For several years in a row, Ukraine has been a leader in IT outsourcing in Eastern Europe. The country occupies a leadership position in several technology-related international ratings.
Outsourcing Journal reported that Ukraine is the best country to outsource software development in the Outsourcing Market in Eastern Europe. In the Global Services Location Index, the country takes 20th place. According to HackerRank analytics, developers from Ukraine received an overall score of 88.7% on all HackerRank challenges.
Due to a great number of highly qualified developers, reasonable prices in the labor market, good fluency in English, and what is important, an innovative approach to development, Ukraine is considered one of the best European countries for hiring software engineers. Considering the key advantages of the Ukrainian outsourcing technology market, the following should be noted:
- Over 200 thousand experts of the talent pool and the total industry growth by 20% in 2021. The largest centers are Kyiv, Lviv, Kharkiv, Dnipro, and Odesa.
- 84.8% of professionals are proficient in English.
- The average price of outsourcing software development costs $25-$45 with high end-product quality.
- Time zone UTC + 2 in summer UTC + 3 and perfect cross-cultural fit.
- A dynamic IT community featuring five prominent events: Agile Eastern Europe Conference, iForum, IT Arena, DEV_Challenge, PyCon Ukraine.
- Strong expertise in Fintech, Manufacturing, Healthcare, Retail, E-Commerce, High Tech; Energy, Oil & Gas; Agriculture.
- Expertise in advanced technologies: 3D printing, AR / VR, Blockchain, IoT, Biometric Authentication, and Beacon Technology.
Undoubtedly one of the top software countries for outsourcing in the world is Poland. By virtue of its strong market, economy, and location, Poland is a very popular destination for customers from Europe and one of the best European countries for software engineers. Poland has become the third greatest place on Earth for investment for 2020, as per CEOWORLD Magazine. Proof of expertise of Polish developers is demonstrated by the HackerRank portal where their overall score reaches 98%. As the Globalization of Tolono Index stated, such Polish megapolises as Kraków and Warsaw are among the top 50 cities in the arena of digital transformation. According to the A.T. Kearney Global Services Country Index for 2019, Poland holds 24th place regarding attractiveness for IT outsourcing. A variety of key advantages involve:
- The performance of previous years indicates that the outsourcing of IT services in Poland increased by 22.9% from $1.09 billion in 2010 to $4.62 billion in 2019.
- There are 295,3 thousand human resources in the field of development.
- About 30% of Poland citizens are fluent in English.
- The average hourly pay is $25-$50 as per PayScale.
- Popular software languages are Java, PHP, Python, Ruby, Shell.
Romania is also one of the top software countries in the world. It is becoming increasingly attractive for numerous Eastern European companies.
Romania has the credibility to become a strong competitor of India, because of the low project budget, supported by the availability of the most up-to-date technology and the versatility of staffing.
Even though the IT outsourcing sector in Romania is far more limited than in Ukraine or Poland in the Global Services Location Index 2021 report Romania occupies 28th place in the list of the top countries for outsourcing. Meanwhile, the Hackerrank platform gave Romania 20th place in the list of countries with the most qualified developers, with an average score of 81.9%. Noteworthy factors in selecting this country for outsourcing include:
- EU membership since January 1, 2007, thereby making it easier and more secure to work with Romanian software companies.
- Over 100-120 thousand specialists and annual growth of about 15% by 2021 with an IT hub in Sibiu.
- 90 % of Romania’s IT professionals fluently communicate in English as well as a lot of them are proficient in French, Hungarian, and German.
- Perfectly positioned in the time zone GMT + 2 with European culture.
- The hourly cost of outsourcing software development typically varies from $25 to $50, while premium suppliers cost more than $50.
The Philippines is fairly respected in the field of IT in Asia and nowadays is believed to be one of the best countries to outsource software development. The year before, the outsourcing behemoth generated around $26 billion in outsourcing, which validates its status as one of the top offshoring countries. The rapid economy of the Philippines has been boosted by the thriving BPO industry, a sector that contributes 11% to GDP. As Deloitte states, the Philippines has the potential to increase its BPO market share to 20% of the total world market. Sounds impressive, doesn't it? Things might get better when young people from STEAM educational programs enter the workforce to bring the Philippines to the top outsourcing destinations with their professionalism. Equally relevant is the fact that English is the state language of the Philippines. The country has an official score of 562 on the EF English Proficiency Index, bringing it to 2nd place in Asia in terms of language skills. A number of reasons why multinational companies prefer the Philippines for outstaying include:
- The Philippine Software Industry Association currently estimates that there are more than 190,000 technicians in the Philippines and predicts that figure will reach 210,000 by 2022.
- According to Glassdoor, PayScale software development outsourcing prices range from $18 to $40 per hour.
- The Philippines has much in common with Western culture, which softens cultural barriers, and as a plus resilience, hard work, and adaptability as the hallmark of Filipinos.
- 92% of the population is able to communicate in English.
- Located in the GMT + 8-time zone, outsourcing Filipinos are focused on delivering services 24/7.
- National support for outsourcing companies in the way of certain tax interests.
Brazil is one of the top outsourcing countries for software development in Latin America, particularly for North American IT firms. Proximity to travel, minor jet lag, as well as cultural commonalities, have led the majority of US and Canadian companies to choose Brazil for customized information technology services. Based on the country's aptitude to provide high-end products, monitor their financial performance, human qualities and accessibility, new dimensions of digital engagement, Kearney Global Services gives Brazil 5th place in the global network of digital hubs in its report. Per the Coursera Global Skill Index, Brazil is the second most technologically advanced country in Latin America including the 42nd position in the world. On HackerRank evaluations, Brazilian developers received a score of 71.3 %. At the same time, the government is striving to create a perfect infrastructure of technological education, making every possible effort to do so, thus clearly affecting the establishment of the country as one of the best offshore software development countries. A set of reasons to choose Brazil for outsourcing:
- The number of digital experts reaches 500 thousand and keeps growing, expanding the pipeline of technical talent.
- A colossal IT infrastructure of about 90 technology parks in cities such as Rio de Janeiro, Curitiba, São Paulo, Florianópolis, Porto Alegre, Recife.
- An average developer's rate spectrum is from $25 to $80.
- Absence of a sizable time difference with North American counterparts.
Vietnam has been viewed as one of the top countries to outsource to for years, its economy is one of the quickest growing across the Asia-Pacific area. What is more, for the past several years, the software development unit has grown at a rate of 10% each year. The country is widely perceived as one of the best countries for outsourcing web development.
No wonder technology sharks like Microsoft, Intel, IBM are already running there. The software sector in Vietnam has typically become something of a cost-cutting option. Moreover, it is necessary to understand, in this case, you definitely shouldn't identify cheap products with low quality. There are countless extremely qualified and intelligent software developers who are willing to work for a reasonable fee. Crucially, software development companies in Vietnam attach great importance to facing the Protection of intellectual property, consequently, clients can be certain that their software application would never be exposed to the risks associated with IPR breaches. The most vital strengths of this country for outsourcing services include:
- Proven expertise and a large engineering resource.
- Engineers in Vietnam have approximate English skills around upper-intermediate.
- Median hourly wage $20-$40.
- Business Hubs of the Future.
- In 2019, the Vietnamese economy earned USD 16.12 billion from FDI inflows, as per the World Bank.
- A steady sociopolitical environment is also conducive to offshore software development.
Egypt is quite actively gaining popularity as one of the top outsourcing countries. As the Coursera Global Skills Report shows, the country takes 53rd place out of 108 selected, reflecting the level of IT performance. It is Africa's second-largest economy, with a nominal GDP of $394 billion in 2021. Cairo, Egypt's capital, is one of the top global cities for outsourcing.
Egypt also appears on HackerRank's list of the top 50 software development countries, holding the 42nd spot. Egypt's company has spent towards the establishment of STEM-focused schools, which has resulted in a significant workforce of digital employees. Also, as English is taught across many Egyptian schools, communicative obstacles ought to be minor while working with Egyptian employees. The reasons why Egypt is one of the best outsourcing countries:
- The approximate number of skilled developers is 150 thousand.
- Convenient time zone GMT + 2.
- Average wage by the hour $25-$40.
- EF EPI score: 455.
- Egypt has a thriving economy and a well-developed financial system.
Benefits of Software Development Outsourcing
Reason #1. Minimized Labor and Operations Costs
Deloitte's study claims that about 59% of businesses prioritize outsourcing in order to cut costs of product development. How does it work?
First of all, you literally just pay for the work itself. Usually, this cost is calculated based on the staff's labor rate by the hour, skills, and the duration of the project. In addition, you do not need to take care of the office, maintenance equipment, and no need to pay for health insurance and vacations.
Secondly, you can save a huge amount of time and onboarding costs, since you will not need to hire and employ additional people during the development of your software.
Reducing these costs will help your project succeed as it opens up the possibility for you to invest extra costs in the business product.
Reason #2. An Ability to Hire a Full Team or Separate Specialists
By outsourcing your project, your opportunities are broadly unlocked, because you can outsource whatever service you need whenever you want. Depending on the capabilities of your business, you can choose whether it is more convenient for you to hire a whole team or individual specialists.
Reason #3. Involvement of Qualified Experts
The presence of an expert on your team can steer your project in the direction of success, and the lack of it in the direction of failure. By outsourcing your project to an expert development crew with good engineering expertise, dedicated trouble-shooting, excellent communication, and a robust portfolio, you can be sure that this strong team will bring the software solution up to a new level.
Moreover, bringing in an outside viewpoint is frequently beneficial. A specialist who isn't affiliated with the organization might just possess fresh methods plus concepts for the offer, so they may be better at recognizing flaws within the existing software development strategy.
Reason #4. No Adaptation Period
The company's IT outsourcing department is usually fully staffed with teams of all the necessary specialists. Delegating the project in-house, you run the risk that the new employees will slowly understand and adapt, familiarizing themselves with the new team, which can delay the lines of development.
Reason #5. Fewer Risks
By outsourcing your project you can minimize the risk of disaster. How? It's very simple because an experienced and well-coordinated development team knows exactly how to manage setbacks and avoid delays.
Reason #6. Focus on the Main Business Tasks
Companies that outsource development teams employ a number of various project execution and monitoring methods, like Waterfall or Scrum. The customer can ask any questions about the specifics or the stage of execution, however, full involvement is low. You may concentrate on the following company responsibilities instead of managing your software development.
Does Outsourcing Benefit Developing Countries?
- Outsourcing contributes to a more rapid economic evolution in developing countries by attracting a large amount of external capital into the country.
- Outsourcing may help solve some of the country's social dilemmas by stabilizing and transforming society.
- People might benefit from outsourcing by gaining access to well-paying occupations that would otherwise be unavailable to them.
To Sum Up
The advantages of IT outsourcing are rather vivid, actually, that’s the reason why companies like Amazon, Google, and WhatsApp have trusted this approach for years. The number of countries where you can outsource securely, cost-effectively, and receive high-quality end-products is rather big nowadays. By choosing a partner with strong technical expertise, cultural proximity, and industry experience, you will definitely succeed.
At inVerita we’ve been building a trusted partnership with companies from different parts of the world, always delivering in time and with the best quality. If you’re currently looking for an outsourcing vendor, check our clients’ reviews on Clutch, or you can directly contact us.