Offshore Developer Rates Drop as US Engineering Salaries Soar

New data shows offshore developer rates range from $15-$50/hr while US engineering salaries hit $175,000+

Published on Mar. 5, 2026

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A new report from Second Talent, a global talent platform, reveals that offshore software developer rates across Asia, Latin America, and Eastern Europe have dropped to $15-$50 per hour, while US engineering salaries have reached as high as $175,000 annually. The report highlights the growing cost differential between onshore and offshore engineering talent, as well as the challenges US companies face in hiring qualified developers domestically.

Why it matters

This data underscores the growing appeal of offshore software development for US-based companies looking to access specialized technical skills at a lower cost. As the global offshore software development market is projected to reach over $500 billion by 2035, understanding regional rate differences and hiring timelines is crucial for companies seeking to build cost-effective, high-performing engineering teams.

The details

The report breaks down offshore developer rates by region, with Asia remaining the most cost-efficient. Hourly rates range from $18-$40 in India, $20-$50 in Vietnam, and $15-$75 in the Philippines, compared to a US full-stack developer average of $138,000 in 2025. Latin America offers time-zone compatibility, with senior developers in Brazil and Mexico billing $40-$80 per hour, and Eastern Europe commanding $30-$60 per hour for senior engineers. The report cites a structural mismatch between supply and demand for advanced engineering skills in the US, with many high-growth roles carrying fewer than half as many qualified candidates per posting as the global average.

  • The 2026 Offshore Software Development Rates report was released on March 5, 2026.

The players

Second Talent

A global talent platform firm specializing in hiring Southeast Asian talent for US-based technology companies.

Stack Overflow

A platform that publishes an annual Developer Survey, which found US back-end developers earning $175,000 annually and DevOps specialists earning $165,000.

Deloitte

A professional services firm that published a 2024 Global Outsourcing Survey, which found 80% of organizations plan to maintain or increase outsourcing investments.

McKinsey

A management consulting firm that published a Technology Trends Outlook analysis identifying a structural mismatch between supply and demand for advanced engineering skills in the US.

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The takeaway

This report highlights the growing cost differential between onshore and offshore engineering talent, making offshore software development an increasingly attractive option for US-based companies looking to access specialized skills at a lower cost. As the global offshore software development market continues to grow, understanding regional rate differences and hiring timelines will be crucial for companies seeking to build cost-effective, high-performing engineering teams.