In 2024, global spending on software development services reached about $436 billion. By 2033, that figure is expected to climb to nearly $1.5 trillion.
This shows a major shift in how more companies are choosing to work with outsource software partners.
To get a clear picture of this growing market, DesignRush studied over 2,000 software outsourcing companies and reviewed nearly 1,900 client experiences. The research offers a real-world view of how the outsourcing landscape looks in 2025.
Their findings shed light on common price points, team sizes, project types, and which regions are most active. The analysis includes data from over 80 countries.
Key Highlights
- Average team size is 105 people, mostly small and mid-size teams.
- 42% of firms offer projects under $10,000, great option for startups.
- India is the most used destination, chosen by about 1 in 4 companies.
- India also has the lowest average price at $24.81, compared to global average of $37.35.
- Ukraine (3.47) and the U.S. (3.42) have the highest average satisfaction scores (out of 5).
- Most demand comes from IT, software, and finance sectors.
- U.S. firms handle more than twice the number of clients compared to global average.
Industry Average
| Metric | Global Avg |
| Avg. Company Size | 105 employees |
| Avg. Hourly Rate | $40.71 |
| Avg. Project Budget | $21,380 |
| Avg. Client Load | 1.69 |
| Avg. Review Score (/5) | 3.10 |
Most outsourcing providers are small to mid-sized operations. While the average hourly rate hovered around $41, a large number of companies offered more flexible pricing, including support for smaller or early-stage projects.
These benchmarks help companies set expectations. Firms charging more or serving more clients might signal scale and experience, while others may specialize in niche or lower-cost work.
Where Are Most Firms Based?
These five countries have the most software outsourcing companies in the world.
The study reported 525 companies from the U.S., highest company count. That makes up more than a quarter of all the companies studied, followed by India.
The rest of the top five were all based in Europe.
Where Are Services Most Affordable?
For a tight budget, here are the five most affordable countries for software development outsourcing services.
India tops for the most budget-friendly option at $24.81. The Philippines and Poland also offer budget-friendly services, with rates far below the global average of $40.71/hour.
These lower rates offer options for startups or companies working with limited budgets.
Pricing Breakdown by Group
| Percentile | Hourly Rate |
| 25% | Under $20 |
| 50% | Under $35 |
| 75% | Under $50 |
Half of all companies charged less than $35 per hour. A quarter came in under $20, showing a wide range of budget options.
Common Budget Ranges
| Project Budget | Share of Firms |
| Under $10,000 | 42% |
| Over $25,000 | 12% |
Most providers were open to working with lower project budgets. This makes outsourcing more accessible for companies starting out or testing new products
Top Industries Using Outsourcing
The research analyzed over 1,900 verified client reviews. The analysis lists the countries with the best reviews.
| Country | Avg. Review Score (out of 5) |
| Ukraine | 3.47 |
| United States | 3.42 |
| Poland | 3.38 |
| India | 3.26 |
Firms in Ukraine and the U.S. received the strongest feedback. Clients mentioned better service and clearer communication.
Top Industries Using Outsourcing
Some industries outsource more than others. The top in include:
| Industry | No. of Clients |
| IT Services | 561 |
| Computer Software | 373 |
| Financial Services | 326 |
| Marketing & Advertising | 271 |
| Healthcare & Hospitals | 130 |
| Retail | 139 |
| Real Estate | 128 |
These are the industries that use outsourcing services the most. Companies in IT Services turned to software development outsourcing the most, based on DesignRush’s data.
The computer software and financial services fields also need extra support to build their software.
Client Load by Country
DesignRush’s data highlights how many clients companies typically work with.
| Client Range | Company Count |
| 1–3 clients | Most firms |
| 10+ clients | Few firms |
While most companies serve f
ewer than 3 clients at a time. U.S. firms tend to handle a higher volume.
| Country | Total Clients | Avg. Clients/Company |
| United States | 2,300 | 4.38 |
| India | 967 | 2.74 |
| Ukraine | 402 | 3.27 |
U.S.-based companies serve over 2,300 clients, more than double India’s 967, averaging 4.38 clients per company.
Spotlight on the U.S. Market
Over 857,000 people work in software outsourcing across the United States.
More than 500 firms serve this market. U.S. companies tend to charge more and take on more clients. But they also earn better satisfaction ratings, which may reflect the level of service.
| Metric | U.S. Value |
| Total firms | 525 |
| Share of global firms | 27% |
| Avg. team size | 135 people |
| Avg. hourly rate | $49.83 |
| Avg. review score | 3.42 |
| Clients per company | 4.38 |
Where U.S. Firms Are Based
These are the top 5 states with the highest company count, according to DesignRush data.
| Rank | State | No. of Companies |
| 1 | New York | 463 |
| 2 | California | 421 |
| 3 | Texas | 251 |
| 4 | Florida | 110 |
| 5 | Pennsylvania | 85 |
Most software outsourcing companies in the U.S. are based in New York and California. These states are known for tech talent, big companies, and access to investors.
Comparing State Rates
| Rank | State | Avg. Hourly Rate |
| 1 | Maryland | $15/hr |
| 2 | New Jersey | $26/hr |
| 3 | Massachusetts | $27/hr |
| 4 | Wyoming | $28/hr |
| 5 | Tennessee | $28/hr |
These states offered the most affordable rates. They may appeal to smaller businesses seeking U.S.-based talent.
Maryland offers the most budget-friendly rates for software development services. New Jersey, Massachusetts, Wyoming and Tennessee are also great options for small businesses looking for U.S.-based teams at lower prices.
The software development outsourcing market is growing fast, and it’s full of options.
This report offers a snapshot of what’s out there in 2025. By understanding the average costs, satisfaction levels, and country strengths, businesses can move forward with confidence.
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