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The Cost-Saving Paradox: When Hiring High-Priced Developers Is More Cost-Effective

The cost of the developers’ work can significantly affect the final budget of a product — an application, a website, or software. Of course, no one charges a fortune per hour, but developers’ hourly rates can seem high for clients.

As a customer, you may consider that it is more profitable to hire a software developer who has a bit less experience and a lower hourly price. However, in this case, pitfalls may await you. It may not be obvious, but a high rate, on the contrary, can reduce software development costs. In this article, we will find out how.

What affects the hourly rate of developers

To begin with, let’s find out what the cost of the developers’ work depends on. Several main factors influence this:

  • Location. US developers are paid several times more than developers from Eastern Europe due to market conditions. However, it does not mean that engineers from Eastern European countries are less expert. It’s mostly because of the local economy and lower cost of living.
  • Experience. It’s not a secret that juniors usually get paid less than middle or senior-level developers. For instance, in Ukraine the difference between their salaries may be 5-10x.
  • Technology stack. Hourly pay may also differ depending on the skillset an engineer has. Rare expertise means a higher price. Also, big demand for a specific technology makes such specialists more expensive.
  • Soft skills. Employees with great soft skills are highly valued in all domains, including IT. The knowledge of several languages, leadership experience, etc. also affect the hourly pay for engineers.

It is essential to take into account various factors beyond hourly rates when hiring developers, such as their experience, skills, and conformity with the project requirements. Considering all these factors, you already have an understanding of how much a software developer makes — those specialists can earn $15, $30, $60, $150, and even more per hour of work. 

The average software developer’s rates in Asia can vary from $15 to $35 per hour, in Eastern Europe — from $25 to $50, in Western Europe — from $50 to $100, and in the USA — from $70 to $150 and more. 

When high software developers’ rates can help to cut overall costs?

As we have already mentioned, you can find developers with different hourly rates on the market. Considering this, customers are tempted to save money and hire less expensive specialists. That completely makes sense. But very often less expensive means less experience. Will this compromise be okay for your product?

Yes, juniors are cheaper because they are in abundance on the market. Obviously, there is a risk that the work will take longer. In addition, a novice developer may not have enough knowledge to deliver a complex project. 

 And here the quality of software development services will depend on the management process. If you accurately estimate and assign tasks to each developer’s level, you can reduce costs and get high-quality work. 

Junior  specialists are suitable for handling straightforward, regular tasks, which might otherwise occupy the time of senior experts and hinder their effectiveness in carrying out crucial assignments.

Of course, a less experienced tech specialist can be trained, but it takes time. And time is money. Experienced software developers with a higher hourly rate are more qualified. High senior engineers’ salary for the most part means that they write good quality code much faster and know how to test it to make sure it’s correct. They are more productive and can do more work than juniors in the same amount of time. 

But, it’s essential to avoid assigning these specialists to perform basic tasks. Their expertise allows them to apply their knowledge in tackling more complex and global questions.

Working on difficult tasks and sophisticated products, an experienced pricey software developer can reduce overall costs in several ways:

1. Efficient problem-solving: Experienced engineers can solve issues and write code expertly, saving time and reducing the cost of a project. Their expertise allows them to see the whole picture of the product. When they solve a problem, they keep in mind the software integrity and overall functionality.

2. High code quality: Experienced developers do great job for their clients by writing clean, high-quality well-structured and documented code. They make fewer mistakes and correct them quickly, which also affects the final project’s price. This also means post-release maintenance and support costs will be reduced.

3. Faster time-to-market: As mentioned earlier, engineers with high hourly rates are more productive and can work faster. This speeds up the time-to-market for a product. Moreover, this can lead to increased revenue, which generally offsets the higher development cost.

Let’s look at a specific example of how a more experienced specialist with a high rate can save money. 

Imagine that you are faced with the choice of hiring two specialists to develop a new complicated feature. One of them, let’s call him Jim, is experienced in this field and costs $60 per hour. The second developer, John, has less experience and costs $25 per hour. 

Of course, at first sight, it seems more profitable to hire John, because it saves you a lot of money. But there is a huge snag here. Jim will spend only 3 hours doing that task, and this will cost you $180. In his turn, John, because of the lack of experience and the need to investigate the specifics of the task, can spend 15 hours, and this will cost you $375. 

Thus, in such cases experienced specialists with a high hourly rate can reduce costs and solve the problem in a short time, avoiding the need to redo the work. Тheir skills and abilities fully pay off.

But, what you also need to remember — it’s essential to strike a balance when forming a development team, not relying solely on super-specialists. A well-balanced team allows for skillful and efficient tasks allocation based on different complexity levels. 

As we mentioned earlier, less experienced engineers can effectively do regular tasks, freeing up the time for planning and implementation of more complex objectives for higher-level specialists.

For example, by mixing Jim’s and Jonh’s skills in the long-run perspective, you can benefit even more. Thanks to this balance, you can not just effectively distribute tasks, but also manage your budget efficiently.

That’s why at ImproveIT Solutions we carefully evaluate each task, opting for cost-effective solutions without unnecessary expenses. We make sure you pay for what you truly need.

Advantages of working with Ukrainian software development companies 

As we found out, a high hourly rate can indeed save you money. However, sometimes the project budget is very limited, and there are no extra funds to pay for expensive developers from the USA or EU countries. Often clients decide to find a nearshore software development company or offshore software development company.

In this case, you can choose an outsourcing team from another country, for instance in Eastern Europe, where developers have wide expertise and are more affordable.

One of the best destinations for outsourcing is Ukraine. Here you can find high-class specialists with a reasonable hourly rate, but at the same time, you save your budget and don’t overpay for the developers’ location. 

Ukrainian software development outsourcing companies are really in demand these days, because of the country’s thriving IT industry. You will get many benefits if you choose a Ukrainian IT company to develop an application, website, or software. You will get:

  • Team of professionals;
  • Developers with up-to-date knowledge and skills to work with the latest technologies;
  • Cost savings;
  • Product quality;
  • Ongoing support; 
  • Flexibility in collaboration models, etc.

So you’ll be provided with high-quality services for a reasonable price. Doesn’t it sound like the best software development company ever?

ImproveIT Solutions: reasonable price for high quality software development services

ImproveIT Solutions is one of the software development companies in Ukraine, which you can count on. Our team consists of competent and skilled developers who will help to bring your projects to life.

The main advantage of our team is that we take recruitment seriously. Most of our developers are middle and senior guys — experienced professionals with a wide range of skills. 

In addition, we carefully consider the prices for our services. With our team, you do not have to spend money on redoing work or hiring additional development forces.

We choose the best specialists to get the best results. And you will get a quality product at a reasonable price. To get started with us, just contact our software development team.