IT Outsourcing Cost Calculator

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software development cost calculator

Outsourcing software development can become your most beneficial strategy for business digitalization, delivering tangible cost efficiencies, access to comprehensively vetted top talent, and accelerated project delivery. But how much will it actually cost? With many factors forming the pricing – team composition, technology stack, location, and project complexity – it’s essential to have a clear estimate on hand before beginning your project outsourcing. Our free IT outsourcing cost calculator optimizes the process and is the first quick step to getting you a fast cost projection. Regardless of the chosen region – nearshore or offshore development – this tool helps you make a smart budgeting strategy, eliminating surprises along the way.

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What type of engagement do you want to estimate?

Team Extension
Our professionals join your existing team full-time, adding more capabilities as necessary
Project Based
Full delivery of your project
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Step 1.1

What is your planned commitment period for the talent?

3 Months
6 Months
1+ year
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Step 2.1

Which industry does your project serve?

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Step 1.2

What type of services and skills do you need for your project?



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Step 2.2

What type of software are you looking to develop?



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Step 1.3

What level of expertise do you need for your project?

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Step 1.4

What are the key technologies you need for your project?

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Step 1.6

When do you need to start working with the extended team?

Within 1-2 Weeks
Within 1 Month
Within 2-3 Months
In 3+ Months
Not sure yet, just exploring
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Step 1.5

How many talents do you need to extend your team?

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Step 2.3

What type of company do you represent?

Innovative Startup
(looking to create a new product)
Software Product Company
(developing software for commercial distribution)
Organization
(developing software for internal use)
Other
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Step 2.4

What is your primary objective for this project?

Build a Full Product
(Complete web or mobile application)
Develop an MVP
(Minimum Viable Product)
Rebuild or Refactor an Existing Product
Custom Development Project
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Step 2.5

What is the planned engagement duration for the project team?

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Step 2.6

What is your expected user volume in the first year?

5 to 50 users
51 to 250 users
251 to 2,000 users
More than 2,000 users
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Step 2.7

What key technologies do you need for your project?

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Step 2.8

What level of complexity do you need for your UX/UI design?

Stock Template
(I’m okay with buying a ready-made template)
Simple Design
(Plain design with no customization or animation)
Custom Branded Design
(Design tailored to meet your unique business needs)
Custom with Complex Animations
(Designs featuring complex animations tailored to your specific requirements)
I'll Provide
(Client provides their own design)
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Step 2.9

What resources do you currently have for your project?

I have an idea
(Conceptual stage, no material resources)
I have a design
(Plain design with no customization or animation)
I have an MVP
(Existing minimum viable product)
I have all of the above
(Idea, design, and MVP ready)
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Step 2.10

When do you want to start the project?

ASAP
Within 1-3 Months
In 6 months or more
Within 4-6 Months
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Step 2.11

What is your desired timeline for development, testing, and deployment?

Less than 3 months
3 to 6 months
6 to 12 months
More than 12 months
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Step 2.12

Do you need any third-party service integrations?

Third-party service integration connects your software with external tools to enhance its functionality. This is typically done via APIs, SDKs, or direct integration using specific protocols.
1 or 2 integrations
3 or more integrations
None
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Step 2.13

Do you require an administrative panel for your solution?

An admin panel allows system administrators to manage users, oversee content, process payments, and access statistics and reports.
Yes
No
Not Sure
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Step 2.14

How do you prioritize your project requirements?

Speed and Cost Efficiency
(Cost reduction, Prioritize rapid delivery, Issues are acceptable)
Quality Assurance
(Aim for a near-perfect outcome, acknowledging that it may require more time)
Uncertain
(I am not sure about my priorities)
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Step 2.15

Will you require a project manager for your project?

Yes
No
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Final Step

Summary

Description Information Quantity Price
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Total :
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Key Pricing Factors Explained

What Impacts IT Outsourcing Costs?

With the following core factors in mind, you can tailor your outsourcing strategy to fit your budget and business goals. Use our IT outsourcing cost calculator now to estimate your project expenses!

Location & Hourly Rates

Development costs vary significantly by region. Onshore teams in countries like the US, Western Europe, Australia, and Israel typically have higher hourly rates, while IT vendors in Eastern Europe or Asia often provide more cost-effective options. However, quality and expertise must also be primarily considered. For instance, in countries like Ukraine, you can find highly professional developers at competitive rates. They often have strong expertise in Python-based technologies such as Django, FastAPI, and Flask, as well as deep experience in sectors like SaaS development, cloud computing, fintech, healthcare, and more.

Team Size & Skill Level

Assembling a larger team or hiring developers of a higher proficiency increases costs. In these terms, it’s essential to find the right balance of mid-level, senior, or junior specialists, achieving both efficiency and budget savings. The project's complexity and required tech stack should guide your talent allocation, ensuring that critical tasks are handled by experienced professionals while routine work can be efficiently managed by less senior developers.
Hire Dedicated Python Developers

Communication & Time Zone Overlaps

Seamless and cohesive collaboration is crucial for project success. Undoubtedly, teams in vastly different time zones may require additional coordination efforts. Yet, when choosing a professional outsourcing vendor, the dedicated team can adapt to your requirements and ensure smooth operations. For instance, we at PLANEKS have established our processes to align with our clients’ workflows, providing fast communication and product delivery regardless of location.
IT Outsourcing Services

Project Duration & Scope

The length and complexity of your project also have a direct impact. Long-term engagements often come with volume discounts, while short-term or highly specialized projects may command higher rates. Furthermore, projects with dynamic requirements or frequent scope changes can impact costs due to the need for greater adaptability. We highly suggest sticking to comprehensive project planning and well-defined milestones to optimize budgets and prevent unexpected expenses.

Engagement Model

Different cooperation models impact cost predictability. With fixed-price contracts, you can get clarity but may encounter insufficient flexibility. In contrast, hourly or dedicated team models smoothly adapt to changing requirements but require careful management for maximum value.

Average Hourly Rates by Location

Cost Comparison by Region

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IT outsourcing costs vary drastically depending on where your development team is situated. For the most beneficial decision, you should consider the offerings of the tech vendors globally.

$30–$60/hr

Eastern Europe

Known for its strong technical expertise and high-quality developers, Eastern Europe offers the greatest balance of cost and skill. Countries like Ukraine and Poland are popular outsourcing destinations where you can find top-tier expertise at reasonable prices and maximized value for money.
$20–$40/hr

South Asia

Countries like India and Bangladesh provide some of the most cost-effective outsourcing solutions. While rates are lower, quality and communication challenges may vary based on vendor experience.
$25–$50/hr

Latin America

A preferred nearshore outsourcing option for US companies, Latin America offers reasonable rates with minimal time zone differences, which increases chances for a smooth collaboration.
$20–$35/hr

Africa

A growing tech outsourcing market, Africa provides affordable development services, with countries like Egypt and Nigeria coming as strong players.
$80–$150/hr

Western Europe/US

Hiring developers locally in the US, UK, or Germany comes at a premium. While quality is high, outsourcing to other regions like Eastern Europe can significantly cut costs without sacrificing expertise.
ADVANTAGES OF IT OUTSOURCING

Benefits of Outsourcing IT Projects

Outsourcing IT projects offers businesses a strategic value, providing access to specialized expertise while optimizing costs. How can the outsourcing approach benefit your company?

Access Global Talent

Outsourcing opens the door to a vast pool of skilled developers worldwide. Whether you need top-tier Python engineers, UX designers, or experienced project managers for your project, you can find the right talent to erase geographical borders.

Focus on Core Business Goals

By outsourcing development tasks, your internal team can concentrate on strategic priorities like business growth, customer experience, and higher performance rather than getting caught up in technical execution.

Reduce Development Costs

Hiring an in-house development team comes with high salaries, employee perks, facilities, hardware, software, and other overhead expenses. With outsourcing, you get a fully equipped team that already has all the necessary resources to deliver results – no extra investments required. In addition, this cooperation model eliminates the hassle of recruitment and long-term commitments. Thus, you can cut costs significantly while maintaining high-quality results, especially when working with experienced offshore teams.

Accelerate Time to Market

Speed impacts your competitiveness and place on the market. Outsourcing gives you instant access to a team of experts, eliminating the time required to recruit and assemble an in-house team. This way, you accelerate both development and execution, allowing you to launch your product or update existing software much faster. As a result, you can innovate and stay ahead of the competition.

Flexible Team Scaling

Outsourcing gives you the flexibility to scale your team up or down, complying with the changes in project needs. You may start with a small team and expand later or bring in specialized experts for specific phases; with outsourcing, you only pay for the resources and services you truly need.

Ready to experience these benefits firsthand? Use our IT outsourcing calculator to get an estimate and start optimizing your development strategy!

How You Should Select an Outsourcing Vendor

How to Choose the Right Outsourcing Partner

Selecting the right outsourcing partner is crucial for project success. You should consider the following key factors to find the most suitable vendor that fulfills your needs.

Evaluate Portfolios and Case Studies

Review past projects to assess the outsourcing company's experience and ability to deliver high-quality results. It’s also essential to look for case studies relevant to your industry or project type so that the team is acquainted with your niche’s peculiarities.

Check Communication Processes

Effective collaboration depends on clear and structured communication. Make sure your outsourcing partner uses reliable communication practices, provides regular updates, and maintains transparency throughout the project.

Ensure Transparency in Pricing

Hidden fees can derail your budget and lead to insufficient resource allocation. Choose a partner that offers clear pricing structures, whether it's fixed-cost, hourly, or a dedicated team model, to avoid unexpected expenses.

Review Tech Stack Expertise

Ensure an outsourcing company specializes in the technologies your project requires. A strong technical skill set and experience with both the latest and time-tested tools can significantly impact the success of your development.

Prioritize Cultural Compatibility and Time Zone Alignment

Estimate your project budget today with our IT outsourcing cost calculator!

Smooth collaboration depends on understanding work cultures and the tech provider’s ability to adapt to time zone overlaps. To make the time difference invisible, a reliable IT provider will provide a well-structured, seamless workflow. In these terms, your cooperation may include asynchronous communication, clear documentation, strategic overlap hours for meetings, and a cohesive team that ensures progress continues around the clock. An experienced tech vendor can sometimes offer 24/7 support, ensuring fast response times and uninterrupted project flow.

HOW MUCH DOES IT OUTSOURCING COST?

Real-Life Scenarios

3

Before estimating your own project, you should get familiar with real-world outsourcing costs. Practical calculations, common outsourcing scenarios, and their estimation can help you plan your own budget more effectively.

$15,000 – $40,000

Startup Building an MVP with a Remote Team

A tech startup needs to develop a Minimum Viable Product (MVP) quickly to validate its idea. They outsourced to a remote team, hiring dedicated developers along with a part-time UI/UX designer. With offshore talent cooperation, they can build a functional MVP in just 2 months at a fraction of the cost of hiring a full in-house team.
MVP Cost Calculator
$50,000 – $100,000

Mid-Sized SaaS Platform via Offshore Team

A growing SaaS company strives to scale its platform while maintaining flexibility. For this, they can partner with an offshore software outsourcing team that has worked in an Agile environment for over six months, integrating a CI/CD pipeline for continuous updates. The cost incorporates front-end and back-end development, cloud infrastructure setup, and security enhancements, ensuring a scalable and high-performing product.
SaaS Application Development Services
$100,000+

Enterprise Legacy System Refactor

A large enterprise with an obsolete software system requires full-scale refactoring to modernize its infrastructure. To do so, the company enters a long-term outsourcing contract with an experienced offshore team, covering the entire project lifecycle from system audit to deployment. The investment allows them to enhance performance, improve security, and extend the lifespan of their software without disrupting business operations.
IT Outsourcing Services

Wondering how much your project will cost? Try our IT outsourcing cost calculator now!

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IT Outsourcing FAQs

FAQ about the API Cost Calculator

Discover the answers to the most common questions about IT outsourcing to make the most beneficial outsourcing decisions.

How much does it cost to outsource software development?
Outsourcing costs vary widely, ranging from $15,000 to $150,000+, depending on the project's complexity, team size, and the region you choose.
Is outsourcing cheaper than hiring in-house developers?
Yes! Outsourcing software development can reduce development costs by 30–70%, especially when hiring from offshore or nearshore locations where labor costs are relatively lower.
Which country is best for outsourcing IT services?
Regions like Eastern Europe and South Asia offer a strong balance of expertise and affordability. Ukraine stands out as the top choice with an immense pool of highly skilled developers, strong technical education, and extensive experience in cutting-edge technologies. This country efficiently combines high-quality development services with competitive rates. Moreover, Ukrainian IT professionals are often chosen for their strong work ethic, adaptability, and flawless communication skills, making collaboration seamless for businesses all around the world.
How do I calculate outsourcing costs accurately?
The best way to get a precise estimate is by using our free IT outsourcing cost calculator, which factors in location, team size, and project scope. For maximum accuracy, contact our representatives to discuss your specific needs, clarify project requirements, and receive a tailored cost breakdown.
Can I hire a full development team through outsourcing?
Absolutely! Many software outsourcing providers offer complete development teams, including tech engineers, QA specialists, project managers, and UI/UX designers. With PLANEKS, you get pre-vetted software engineers, ensuring a high level of proficiency and cohesive collaboration. Our teams are fully assembled and ready to jump into your project, accelerating development without the hassle of hiring and onboarding.

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