How Much does it Cost to Hire a Software Developer

Custom software solutions provide innovative solutions, improved customer experience, better business productivity, and business growth. This is the reason the majority of organizations prefer to have a software solution for their business. But the cost of the development and its budget is the main thing that any business would think about. Therefore, in this blog, we will see how much it costs to hire a software developer and what are the factors that affect it.

Key Challenges in Hiring Software Developers

When it comes to hiring a software developer for your project and are looking for one, you will get a lot of options for expert programmers. Nowadays, every developer has extensive expertise in various skills. This makes it difficult for the hiring company to find a perfect match for their project. Besides, it’s also challenging to find someone who sets up the correct infrastructure that provides high security and code stability. Therefore, sometimes it happens that people end up choosing the wrong candidate, and then they have to invest more than needed.

2. Higher Cost For Each Hire

Hiring a dedicated custom software developer is pretty costly. There are post-hiring costs that one will have to pay every month. Besides, the hiring cost takes a lot of time. To fill a job position as a software developer it takes on an average of 42 days. And during this phase, the businesses can lose productivity. In addition to this, new recruitment also costs a lot.

3. Recruiting Agency Fees

When a business owner doesn’t know much about the software development industry and wants to have a software solution for their organization, they have to hire recruitment agencies to help them. These agencies demand sky-high fees to find out and hire the software developer that suits your project requirements. And despite paying the fees, one won’t get the result that is required. This is because of the broken hiring system these agencies follow. They just use an automated tool to find out the software development company for you.

4. Employee Retention

Skilled software developers are high in demand. The companies who get to work with expert custom software developers tend to retain them by paying a premium price. Therefore, it generally happens that companies won’t let go of their hired software developers. And because of this, there is a lack of talent in the market.

4. High Salary Demands

With more and more demand for software developers in the market, the salary scale of these programmers is also increasing. A constant rise in the salary of software developers is observed in the past few years. Therefore the big giants who can afford to pay more are the only ones who can get a more talented tech expert for their project.

5. Competitors Offer More

In this competitive world, where everyone wants to have an online store or portal of their businesses, it becomes very difficult to hire a software developer as everyone would be bidding on the best one. It happens that one organization would go-to a software developer recruiting site to find the best engineer and another organization might have already given the developer a higher payable offer.

Factors that Affect the Cost Factors While Hiring a Software Developer

1.Software Development Requirements

Generally, hiring a custom software developer completely depends on the type of project and its scope. But besides this, the software development process itself costs a lot. There are many factors like technology to use, platforms required to develop an app, and its deployment requirements. Therefore, first, you need to choose the development tools and technologies, and then hire the software developer who can work on the pre-decided tools.


The location of the software development company you hire also matters a lot. If your company’s location is in a high-cost living area, selecting a developer from any other location will be a better choice as you will get one of the best developers at a competitive price. But at the same time, it might cost much and also create communication problems between you and the software developer.

3.Skills Required

As you know that software app development includes various things like technology, programming language, API integration, idea, tools, frameworks, and more. For handling all these things, you will need to hire an expert who is best at all the required aspects.

Average Annual Software Developer Salary Worldwide

When we talk about the average annual salary, it is something that is decided after considering various factors. These factors mainly include the experience level and location of the software developer. According to the U.S.News, software developers have made around $103,620 on average. From this, the lowest-paid developer earned $79,340, while the highest-paid got $130,460.

After learning about various things about hiring a software developer, now let us go through the point which can help you decide which is the best type — Software development company or Freelancers.

Freelancers vs. Software Development company: Which one for you?

Pros and Cons of Hiring a Freelancer

  1. Flexible approach
  2. Larger choice
  3. Area-specific experts
  4. No legal confusions

Cons of Freelancing

  1. Work quality
  2. No Maintenance
  3. May disappear
  4. Organizational difficulties

Pros and Cons of Hiring a Software Development Company

  1. Full package
  2. Expertise
  3. Customer Service
  4. Clear deadline

Cons of Software Development Company

  1. Inflexible
  2. Lower management skills
  3. Costly
  4. Tough legal teams


You can also read:

  1. What is Offshore Software Development? Advantages and Disadvantages
  2. Uncover why Enterprise Software Development is a sturdy choice for Businesses?
  3. Know the Relevance of Code Quality in Custom software development

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