Build Smarter, Spend Less: Why You Should Hire Software Engineers Outside the U.S.

Picture this. You just offered $175,000 to a backend engineer in the U.S., the offer is solid, and you feel confident, until a peer tells you they hired a senior engineer in the Netherlands for nearly half the cost. Same tech stack. Same experience level. Completely different price tag.

As tech salaries continue to soar in the U.S., small businesses are beginning to rethink where and how they build their teams. Hiring globally is no longer reserved for massive enterprises with deep pockets. Thanks to remote-first technology and hiring platforms through an employer of record (EOR), even lean startups and growing teams can access top-tier software engineering talent around the world.

If you're building in AI, developing an app, or scaling your SaaS product, there’s never been a better time to look beyond borders.

The Salary Savings You Can’t Ignore

It’s no secret that hiring U.S. software engineers is expensive. The median engineering salary across roles in the U.S. is roughly $185,000, which rises with experience.

According to internal Justworks global workforce data, here’s how median salaries stack up in other countries:

• India: $33,830

• Mexico: $37,537

• Spain: $101,320

• United Kingdom: $144,451

• Canada: $127,998

Even when hiring senior engineers, the gap is significant:

• Senior Engineer in India: $42,353

• Senior Engineer in Canada: $155,938

That’s a difference of over $90,000 per year. For a small business, those savings can open the door to reinvestment in product, marketing, or hiring additional team members.

With talent costs 65-75% lower in countries like India and Mexico, small businesses can scale faster without sacrificing quality.

Curious about how software engineer salaries stack up globally? Use our interactive tool below to explore our internal data that breaks down average compensation by country and role. 

What Software Engineers Really Cost Worldwide

When you compare software engineering salaries across countries, the difference is impossible to ignore. From junior developers to senior architects, the pay gap between regions can mean the difference between hiring one person or building an entire team.

Here’s what typical salary ranges look like in the five top markets for tech talent:

• India: $8,000 to $110,000

• Mexico: $8,000 to $118,000

• Spain: $55,000 to $170,000

• United Kingdom: $40,000 to $270,000

• Canada: $40,000 to $250,000+

That means a mid-level engineer in Mexico might earn around $40,000, while the same role in the UK could cost nearly five times as much. It's not just about junior talent either. Senior engineers with years of experience are also available in lower-cost markets, often at a fraction of the price. 

When you see these numbers side by side, it’s easy to understand why more and more small businesses are taking their search global. Hiring globally enables you to build the right team at the right cost, without sacrificing quality. You just have to know where to look.

Why Canada Is Emerging as an AI Talent Powerhouse

If you're building anything in artificial intelligence or machine learning, Canada should be on your radar. Our data shows that Canada is a strong contender for software engineering talent overall, with a median salary of $$127,998. While that number may seem high at first glance, it actually represents a significant cost savings compared to many U.S. cities, especially for advanced AI roles. According to data from Indeed, senior engineers in the U.S. have an average salary of $170,000 per year with top salaries ranging up to $218,000, whereas senior Canadian engineers often fall within the $120,000 to $160,000 range.

But it’s not just about lower salaries. Canada is home to a world-class AI ecosystem fueled by top universities, government investment in innovation, and research hubs in cities like Toronto, Montreal, and Vancouver. These cities are producing AI engineers and data scientists who equal Silicon Valley talent, but with more accessible salary expectations. As more companies look to infuse AI into their products and workflows, Canada offers a way to hire top engineering talent without stretching budgets.

The Future of Small Business Is Global

Global hiring is no longer a stretch goal or a risky experiment. Today, it’s a strategy. One that helps you scale smarter, reach further, and stay compliant every step of the way.

The benefits are hard to ignore. Hiring internationally opens up access to proven talent networks, often at a significantly lower cost. With salary differences of up to 70% in some countries, small businesses can reinvest savings into product development, marketing, or building out other key roles. But it’s not just about cutting costs. Global hiring allows you to build a more diverse, resilient, and scalable team. You gain access to specialized skill sets that may be hard to find locally, and can extend your working hours by covering multiple time zones. That means faster development cycles and more responsive support across markets. Which means you can take your business where it needs to go by expanding the boundaries of your talent pool.

What This Means for Small Businesses

You no longer need to choose between top talent and a manageable budget. The world is full of experienced, motivated software engineers who are ready to contribute, and now, you can hire them without the hassle. Whether you need one developer or a full product team, global hiring can help you scale faster and more efficiently than traditional methods. 

And thanks to modern hiring solutions like Justworks EOR, you don’t need to open a foreign entity or spend months navigating local employment laws. We handle compliance, payroll, and onboarding, so you can focus on growing your business, not managing red tape.