Outsourcing is no longer a trend; it’s a common practice that numerous companies worldwide follow. In the past, outsourcing software development might have been a primary solution for companies that wanted to save money; nowadays, the benefits of IT outsourcing include the possibility to work with exceptional talent, utilize the latest technologies and tools, and find a lifelong dev partner for one’s development endeavors.
In 2022, the global outsourcing market was valued at USD 565.2 billion, and it is projected to grow to USD 1416.3 billion by 2031. These impressive numbers prove one thing — it’s high time to outsource your development processes. But where do you find a partner, and what are the best countries to outsource software development to?
We’ve got you covered. In this article, we’ll discuss the top 7 outsourcing countries to which to outsource your processes, their hourly rates, experience, tech stacks, and other factors that will help you find a perfect match. With over 13 years of experience in outsourcing, IntelliSoft knows what to look for in a development partner, so we’ll discuss the most important details and tips, covering everything from A to Z.
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How To Choose a Country to Outsource: Key Factors
What does matter most when outsourcing software development? To experience all the benefits of outsourcing IT processes, you must first choose the right country by paying attention to factors such as developers’ experience, education, tech stacks, English level, and cultural differences and similarities.
Here’s what to pay attention to when choosing the best countries to outsource software development to.
Tech Stacks
Ensure compatibility between your project’s technology requirements and the expertise available in the outsourcing country. Evaluate the proficiency of developers in relevant programming languages, frameworks, and tools to guarantee seamless integration and optimal performance.
Expenses
Evaluate the overall cost of outsourcing in different countries, including labor rates, taxes, and operational expenses. You need to balance costs and quality to get the best out of both.
Education
Assess the quality of education and technical training available in the outsourcing country. Look for a robust talent pool with relevant skills and qualifications to ensure the success of your software development projects.
English
Effective communication is essential for project management and collaboration. Evaluate the proficiency of English language skills among the workforce in the outsourcing country. Choose a location with a high level of English proficiency to facilitate clear communication and minimize misunderstandings.
Mentality
You should be culturally compatible with your outsourcing partner to communicate effectively. Consider the cultural mindset and business practices prevalent in outsourcing countries. Choose a location with similar work culture and approach to business to foster trust, collaboration, and mutual understanding.
Time Zone
Pay attention to the time zone difference between you and the outsourcing partner. Opt for a location with a time zone that allows overlapping working hours to facilitate real-time communication, collaboration, and project coordination.
Top IT Outsourcing Countries
We have put together a list of the best countries to outsource software development: Ukraine, Poland, Romania, Bulgaria, Moldova, Czech Republic, and Estonia. Each country has its own benefits for those looking to outsource their operations, offering different rates, tech stacks, and more availability than local teams in the US, Western Europe, or the UK.
Let’s take a look at which countries provide outsourcing services and what their main outsourcing benefits are.
Ukraine
Ukraine is competing for the leading position among Eastern European countries in terms of outsourcing. With a pool of specialists of about 2,300 companies employing more than 360,000 IT professionals, Ukraine keeps proving that it is growing fast and strong in the IT sector.
By 2022, local IT outsourcing companies will deliver around 44% of all services exported from Ukraine. Why do companies like Siemens, Boeing, Oracle, Samsung, and other tech giants choose Ukraine as their dream destination for outsourcing?
The country has it all; a convenient time zone, a similar open culture, an array of tech professionals with top-notch higher education, and a selection of outsourcing vendors. Moreover, the rates in Ukraine are much lower than expected for the incredible quality you receive.
- Hourly Rate. According to Upwork, the hourly rates for outsourced developers in Ukraine range from 35$ to 75$ per hour. For this amount, you can work with the most talented developers in the country while saving up to 60% of IT expenses.
- Experience. Ukrainian developers boast a wealth of experience, with many having worked on a diverse range of projects across different industries and with the top tech giants. Their expertise spans various domains, from web and mobile development to AI and blockchain technologies, which are among Ukraine’s main outsourcing benefits.
- Education. Due to the country’s developed higher education system, Ukraine adds around 17,000 tech bachelors and masters every year, enriching the Ukrainian talent pool and making it one of the most extensive in the world.
- Tech Stacks. Ukraine’s developers are skilled in various technologies and programming languages. Whether it’s front-end frameworks like React and Angular or back-end technologies like Node.js and Python, Ukrainian developers deliver high-quality solutions tailored to your specific tech stack requirements.
- English Level. The majority of Ukrainian tech specialists either have upper intermediate or intermediate English proficiency. Most agencies and IT companies in Ukraine offer English courses for their specialists, ensuring that they can work with clients from all over the world without issues in communication.
- Mentality. Ukrainian developers are recognized for their robust work ethic, unwavering dedication, and adept problem-solving skills. They tackle projects with enthusiasm, creativity, and initiative, aiming to provide inventive solutions that surpass client expectations.
- Time Zone. Ukraine operates in Eastern European Time (EET), which is convenient for businesses in Western Europe and overlaps with working hours in North America. This alignment allows for real-time communication, seamless collaboration, and efficient project management across different time zones.
Poland
Poland, like Ukraine, is also located in Central Europe but has been considered a part of “Eastern Europe” for years.
According to Clutch, Poland had around 900 outsourcing companies in 2022, and this number is growing. Moreover, Poland now has more than 250,000 specialists in their talent pool, being Ukraine’s top competitor in the outsourcing market.
- Hourly Rate. According to Clutch and Upwork, outsourcing developers in Poland charge between 25$ and 99$ per hour, depending on their experience. Moreover, the smaller the city, the lower the rates.
- Experience. Polish developers are acknowledged for their expertise spanning diverse domains such as software development, cybersecurity, and IT consulting. Focused on innovation and quality, Polish outsourcing companies consistently deliver solutions that adhere to the highest industry standards.
- Education. Poland boasts a strong educational system, producing highly skilled professionals with degrees in computer science, engineering, and related fields. Many developers actively pursue continuous learning opportunities like workshops and certifications to stay updated with the latest technological trends.
- Tech Stacks. Polish developers are proficient across various technologies and programming languages, ensuring versatility to meet diverse project needs. From front-end frameworks such as React and Angular to back-end technologies like Java and PHP, they offer tailored solutions aligned with clients’ specific tech stack preferences, guaranteeing high-quality outcomes.
- English. Polish developers have excellent English skills, allowing clients worldwide to communicate with them and do business easily.
- Mentality. Polish developers have a strong work ethic and a collaborative mindset, making them valuable partners for outsourcing projects. They prioritize client satisfaction, proactive problem-solving, and delivering solutions that drive business growth.
- Time Zone. Poland operates in Central European Time (CET), which aligns well with many European countries and overlaps with working hours in Western Europe.
Related Readings:
- What is Staff Augmentation? A Model to Extend Your Team
- Everything You Need to Know About Team Extension and Dedicated Team Models
- What is IT Managed Services? A Complete Guide
- Hire Developers for Startup: Key Strategies for Success
- How to Overcome Risks of Outsourcing
- Who Does What? Understanding Roles in a Software Development Startup
Romania
Along with Poland and Ukraine, Romania is also a great destination for development outsourcing since its outsourcing market revenue is projected to reach $415.20m in 2024. Moreover, Romania has an industry growth of 14.3%, and it is expected to double in 2025.
- Hourly Rate. According to the report, a senior software engineer in Romania earns 24,500 RON per month (5,349$). An average price for working with outsourced developers in Romania is 11.500 RON per month (2,510$).
- Experience. Romanian developers are incredibly experienced and skilled, having worked on projects across diverse industries with companies worldwide. Many have experience in developing software solutions for sectors such as finance, healthcare, e-commerce, and telecommunications.
- Education. Romania boasts a robust educational system, producing highly skilled professionals with degrees in computer science, engineering, and related fields. Science and technology are well developed in Romania, and there are nearly 192,000 developers as of 2023.
- Tech Stacks. The most popular programming languages in Romania are JavaScript, NodeJS, .NET, C#, ReactJS, PHP but developers are also proficient in the latest tools and technologies, ready to deliver top-notch solutions. They are also adept at working with databases, cloud platforms, and DevOps tools to build scalable and efficient software applications.
- English. All Romanian developers are proficient in English, as it’s the main language of communication with their clients. They also continue improving their skills at their workplaces thanks to specialized courses organized by their employers.
- Mentality. Romanian developers are known for their strong work ethic, dedication, and problem-solving abilities. They approach projects proactively, prioritizing client satisfaction and delivering solutions that exceed expectations. Romanian developers are also highly adaptable and responsive to feedback, ensuring that projects are completed on time and within budget.
- Time Zone. Romania operates in Eastern European Time (EET), providing overlap with working hours in many European countries and enabling real-time communication and collaboration. This time zone advantage enhances project management efficiency and ensures the timely delivery of solutions.
Bulgaria
Software development outsourcing is the most prominent sector of Bulgaria’s IT industry, with growth at a CAGR of 15.6% over the past few years.
The capital, Sofia, is the main IT hub in Bulgaria. It has a diverse and talented IT workforce, including full-stack, front-end, and back-end developers. That is why tech giants like IBM, Hewlett-Packard, and Microsoft have their operations in the country and build partnerships there.
- Hourly Rate. Rates typically range between $20 and $45 per hour, depending on the developer’s experience and the project’s complexity. This affordability and Bulgaria’s high-quality services present a compelling value proposition for outsourcing endeavors.
- Experience. Bulgarian developers have extensive experience, having worked on numerous projects across diverse industries and domains. Their depth of expertise enables them to address intricate challenges and provide innovative solutions tailored to meet clients’ unique needs. With a history of delivering successful projects, Bulgarian developers are esteemed allies for outsourcing endeavors.
- Education. Developers receive comprehensive training in computer science, software engineering, and related fields, equipping them with the knowledge and skills needed to excel in the industry. Many developers also engage in continuous learning and professional development activities to stay abreast of emerging technologies and industry trends, ensuring they remain at the forefront of innovation.
- Tech Stacks. Whether it’s front-end development using frameworks such as React and Angular or back-end technologies such as Java, Python, and .NET, Bulgarian developers possess the expertise to deliver high-quality solutions tailored to clients’ specific tech stack preferences.
- English. English proficiency is widespread among Bulgarian developers, facilitating seamless communication with clients from around the globe. With strong language skills and a customer-centric approach, Bulgarian developers prioritize client satisfaction and strive to exceed expectations.
- Mentality. Bulgarian developers approach projects proactively, demonstrating creativity, resilience, and a commitment to delivering exceptional results. With a focus on continuous improvement and innovation, Bulgarian developers drive business success and foster long-term partnerships with clients.
- Time Zone. Bulgaria operates in Eastern European Time (EET), providing overlap with working hours in many European countries and enabling real-time communication and collaboration.
Moldova
Moldova is yet another destination in Eastern Europe that has lots to offer to potential outsourcing clients. It’s a promising and fast-growing IT hub with young, talented, and driven experts with impressive portfolios.
The IT industry in Moldova employs around 16,500 specialists, most of whom are involved in outsourced services, so they are experienced in working with Western companies.
- Hourly Rate. Mid level developers in Moldova charge from 29$ to 37$ per hours. More experienced developers may charge between 50$ and 65$/hour in 2024.
- Experience. Moldovan developers possess diverse experience in working with international clients, demonstrating their ability to understand and fulfill the requirements of Western companies. Their track record of successful collaborations and project deliveries showcases their adaptability, professionalism, and commitment to excellence.
- Education. Unfortunately, it is hard to receive a high-quality university education in computer science or programming in Moldova. That is why developers in Moldova either self-educate or join specialized courses. Some also go to other European countries to receive education there.
- Tech Stacks. Moldovan developers are proficient in the latest technologies, programming languages, and libraries, being able to work on projects of any complexity.
- English. English proficiency is prevalent among Moldovan developers, enabling seamless communication and collaboration with international clients.
- Mentality. Moldovan developers are known for their dedication, professionalism, and problem-solving abilities. They approach projects with a proactive mindset, striving to deliver high-quality solutions that meet or exceed client expectations.
- Time Zone. Moldova operates in Eastern European Time (EET), providing overlap with working hours in many European countries and enabling real-time communication and collaboration.
Czech Republic
The Czech Republic is another great option for IT outsourcing as it offers a combination of top talent and reasonable prices for development services. Its IT-related services employ almost 200,000 ICT experts, and the sector keeps growing.
- Hourly Rate. The average hourly rate in the Czech Republic is between 25$ and 90$, depending on the developer’s level of expertise.
- Experience. Czech developers bring extensive experience to the table, having worked on a wide range of projects across diverse industries. Their proficiency in handling complex challenges and delivering innovative solutions reflects their adaptability, professionalism, and commitment to excellence, making them trusted partners for outsourcing endeavors.
- Education. Every year, around 4,600 ICT graduates from Czech universities join the market. The Czech Republic boasts a robust educational system that produces highly skilled professionals in the field of information technology. Developers receive comprehensive training in software engineering, computer science, and related disciplines, equipping them with the knowledge and skills needed to excel in the industry.
- Tech Stacks. Czech developers exhibit proficiency in various technologies and programming languages, catering to diverse project requirements. Whether it’s front-end frameworks like React and Angular or back-end technologies such as Java and .NET, they offer tailored solutions to meet clients’ specific needs.
- English. With widespread English proficiency, Czech developers facilitate seamless communication and collaboration with international clients. Effective communication fosters a collaborative working environment, ensuring clarity of project requirements and driving project success.
- Mentality. Driven by dedication, professionalism, and problem-solving prowess, Czech developers approach projects proactively. Their commitment to innovation, continuous improvement, and client satisfaction underscores their role as trusted partners in driving business success.
- Time Zone. Operating in Central European Time (CET), the Czech Republic aligns with working hours in many European countries, enabling real-time communication and collaboration.
Estonia
The IT sector in Estonia is also a powerful and promising one, consisting of more than 32,400 specialists. Tallinn and Tartu are the two main cities that contribute to the development of the Estonian IT sector.
According to the latest stats, Estonia’s IT outsourcing market is expected to reach US$95.22m in 2024. It is explained by the fact that Estonia is growing as one of the key European tech hubs and destinations for startups and tech giants to outsource their operations.
Estonia is also the birthplace of TransferWise and Skype, as well as other startups such as Fortumo, Pipedrive, Cloutex, and others.
- Hourly Rate. On average, Estonian outsourcing companies and developers charge between 35$ and 70$. Some development agencies charge up to 90$, depending on the project’s complexity and the developer’s experience.
- Experience. Estonia can be considered a tech country, considering all the initiatives in e-banking, e-residency, and e-government. The number of developers per capita is impressive, and the majority of them have experience working with Western clients and huge companies worldwide.
- Education. Education plays a tremendous role in Estonia’s tech success. All Estonian students have access to high-quality tech education in computer science, with universities in Tartu and Tallinn offering advanced courses in cybersecurity, software development, AI, etc. Estonian government also collaborates with the biggest tech companies in the country to update the curricula and stay up to date with the latest technologies and practices.
- Tech Stacks. If you decide to outsource your processes to Estonia, you don’t have to worry about the tech stacks. The country’s developers are proficient in all programming languages, libraries, tools, and technologies, and they stay up to date with the latest trends in the market.
- English. English is also not a problem at all; all Estonia developers are proficient in English as they start learning it at school, and it is one of the most common languages used in the country.
- Mentality. Estonian developers exhibit a proactive and innovative mindset driven by a culture of continuous improvement and client satisfaction. They approach projects with meticulous attention to detail, leveraging creativity and problem-solving skills to overcome challenges and deliver exceptional results. This mindset fosters a collaborative environment where ideas flourish, leading to groundbreaking innovations and successful project outcomes.
- Time Zone. Operating in Eastern European Time (EET), Estonia provides convenient overlap with European working hours, facilitating real-time communication and project management. This alignment ensures prompt responses to client queries, swift decision-making, and seamless coordination across global teams, enhancing project efficiency and driving business success.
Benefits of Outsourcing with IntelliSoft
You no longer have to search if you’ve been looking for an outsource partner to bring your ideas to life. IntelliSoft, with our 13+ years of experience in the market, has got you covered. We’re ready to become your one-time development agency and a life-long partner supporting your development endeavors and helping you grow your business.
Our team consists of 80+ talented and experienced engineers, and we’re always hunting for the top talent to join our team. Our developers, designers, PMs, and QAs have worked on hundreds of projects for different industries, so we require less time to deliver niche-specific projects than teams without expertise.
What industries do we work with? Our primary industries include:
Our IntelliSoft team is ready to work on your web and mobile development projects, IoT development, product design, and branding and quickly extend your team at times when you need additional workforce.
Looking for ways to grow your startup and develop your first competitive product to enter the market? Our services tailored for startups include the discovery phase, MVP development, CTO as a Service, technology scouting, and testing and maintenance after the launch. You don’t have to go through this journey alone; we will guide you and ensure everything goes smoothly.
Interested in what our clients have to say? Visit our Clutch profile and read reviews of our life-long clients. Our cases also speak for themselves; check them out to see whether your project is something we usually work on. However, even if it’s not, contact us and let us know. We love a challenge, so let’s discuss all the details. Here’s to your journey in software development with us by your side.