Software Development Companies' Rates in 2025 and Comparison with Previous Years

For the second year in a row, we have conducted an independent survey, asking companies listed on our Techreviewer rating platform about their hourly development rates. Read last year's research here.

Techreviewer is a reputable B2B research and review platform that ranks and analyzes software development companies worldwide. We help businesses find reliable partners by providing listings and useful research that can help them find the right technological partner. 

All data in this research has undergone an additional validation layer to filter out inconsistent or unreliable responses, so all charts and conclusions are based on carefully cleaned data.

The report goes beyond raw numbers – we also provide our conclusions and observations and examine the data from an additional angle by comparing it with the previous year. 

This report promises a wealth of knowledge, whether you're a software firm stakeholder, a prospective client, or an industry analyst.

Overview of companies that took part in the survey

Companies size

First, let's draw an aggregated profile of companies that have participated in the survey:

• 58% of respondents are companies with fewer than 100 employees, so the majority of respondents are small to medium-sized companies. 
• 29.23% of respondents have from 100 to 999 employees.
• 1.54% of respondents have more than 1000 employees - these are the established market players that serve enterprise-level needs. 

Location

The second aspect to examine is the location of the software development providers: 

• India, with 26.15%, leads the software outsourcing market, likely driven by the cost efficiency of this region.
• Europe (13.86%) and the US (13.85%) hold significant shares. These regions represent high-quality services and an educated talent pool, thanks to the vast number of universities in this area. 
• Europe includes countries such as Ireland, Serbia, the Netherlands, Italy, Romania, Portugal, North Macedonia, Cyprus, and Armenia.
• Ukraine (10.77%) and Poland (7.69%) hold 18.46% in total, and these two countries represent a popular outsourcing destination nowadays. 
• Asia accounted for only 6.16% of the global outsourcing market, with countries like UAE, Hong Kong, Bangladesh, and Malaysia.
• Canada is responsible for 6.15%.
• UK takes 6.15%. 
• 9.24% is spread among Pakistan, Vietnam, and other countries, including Brazil and Australia. 

Main target region

This chart represents the percentage of respondents targeting certain regions with outsourcing services.

Key observations and regional trends

1. North America

• 2025: 76.92% of respondents prioritize this market.
• 2023: 86.4% prioritized North America.
• Change: A significant decline of 9.48 percentage points, suggesting a slight diversification of focus away from North America, though it remains the top priority.

2. Europe

• 2025: 73.2% of companies target Europe.
• 2023: 72.7% targeted Europe.
• Change: A marginal increase of 0.5 percentage points, indicating sustained interest in this region as a key market.

3. Middle East

• 2025: 38.46% target the Middle East.
• 2023: 31.8% targeted the Middle East.
• Change: A notable increase of 6.66 percentage points, reflecting growing interest in this region, possibly due to expanding tech infrastructure and demand.

4. Australia and New Zealand

• 2025: 30.77% prioritize this region.
• 2023: 28.8% targeted it.
• Change: A modest increase of 1.97 percentage points, showing steady growth in focus on these markets.

5. Latin America

• 2025: 20% target Latin America.
• 2023: 13.6% targeted it.
• Change: A significant increase of 6.4 percentage points, highlighting rising opportunities in this emerging market.

6. Southeast Asia

• 2024: 16.9% target Southeast Asia.
• 2023: 21.2% targeted it.
• Change: A notable decline of 4.3 percentage points, suggesting a reduced emphasis on this region despite its fast-growing economies.

7. South Asia

• 2025: 15.5% prioritize South Asia.
• 2023: 6.1% targeted it.
• Change: A sharp increase of 9.4 percentage points, indicating growing recognition of South Asia's potential, likely driven by its large talent pool and increasing digital adoption.

8. East Asia

• 2025: 9.23% target East Asia.
• 2023: 9.1% targeted it.
• Change: A very slight increase of 0.13 percentage points, showing consistent but limited interest in this region.

9. Africa

• 2025: 6.15% consider Africa a target region.
• 2023: 12.1% targeted it.
• Change: A significant decline of 5.95 percentage points, indicating reduced focus on Africa, possibly due to slower-than-expected growth or challenges in market penetration.

Key trends

The data reveals shifting priorities among software development companies:

• North America and Europe remain dominant but show contrasting trends (decline vs stability).
• Emerging markets like the Middle East, Latin America, and South Asia are gaining traction due to increasing digitalization efforts.
• Regions like Africa and Southeast Asia have seen reduced focus, possibly due to challenges or competition from other markets.

This analysis highlights how global economic conditions and regional opportunities influence targeting strategies for software development services year over year!

Current price range

• ‍<$20/hour (10.77%): This segment represents low-cost outsourcing providers, primarily located in regions with lower operational costs, such as South Asia. ‍
• $20–$29/hour (29.23%): This is the largest category typical of small – to mid-sized outsourcing firms, which offer a better expertise-cost ratio compared to low-cost providers. ‍
• $30–$49/hour (27.69%): A strong mid-tier pricing category, often preferred by companies with a mix of affordability and specialization. These firms typically serve clients who seek higher-quality expertise for increased costs.‍
• $50–$99/hour (26.15%): The third significant portion of the market is more characterized by high-quality software development providers with experienced teams. ‍
• $100–$149/hour (4.62%): A premium service category, usually occupied by well-established software firms providing high-end consulting, complex development, or enterprise solutions.‍
• $150–$199/hour (1.54%): The smallest segment, consisting of high-end software firms and consultants that cater to large enterprises or niche industries. 

Price range in Canada, USA, and UK: 

Insights

83.08% of companies charge between $20–$99/hour, with the largest group in the $20–$29/hour range. 

Only a small percentage of companies offer services at rates above $100, likely focusing on complex enterprise-level solutions.

A similar trend is observed on the lower end—only a small number of companies provide low-cost services for less than $20 per hour.

The varied service offerings and hourly rate distribution show a healthy outsourcing market that can meet all needs. 

Price rate comparison: 2024 vs 2023

‍

We see that in the past year, the distribution among the three core rate ranges ($20–$29/hr, $30–$49/hr, and $50–$99/hr) was quite uneven. The $30–$49/hr bracket dominated significantly at 36.36%, followed by the $50–$99/hr range at 30.3%, and the $20–$29/hr range lagging behind at 21.21%.

Key trends

The share of low-cost and high-end expertise remains approximately the same. 

In the current year, the distribution of mid-range costs has become much more balanced. All three mid-price ranges now hold nearly equal shares, with $20–$29/hr at 30.3%, $30–$49/hr slightly ahead at 36.36%, and $50–$99/hr also at 30.3%.

This shift toward an even distribution suggests a stabilization of rates across the mid-range categories.

Detailed price range

Below, you can find charts that display detailed price ranges for every role. 

Have companies changed their rates in 2024?

58.5% of respondents indicated their rates remained stable, suggesting a largely steady pricing environment for 2024.

27.7% of companies reported a slight increase in rates, compared to only 9.2% reporting slight decreases. 

A small portion, 4.6%, reported significant rate increases, reflecting niche cases of increased demand, rising operational costs, or added value in services.

Key trends

The dominance of stable rates (58.5%) indicates a steady market with limited volatility.

The notable share of slight increases (27.7%) suggests that firms are incrementally adjusting their rates, possibly in response to inflation or growing demand.

The market remains largely stable, which reflects a healthy, competitive environment without dramatic pricing shifts. 

2024 and 2023 - rate change comparison

The majority (63.6%) of respondents in 2023 reported no significant change in software outsourcing rates, slightly higher than 58.5% in 2024.

24.2% of respondents in 2023 reported a slight increase in the hourly rate compared to 27.7% in 2024. 

A slight decrease doubled from the previous year, rising from 4.6% in 2023 to 9.23% in 2024, possibly driven by automation or market saturation.

Regarding significant increases, the percentage dropped from 7.6% in 2023 to 4.62% in 2024, indicating that aggressive pricing hikes are not a preferred strategy in 2024.

Key trends

Looking back at 2023, we observe the same pattern in rate trends, with 87% of respondents reporting either no significant change or a slight increase in their rates.

This indicates a strong tendency toward market stability, creating a predictable environment for market clients.

What do companies think about rates on the market?

This chart allows us to understand how software development companies identify the situation in the market.  

35.38% of respondents observed a slight increase in rates.

29.23% reported that rates remained stable.

20.00% noticed a slight decrease, which looks more like localized pricing adjustments.

13.85% saw a significant increase.

Only 1.54% noted a significant decrease, confirming that major price drops were rare.

Key trends

We see that the majority, 35.4% of respondents, believe the market is moving forward with incremental growth in the hourly rate. Surprisingly, 20.0% reported a slight decrease, possibly due to price competition or economic pressures in certain regions.

Since 55.4% of respondents believe that market prices have either slightly increased or decreased, it suggests that companies perceive the market as having moderate price fluctuations rather than complete stability.

Comparison of companies' perception with the actual market change

Let's examine several aspects: 

Market stability

Perception: only 29.2% of companies believe market rates have remained stable.

Reality: a much larger 58.5% of companies actually reported no significant change in their own rates.

We see that companies tend to overestimate market volatility, assuming more frequent rate adjustments than actually occur.

Upward trend

Perception: 35.4% of respondents believe market rates have slightly increased, with 13.8% seeing significant increases.

Reality: Only 27.7% of companies reported slightly increasing their rates, and just 4.6% reported significant increases.

The market appears more stable in practice than the perceived upward trend suggests.

Downward trend

Perception: 20.0% of companies believe rates have slightly decreased, and 1.5% think they have significantly decreased.

Reality: Only 9.2% reported slight rate decreases, and 0% reported significant decreases.

Companies perceive more downward pressure on market rates than what is actually happening.

Key trends

There is a clear gap between how companies perceive the market and the actual rate changes they report. The market is more stable in reality, with fewer increases or decreases than expected. 

Companies tend to overestimate the extent of rate increases in the market.

Key factors influencing the changes in software development rates

The chart reflects factors that respondents believe are responsible for market rate changes. 

Since there is a clear statistical gap between the top three and bottom 4 factors, we split factors into two groups: 

• Dominant influences
• Less emphasized factors

Dominant influences

The two most cited factors driving rate changes are market demand for software development (66.15%) and the impact of new AI technologies and tools (64.62%). This shows that external market shifts and technological advancements are perceived as the primary drivers of pricing trends.

The third factor is global economic conditions, which account for 52.31% of the total. It implies that residents recognize the role of macroeconomic factors like inflation and geopolitical changes that affect both costs and client budgets.

Less emphasized factors:

Internal factors, such as operational costs (16.92%) and team expertise (29.23%), are less frequently cited but remain relevant to rate adjustments.

Automation and low-code tools (1.54%), though minor, are noted for their influence on simpler development tasks.

Key trends

This data highlights that software development rates are primarily influenced by global trends and technological advancements, with internal factors playing a secondary but notable role. We clearly see that the market is driven more by external dynamics rather than by internal business decisions. 

Key factors influencing the market: 2023-2024 comparison

Market demand remains the top factor defining hourly rates. This factor has remained relatively stable (59.09% last year vs. 66.15% this year). Changes in the global economic situation are an accompanying factor, with 53% of respondents considering it a top-three factor influencing the market for two consecutive years.

The industry's reliance on AI technologies has grown, reflected in the increased percentage of AI impact, from 28.79% in 2023 to 64.62% in 2024. 

In turn, developers' salaries lose their significance - the role of this factor dropped significantly from 63.64% in 2023 to 32.31% in 2024. This might indicate that the specialist market is stabilizing, and the focus on talent costs has softened.

The same pattern is seen with operational costs - the role of this factor fell from 42.42% in 2023 to 16.92% in 2024. This suggests that companies have successfully adapted their operations to market changes.

Key trends

This year, the focus has shifted toward external factors such as market demand and the development of AI technologies. In contrast, internal factors like developers' salaries and operational costs have become less significant.

Measures taken by the companies to stay competitive in the face of changing rates.

69.23% of respondents adopt AI tools and technologies — this is the most common measure that highlights AI's disruptive impact on the outsourcing market. Companies see AI as a tool to improve productivity and automate repetitive tasks.

66.15% of respondents improved their internal processes. Streamlining workflows remains a reliable strategy to stay efficient and competitive in the market, staying as effective today as it has been in the past.

47.69% of respondents invest in software development tools. Similar to implementing AI tools and improving internal processes, these investments suggest a focus on enhancing productivity and increasing workflow efficiency.

27.69% of software developers reduced operation costs as a response to the current market state.  

18.46% of respondents started to offer additional services at the same rate. These companies try to increase value without increasing the price. 

Only 16.92% use rate reduction as a tool to stay competitive in the market. Rate reduction is not yet the primary method of staying competitive. 

10% of respondents hired more developers. This indicates that only a small percent scaled their teams up to meet the market demand, which is relatively low. 

4.62% of companies used their own unique strategies to adapt to the market state. 

Key trends

The data indicates a clear preference for innovation, process optimization, and technology adoption as the primary methods to stay competitive. Companies are focusing on long-term improvements rather than reactive pricing strategies.

Less than 5% cited other unique strategies, and only 18% of companies lowered their rates as a tool to stay competitive in the market, indicating that rate reduction is not the primary strategy for companies to remain competitive.

Have changes in the pace of software development affected relationships with customers?

Majority unaffected (50.8%).

23.1% of respondents improved client relationships due to their competitive rates. 

Only 10.8% of respondents noted the clients expressed concerns about rate change. 

And only 13.9% of respondents either lost clients (7.7%) or gained new clients (6.2%) due to competitive rates.

(23.1%) reported improved client relationships due to competitive rates.

Implication: Competitive pricing and value-for-money services strengthen client loyalty and satisfaction.

(10.8%) noted that clients expressed concerns, but relationships were retained.

Implication: While some clients are sensitive to rate changes, maintaining transparency and demonstrating value mitigates potential friction.

Key trends

75.3% of respondents stated their client relationships weren't affected by the hourly rate change. This fact correlates with the stable market situation with low hourly rate volatility.

A small percentage of companies experiencing client churn or acquisition due to rate changes suggests that pricing alone is not the main factor in maintaining or attracting clients. Clients are likely more focused on value, service quality, reliability, or expertise rather than just cost.

Comparison with the previous year

75.4% of respondents in the previous year either improved their relationships due to changes in rates or were unaffected by them, compared to 80% this year, which presents a relatively stable picture of the role of software development rates in decision-making.

Companies predictions

The majority, 43.1%, predict a slight increase in rates for 2025, reflecting rational expectations of potential inflation and shifts in market demand.

29.2% believe that rates will remain about the same, suggesting that current pricing trends may continue without significant disruptions.

13.8% predict rates will decrease slightly, possibly due to efficiency gains from automation and AI.

Additionally, 13.8% of respondents expect major changes, with 4.6% anticipating a significant decrease and 9.2% expecting a significant increase.

Key trends

The predictions for 2025 look optimistic, with 72.3% of respondents anticipating a stable market environment.

Surprisingly, 18.4% expect either a slight or significant decrease in rates. However, we are quite skeptical about this, as prices typically do not tend to decrease at such a scale over time. We admit that there might be a decreasing trend in some industries or locations, but this trend will unlikely grow at such a percentage. 

Comparison: rate expectations for 2024 and real rates for 2024

We can observe a significant mismatch between expectations and reality. 

First of all, 39.39% of respondents in 2023 predicted that rates would slightly increase, while the actual numbers for 2024 showed that only 27.69% of companies increased their rates. This indicates that the market proved to be less dynamic than respondents had anticipated.

Secondly, only 37.88% of respondents in 2023 believed that prices would remain about the same, while 58.46% of respondents in 2024 reported no changes in their hourly rates.

Both significant rate increases and decreases were expected by 10.61% and 4.55% of respondents, respectively. However, the reality shows that significant rate changes were even rarer than anticipated, with only 4.62% of respondents reporting significant changes in their rates.

Key trends

All these facts mean that companies expect more volatility in the market, probably due to the economic uncertainties in 2024, but the market maintained a steady pace in reality. The market extreme price shifts are uncommon to the current market state. 

Firms should leverage this stability as a competitive advantage to build trust and long-term partnerships.

Summary

• There is an evident mismatch between expectations and reality – companies consider the market to be much more dynamic than it is in reality.
• The dominance of stable rates (58.5%) indicates a steady market with limited volatility.
• For two years in a row, the market has demonstrated stable rates with relatively low rate increases. In 2024, this trend became even stronger and more evident, indicating an even stronger tendency toward rate stability in recent months compared to the previous year.
• Over half of companies experience no negative impact from rate changes, indicating that rate adjustments are generally well-received or inconsequential to most clients.
• When speaking about staying competitive in the market, less than 5% cited unique strategies, while the majority emphasized a strong focus on technology and internal process improvements. The role of AI here is dominant.
• The rates of more than 80% of companies fall into the $20–$99/hour range.
• The most attractive target regions remain North America and Europe.

Some of the companies that participated in the survey:

DeepInspire, ASD Team, iProgrammer Solutions, Arete Soft Labs, UDS Technology, Foreignerds, Inviggo, JetThoughts, Arbisoft, dev.family, Flashyminds IT Solutions, Pixlogix Infotech, Sylnovia, Drupfan Software, LeanCode, Mallow Technologies, Premad Softeare Solutions, Synesthesia, ITEconic, MMB Technology, Daffodil Software, VT Netzwelt, Volare Software, OAK'S LAB, Diffco, Easify Technologies, Epsum Labs, ISB Vietnam, Hivekind, iMakeable, NOI Technologies, JetThoughts, Umbrella IT, Talmatic, GEM Corporation, Digital Crew, Relevant Software, Kuchoriya TechSoft, launchOptions, Undefined, Elinext, Timspark, IT Hoot, Whidegroup, Oodles Blockchan, ND Labs, AltoLeap, Echoinnovate IT, Fora Soft, The Codest, UPlineSoft, Elite Dev Squad, Latent, Unique Devs, Erbis, Eagle IT Solutions, Dexoc Solutions