The global demand for software developers is not slowing down, with significant shortages in the US labor market. About 154,000 new job openings are expected each year over the 2022-2032 period. States like California, Texas, Florida, New York, and Virginia have from 140K to 320K new tech positions — the highest need for qualified software engineers, especially of a team leader level.
So, how can US tech companies bridge this talent shortage? The most effective way is to tap into other markets via nearshoring or offshoring.
I’m Alina Grytsenko, IT recruitment Team Lead at Alcor. Our all-in-one R&D center solution helps tech companies expand to Latin America and Eastern Europe. Our perfect combo of full-cycle tech recruitment, EoR services, and operational support enables compliant and swift scaling from 0 to 100 developers in 1 year.
In this article, I’ll share in-depth research on the average software team lead salary worldwide, helping you compare and choose the most cost-effective destination for your team expansion. I’ll also share the nitty-gritty details about the team leader’s expertise, the main factors influencing their remuneration, and the best way to hire these professionals. So, let’s get started!
Expertise and Education of Software Team Leaders Worldwide
A software team leader is the engine of a development team. They coordinate and mentor teammates, set realistic development goals, guide projects to success, ensure high-quality code, and foster a collaborative environment. Team leads need a blend of hard and soft skills to excel. So, let’s have a look at the most vital ones:
Education
To become a team lead, programmers must have at least a bachelor’s degree in computer science, information technology, computer engineering, or any other technical field. A big plus would be having essential certifications like Project Management Professional, Scrum Master, AWS Certified Solutions Architect or ITIL Foundation, or Certified Agile Leadership. A big plus would be obtaining an MBA to get a holistic picture of business functioning and team management.
Hard Skills
- Expert knowledge of programming languages
An average team leader should know at least two obligatory programming languages. For example, some software team leaders must know JavaScript, TypeScript, and C++ or a combination of other dev languages to create robust web application systems.
- Expertise in other technologies
If we take a team leader who focuses on JavaScript, C++, and TypeScript, they might also have experience with technologies like Node.js, RabbitMQ, WebSockets, and Docker. In the case of cloud infrastructure engineering, a team lead could have Python expertise and knowledge of other technologies like AWS, Google Cloud Platform, Azure, Docker, Kubernetes, and CI/CD (as seen in the vacancy description below).
- Familiarity with development methodologies
The effective execution of a software development project largely depends on the choice of methodology. Qualified team leaders should have a solid understanding of different methodologies, such as Agile, Scrum, Waterfall, Kanban, and DevOps, to pick the most effective one for a particular project.
- Quality assurance skills
Team leaders are responsible for finding and solving software development issues. That’s why these specialists must be able to check and troubleshoot code written in various programming languages, understand error messages, and identify root causes.
Soft Skills
- Effective communication
Being an excellent communicator is a must for every team leader. They must find a workable approach when talking with teammates and stakeholders. With developers, a good team leader should provide a clear project vision and communicate ideas and standards openly and straightforwardly. When dealing with non-technical staff and clients, they should be able to articulate complex technical details in plain language for effective decision-making. In short, a team leader needs to speak everyone’s language and ensure the message is crystal clear
- Leadership
The development team’s success hinges on the team leader’s ability to set realistic goals and guide and motivate the engineering team. They are the go-to person, always ready to share their knowledge and expertise. Good team leaders encourage innovation, balance technical challenges with team well-being, and ensure smooth project execution.
- Problem-solving
One of the responsibilities of team leaders is to minimize the occurrence of problems. To do so, they need to clearly understand the processes on the team, development, and customer levels to identify possible issues beforehand or solve the current troubles, tapping into their critical and creative thinking. Other abilities of good team leaders are being able to guide the team through problems and have the will to take (mindful) risks.
- Emotional intelligence
Another integral soft skill of a top-notch team leader is the ability to understand one’s own emotions and the emotions of others. Self-aware and empathetic leaders often promote a more healthy and collaborative work environment and excel at managing relationships, resolving conflicts, and making thoughtful decisions.
- Adaptability
With the rapid technological advancement and changing business environment, good team leaders must be adaptable and flexible. This soft skill helps them instantly respond to unexpected challenges, project issues, and shifts in the market while ensuring their team peace of mind and effective guidance. Being adaptable is a crucial skill in implementing agile methodologies.
Knowledge of English
The standard level of English among lead engineers is C1/C2, or advanced, as they should be able to communicate freely with foreign teammates and clients. However, sometimes, tech companies may consider candidates with a B2 level if they perfectly match all the tech requirements.
Software Team Leader Salary Market Trends
Talented software team leaders are in high demand globally, with a notable shortage in the US. According to LinkedIn, over 147,000 open software development team lead positions in the United States and over 35,000 such vacancies on Glassdoor exist. Naturally, this market tendency drives up the salaries of software team leads.
According to Glassdoor, the average salary range for software team leaders in the US is approximately $153K-$165K, with top salaries reaching up to $242,000. It’s estimated that in 2024-2025, the demand for programmers, particularly leading development engineers, will grow further, and so will their wages. However, this is not the only factor influencing a team leader’s annual income.
4 Main Factors That Impact the Average
Software Team Leader Salary
In addition to growing demand, the TL salary also depends on the following four factors:
1) Desired skills & knowledge
It’s not a surprise that more years of hands-on experience result in higher TL salaries since such specialists bring more value to the development process. Apart from the hard and soft skills mentioned above, a team leader can demand a higher remuneration if having knowledge of high-demand or rare technologies.
2) Experience Level
Backend developer, full stack engineer, frontend developer, and mobile app developer are the common positions to grow to team lead. Usually, these tech specialists need about 4-5 years of hands-on experience to get into a managerial role. In general, the career ladder of software team leaders looks like this: Junior Developer (1-2 years), Middle Developer (2-3 years), Senior Developer (4-5 years), Software Team Leader (5 or more years).
3) Organization size & type
The software engineer team lead salary also depends on the type of software company. In practice, product tech companies offer 32% higher salary than outsourcing providers. This significant discrepancy in annual income has a simple explanation: tech product companies are ready to invest in their A-players because their productive work directly affects the software product’s success and further translates into increased revenues.
4) Location
The highest IT Team Leader salary is offered in North America and Australia, while the best price-to-quality ratio can be found in Latin America and Eastern Europe. That’s why so many US companies, including tech giants like Google, Microsoft, Amazon, and Oracle, opt for these countries. But should you outsource or not, that’s the question…
Your Own Software Development Team from 0 to 100 in a Year!
I’d say no to IT outsourcing, and here is why:
- Firstly, it’s not as cost-effective as it’s commonly believed. With unclear invoices and hidden costs, outsourcing small projects may not hurt your wallet that much, unlike long-term cooperation, which often entails hefty buy-out fees.
- Secondly, the quality of the end product tends to be mediocre. And it’s not a surprise, as your project is just another task in the outsourcing team’s workflow.
- Thirdly, sharing your sensitive data with a third party may easily compromise it. Of course, you can check your vendor’s safety measures and protocols or sign an NDA, but why put your main asset at risk in the first place?
So, what’s the alternative if IT outsourcing is not your best choice? Knowing the needs of tech companies like yours, Alcor developed a comprehensive R&D center solution that targets all the expansion issues. Let’s see what it includes:
Tech Recruitment
Headhunting top-tier developers, especially of a lead level, in unfamiliar waters can be quite time- and cost-consuming. Alcor’s hiring services were devised specifically to fill tech positions, reducing time-to-hire by up to 40%. Our team of 40 recruiters covers the entire process, including:
- ideal candidate profiles and EVP creation;
- candidate sourcing, headhunting, and pre-screening;
- HR interviewing;
- job offers & counteroffers management;
- weekly reporting;
- consultations on developer’s compensation, talent availability, and tech hiring landscape.
With our 80% CV pass rate, we hire Silicon Valley-caliber talent with an average tenure of 2.5 years.
Employer of Record
Legal compliance is another stumbling block to smooth expansion. To help you enter a new market with peace of mind, Alcor offers an Employer of Record service. It eliminates the need to set up your own legal entity abroad and frees you from compliance hassles. As a result, you get fully loyal developers from day 1 while being able to transfer your team to your entity at no cost. Plus, we take all the administrative burden off your shoulders:
- onboarding/offboarding;
- monthly payroll & accounting;
- remitting remuneration;
- employee benefits management.
Full Operational Support
Sometimes, it feels daunting when you try to cover every minor obstacle in your expansion endeavor. That’s when 24/7 assistance from a dedicated account manager comes into play. Our experts will help you with additional services like:
- hardware procurement;
- office leasing & negotiations;
- insurance provision;
- employer branding;
- HR management;
- IT support.
Discover how Alcor’s solution is different from technology staff augmentation or Build Operate Transfer services!
Software Team Leader Salary: Key Takeaways
Now, let’s move on to the actual rates. My team conducted extensive research to equip you with the most up-to-date software team leader salaries by area. Continue reading this article to compare the rewards of team leaders in different countries.
| Gross annual income, USD | Fintech | AI | Java | Cloud | .NET | Python | DevOps | Mobile App Dev |
| Northern America |
165,000 | 158,000 | 155,000 | 160,000 | 150,000 | 155,000 | 160,000 | 153,000 |
| Latin America | 45,000 | 40,000 | 42,000 | 43,000 | 38,000 | 39,000 | 41,000 | 38,000 |
| Western & Nordic Europe | 115,000 | 110,000 | 108,000 | 112,000 | 105,000 | 110,000 | 113,000 | 109,000 |
| Eastern Europe | 75,000 | 70,000 | 68,000 | 72,000 | 65,000 | 70,000 | 72,000 | 69,000 |
| Eastern & South Asia | 60,000 | 58,000 | 55,000 | 57,000 | 752,000 | 55,000 | 58,000 | 54,000 |
If you are curious about the pay scale of other expertise levels or rates for coders with modern technologies, like the average Golang developer salary or Blockchain developer salary, or maybe you need offshore Salesforce Engineers, feel free to reach out to us!
Average Software Team Leader Salary in North America
USA
New York and California lead the pack with high paychecks — New York offers up to $193,000 for AI and $181,000 for DevOps, while California boasts $180,000 for Cloud and $175,000 for Fintech. Conversely, Texas has the lowest team lead salaries, with Mobile App Development at $102,000 and Java at $122,000.
| Gross annual income, USD | Fintech | AI | Java | Cloud | .NET | Python | DevOps | Mobile App Dev |
| California | 175,000 | 159,000 | 144,000 | 180,000 | 146,000 | 156,000 | 165,000 | 141,000 |
| New York | 173,000 | 153,000 | 162,000 | 162,000 | 149,000 | 181,000 | 193,000 | 115,000 |
| Washington | 146,000 | 160,000 | 148,000 | 145,000 | 146,000 | 154,000 | 175,000 | 134,000 |
| Texas | 135,000 | 147,000 | 122,000 | 147,000 | 140,000 | 140,000 | 164,000 | 105,000 |
Canada
In Canada, Vancouver offers the highest average software tech lead salary in the fintech field, at $197,000 annually, while Montréal demonstrates the lowest in Сloud, reaching $120,000. These variations highlight the significant regional differences in compensation for software team leads across Canadian cities.
| Gross annual income, USD | Fintech | AI | Java | Cloud | .NET | Python | DevOps | Mobile App Dev |
| Toronto | 133,000 | 122,000 | 151,000 | 124,000 | 121,000 | 131,000 | 150,000 | 117,000 |
| Montréal | 149,000 | 134,000 | 149,000 | 120,000 | 139,000 | 140,000 | 150,000 | 149,000 |
| Vancouver | 197,000 | 132,000 | 125,000 | 123,000 | 115,000 | 115,000 | 149,000 | 121,000 |
Average Software Team Leader Salary
in Central and South America
Mexico
Software Team Leads in Mexico see competitive salaries across various fields and technologies. Fintech and AI roles lead with salaries around $104,000 and $90,000 annually, respectively, reflecting strong demand in these sectors.
Colombia
Colombia offers solid opportunities for Software Team Leads, with AI and DevOps roles leading at approximately $90,000 and $78,000 per year, respectively. The salary range for software team leaders varies across different specializations, with Java and Cloud roles also showing solid figures.
Argentina
In Argentina, Software Team Leads in AI and fintech roles earn around $93,000 and $90,000 annually, showcasing robust compensation. Cloud and DevOps specializations also command competitive software development team leader salaries, ranging from $75,000-$76,000 annually.
Chile
Chile provides lucrative opportunities for Software Team Leads, particularly in AI and Cloud roles. Salaries range from around $84,000 to $77,000 per year. DevOps and Python roles also offer attractive compensation.
Uruguay
Uruguay offers competitive salaries for Software Team Leads, with AI and fintech roles leading at approximately $80,000 and $78,000 annually. Cloud and DevOps specializations also show solid figures, reflecting the country’s growing tech sector.
| Gross annual income, USD | Fintech | AI | Java | Cloud | .NET | Python | DevOps | Mobile App Dev |
| Mexico | 94,000 | 90,000 | 76,000 | 78,000 | 75,000 | 76,000 | 84,000 | 75,000 |
| Colombia | 82,000 | 90,000 | 72,000 | 66,000 | 70,000 | 72,000 | 78,000 | 72,000 |
| Argentina | 90,000 | 93,000 | 70,000 | 76,000 | 66,000 | 68,000 | 75,000 | 72,000 |
| Chile | 82,000 | 84,000 | 72,000 | 77,000 | 72,000 | 73,000 | 78,000 | 72,000 |
| Uruguay | 78,000 | 80,000 | 70,000 | 72,000 | 66,000 | 68,000 | 72,000 | 69,000 |
Software Team Leader Income in Western & Nordic Europe
United Kingdom
The gross annual software engineering team lead salaries in the UK ranges from $45,00 to $91,000 annually. The highest salaries are found in England, amounting to $81,000 for Team Leaders working in fintech and $91,000 for team leads with Java skills. The lowest remunerations are provided in Wales, where Team Leaders in Mobile App Development earn just $56,000 annually.
| Gross annual income, USD | Fintech | AI | Java | Cloud | .NET | Python | DevOps | Mobile App Dev |
| England | 81,000 | 79,000 | 91,000 | 78,000 | 67,000 | 72,000 | 68,000 | 65,000 |
| Scotland | 80,000 | 73,000 | 90,000 | 69,000 | 78,000 | 70,000 | 59,000 | 52,000 |
| Wales | 85,000 | 71,000 | 74,000 | 59,000 | 77,000 | 73,000 | 64,000 | 56,000 |
| Northern Ireland | 85,000 | 72,000 | 91,000 | 76,000 | 77,000 | 69,000 | 60,000 | 45,000 |
Germany
In Germany, software team leader salaries are highest in DevOps, averaging $87,000 annually. AI and fintech roles also offer competitive salaries of around $77,000 and $76,000, respectively. The lowest compensation for team leaders is in mobile app development, at around $60,000 per year.
France
France offers the highest rewards for DevOps team leaders, reaching 78,000 annually. Fintech and Python roles are also competitive, with wages around $76,000. AI roles average $70,000 annually, and Mobile App Dev roles tend to be lower at $55,000.
Spain
In Spain, DevOps roles lead with salaries around $77,000 annually. AI and Cloud roles follow, with IT team leader salaries averaging $70,000 each. Fintech roles offer about $60,000 annually, and Mobile App Dev roles are the lowest at $52,000.
| Gross annual income, USD | Fintech | AI | Java | Cloud | .NET | Python | DevOps | Mobile App Dev |
| Germany | 76,000 | 77,000 | 68,000 | 73,000 | 68,000 | 76,000 | 87,000 | 60,000 |
| France | 60,000 | 70,000 | 66,000 | 72,000 | 75,000 | 76,000 | 78,000 | 55,000 |
| Spain | 60,000 | 70,000 | 64,000 | 70,000 | 65,000 | 67,000 | 77,000 | 50,000 |
Norway
Norway’s salaries are among the highest, with fintech and AI roles earning an average software engineer team lead salary of $90,000 annually. Java and Python specialists make $85,000 and $88,000, respectively, while Mobile App Dev roles earn about $70,000.
Netherlands
In the Netherlands, AI and fintech leads earn $88,000 and $80,000 annually, respectively. Java and Cloud roles cost $79,000 and $78,000, respectively, with Mobile App Dev roles costing $68,000.
Austria
Austrian software engineering team leads in fintech and Java roles earn $75,000 and $76,000 annually. Cloud roles fetch $76,000, while Mobile App Dev roles offer $64,000.
| Gross annual income, USD | Fintech | AI | Java | Cloud | .NET | Python | DevOps | Mobile App Dev |
| Norway | 90,000 | 90,000 | 85,000 | 80,000 | 65,000 | 88,000 | 79,000 | 70,000 |
| Netherlands | 80,000 | 88,000 | 79,000 | 78,000 | 63,000 | 76,000 | 75,000 | 68,000 |
| Austria | 75,000 | 72,000 | 76,000 | 76,000 | 64,000 | 60,000 | 70,000 | 64,000 |
Software Team Leader Salary Range in Eastern Europe
Ukraine
In Ukraine, DevOps team leads enjoy the highest software development team lead salaries, hitting $85,000 annually. Fintech roles are on the lower end at $50,000. Interestingly, AI, Java, .NET, Python, and Mobile App Development roles are competitively priced at around $84,000, making Ukraine a promising hub for versatile tech talent.
Poland
Poland stands out with its top-tier salaries for DevOps leads, reaching $100,000 annually. While lower at $60,000, Fintech positions still offer a solid income. AI, Java, Cloud, .NET, Python, and Mobile App Dev roles are highly lucrative, with salaries ranging from $62,000 to an impressive $98,000, making Poland a magnet for tech professionals.
Romania
Romania offers attractive salaries for DevOps leads at $96,000 annually. Fintech roles start at $55,000, but the country shines in its competitive pay for AI, Java, Cloud, .NET, Python, and Mobile App Dev roles, with salaries between $57,000 and $94,000. This diverse range makes Romania a compelling choice for tech careers.
Bulgaria
In Bulgaria, DevOps Leads command the highest salaries at $90,000 annually. Though the lowest at $53,000, Fintech roles are complemented by solid earnings in AI, Java, Cloud, .NET, Python, and Mobile App Dev roles, ranging from $55,000 to $88,000. Bulgaria’s dynamic salary landscape makes it an exciting destination for software engineering team leads.
| Gross annual income, USD | Fintech | AI | Java | Cloud | .NET | Python | DevOps | Mobile App Dev |
| Ukraine | 50,000 | 52,000 | 84,000 | 60,000 | 84,000 | 84,000 | 85,000 | 84,000 |
| Poland | 60,000 | 62,000 | 96,000 | 82,000 | 90,000 | 98,000 | 100,000 | 96,000 |
| Romania | 55,000 | 57,000 | 90,000 | 93,000 | 90,000 | 93,000 | 96,000 | 94,000 |
| Bulgaria | 53,000 | 55,000 | 80,000 | 69,000 | 78,000 | 84,000 | 90,000 | 88,000 |
Software Team Leader Salary in Eastern & South Asia
China
In China, the software engineer team lead salaries range from $55,000 for AI roles to $70,000 for fintech. Mobile App Development roles also pay well, at $69,000. Python and DevOps roles are solid, too, with salaries around $62,000 and $65,000, respectively.
Japan
In Japan, software developers earn between $60,000 and $77,000. Fintech roles top the chart at $77,000, while AI roles start at $62,000. Both DevOps and Mobile App Dev roles offer competitive pay at $70,000.
South Korea
South Korean software developers make between $60,000 and $67,000. Fintech and DevOps roles earn the highest, at $67,000, and AI and Cloud roles earn between $60,000 and $63,000.
Singapore
Singapore offers a wide salary range from $60,000 to $100,000. DevOps leads the pack with $100,000, followed by Cloud roles at $90,000. Python and Mobile App Dev roles also pay well, at $71,000 and $80,000.
India
In India, salaries range from $10,000 to $22,000. Cloud roles are the highest at $22,000, while .NET roles are lower at $10,000. Fintech and AI roles pay $18,000 and $16,000.
| Gross annual income, USD | Fintech | AI | Java | Cloud | .NET | Python | DevOps | Mobile App Dev |
| China | 70,000 | 55,000 | 64,000 | 60,000 | 56,000 | 62,000 | 65,000 | 69,000 |
| Japan | 77,000 | 62,000 | 67,000 | 60,000 | 66,000 | 60,000 | 70,000 | 70,000 |
| South Korea | 67,000 | 60,000 | 64,000 | 63,000 | 60,000 | 61,000 | 67,000 | 60,000 |
| Singapore | 63,000 | 60,000 | 70,000 | 72,000 | 90,000 | 71,000 | 100,000 | 80,000 |
| India | 18,000 | 16,000 | 12,000 | 22,000 | 10,000 | 11,000 | 21,000 | 20,000 |
Software Team Leader Salary in Israel
In Israel, software team leads usually earn between $90,000 and $150,000 a year. The exact amount depends on the industry, company size, where you work in Israel, and your experience. Fintech and AI jobs often pay more, while roles in areas like .NET or mobile app development might be closer to the lower or middle part of the range.
| Fintech | AI | Java | Cloud | .NET | Python | DevOps | Mobile App Dev |
| 120,000 | 125,000 | 110,000 | 115,000 | 110,000 | 115,000 | 120,000 | 110,000 |
Software Team Leader Salary Range in Australia
In Australia, software team lead salaries generally range from $80,000 to $140,000 per year. Roles in fintech and AI often pay more, around $130,000 to $140,000, while positions in areas like .NET and mobile app development might be closer to the lower end, around $90,000 to $110,000. Agile roles usually fall somewhere in between, especially in Cloud, Python, and DevOps.
| Fintech | AI | Java | Cloud | .NET | Python | DevOps | Mobile App Dev |
| 130,000 | 130,000 | 90,000 | 100,000 | 90,000 | 100,000 | 120,000 | 90,000 |
Software Team Lead in 2-6 weeks with Onboarding and Warranty
Yes, you heard it right! Just look at how we did it for the French tech product company Ledger. They decided to expand to Eastern Europe and set up a development hub with about 20 QA Engineers. To do it swiftly and compliantly, they reached out to Alcor. Our recruiters carried a full-cycle tech recruitment and truly wowed Ledger by hiring a QA Lead and 3 QA Manual specialists in just 2 weeks! Our team also assisted the client with legal compliance, payroll, accounting, and hardware procurements. Ultimately, Ledger got a fully backed QA team of 10 specialists in Eastern Europe.
Would you like to build a high-performing development team with a well-versed Team Leader at its helm? Alcor makes it happen with our all-in-one offshore development center solution in Eastern Europe and Latin America. With our solution, you’ll
- avoid establishing a legal entity;
- skip paying any buy-out & setup costs;
- get access to our network of 250K Valley-Like talents;
- enjoy entire team integration into your company & culture;
- cut your expenses by 20%-40%;
- enjoy liability shield in EE & LATAM.
Tech companies such as People.ai, BigCommerce, Sift, and ThredUP have already expanded abroad by utilizing Alcor’s R&D center solution. Try it out yourself!
References
- US Bureau of Labor Statistics
- CompTIA’s State of the Tech Workforce
- Glassdoor
- Forbes
FAQ
1) How much does a software team leader earn in different countries?
The highest team leader salaries are in the United States, while the lowest could be found in Central & South America and India. Discover a detailed worldwide salary analysis of software team leaders in this article.
2) Where is the most reasonable compensation for team leaders in tech?
The perfect price-quality ratio for software engineering leaders could be found in Eastern European countries like Poland, Romania, Hungary, Czechia, and others.
3) What qualifications should a professional development team leader have?
A qualified software team leader should have a technical degree, minimum 3-5 years of working experience at a tech position, excellent knowledge of programming languages, technologies and team management tools required by the company, and fluent English. These specialists must also have the right soft skills (that you can learn about in this article).
4) What factors impact the salaries of technical team leaders?
There are 4 main factors that influence the salaries of tech team leaders: hard & soft skills, experience, company type, and location.