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UK startups face soaring nearshore developer costs

nearshore developer costs

UK businesses are facing rising costs for developers, according to a study by Bristol-based developer marketplace platform Deazy.

The research found that the hourly rate of nearshore developers – outsourced software developers that have close geographical proximity to a company – has increased by 31% this year across Europe.

Deazy’s analysis, which is based on 284 software development projects in 2021, highlights a challenge faced by many UK technology startups.

“Since the pandemic there has been a rapid acceleration in the shift towards digitalisation,” said Andy Peddar, CEO, Deazy. “Enterprises find it hard to train their own people fast enough. Hence, they outsource their development requirements. However, the market hasn’t responded fast enough and demand is outstripping supply, which has led to dramatic increases in costs.”...

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