Saturday, 12 December 2009

Fair rate for .Net devs outsourcing functionality development: Estonia and USA case

How would you answer the following question "What is a fair rate for .Net devs (per hour or per man-day) in Estonia and USA if a project lasts circa 2 months?" Comment: that is an amount one company would pay to another company, so the last one will have to pay all taxes. We are not talking about a salary that devs would get into their bank accounts. Moreover here we are talking here about one-time work. Not a long-term cooperation or stable income for the dev company.

Obviously the answer depends on the involved devs level. An experience from our company when we had the maximum number of developers – abilities of devs to generate correct code were varying circa 3-15 times, i.e. one dev was able to produce a code in one day, while another will do the same code in 3 man-days or even 3 man-weeks.
It also depends on time-frame. The faster result should be delivered the more costly it will be to produce. If there is no rush, then professional consultants will not be involved, so the price will drop sufficiently.

What answeres do we have at the moment?

1. quote " I work in a startup. Think 1-3 person teams who release v1.0 in 4-6 months. In this scenario, $5k or $10k goes a long way towards bringing a product to fruition. $10k can pay for a senior offshore developer ($15/hour) full-time for 4 months (so 120$ man-day)"

My comment: seems that „indian universal devs' are involved here – sometimes they even offer to write a code solving NP != P problem in a week :)

2. USA – well it depends on the dev level - from 50 to 75$ an hour (s 400-600$ a day), but sometimes miracles happen also by having 120-180$ an hour.

3. My friends recently did a project of 40 man-days. For a company they have very good relationship with. The cost was 2500 ЕЕК per day - so 240$ per day. The price was fixed for functions which were estimated including risks, so I would rate it as 240 - 320$ per day in other cases. An important fact – it was outsourced so, that the work-force was involved basing on a free schedule, so they could work on the main workplace doing extra when they willing to spent their time on it (although a deadline was also set).

4. It used to be 500-800 EEK an hour in Estonia some time ago. Not sure how much it is at the moment. Here I talk about highly qualified devs. You can find a student for 100EEK as well, but obviously the quality will be different as well as the time required to build the desired functionality. So here we get again circa 400-600$ per day.

5. Europe company got a rate from my friends - 500$ per day. They are a bit in rush, so they easily accepted that.

.. what answeres do you know? Could you share those with us?

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