Most companies that come to us with offshore questions aren’t asking whether to go offshore. They’ve already decided. What they actually want to know is: what is this going to cost and what am I really getting for that number?
That’s the right place to start.
When you hire dedicated offshore development team, the monthly cost typically lands somewhere between $8,000 and $35,000 – depending on team size, seniority mix, location and tech stack. But if you’ve already gotten a few vendor quotes, you’ve probably noticed they don’t look the same. Some are significantly lower than others. Some include things others don’t. And almost none of them tell you what’s not in the number.
That’s what this guide is for.
We’ll break down exactly what drives offshore team pricing, what a well-structured retainer actually includes, what the honest offshore-versus-in-house cost comparison looks like in real dollar terms and how to tell a competitive quote from a cheap one that will cost you more in the end.
No benchmarks without context. No “it depends” without explaining what it depends on.
Dedicated Offshore Development Pricing Models
When you hire dedicated offshore development team, the pricing model affects your total cost as much as the hourly rate. Most vendors offer 3 options:
| Model | How you pay | Best for | Cost impact |
| Dedicated team | Fixed monthly fee per developer | Projects over 6 months, ongoing product work, scaling teams | Predictable budget; lowest effective rate for long-term work |
| Time & Material | Hourly rate for actual hours worked | Evolving scope, MVPs, short engagement | Flexible, but typically 15 – 25% more per hour |
| Fixed price | One agreed price for a defined scope | Small projects with clear, stable requirements | Easy to budet, but risk is priced in and scope changes cost extra |
5 Key Factors That Drive The Cost of Dedicated Offshore Team
There is no single price when you hire a dedicated offshore development team. The final quote depends on 5 main factors. Understanding them helps you compare vendors fairly and avoid paying for more than you need.
Location (The Geographic Baseline)
Where your team is based sets the pricing baseline. Local salaries, living costs, and demand for developers all feed into the rate a vendor charges.
| Region |
Typical hourly rate |
|
India & South Asia |
$15 – $45 |
|
Philippines |
$10 – $49 |
|
Latin America |
$25 – $55 |
| Eastern Europe |
$35 – $70 |
| United States (onshore) |
$100 + |
Source: Aalpha, 2026.
Vietnam sits at the lower-to-middle end of the Asian range. Most 2026 sources place mid-level developers at roughly $25 – $40 per hour and senior developers at $35 – $50 per hour, depending on the vendor and what the rate includes.
A lower rate does not always mean a lower total cost. Time zone gaps, English proficiency, and talent depth all affect how much management effort you will spend later.
Tech Stack and Specialization
Common stacks such as PHP, React, or Node.js have large talent pools and lower rates. Niche skills cost more because fewer engineers have them. AI/ML, DevOps, cybersecurity, and blockchain are typical examples.
The gap can be significant. Offshore AI engineers in Eastern Europe or Israel may charge $60 – $100+ per hour, while in India or Vietnam the range is typically $30 – $60 per hour (Source: Aalpha). If your product needs rare expertise, expect to budget at the upper end.
Team Size and Composition
Cost scales with how many people you hire and which roles you need. When you hire a dedicated offshore development team, you rarely hire developers alone. The team often includes QA engineers, a business analyst, a designer, and a project manager.
As a reference, a dedicated offshore team of 4-6 engineers usually costs $12,000 – $30,000 per month. For Vietnam, one benchmark puts a 5-6 person team at $14,000 – $28,000 per month.
Adding a PM or BA raises the monthly bill. In return, it lowers the risk of miscommunication and rework, which often saves money in the long run.
Seniority Level
Experience is one of the biggest drivers of the rate. Junior developers can start around $12 – $21 per hour in many markets, while seniors reach $40 – $65 or more.
Rates are also trending up. Qubit Labs projects that mid-level and senior offshore rates will rise 3 – 6% in 2026, even as junior rates stay flat.
A balanced mix is often the most cost-efficient: a senior to lead architecture and review code, supported by mid-level developers who handle most of the delivery.
Contract Length and Terms
Dedicated teams are priced for commitment. The longer the engagement, the lower the effective cost. Vendors spread onboarding and overhead across more months, and you avoid rebuilding a team from scratch. Industry data suggests that retaining the same offshore team across projects costs 20 – 30% less per project than sourcing a new team each time.
Pay attention to the terms around the rate too:
Minimum commitment: many vendors ask for 3 – 6 months.
Notice period: how quickly you can scale the team up or down.
Replacement policy: if a developer leaves, a replacement can take 3 – 4 weeks. Check whether you are billed during that gap.
Currency clauses: some contracts adjust fees if exchange rates move beyond a set range.
Hidden Costs of Hiring a Dedicated Offshore Team
The monthly rate you are quoted is rarely the full cost. Industry analyses suggest the true cost of offshore development runs 30 – 45% above the base rate once management and quality assurance are included.
Some estimates put the multiplier at 1.4 to 1.8 times the quoted rate, depending on how clear your requirements are and how well the team knows your stack. A safe approach is to add a 25-40% buffer to every offshore budget.
Here are the costs most often missed:
- Management and communication overhead. Your own engineers and product owners will spend time on briefings, reviews, and async handoffs. A large time zone gap can turn a simple blocker into a 24-hour delay.
- Onboarding and ramp-up. New developers need time to learn your codebase, tools, and business logic. Productivity is lower in the first weeks, but the invoice is not.
- Rework and quality issues. Unclear requirements or weak code review lead to rewrites. This is why very low rates often become expensive by month six.
- Tools and licenses. Cloud hosting, IDEs, and AI coding assistants can add around $600 per developer per month, and not every vendor includes them in the rate.
- Replacement gaps. If a developer leaves, finding a replacement can take 3 – 4 weeks. Some contracts keep billing during that time.
- Currency and payment costs. Contracts may adjust fees if exchange rates move beyond an agreed range, and international transfers add bank charges.
- Lock-in and key-person risk. If knowledge sits with one developer or code is not documented, switching vendors becomes costly.
How to avoid surprises?
Before signing, ask each vendor for a one-line breakdown of what the rate covers: PM, QA, equipment, tools, and replacement terms. Two quotes that look $200 apart per month often become equal once you see what is bundled. Also clarify the replacement policy and who owns the code and documentation from day one.
Hire Dedicated Offshore Development Team: Estimated Price Ranges
The figures below are indicative estimates for a dedicated offshore team based in Vietnam. They show what a typical budget may look like, not a fixed price list. Your actual quote will depend on your project scope, tech stack, team mix, and contract length.
All figures are in USD per month, per person, for a full-time dedicated engineer.
Estimated monthly cost by role
|
Role |
Junior | Mid-level |
Senior |
| Developer (Frontend / Backend / Mobile) | ~$2,000 – $2,800 | ~$3,000 – $4,500 | ~$4,500 – $6,500 |
| QA Engineer | ~$1,800 – $2,500 | ~$2,500 – $3,800 | ~$3,800 – $5,000 |
| Business Analyst / Project Manager | n/a | ~$3,500 – $5,000 | ~$5,000 – $6,500 |
| Specialist (AI/ML, DevOps, Cloud) | n/a | ~$4,500 – $6,500 | ~$6,500 – $9,000 |
These estimates generally cover the engineer’s salary, vendor management, office, equipment, and basic reporting. Specialist roles sit at the higher end because talent is scarcer and demand is stronger.
Estimated monthly cost by team size
|
Team size |
Sample structure |
Estimated monthly budget |
| Starter (3 people) | 1 senior dev + 1 mid dev + 1 QA | ~$10,000 – $15,000 |
| Growth (5 – 6 people) | 1 senior + 3 mid devs + 1 QA + 1 PM/BA | ~$19,000 – $29,000 |
| Scale (8 – 10 people) | 2 senior + 5 mid devs + 1-2 QA + 1 PM/BA | ~$30,000 – $48,000 |
*Note: The prices above are estimates for reference only, not actual costs. Contact us for a detailed.
Offshore vs. In-house Cost Comparison: How Much Can You Save?
Hiring in-house costs more than a salary. Benefits, payroll taxes, recruitment, equipment, and management time all add up. A dedicated offshore team bundles most of these into one monthly fee, which is where the savings come from.
For a single senior developer, the gap is clear:
|
In-house |
Dedicated offshore |
|
| Estimated cost per year | $216,000 | $71,000 – $75,000 |
| Estimated cost per month | $18,000 | $6,000 |
That is roughly 65 – 67% lower per developer. The gap widens with team size. A dedicated offshore team of 4-6 engineers typically costs $12,000 – $30,000 per month, while a comparable US or UK team often runs $40,000 – $80,000 or more. Across the market, savings usually fall between 40% and 70%.
When savings may be lower than expected:
- Short projects: onboarding costs are spread over fewer months.
- Unclear requirements: rework eats into the saving.
- Very cheap vendors: rates far below market often lead to quality problems and rewrites.
- Weak management: hidden costs climb without clear communication and code review.
In these cases, expect your real saving to sit toward the lower end of the range. Many companies get the best result by keeping a small in-house core team for strategy and architecture, and using a dedicated offshore team for delivery.
Note: The figures above are estimates for reference only, not actual costs.
Overall, hire dedicated offshore development team is less about finding the lowest rate and more about finding the right bThe Power of a Dedicated Software Development Team: Your Guide to Strategic Growthalance between cost, quality, and long-term stability. A team that understands your product and stays with you over time often delivers more value than the cheapest option on the market. For companies that plan carefully, choosing to hire a dedicated offshore development team can be a practical way to scale faster while keeping development spending under control.
Relipa
Relipa is a Vietnam-based software development company established in April 2016. After two years of growth, our Japanese branch – Relipa Japan – was officially founded in July 2018.
We provide services in MVP development, web and mobile application development, and blockchain solutions. With a team of over 100 professional IT engineers and experienced project managers, Relipa has become a reliable partner for many enterprises and has successfully delivered more than 500 projects for startups and businesses worldwide.
