Top Software Development Destinations in Eastern Europe and Why Choose It

Why You Should Choose Software Development in Eastern Europe

Employing an offshore Eastern European software expert has more advantages than just acquiring top professionals rapidly. Eastern European software development firms have matured into actual business partners, acting as an outsourced extension of your in-house capabilities. There are several strong reasons why to consider outsourcing software development to Eastern Europe, including the following:

European Business Values 

Eastern European software development organizations are familiar with the corporate culture and challenges that their Western European and North American clients encounter. 

Numerous software development businesses in Eastern Europe appreciate the necessity of time management, communicating clearly, and charging consistently. 

Costs are Significantly Reduced 

It’s not a secret that Eastern European software development companies’ rates are lower than their American equivalents. However, did you realize that you can employ equivalent personnel for as little as 40% to 50% less in these nations than in North America or Western Europe? That's money you can put in the bank — or reinvest in a larger staff of Eastern European software professionals.

Recruitment Speed

Offshore Eastern European software experts may usually be engaged rapidly, enabling you to obtain top engineers onboarded to your project within 5-10 business days. The period of hours that a corporation saves as a result of this cannot be overstated. There is no public job advertising, searching through hundreds of applicants, long testing and interviews, or administrative difficulties associated with adding new personnel to your existing staff while recruiting for internal hiring. 

Outsourcing to Eastern Europe provides such a streamlined approach that it might save your organization 3 months in the development cycle. And when it comes to bringing a new software or product to market, this alone might be the gap between succeeding or failing.

High English Proficiency

Each project requires specialists who can communicate in your language. And there is one area where Eastern European software outsourcing has particular benefits over Asia and South America. Eastern European university degrees sometimes demand many years of English, and IT employees are accustomed to English being the recognized business language when dealing with clients. 

As you engage with top Eastern European software development businesses, you can anticipate the staff developers you hire to be able to read, write, and speak English well. This is something we demand at InVerita, and we expect it to be a necessity at many other worldwide companies as well.

A Large Talent Pool of Software Developers and Scalability

 Eastern Europe software development can provide your business with incredible skills that aren't available in North America and Europe's tech-short regions. Imagine being able to hire Eastern European outsourcing businesses at a second's notice.

Those businesses would also assist you in adding and removing team members as your projects' capacity requirements change. Simply provide your expertise wish list, and most Eastern European outsourcing organizations will be able to provide you with a shortlist of verified people that meet your requirements perfectly. It's one of the most important benefits that a software development outsourcing firm in Eastern Europe may provide.

Workshops, Tech Talks, Events

Eastern Europe hosts a vibrant ecosystem of IT workshops, tech talks, and events that serve as platforms for knowledge sharing, networking, and fostering innovation within the industry. Renowned tech conferences like Web Summit, Techsylvania, and How to Web attract top industry experts, entrepreneurs, and enthusiasts from around the world to Eastern European countries. In addition to these large-scale events, numerous local and regional workshops and tech talks are organized regularly. 

Governmental Support

Governments in the region recognize the immense potential of the Information Technology (IT) sector and actively support the growth of Eastern business software companies. Cities within the region have embraced digital development strategies to further boost the success of top-tier software development companies. These strategies aim to attract prestigious clients and streamline daily business operations for company owners. Here are some examples:

Ukraine:

• The Ukrainian government has established a special economic zone known as the "IT Cluster" in Lviv. It provides tax incentives, reduced bureaucracy, and support services for IT companies operating within the zone.
• To encourage the growth of the IT sector, the Ukrainian government has implemented educational reforms, including the introduction of specialized IT courses in schools and universities.
• The government also supports the organization of various IT conferences, exhibitions, and events to promote networking and collaboration within the industry.

Poland:

• The Polish government offers grants and funding opportunities specifically tailored for IT startups. This financial support helps startups cover initial costs, invest in research and development, and scale their businesses.
• Poland has established numerous technology parks and business incubators across the country, providing IT companies with access to modern infrastructure, networking opportunities, and business support services.
• The government collaborates with universities and research institutions to foster innovation and knowledge transfer. Joint initiatives and partnerships encourage the development of cutting-edge technologies in the IT sector.

Czechia:

• The Czech government provides tax incentives for IT companies, including reduced corporate tax rates and exemptions for research and development activities.
• The government actively supports vocational training programs in the IT field, ensuring a skilled workforce for the industry. It collaborates with educational institutions and private organizations to design industry-relevant courses and certifications.
• The Czech government promotes international cooperation in the IT sector by participating in various EU-funded projects and initiatives. This facilitates knowledge exchange, research collaboration, and access to international markets for local IT companies.

Software Development Eastern Europe

So, which country has the biggest talent pool, the strongest tech expertise, and the most affordable prices? Let's have a look at the top software development destinations in the region.

Ukraine

The education level can tell a lot about the quality of services offered by the country. With a literacy rate of 99,8%, according to UNESCO statistics, 1,6 million Ukrainian students were gaining higher education in more than 660 universities back in 2020. 

Currently, there are over 200k tech experts and 36,000 tech grads, making it Europe's second-largest IT hub, immediately after Poland.

Due to the stable growth of the Ukrainian IT market (PwC analysis has shown that it has recently increased by 2,5 times), Ukrainian universities are actively investing in engineering faculties and STEM programs. Such initiatives raise the awareness and willingness of the youth to become a part of the $1,256 billion industry value.

According to StackOverflow estimations, there are more than 184k software developers in Ukraine which comprise 35% of the total Eastern Europe software development market. This big talent pool attracts professionals from all over the world to share their experience on annual IT events held in Ukraine like IT Arena, iForum, Agile Eastern Europe Conference, etc. 

According to HackerRank, software development in Ukraine is also in the top place in respect of security. Furthermore, Ukraine has a sophisticated IT infrastructure, with several IT centers such as Kyiv, Lviv, Kharkiv, Dnipro,  Odesa, and others drawing top tech companies such as Gameloft, Samsung, Huawei, Siemens, Upwork,  eBay, Grammarly, and Plarium.

Having developed IT solutions for more than 100 companies from Fortune 500 list, without exaggeration, Ukraine can be called the “Silicon Valley” of Eastern Europe software outsourcing.

Ukrainian IT Industry in the Lights of War

Following the invasion of Ukraine by Russia in close alliance with Belarus, Ukrainian software companies swiftly initiated the evacuation of their staff to the western region of the country. Recognizing the importance of ensuring the safety and well-being of our employees, our company also embraced this evacuation initiative. By facilitating the relocation of our team members to the safer parts of Ukraine and even abroad for those in need, we played a part in alleviating their concerns and maintaining their mental health during these challenging times.

Remarkably, despite the upheaval caused by the conflict, over 80% of Ukrainian developers have remained committed to their full-time work. Despite being forced to leave their homes and face interruptions due to air raid alarms, these resilient professionals have persevered and continued working on their projects.

As the situation unfolds, it has become evident that outsourcing to Russia is no longer a viable option, and even in Belarus, its appeal is waning. Meanwhile, Ukrainian IT companies have stayed active, not only retaining their existing clientele but also attracting customers who previously outsourced to vendors associated with the aggressors. In doing so, these companies not only secure access to the best talent available but also contribute to the growth and sustenance of the Ukrainian economy.

Poland

Though the tech industry in Poland is still relatively a new sector, it’s been actively developed and invested in. The industry constitutes approximately 8% of the country’s GDP. Every year the number of Polish software engineers increases by almost 6% which is dictated by the high industry’s popularity and availability of level-up education. There are 18 technical universities in Poland with over 75k students. Such a big number of graduates guarantees a flawless staff placement in the industry. What is more, Poland is considered to have professionals with a high EF EPI index, taking the 14th position in Europe. 

With approximately 430k tech workers and a total IT market size of $13 billion in 2021, Poland is one of the fastest-growing Eastern Europe software development outsourcing markets. Though only 20% of those work for tech vendors that supply international companies with software outsourcing services. The top most widespread technologies among Polish engineers are JavaScript, Java, and Python. The average rate of Polish developers is approximately 30% lower than the US devs though still higher than Ukrainians’. For instance, a junior developer in Ukraine charges around $45 per hour while a Polish one is nearly $69 per hour.

Last, but not the least, Poland locates around 50k software development companies in Europe, more than 800 of which offer custom software development.

Hungary

When you search for top software development outsourcing destinations, Hungary often appears on the list of recommended countries. According to Eurostat, there are approximately 3k IT students graduating from Hungarian high schools annually and those numbers are expected to grow. Over 70 institutions offer Computing and IT programs in Hungary, six of which could be found in the QS World University Rankings. 

Taking the above into account it can be assumed that there is a reliable education system that produces a significant number of future developers each year. According to the Hungarian Tourism Agency industry overview, the Information and Communication sector was responsible for 5% of GDP and 8.2% of total export in 2017, employing approximately 175k specialists, 80k of which are professional developers.

Taking into account that the total population of this country equals only 9.5 million, this proves that the IT sector plays a valuable role in the Hungarian economy. The Hungarian market of IT services demonstrates strong and steady growth, averaging 6.4% annually starting in 2010.

Czechia

Czechia is also an important player in the Eastern Europe IT arena. Within the last decade the IT sector in the country has significantly developed and every year Czechia is experiencing an increase of 10% in software outsourcing. 

The overall IT services export value constitutes approximately $1.8 billion. Around 4k tech students enter the IT market annually. A big advantage of higher education in the Czech Republic is the very effective communication between universities and business structures. They continuously update the curriculum and provide their students with practice that is relevant to the IT market. According to Deloitte, Czechia is a country with a very low economic risk and positive business climate which makes it a popular choice for foreign investments such giants as Google, Microsoft, and IBM which made the country their R&D destination. 

The three most popular technologies among developers include Java, JavaScript, and PHP. Hiring Czech developers is also much less expensive compared to the US or Western Europe, though still more costly than in Ukraine, for example. 

Currently, more than 200k professionals are operating in the ICT sector in Czechia.

Romania

Since Romania joined the EU in 2007, the country has experienced economic growth and attracted tech companies such as Oracle, Hewlett Packard, and Gameloft. 

Romania has a smaller talent pool compared to the above-mentioned countries though it still maintains a strong reputation for the quality of its software development services. The country is ranked 12th by TopCoder and 23rd in the SkillValue lists. There are approximately 400 tech companies in different categories on Clutch that employ more than 190k IT professionals with core expertise in financial services, healthcare, and e-commerce.

According to a McKinsey report, IT services constitute 6% of Romanian GDP and in 2022, reached $3.4B. The Romanian government fosters the development and growth of the IT industry and implements various measures to support IT professionals and local outsourcing vendors. For example, exempting software developers from 16% income tax.

Bulgaria

Bulgaria also enjoys the status of one of the most attractive IT outsourcing destinations in Eastern Europe, taking 12th place in the HackerRank list of the states with the best software engineering talent. Currently, the Bulgarian ICT sector employs more than 100k people, taking first place in Eastern Europe by the number of women in tech.

With the biggest share of software engineers with expertise in Python and Java, Bulgaria also appears to be in the 7th place globally among the most attractive Business Process outsourcing emerging destinations.

There are 38 Bulgarian universities that offer majors related to the IT industry with more than 2k graduates annually with solid tech education, as well as English proficiency.

The Bulgarian IT industry is constantly growing and is expected to reach $1.8B by 2026. 

A Final Note

Outsourcing software development in Eastern Europe remains one of the most dynamically evolving sectors of economics that enables global companies to access rare tech experiences and great price-quality ratios.

Ukraine and Poland remain two of the most powerful players in the region with the biggest talent pools and growing speed of digital innovations. The countries represent a strong technical background, English language proficiency, and favorable prices for offshore partners.

inVerita - Your Reliable Partner in IT Outsourcing

inVerita is a Ukraine-based company, also present in Poland and the US, that provides software solutions for companies of any scale: from startups to Fortune 500 clients. The company specializes in building web and mobile solutions, IoT software development, quality assessment, and testing, cloud, and DevOps services and has its separate product design division - QU’ARTE. 

In 7 years of successful work, the company has built a strong reputation in the global arena and has been included in the most recent rating of the best B2B companies presented by Clutch, in which only 1% of the companies presented in the catalog were included.