The practice of outsourcing is one that is now, and will likely continue to be, hotly debated. There are many advantages and disadvantages, but in business, the most important matter is the financial one. Outsourcing rates vary from country to country for different tasks. Obviously reducing costs in one area strengthens all other areas of a company. So, it can easily make sense that outsourcing, especially in specific fields can make sense.
Call center outsourcing is one of the most popular functions that a business utilizes. The USA, Europe and Australia are the countries with the highest hourly rates for their call centers. The USA and Canada cost anywhere from $22 – $35 per hour. Australia tops the average hourly rate at $50. It’s no wonder that places like Latin America, Asia/Philippines, India and Pakistan are becoming the top locations of global call centers. Currently, these centers have an average rate of:
Outsourcing rates in other countries
- Latin America: $8-$18 per hour
- Asia / Philippines: $8-$14 per hour
- India: $5-$8 per hour
- Pakistan: $6-10 per hour
Another area of business that is heavily outsourced is software development. And though there are more and more experienced and educated developers globally, the costs to outsource are still enough for businesses to do so. Average costs around the world:
North America:
An experienced developer gets about $150 hourly, and in some cases the sum can rocket to $190, depending on the skills and languages. Canada stays competitive, but has outrun the rates many times.
South America:
The average cost of software development in the region stays between $20-30, but one can notice that the prices are gradually reaching $55 per hour.
Africa
The hourly rate for IT services in South Africa can be as high as $50 or even more – up to $100. This range is due to the slowly (but surely) gap between education and incoming work. This skill gap is closing though, and prices should not be as disproportionate and go down.
Central Asia
Though known as the heart of outsourcing around the world, fear of a possible change in US trade policy, software developers here have decreased their price even more than they have been. The rates there are lower than $25 per hour; even more, some companies agree to work for $15 per hour.
Eastern Europe
Romania and other Eastern European countries have been favorite outsourcing choices for software development for many years. Skills are good and English literacy is generally passable. Rates tend to be in the $15-40 per hour range.
You will still hear stories about getting workers for under $5 per hour, but be careful. You usually get what you pay for and a lot of the lower cost worker options are scams. A lot of times you will have a network of people who try to lure you in with someone with strong English skills and some work examples which may or may not be original. Once they get you to commit to a scope of work it often gets handed off down the food chain to someone less capable. A common tactic, especially in the Philippines is the sick or dying relative that enters the conversation. The worker gets behind because they say they are taking care of a family member. They often ask for payment in advance so they can cover some of the unplanned medical costs. They promise to get right back to work as soon as grandma is feeling better. You probably won’t hear from them again after that, unless they think you are a sucker and grandma needs surgery that they can’t afford. Don’t fall for it. Know what’s appropriate for the area or type of work, check reviews, and in general do your homework before you start outsourcing.
