It comes as no surprise that modern businesses rely on software development as a primary source of agility and digital growth.
Europe’s great need for software development services has been driven by a worldwide skills shortage and the business demand for digital transformation. Most businesses do not want to hire in-house developers, opting instead for outsourcing their IT services. With a large gap between the number of job openings and available software developers, the competition is growing.
- As of 2021, the European IT market’s revenue was $145,118 million. At an annual growth rate of 6.62%, it is expected to reach $199,912 million by 2026.
- Tech specialists in the Netherlands, Austria, Denmark, Romania and Switzerland–along with a list of other countries located in western and central Europe–have either high or very high English proficiency.
- Continued digitization of the workforce due to the COVID-19 pandemic, the popularity of IoT, 5G deployment, and increasing demand for OTT content are major factors behind the growth of the central and western Europe markets.
- According to Statista, the global revenue of business process outsourcing and information technology outsourcing amounted to around 92.5 billion U.S. dollars in 2019.
- Machine learning and data science engineers are among the most in-demand worldwide. They are also the highest-paid among tech professionals.
- According to PayScale, a software engineer has a median salary of $89,068 as of 2022.
Factors that influence software developers’ salaries
Switzerland is one of the most expensive countries in Europe, and so it comes as no surprise that developers there can make up to $132,500 a year. By contrast, developers from across western Europe make between $19,275 to $76,500 on average.
Although most developers looking for a job tend to emphasize their hard skills, it’s soft skills that matter just as much, if not more, when it comes to landing that job offer. Great communication, empathy, time management skills and the ability to think outside the box is what recruiters are looking for when they’re interviewing candidates.
Taxes play a crucial role in developers’ salary levels. Tax deductions should not drive developers below their base salary.
Developers nowadays rarely accept offers without benefits packages that include perks like paid vacation and sick leave, education compensation, health insurance, and English classes. Thus, they have to be included in employment offers.
But other factors are also crucial: seniority level plays a major role, for example. Junior developers in central Europe usually make around $16-$25, while seniors can expect to make between $37-$51 per hour.
In short, the following factors inevitably influence developers’ rates:
- seniority level;
- programming language;
- soft skills;
- benefits; and
Software developer rates in western Europe: A general overview
Western European developers boast above-average salaries. For those businesses who don’t want to compromise quality, yet still don’t want to pay the hefty sums accompanying developers from the US, western Europe is the perfect choice. Below we break down western European salaries per year by country.
Software developer rates in central Europe: A general overview
High skill level of Central European developers is what attracts customers from all over the world. Compared to other destinations, the region is notable for its cost-effective solutions and an impressive number of developers, yet some countries are far more expensive than others. For example, a senior software developer in Estonia can make up to $114,018 per year, almost twice as much as the same developer makes in Poland.
Below is a table with the average employee's yearly salaries as of 2022.
Average annual software developer salary by technology
All the data provided in the report was calculated as of August, 2022.
How has the Russian invasion of Ukraine affected the software development market?
The global tech market was already experiencing an acute talent shortage, but now it is expected to get even worse due to Russia’s war in Ukraine. This shortage is predicted to have consisted of 85 million people with a loss of $8.5 trillion in possible revenue. If you’re interested to find out more about Russia’s demise as an outsourcing destination, check out our latest article.
Grid Dynamics Expands European Presence and Closes Operations in Russia
Let’s Sum It Up
Software developers’ salaries vary significantly based on their location, level of expertise, the technology and programming languages they’re working with, taxes, and a few other factors. Before looking for a developer in western or central Europe, you should consider all these things and make hiring decisions accordingly.
But once you decide to work with developers from the region, you’ll be pleased to work with experienced, open-minded people who are eager to help you achieve excellence through digital transformation.
Grid Dynamics is a global digital engineering company that co-innovates with some of the most respected brands in the world to solve complex problems, optimize business operations, and better serve customers.
We build and manage self-sufficient project teams containing architects, data scientists, developers, and automation engineers specializing in the required technology stacks according to your project specifications.
We offer several engagement models, including consulting and agile engineering teams.
We also support several contractual models, including agile teams, fixed-scope programs, and outcome-based programs.
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