Latest News

Nearshore developer costs soared by almost one-third in 2021

The cost of development services in Europe rocketed in 2021, increasing by almost one-third across the year. Analysis by developer marketplace platform Deazy revealed an increase of 31% on the average hourly rate.

Deazy is a curated marketplace of development talent, a platform that connects enterprises and agencies with the right dev talent. It works with 50 handpicked development teams across Europe, and the analysis is based on 284 projects across 2021.

“Demand for developers has been increasing steadily for years, but since the pandemic there has been a rapid acceleration in the shift towards digitalisation,” said Andy Peddar, CEO, Deazy. “It’s hard for enterprises to train their own people fast enough, so they are outsourcing more and more of their development requirements. But the market hasn’t responded fast enough, and demand is outstripping supply, which is why we are seeing such dramatic increases in costs.”

Deazy’s analysis also looked at the most used platforms for web development across Europe. It revealed increased usage of the cross-platform mobile technology React Native, which in 2021 accounted for 40% of mobile projects for Deazy’s development teams. Other prominent mobile platforms were Kotlin (Android), which dropped from 37% in 2020 to 20% in 2021, and Swift (iOS), which fell from 42% in 2020 to 33% in 2021.  

“React Native is fast becoming the de-facto platform for mobile development projects,” continued Andy Peddar, Deazy. “It has matured rapidly over the past 18 months, adding a wide range of features and becoming far more stable. The feedback from our development teams is that it’s increasingly suited to large-scale enterprise mobile dev projects, a trend that’s likely to continue in 2022.”

The analysis also revealed an increased usage of JavaScript amongst Deazy’s development teams, rising from 31% of projects in 2020 to 40% in 2021. JavaScript’s increase was due in part to a reduction in usage of Python (17% in 2020 to 9% in 2021) and PHP (24% in 2020 to 18% in 2021).  

“There are two principal challenges facing enterprises around development – capacity and capability,” concluded Andy Peddar, Deazy. “There’s a major shortage of developers, and it’s also hard for enterprises to be able to support a wide range of technologies and frameworks, which is why so many of them are outsourcing their development projects. But our analysis shows that demand is growing even for outsourced developers – something any enterprise should keep front of mind when planning development projects in 2022.”