The Cost of Outsourcing Full-Stack Developers in Eastern Europe

In today’s business world, companies in all industries are extremely competitive, and it is no different in the developer industry. Companies are chasing each other to be the first to develop the next great app or website to make the lives of consumers easier. It has been proven over and over that customers will always use the easiest and most cost-effective platforms and tools out there. 

Achieving this is a complex process, and business managers or owners try many different approaches. The main goal is to achieve this without decimating the bottom line, which is challenging. One of the major cost items on any company’s balance sheet is the staffing and many owners or managers do not always pay enough attention to this. The solution to this issue typically lies in appointing multi-skilled people, instead of a single person for each job.

Enter full-stack developers. These professionals are skilled in both the back-end and front-end of developing applications and websites. While they are not masters at a specific craft, they are jack-of-all-trades in the IT industry and can work their way around any programming language. Smart businesses realize the opportunity and are normally keen to hire these individuals as they can bring solutions to problems in both hemispheres of the development phase of an application or website. 

Above the fact that appointing a full-stack developer there is another benefit, all major companies have recognised and have been pursuing actively. Outsourcing your IT staffing is a viable option and can contribute massively to your bottom line. Outsourcing to Eastern Europe has become popular among global companies and startups, as the full stack developer salary is low compared to other regions and the quality of professionals is outstanding. The Eastern European region has invested heavily in education in the IT sector and is busy reaping the fruits of their decisions.  

Ukraine has become so popular in the outsourcing of IT services that between 2020 and 2021 the best IT companies in Ukraine contributed 4% to its GDP. The low cost does not translate to poor quality work, mostly the reason for the lower costs are cheap living costs in the countries of Eastern Europe compared to the US, for example. It is important to note that depending on which country you choose to outsource to, the tax systems will vary, but the outsourcing company will normally give you a quote upfront to make the decision that much easier. 

In this article, we answer the essential question: How much do full stack developers make? And what it will cost your business to hire a full-stack developer. 

Factors Affecting the Cost of Outsourcing in Eastern Europe

Now, you might be thinking about what the catch is. Why doesn’t everyone outsource to Eastern Europe? Truth be told, the outsourcing of full-stack developers, data science consultancy professionals and other IT experts to Eastern Europe is very popular and is used by many companies around the globe. There are a few reasons why, so let us take a closer look at the main three reasons this is the perfect choice for your projects:

• Labour Costs

Labour cost is very low compared to other regions of the world and this is mainly due to the cost of living expenses being much lower in this part of the world. Ukraine, for example, has a 63.9% lower cost of living than the US. This is a major difference and translates into lower full stack developer salary Ukraine rates as well. Ukraine has invested heavily in the education of its IT professionals in the last couple of years, and the quality of its graduated professionals is outstanding at some of the lowest costs around the globe, which makes this a perfect outsourcing destination. 

•     Skill level and experience   

Eastern European countries have a high education rate and have invested heavily in their education of IT professionals in the last decades. It has been estimated recently that there are over 1 million developers in Eastern Europe and most of them have technical degrees. The skill levels are some of the most sought-after in the world and many, many developers in Eastern Europe deliver developing services to companies in the US and the rest of Europe. 

• Demand and competition

With so many IT professionals from Eastern Europe working for companies all around the globe, the demand for their services is very high. High-quality education makes for a very competitive environment, which is always good for businesses looking to outsource their services to this region. The demand has been high for these professionals based in Eastern Europe for some time and it keeps growing with the world of business moving more and more to web-based transactions and business overall. 

Comparison of Eastern European Outsourcing Costs to Other Regions

Outsourcing is a cost to the business, and as with all costs, it is important to compare choices before making a decision. There are various options when looking at outsourcing, and the best of all is that you have a worldwide choice. To compare the top different regions for outsourcing, we have put together some information below to make the process a bit easier for you. Study the tables below featuring the average monthly salaries of three different regions:

Eastern Europe vs Asia and South America

Monthly Salaries in USD	Full-Stack Developer
Asia	$3 400,00
South America	$1 200,00
Eastern Europe	$1 000,00

 

Eastern Europe vs Western Europe and North America

Monthly Salaries in USD	Full-Stack Developer
Western Europe	$4 400,00
North America	$6 000,00
Eastern Europe	$1 000,00

It is clear from the above information that Eastern Europe is a favorable choice when looking to outsource your full-stack development needs. As mentioned earlier, although the cost is much cheaper it is important to note that this does not translate into the quality of the work. Eastern European developers have received much praise for their quality and dedication towards their work. 

Complete Cost Analysis of Full Stack Developers in Eastern Europe

While the full stack developer salary per hour in Eastern Europe is higher than in most other regions of the world, it is vital to remember that this is not the total cost of outsourcing your development needs. You have the choice of outsourcing to a freelance developer or working with an agency, but the biggest difference you will see in cost will be for the different levels of expertise or experience. Below is a table indicating the hourly full stack developer salaries for different levels of full-stack developers in Eastern Europe:

Different Levels of Developers	Full-Stack Developer Hourly Rate
Junior Level	$10,00
Mid Level	$18,00
Senior Level	$32,00

There is usually also a difference in the full stack developer freelance hourly rate regarding the length of a project. Developers or agencies will normally give you a lower full stack developer hourly rate for longer-term projects and short-term projects will come in a bit more expensive. The differences in the length of projects can vary by a lot, so it is best to get a quote upfront and ensure you know exactly how much you will be charged per hour and take it from there. 

Of course, there will also be taxes payable and you should make sure this is indicated to you at the start, as taxes can be quite high in some countries, and you do not want to suddenly realize that the cost will be much higher than anticipated. Some countries have been proactive in their approach to job creation and have eliminated taxes, specifically developer outsourcing, to motivate businesses to invest in their professionals. Ukraine has some of the lowest tax rates for outsourcing and also one of the best full stack developer starting salary rates in Europe, making it a great destination for outsourcing. 

When working with an agency there will also be project management fees attached to the cost, as they are managing the developer and handling all the paperwork. Although this sounds like a lot of additional costs, it is important to remember that they are handling the HR function and the sourcing, etc. This is a very popular option and has been for quite some time. 

Sample Costs Comparison in Eastern Europe

So, now that we have looked at some of the cost factors, what will it cost you? It is difficult to state an exact number without knowing the full details of the needs for your outsourcing project, as each one is unique. However, below is some information as to the different seniority levels of developers and how the length of projects influences the cost of outsourcing full-stack developers in the Eastern European region.

The table below shows the difference in hourly rate (USD) for the various levels of projects:

Project Difficulty	Full-Stack Developer Hourly Rate
Basic	$13,00
Intermediate	$15,00
Advanced	$18,00

The length of projects is also a determining factor in the full stack developer average salary rates, so we have put together a table below to compare the hourly rate (USD) determined by this:

Project Length	Full-Stack Developer Hourly Rate
Short Term	Up to $50 per hour
Long Term	From $13 to $18 per hour

The Bottom Line

The information we have uncovered and researched has shown that Eastern Europe has become a popular destination for outsourcing full-stack developers. The evidence points out the benefits of this and why many US PHP development companies make use of this opportunity to enjoy great success. Not only is the talent pool massive but the quality and cost also make outsourcing a great option. 

There are risk factors to consider though, such as cultural and time differences. Luckily, Eastern European countries have invested in their education systems for a while and the language barrier is not what it used to be. English is widely spoken and the culture is more similar to other Western parts of the world. Globalization has caused the business world in these countries to be great destinations for outsourcing and the time difference is not too far removed for this option not to be considered.

Eastern European developers are sought after and in big demand all over the globe. So if you want to make your next project a success and stand out among competitors, consider outsourcing your developer needs to this region of the world. 

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