Offshore Development Pricing: Factors & Taxes

Andy Charters
.
August 18, 2023
IT Outsourcing


What would you do if, halfway through your project, you discovered that your team lacks specific skills and knowledge that are essential for completing the project? Some time ago, a situation like this would be a disaster. You'd have to call off the project and then start the entire recruitment process for hiring developers with those skills.

Thankfully, with the emergence of offshore development, you don't need to go through all that. Even if you don’t have a unique situation like this, you’ll find that offshore development is a cheaper choice.

Do you want to know how offshore development prices are formed?  Here at Cloud Employee, we’ve helped many companies successfully hire professional offshore developers in the Philippines. In this article, we’ll share all you need to know about offshore development pricing.

Factors that makeup software development cost

It’s no news that hiring offshore developers is much cheaper than employing in-house developers. But before you take the step of contacting an outsourcing company, you need to gather some more information about the cost of hiring an offshore developer. The truth is, there's no way to get a definitive price for offshore development. The expense you will incur depends on the scope and length of your project, as well as the country you’re hiring from.

You can expect to pay more if you're hiring from America compared to hiring from the Philippines, Ukraine or Poland. Despite the vast room for variation, all offshore development companies consider specific factors in determining hiring costs. What are these factors?

  • Office space

The cost of setting up and maintaining office space contributes to the total cost of software development. Even though most offshore development companies work with remote teams, they still need a central office space to coordinate their teams and clients. Setting up and maintaining office space includes paying rent, buying furniture, purchasing technical equipment, and stocking office supplies.

This may not look like much, but anyone who has ever set up an office before knows how the bills can quickly pile up. Therefore, offshore development companies factor in the cost of office space to determine the value of their services.

  • Hiring or recruitment teams

Another factor that offshore companies consider is the cost of employing permanent, in-house recruiters. Offshore companies work by connecting clients to skilled freelance developers. Some clients may need only one or two developers at a time, while others require several people to make up a large development team.

Whatever the case, an offshore company can only be successful if they have access to a large talent pool of developers. That's where recruiters come in. It's their job to continually hunt for new talent to add to the company's database. That's not all. Recruiters also handle the multiple stages of gathering development teams for clients.

It's also their responsibility to find out what kind of specialists a client needs, how many people they want on their team, and the specific skills they require developers to have. After this, recruiters conduct several multiple-level interviews to create the perfect team of developers. As you can tell, they have a lot on their plate. So, when you pay for offshore development, you’re also paying for the cost of employing these all-important recruiters.  

  • Vacations

Offshore companies also consider the cost of vacations for their staff. Just as it is in other organizations, offshore company employees have off day. Legally, offshore companies must allow their employees to take days off. This includes national or state holidays, annual vacations, and sick leaves. Clients pay for what it costs an offshore company to give holidays to its staff.

  1. Education and training

Software development is a continually evolving industry; new trends and technologies are emerging all the time. Any offshore company that wants to remain relevant must ensure that its developers are abreast of time and in touch with the latest technology. Many companies invest in their employees by paying for on-the-job training in mentorship programs and internal lectures.

It's also common to find companies sponsoring their employees to take courses or acquire higher qualifications. Also, some offshore companies may have to enroll their employees in language classes. Most offshore companies are located in countries that do not speak English as a native language. The most popular outsourcing countries are Poland, Ukraine, Russia, Vietnam, India, and the Philippines.

To compete on the market, offshore companies must ensure that their employees and developers can communicate in English. Without this, they will be limited to a tiny circle of clients.

  • Taxes

Offshore companies have to pay taxes just like everyone else. Depending on the country, the tax rates may be high or low. Whatever the case, tax is a factor that contributes to the total cost of offshore development. But many clients don't mind paying for this, considering that they would probably have to pay more in taxes if they had an in-house team of the same size.

  • Non-tech employees

We have already mentioned that offshore companies need to employ recruiters to operate successfully. Apart from recruiters, other non-tech employees contribute to the running of the organization; from project managers to accountants, to office managers, and even cleaning staff. All of these people have to be employed and paid on a full-time basis. This is another factor that makes up the cost of hiring offshore software developers.

  • Accounting

Accounting is a crucial aspect of every organization. Without a proper accounting system and qualified accountants, your company could collapse before your very eyes. However, small business owners often have to handle their own accounting because they cannot afford to hire someone for that at that particular point in time. The problem is, you can get so distracted by accounting and administrative work that it affects your business.

Plus, if you're not a professional accountant, there's a lot of room for error. When you hire offshore developers, the offshore company handles all the accounting work for you; you don't have to think about salaries, taxes, or other accounting matters. This also counts as a factor that influences the price of offshore software development.

Why cost shouldn’t be your primary driver

No matter what you do, outsourcing work to an offshore company is definitely more affordable than employing an in-house team of developers. But among offshore companies, there are levels; some are even more affordable than other offshore companies. Many times, clients are tempted to choose the cheapest option; after all, the purpose of offshoring is to cut costs, right? That's true, but you still need to exercise caution because cheaper doesn't always mean better.

Most times, cheap equals lousy quality. Consider this example: suppose you went to a shoe store and saw a pair of nice shoes selling at less than half the price you'd typically pay for them. Immediately, your brain's natural alarm bells will begin to ring. You'll probably be thinking that there must be a catch somewhere or that the shoes are low quality. And no matter how nice they are, you’re probably not going to buy them.

A lot of people have developed this type of wariness in their personal lives, but it's essential to translate that into their business lives as well. When you're trying to decide which offshore development company to work with, you should be wary of companies with suspiciously low prices. That doesn't mean that all affordable offshore companies are scams. What we mean is that affordability is not a guarantee of good quality. And the opposite is also true; an expensive company isn’t necessarily the best company. In short, cost should not be the basis of your choice.

So, what should you do? Apart from pricing, you should examine other factors to help you select the best offshore development company for your project. Here are some things to consider in an offshore company.

  • The Management team:

Try to find out as much as possible about the offshore company's leadership. Please find out how much experience and exposure they have in the industry and whether it's enough to meet your requirements.

  • The level of flexibility:

The best offshore partnerships are those that offer maximum flexibility. You want to choose a company that is flexible in its approach so that you can feel free to make changes as you go along.

  • Trained resources:

Does the company have enough qualified and experienced developers to handle your project? Do they have enough developers with expertise in different IT fields? You don't want to have to hire developers from multiple offshore companies; you should try to find one company that can provide all the resources you need.

Conclusion

To sum it all up, offshore software development is beneficial to most organizations; it’s an excellent way to access the best software talents at an affordable rate. But before you partner with any offshore company, you should know what it’s going to cost you. Of course, you can get a price quote from the company, but to ensure that you’re getting value for your money, you might want to know what factors make up the cost of offshore development. Even though cost is important, you should never make a business decision based on affordability alone.

We hope this article has been insightful. If you enjoyed reading it, please share this post.

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  • Shift: Mid-shift
  • Position: Full-time

POST DATE
July 17, 2024
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Full Stack .NET Developer

POST DATE
July 9, 2024
WORK LOCATION
Remotely
JOB TYPE
Full Time
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QA Automation Engineer

We are looking for a talented Software Tester to join our expanding QA team. You will be working as part of a highly skilled team, helping build high-quality interactive web and mobile applications. You will work on implementing automation tests for our products to make sure they are kept robust.

POST DATE
July 2, 2024
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Senior Quality Assurance Engineer

POST DATE
June 25, 2024
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Senior Android Developer

POST DATE
September 27, 2024
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Full Stack .Net Developer

As a Full-Stack Developer, you will play a pivotal role in advancing our core product, which is market-ready and positioned for continuous improvement and innovation. You will be integral to the entire development lifecycle, enhancing existing features and deploying new functionalities. You will stay abreast of industry trends to continuously innovate and improve our product, taking ownership of projects from conception through to implementation.

POST DATE
June 25, 2024
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Senior IOS Developer

As an iOS Developer, you lead technical excellence and management within our team on a leading VOD platform. You ensure iOS projects are delivered on time and within budget while providing clear solutions to complex technical issues. Your role fosters innovation and excellence through the adoption of new technologies and best practices, supporting the team to produce top-tier work.

POST DATE
June 21, 2024
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Software QA Test Engineer (Manual)

This role will be to collaborate on the Quality Assurance of the company’s application, whilst also taking responsibility for the back-end architecture. You will assume responsibility for a wide range of activities that will include candidate support, client and integration support activities, and project-based work to improve our overall effectiveness

POST DATE
June 21, 2024
WORK LOCATION
Remotely
JOB TYPE
Full Time
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QA Engineer

As a QA Engineer, the ideal candidate will have a strong background in both manual and automated testing, with a focus on mobile and web applications. This role involves working closely with developers, product owners, and UX/UI designers to ensure the highest quality of our software products.

POST DATE
June 21, 2024
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Full Stack Shopify Developer

POST DATE
June 20, 2024
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Senior Video Editor

We seek a Video Editor with a strong creative eye. You'll create high-quality YouTube videos, repurpose content, and streamline workflows using Adobe Premiere, Frame.io, CapCut, and other AI tools to maximize your video editing efforts. You will create videos on a weekly basis for our company and our CEO's personal brand. The job is completely remote, but we have offices in Makati, where you might be asked to join us occasionally for team gatherings.

This is an exciting opportunity for a video editor who has a growth mindset, who takes pride in their work and enjoys working from the comfort of their home.

POST DATE
June 18, 2024
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Senior Developer - Zuora Subscription Billing

As a Senior Developer specializing in Zuora Subscription Billing, you will be responsible for the design, development, and maintenance of Zuora Subscription Billing solutions to support our subscription-based business model. You will work closely with cross-functional teams to understand business requirements and implement solutions that align with the company's objectives.

POST DATE
June 17, 2024
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Senior Backend Engineer

Cloud Employee is a UK-owned Philippines business established 8 years ago.We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineering teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement, and well-being. We provide security, career paths, individual training programs, and mentoring.

POST DATE
June 14, 2024
WORK LOCATION
Remotely
JOB TYPE
Full Time
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FileVine Consultant

POST DATE
June 13, 2024
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Back End Developer (Python)

Writing scalable, robust, testable, efficient, and easily maintainable code. Translating software requirements into stable, working, high performance software. Playing a key role in architectural and design decisions, building toward an efficient microservices distributed architecture.
POST DATE
June 10, 2024
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Head of Growth Marketing

Cloud Employee is building a ‘Future of Work’ AI driven talent tech platform in the remote software engineer staffing space. 

In this strategic and hands-on creative role, you'll have the opportunity to shape the narrative of remote work and impact the tech industry at a global scale. 

With team members across the US, LATAM, Europe and Asia - we’re on a mission to bridge the talent gap with our matching platform and employee experience programs.

We need your storytelling strategy skills to ‘share the journey’ and the human stories behind our business

POST DATE
May 1, 2024
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Software QA Test Engineer

Cloud Employee, is a UK owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being a supportive and cutting edge workplace continuously investing in staff development, engagement and well-being. We provide security, career paths, along with individual training programs and mentoring.

POST DATE
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Senior/Team Lead Full-Stack PHP Developer

Cloud Employee is a fast-growing UK-managed offshore recruitment and staffing company in the Philippines. We tackle the growing global IT skills shortage by connecting tech companies based in Europe, the US, and Australia to our pool of expert software developers in the country.

We are now seeking a passionate Senior/Team Lead Full-Stack PHP Developer to join our team of skilled talents. This is an excellent opportunity to join a fun and dynamic work environment and to significantly advance your career.

POST DATE
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Senior/Lead Backend Developer - Brazil

Cloud Employee is a UK-owned business established 8 years ago. We connect high-performing software engineer talent worldwide with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines and Brazil as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being a supportive and cutting edge workplace continuously investing in staff development, engagement and well-being. We provide security, career paths, along with individual training programs and mentoring.

POST DATE
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Senior/Lead Backend Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

POST DATE
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Senior UI Developer with Umbraco

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

POST DATE
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Senior Software Engineer (VB6)

Cloud Employee is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineering teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement, and well-being. We provide security, career paths, individual training programs, and mentoring.

POST DATE
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Senior Python Developer

Cloud Employee, is a UK owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being a supportive and cutting edge workplace continuously investing in staff development, engagement and well-being. We provide security, career paths, along with individual training programs and mentoring.

POST DATE
August 12, 2024
WORK LOCATION
Remotely
JOB TYPE
Full Time
Apply

Senior /Lead Fullstack Developer - Brazil

Cloud Employee is a UK-owned business established 8 years ago. We connect high-performing software engineer talent worldwide with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines and Brazil as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being a supportive and cutting edge workplace continuously investing in staff development, engagement and well-being. We provide security, career paths, along with individual training programs and mentoring.

POST DATE
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Senior Integrations Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

POST DATE
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Senior Integration Backend Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

POST DATE
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Senior Fullstack Python Developer with React

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

POST DATE
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Senior Fullstack PHP Laravel Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

POST DATE
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Senior Fullstack Engineer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

POST DATE
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Senior Frontend Developer (React)

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

POST DATE
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Senior NET Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.
POST DATE
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Senior DevOps Engineer

Cloud Employee, is a UK owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being a supportive and cutting edge workplace continuously investing in staff development, engagement and well-being. We provide security, career paths, along with individual training programs and mentoring.

Our Client

A leading UK-company that specializes in providing foreign currencies solutions

POST DATE
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Robotics Software Engineer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

A completely integrated innovation studio within the corporate framework, with a primary emphasis on making the future of the food industry accessible to all. Their core objective is to discover, create, and expand tailored automation remedies, utilizing a team of proficient individuals covering domains like engineering, robotics, and artificial intelligence. Our central mission revolves around constructing automation technology solutions that empower individuals to achieve greater feats.

Position Summary

In your role as a Robotics Software Engineer, your expertise in Robotic Software Engineering will be the key to your success. Collaborating with our skilled team, you'll play a pivotal role in advancing our cutting-edge product development accelerator. Your responsibilities will involve crafting, programming, and evaluating top-notch software essential for ensuring the dependable and secure operations of commercial robots.

POST DATE
WORK LOCATION
Remotely
JOB TYPE
Full Time
Apply

Senior Python Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

POST DATE
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Python Developer (Senior Level)

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

POST DATE
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JOB TYPE
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Python Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

POST DATE
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Perl Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

POST DATE
WORK LOCATION
Remotely
JOB TYPE
Full Time
Apply

Mid-Senior Mechanical Engineer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

A completely integrated innovation studio within the corporate framework, with a primary emphasis on making the future of the food industry accessible to all. Their core objective is to discover, create, and expand tailored automation remedies, utilizing a team of proficient individuals covering domains like engineering, robotics, and artificial intelligence. Our central mission revolves around constructing automation technology solutions that empower individuals to achieve greater feats.

Position Summary

The position of Mechanical Engineer corresponds to a mid-level role. An ideal candidate for this position possesses robust practical expertise in various technical systems. The responsibilities encompass a combination of individual input within projects and actively leading teams towards achieving a remarkable standard of technical proficiency.

POST DATE
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Mid-Senior Industrial Design Engineer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

A completely integrated innovation studio within the corporate framework, with a primary emphasis on making the future of the food industry accessible to all. Their core objective is to discover, create, and expand tailored automation remedies, utilizing a team of proficient individuals covering domains like engineering, robotics, and artificial intelligence. Our central mission revolves around constructing automation technology solutions that empower individuals to achieve greater feats.

Position Summary

In the role of an Industrial Design Engineer with a focus on cobotics, you will assume a crucial position in envisioning, crafting, and honing both the tangible and operational facets of our collaborative robotic solutions. Your collaboration will extend to cross-functional groups, including mechanical engineers, software developers, and UX designers, in the pursuit of devising cobotic systems centered around users. These systems will redefine effectiveness and safety within industrial settings.

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Backend Python Developer

Cloud Employee, is a UK owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being a supportive and cutting edge workplace continuously investing in staff development, engagement and well-being. We provide security, career paths, along with individual training programs and mentoring.

A top rated and state of the art cloud based video interviewing solutions company based in the UK catering to over 5000 prominent companies around the world such as Samsung, Uber, Boohoo, Coinbase, 7-Eleven and many more.

POST DATE
WORK LOCATION
Remotely
JOB TYPE
Full Time
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CNC Machinist

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

POST DATE
WORK LOCATION
Remotely
JOB TYPE
Full Time
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CRM Data Specialist (MS Dynamics 365)

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

POST DATE
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Electrical Engineer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

A completely integrated innovation studio within the corporate framework, with a primary emphasis on making the future of the food industry accessible to all. Their core objective is to discover, create, and expand tailored automation remedies, utilizing a team of proficient individuals covering domains like engineering, robotics, and artificial intelligence. Our central mission revolves around constructing automation technology solutions that empower individuals to achieve greater feats.

Position Overview

In the role of an Electrical Engineer, your expertise and proficiency in designing electrical-mechanical systems will be a key asset, enabling you to stand out. Collaborating with our skilled team, you will play a vital role in expediting product development processes.

POST DATE
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Front-End Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

POST DATE
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Front End React Developer

Cloud Employee is a fast-growing UK-managed offshore recruitment and staffing company in the Philippines. We tackle the growing global IT skills shortage by connecting tech companies based in Europe, the US, and Australia to our pool of expert software developers in the country.

We are now seeking a passionate Front End React Developer to join our team of skilled talents. This is an excellent opportunity to join a fun and dynamic work environment and to significantly advance your career.

POST DATE
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JOB TYPE
Full Time
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Frontend Developer (NextJS and React)

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

POST DATE
WORK LOCATION
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JOB TYPE
Full Time
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Frontend Developer (Senior)

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

POST DATE
WORK LOCATION
Remotely
JOB TYPE
Seasonal
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Frontend React Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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Full-Stack Developer

Cloud Employee is a fast-growing UK-managed offshore recruitment and staffing company in the Philippines. We tackle the growing global IT skills shortage by connecting tech companies based in Europe, the US, and Australia to our pool of expert software developers in the country.

We are now seeking a passionate Full-Stack Developer to join our team of skilled talents. This is an excellent opportunity to join a fun and dynamic work environment and to significantly advance your career.

POST DATE
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Remotely
JOB TYPE
Full Time
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Full-Stack Laravel/Vue Developer (Jr to Mid)

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

POST DATE
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JOB TYPE
Full Time
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Full Stack .Net Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineering teams and grow their CV and skill-set.We pride ourselves on being a supportive and cutting-edge workplace that continuously invests in staff development, engagement, and well-being. We provide security, and career paths, along with individual training programs and mentoring.

POST DATE
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Full Time
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Full-Stack Node/VueJS Developer (Mid - Senior)

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring

POST DATE
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JOB TYPE
Full Time
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Full-Stack PHP Developer (Mid to Senior)

Cloud Employee is a fast-growing UK-managed offshore recruitment and staffing company in the Philippines. We tackle the growing global IT skills shortage by connecting tech companies based in Europe, the US, and Australia to our pool of expert software developers in the country.

We are now seeking passionate mid to senior-level Fullstack PHP Developer to join our team of skilled talents. This is an excellent opportunity to join a fun and dynamic work environment and to significantly advance your career.

POST DATE
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Full Time
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Full-Stack PHP Developer Tech Lead

Cloud Employee is a fast-growing UK-managed offshore recruitment and staffing company in the Philippines. We tackle the growing global IT skills shortage by connecting tech companies based in Europe, the US, and Australia to our pool of expert software developers in the country.

We are now seeking passionate Lead Full-Stack PHP Developer to join our team of skilled talents. This is an excellent opportunity to join a fun and dynamic work environment and to significantly advance your career.

POST DATE
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JOB TYPE
Full Time
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Full stack RoR/VueJS Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

POST DATE
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Remotely
JOB TYPE
Full Time
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Fullstack Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set. We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.
POST DATE
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Remotely
JOB TYPE
Full Time
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Fullstack .NET Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

POST DATE
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Lead/Senior Frontend Developer (UI/UX) - Brazil

Cloud Employee is a UK-owned business established eight years ago. We connect high-performing software engineer talent worldwide with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines and Brazil as part of international engineering teams and grow their CV and skill-set.

We pride ourselves on being a supportive and cutting edge workplace that continuously invests in staff development, engagement, and well-being. We provide security, career paths, individual training programs, and mentoring.

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Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set. We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring. ‍
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Offshore Development Pricing: Factors & Taxes

February 16, 2024


What would you do if, halfway through your project, you discovered that your team lacks specific skills and knowledge that are essential for completing the project? Some time ago, a situation like this would be a disaster. You'd have to call off the project and then start the entire recruitment process for hiring developers with those skills.

Thankfully, with the emergence of offshore development, you don't need to go through all that. Even if you don’t have a unique situation like this, you’ll find that offshore development is a cheaper choice.

Do you want to know how offshore development prices are formed?  Here at Cloud Employee, we’ve helped many companies successfully hire professional offshore developers in the Philippines. In this article, we’ll share all you need to know about offshore development pricing.

Factors that makeup software development cost

It’s no news that hiring offshore developers is much cheaper than employing in-house developers. But before you take the step of contacting an outsourcing company, you need to gather some more information about the cost of hiring an offshore developer. The truth is, there's no way to get a definitive price for offshore development. The expense you will incur depends on the scope and length of your project, as well as the country you’re hiring from.

You can expect to pay more if you're hiring from America compared to hiring from the Philippines, Ukraine or Poland. Despite the vast room for variation, all offshore development companies consider specific factors in determining hiring costs. What are these factors?

  • Office space

The cost of setting up and maintaining office space contributes to the total cost of software development. Even though most offshore development companies work with remote teams, they still need a central office space to coordinate their teams and clients. Setting up and maintaining office space includes paying rent, buying furniture, purchasing technical equipment, and stocking office supplies.

This may not look like much, but anyone who has ever set up an office before knows how the bills can quickly pile up. Therefore, offshore development companies factor in the cost of office space to determine the value of their services.

  • Hiring or recruitment teams

Another factor that offshore companies consider is the cost of employing permanent, in-house recruiters. Offshore companies work by connecting clients to skilled freelance developers. Some clients may need only one or two developers at a time, while others require several people to make up a large development team.

Whatever the case, an offshore company can only be successful if they have access to a large talent pool of developers. That's where recruiters come in. It's their job to continually hunt for new talent to add to the company's database. That's not all. Recruiters also handle the multiple stages of gathering development teams for clients.

It's also their responsibility to find out what kind of specialists a client needs, how many people they want on their team, and the specific skills they require developers to have. After this, recruiters conduct several multiple-level interviews to create the perfect team of developers. As you can tell, they have a lot on their plate. So, when you pay for offshore development, you’re also paying for the cost of employing these all-important recruiters.  

  • Vacations

Offshore companies also consider the cost of vacations for their staff. Just as it is in other organizations, offshore company employees have off day. Legally, offshore companies must allow their employees to take days off. This includes national or state holidays, annual vacations, and sick leaves. Clients pay for what it costs an offshore company to give holidays to its staff.

  1. Education and training

Software development is a continually evolving industry; new trends and technologies are emerging all the time. Any offshore company that wants to remain relevant must ensure that its developers are abreast of time and in touch with the latest technology. Many companies invest in their employees by paying for on-the-job training in mentorship programs and internal lectures.

It's also common to find companies sponsoring their employees to take courses or acquire higher qualifications. Also, some offshore companies may have to enroll their employees in language classes. Most offshore companies are located in countries that do not speak English as a native language. The most popular outsourcing countries are Poland, Ukraine, Russia, Vietnam, India, and the Philippines.

To compete on the market, offshore companies must ensure that their employees and developers can communicate in English. Without this, they will be limited to a tiny circle of clients.

  • Taxes

Offshore companies have to pay taxes just like everyone else. Depending on the country, the tax rates may be high or low. Whatever the case, tax is a factor that contributes to the total cost of offshore development. But many clients don't mind paying for this, considering that they would probably have to pay more in taxes if they had an in-house team of the same size.

  • Non-tech employees

We have already mentioned that offshore companies need to employ recruiters to operate successfully. Apart from recruiters, other non-tech employees contribute to the running of the organization; from project managers to accountants, to office managers, and even cleaning staff. All of these people have to be employed and paid on a full-time basis. This is another factor that makes up the cost of hiring offshore software developers.

  • Accounting

Accounting is a crucial aspect of every organization. Without a proper accounting system and qualified accountants, your company could collapse before your very eyes. However, small business owners often have to handle their own accounting because they cannot afford to hire someone for that at that particular point in time. The problem is, you can get so distracted by accounting and administrative work that it affects your business.

Plus, if you're not a professional accountant, there's a lot of room for error. When you hire offshore developers, the offshore company handles all the accounting work for you; you don't have to think about salaries, taxes, or other accounting matters. This also counts as a factor that influences the price of offshore software development.

Why cost shouldn’t be your primary driver

No matter what you do, outsourcing work to an offshore company is definitely more affordable than employing an in-house team of developers. But among offshore companies, there are levels; some are even more affordable than other offshore companies. Many times, clients are tempted to choose the cheapest option; after all, the purpose of offshoring is to cut costs, right? That's true, but you still need to exercise caution because cheaper doesn't always mean better.

Most times, cheap equals lousy quality. Consider this example: suppose you went to a shoe store and saw a pair of nice shoes selling at less than half the price you'd typically pay for them. Immediately, your brain's natural alarm bells will begin to ring. You'll probably be thinking that there must be a catch somewhere or that the shoes are low quality. And no matter how nice they are, you’re probably not going to buy them.

A lot of people have developed this type of wariness in their personal lives, but it's essential to translate that into their business lives as well. When you're trying to decide which offshore development company to work with, you should be wary of companies with suspiciously low prices. That doesn't mean that all affordable offshore companies are scams. What we mean is that affordability is not a guarantee of good quality. And the opposite is also true; an expensive company isn’t necessarily the best company. In short, cost should not be the basis of your choice.

So, what should you do? Apart from pricing, you should examine other factors to help you select the best offshore development company for your project. Here are some things to consider in an offshore company.

  • The Management team:

Try to find out as much as possible about the offshore company's leadership. Please find out how much experience and exposure they have in the industry and whether it's enough to meet your requirements.

  • The level of flexibility:

The best offshore partnerships are those that offer maximum flexibility. You want to choose a company that is flexible in its approach so that you can feel free to make changes as you go along.

  • Trained resources:

Does the company have enough qualified and experienced developers to handle your project? Do they have enough developers with expertise in different IT fields? You don't want to have to hire developers from multiple offshore companies; you should try to find one company that can provide all the resources you need.

Conclusion

To sum it all up, offshore software development is beneficial to most organizations; it’s an excellent way to access the best software talents at an affordable rate. But before you partner with any offshore company, you should know what it’s going to cost you. Of course, you can get a price quote from the company, but to ensure that you’re getting value for your money, you might want to know what factors make up the cost of offshore development. Even though cost is important, you should never make a business decision based on affordability alone.

We hope this article has been insightful. If you enjoyed reading it, please share this post.

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