industry. Vietnam and the Philippines boast of a young, tech-savvy workforce that offers services at competitive rates. However, the rates depend on the developer's experience level, and communication would be challenging.

Why Hire Software Developers in Vietnam: 4 Facts

A colossal pool of skilled engineers with expertise in various programming languages and technologies.

About 430,000 software developers and almost 1,030,000 individuals working in the ICT industry
Over 50,000 technology graduates from 149+ colleges will join the labor market every year in Vietnam.

Qualified, experienced developers at a fraction of the cost.

Hire Software Developers in Eastern Europe @ $18-$60 per hour

Eastern Europe is an emerging destination in the software development outsourcing market. Countries such as Ukraine, Poland, and Hungary boast a large pool of skilled developers who develop and deploy quality products without sacrificing cost.

Why Hire Software Developers in Ukraine: 5 Facts

• The second-largest talent pool in the Central and Eastern European Region
• The salaries of Ukrainian IT specialists are lower than those of many Western countries
• Enjoys similar cultural similarities with several Western nations, ensuring effective collaboration.
• English proficiency at the Upper Intermediate level or higher
• The slight time zone difference makes it comfortable for many European companies to work with Ukrainian developers and teams. Even if you are in the USA or Canada, you will have overlapping working hours.

Hire Software Developers in Western Europe @ 43- $80+ per hour.

Western Europe has a thriving tech environment, and countries like Germany, Sweden, the Netherlands, and the UK offer strong tech talent.

However, living costs are high here, translating into high development costs and developer salaries. If budget is under your radar, hiring software developers from Western Europe should be a top priority, considering the quality of developers here.

Why Hire Software Developers in France: 4 Facts

• As of 2024, France is home to 40,115 Software Development companies.
• About 74,409 software developers work for these companies.
• AI is gaining traction with numerous start-ups and established enterprises investing in AI technology.
• IT pros are good with cybersecurity and are considered indispensable assets in the corporate world.

Hire Software Developers in Africa @$23-$46+ per hour.

Africa’s IT outsourcing market focuses on software engineering rather than design or other services.

North Africa, comprising Egypt, Morocco, and Tunisia, is a software development hotspot that draws clients worldwide. The programmers here are skilled in Ruby, SQL, Python, and similar languages.

Why Hire Software Developers in South Africa: 4 Facts

• 1,21,000 skilled software engineers and still counting
• High-quality talent at competitive rates
• High Proficiency In English
• Remote-ready workforce
• A strong culture of Innovation and growth

Hire Software Developers in Latin America @ $45.00- $65.00 per hour

Latin America is yet another emerging market for software development. Brazil and Argentina have a reservoir of talented developers and, more than anything, have a time zone that overlaps with the U.S.

Why Hire Software Developers in Brazil: 4 Facts

• Brazil boasts 6.18 million fluent English speakers
• The country has the 6th largest IT market globally
• The company produces 46k IT graduates every year
• The largest population of Java developers in the world

Hire Software Developers in North America @ $34 - $150 per hour

Thanks to Silicon Valley, North America has been on the global radar regarding Software development. In fact, not just SA, the US has several tech hubs dotting its landscape, and those in neighboring Canada.

Outsourcing to the United States or Canada is immensely important for companies looking for top-of-the-line development services and minimal communication challenges. That said, given the high cost of living, developers in North America charge hefty development fees. So, think twice before outsourcing your software requirements to North America.

Why Hire Software Developers in Silicon Valley: 4 Facts

• About 478k Software Engineers crowd the San Francisco Bay Area
• Fresh talent is available in large numbers, especially Data Science engineers
• 11% of Silicon Valley’s engineering candidates don’t have a college degree.
• Backend engineers form the largest category of the Software Engineering pie at 36%

When choosing the best country for hiring software developers, you must consider several factors.

• Developer Salary: Countries with lower developer costs might be attractive, but it shouldn’t be at the expense of quality.
• Developer Talent: Your top priority should be countries with a large talent pool of skilled software engineers with expertise in the latest technologies, such as Blockchain, AI, ML, and similar technologies. You should also consider the quality of the education system, English proficiency, and cultural compatibility.
• Time Zone Difference: The time zone difference between India and the USA is huge; for instance, India is 9 hours and 30 minutes ahead of Washington, DC. So, if you are a USA-based business interested in hiring Indian software developers, communication and collaboration could be an issue unless you have scheduled a specific time for the same purpose.
• Cultural Alignment: Differences in work ethics, communication styles, and, for that matter, business practices could create a rift between working partners. So make sure that you and the hired hands have at least a few things, if not more, in common before you sign a contract with them. This way, if an issue arises, there’s still a chance that your contract will not go off the rails.
• Intellectual Property Protection: The country where you plan to hire software developers should be known for its strong laws and regulations. Why, if you ask? It’s crucial to protect your proprietary software and sensitive information.
• Political and Economic Stability: An unstable government and economy can pose problems for your outsourcing arrangement. So, make sure you hire software developers from a country with a stable political and economic environment.
• Legal and Regulatory Environment: When choosing an outsourcing destination, you should be aware of tax laws, data protection regulations, and, more importantly, contract enforcement mechanisms.
• Past Performance and References: Check with other companies about their experience in outsourcing their software development needs to the country in question.
• Government Support and Incentives: Some countries proactively encourage and engage with foreign businesses, offering incentives and support for their outsourcing requirements. So, check whether the country you plan to outsource to has similar government initiatives and incentives.

Considering all these factors, you can zero in on the best country for hiring software developers.

Hiring software developers will be easy if you have interview questions ready.

• Tell us about any of the latest projects you have worked on. Was it successful, and what was your contribution?
• Tell us what responsive design is for you. Differentiate between fixed and fluid layouts.
• What’s object-oriented programming?
• What’s the idea behind a sandbox? Can you give me an example?
• What programming languages are your favorite?
• What tools do you use to design, develop, and debug applications?
• What if you had to collaborate on a coding project? How do you think you’d approach it?
• What if your code is wrong, and a junior developer gets wind of it and informs you? How will you handle it?
• How will you handle a junior programmer who doesn’t mind cutting corners and seems to be a burden on the team?
• Can you give an example of a website that has an impressive UX?
• How did you manage when you found a bug in your code already in production? How did you fix the issue?
• Can you explain big-O notation most simply?
• What’s your take on unit testing? Is it essential?

Hiring software developers from GoodFirms means you will have access to a global pool of the best software developers. Our research team has done all the groundwork for you by listing top software developers worldwide, country-wise, and city-wise.

The developers listed here have been thoroughly vetted for efficiency and quality, and, more importantly, their ability to meet deadlines and the collaboration tools they use. More than anything, client reviews have been added to give you a first-hand glance at the quality of their services, while hourly rate filters help you narrow down companies based on your budget.

To sum it all up: How GoodFirms makes it easy to help you hire the right Software Developer:

• A-list development companies
• Wide Talent Pool
• Location filters
• Detailed Client Reviews
• In-depth Portfolios

GoodFirms is an ideal source for hiring qualified Software developers. However, you are expected to conduct additional research to ensure that the selected company is right for your project.

It’s well-known that software development can burn holes in your pockets. One of the best ways to manage the costs is to hire developers from Asian regions or Eastern European countries. Software developers in Asian countries have extremely low rates, and so do the developers in Eastern European countries like Ukraine, and that too, without sacrificing quality. So don’t think twice. Get on the outsourcing bandwagon right away.