True hourly costs versus salary-based hourly rates

When comparing the hourly costs of software engineers in high cost versus low cost countries, one may wonder whether there is any good reason to develop software in Europe at all. One fundamental problem with such comparisons is an assumption that companies pay for working hours. Well, it’s important to get the value for money, isn’t it? What constitutes value in this context is timely delivery of working software that satisfies requirements set by the customer or the company that outsources their development to an offshore vendor.

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