Information technology and communication services evolution has led to a tremendous boost to the establishment of software development outsourcing companies in Europe. If you plan to hire foreign developers, read our overview of the ICT industry and get a FREE LIST of Europe based software companies.

What are the factors affecting the development of IT companies in Europe?

Europe includes 43 countries with a total population of 631 million. The region has seen growth in the majority of ICT areas, Internet access, and use. People using the world wide web has increased from 43% (2005) to 79% (2016). The trends mirror the steady increase in households that have access to the Internet from home, which increased twice (from 42% in 2005 to 84% at the end of 2017).

Both fixed and mobile broadband markets have grown significantly. Fixed-broadband subscriptions per 100 inhabitants tripled since 2005, increasing from 10 per 100 inhabitants to 30 per 100 inhabitants. During 2010-2016, active mobile-broadband subscriptions increased from 30 subscriptions per 100 inhabitants to almost 76 subscriptions per 100 inhabitants. About 98% of the population is now within the reach of a 3G and LTE mobile broadband signal, respectively. In contrast, the mobile voice market is already saturated and experienced relatively flat growth.

Most European countries are high-income economies. According to the World Bank data, the average GNI per capita in European countries is about $34,766. Seventeen of 43 countries in Europe have a nominal GNI per capita equal to or higher than $34,766. Only six countries (Albania, Bosnia and Herzegovina, Bulgaria, Montenegro, Serbia, and Macedonia) are classified as middle-income economies. Germany, France, and the UK are the largest telecommunication markets in the area which is caused by the combination of their income levels and population size. Together, they account for close to half of the region’s total economic output.

outsourcing companies in europe

How large is the European mobile market?

Europe has a relatively saturated voice mobile market. The region has higher penetration levels for mobile cellular compared to the global average with 36 out of 43 countries in the region exceeding the global average for cell subscriptions per 100 people. Besides, the countries like Albania, Bosnia and Herzegovina, San Marino, Monaco, and Macedonia, which still had a gap in the growth of mobile markets in 2005 had already reached saturation by 2016. Around 18 countries in Europe reported a decline in mobile cellular subscription rates from 2014 to 2015. The reasons for the reported decrease are varied. In some countries, the decrease in mobile-cellular subscriptions was caused by the exclusion of specific types of subscriptions such as machine-to-machine (M2M) and data-only subscriptions.

For other countries experiencing a minor decrease in subscription rates, the increase in population outpaced subscription growth. Other countries experiencing a decreased subscription rate were the states with current mobile-cellular subscriptions rates higher than 120%, therefore, potentially saturated voice-mobile markets.

Mobile-broadband subscriptions

Within other parts of the globe, Europe has the 2nd biggest mobile-broadband subscription costs. By the end of 2016, it is estimated that mobile-broadband subscriptions gained more than 76 per 100 people. Here, 37 out of 43 countries have mobile-broadband penetration rates higher than the world average of 49%. From 2010 to 2015, Croatia, Lithuania, and Belgium faced the most rapid increases in mobile-broadband subscriptions, outpacing countries with higher mobile-broadband penetration levels in 2010. More recently, Montenegro, Bulgaria, and Romania experienced the fastest increases in mobile-broadband uptake. If current growth trends continue, 5 countries in Europe with mobile-broadband penetration rates of less than 50%, namely Greece, Andorra, Albania, Hungary, and Bosnia and Herzegovina could also be expected to exceed 50% within 5 years. To sum it up, the mobile broadband market in Europe still has some potential for expansion.

Investments in mobile infrastructure, which are already in place in most countries of Europe, will enable these countries to further expand their mobile-cellular and mobile-broadband uptake. In 2015, close to 100% of the population in Europe was covered by second-generation (2G) mobile networks. At the same time, mobile-broadband coverage has expanded rapidly and 98% of the population are already within the reach of at least a 3G mobile signal. Among 41 countries in Europe that submitted data for their 3G coverage in 2015, all except San Marino reported 3G coverage rates of at least 95%. However, there is still room to develop and grow LTE/4G network infrastructure in a certain number of European countries.

europe based software companies - 2G and 3G population

Fixed-broadband and international Internet bandwidth

Between 2010 and 2015, Europe experienced an average of 30% growth in fixed-broadband subscriptions per 100 inhabitants. While Albania experienced the fastest growth rates in fixed-broadband subscriptions per 100 inhabitants during 2010-2015, this growth has decreased slightly in recent years. If current trends continue, fixed-broadband subscriptions per 100 inhabitants in Albania may remain below the world average in the next five years. The availability of international Internet bandwidth continues to be an important area for policy and investment, especially given the rising amount of data-intensive applications, cloud-based services increasing numbers of Internet users desiring better international connectivity.

As you see, the market of ICT is forever changing and fast-growing so that it affects the growth and development of the largest software companies in Europe. And if you are considering to outsource your IT project to Europe it’s the right time to start digging out the information about software development outsourcing companies in Europe. Our team gathered short descriptions of the well-known firms providing IT services to clients from different countries of the globe. These are experienced, skilled, and English-speaking tech experts ready to cooperate with international corporations.

List of 10 outsourcing companies in Europe worth cooperating with

Location: Belarus, Finland
Employees: 250-1000
Experience: 28 years
ScienceSoft is a Europe-based vendor of IT consulting and custom software engineering services. Sciencesoft builds Data Analysis, Collaboration & Knowledge Management, CRM, Information Security solutions with a scientific background. The company works with technology leaders from different industries such as healthcare, banking, retail, telecom, etc. It was recognized with 2 Gold Microsoft Competencies in Application Development and Collaboration & Content.

Location:  Belarus, UK
Employees: 1000+
Experience: 19 years
Itransition company delivers full-cycle software engineering services to clients from more than 30 countries of the globe. The services vary from custom design and integration of enterprise-grade solutions to web & mobile apps development. Itransition enterprise expertise encompasses solutions for resource planning (ERP), customer relationship management (CRM), enterprise content management (ECM), etc. Around 65% of IT products were built for the media industry. The company has been also developing solutions for such directions as omnichannel commerce, document management, BI, etc.

Location: Ukraine, Lithuania, Denmark, UAE
Employees: 50-250
Experience: 8 years
DICEUS is a technology partner for startups, S&M businesses, and large companies that need enterprise-grade solutions development. DICEUS is focused on the development of ERP, CRM, ECM solutions for different industry sectors including e-commerce, healthcare, finance, manufacturing, and production, etc. Unlike most of the outsourcing companies, DICEUS uses a new approach to the development – they don’t charge for hours, but are responsible for the project’s outcomes.

The core clients include international companies like TeamBase, BriteCore, Total Image Group, SimpleTix, Palmers Textil AG, NextCom, Gunnebo Ab, ApexSQL, InsuBiz, etc.

In 2017 the company was ranked as top web developers by Clutch. In 2018, Clutch included DICEUS in its Global Leaders Listing. They are also featured on GoodFirms, IT Firms, and Top Agency.

Location: UK, Norway, Finland
Employees:  250-1000
Experience: 10 years
The company specializes in developing, marketing, and maintaining web and mobile applications for emerging startups and established enterprises. Intellectsoft provides agile development of apps for different operating platforms including Android, iOS, Windows, and other apps in addition to ERP and CRM packages. Having established 7 R&D centers, the company has helped over 300 international clients improve their products and bring brand-new solutions to the market. Intellectsoft was also shortlisted among leading companies in the Global Outsourcing 100 by IAOP and Inc. 5000.

Location: Belarus, Poland, Lithuania
Employees: 250-1000
Experience: 9
With R&D centers in Eastern Europe, the company provides digital transformation and enterprise software engineering services to a great number of organizations. Exadel services range from initial system architecture, DevOps, UX/UI, to web, mobile, Big Data, QA, and app support. The company’s specialties include the integration of middleware, SOA, portals, open-source, Big Data & analytics, and more. Almost half of the company’s projects are related to developing healthcare and financial solutions.

Location: Poland, UK
Employees:  1000+
Experience: 26 years
Headquartered in Lviv, Ukraine, the company provides a variety of software engineering and consultancy services. Eleks has established delivery centers across Eastern Europe and sales representative offices in Europe, the USA, and Japan. The company creates and delivers IT solutions to Fortune 500 companies, enterprises and other technology organizations. Its specialties encompass Data Science, mobility, QA and testing, IoT, R&D, and technology consulting with around 50% of projects related to financial and retail industries. What’s more, the company was shortlisted as the finalist in National Outsourcing Association Awards in 2016 and featured in the Global Outsourcing 100 by IAOP.

Location: Bulgaria, Sweden
Employees: 250-1000
Experience: 16 years
Having over 16 years of experience, the company delivers native & hybrid mobile and custom software development services to its international clients. With the European offices in Sweden and Bulgaria, MentorMate manages all stages of the software lifecycle, including ideation, architecture, design, development and quality assurance. Over 40% of the company’s services are focused on developing solutions for the healthcare industry.

Qulix Systems
Location: UK, Estonia
Employees: 250-1000
Experience: 17
This European software development, testing, and technology consulting company cooperates with small businesses and enterprise-level organizations. Qulix Systems specializes in different mobile banking solutions including design, development, and implementation of bank systems such as portals, mobile applications and more. By the way, nearly a third of the company’s services are related to IoT application development. Qulix team has already created IoT solutions for smart home, telematics, connected cars, wearables, AI, and e-health.

Location: Ukraine
Employees: 50-250
Experience: 9
This software development company cooperates with S&M businesses from the US and European markets. With over 200 in-house professionals, Perfectial offers full-cycle IT outsourcing services: from initial identification of business requirements to system testing, deployment, and maintenance. The company’s team consists of solutions architects, .Net, Java, Ruby on Rails, Python and Node.js developers, UI/UX designers, and QA specialists. Perfectial services range from full-text search and data warehouses design to custom integration with e-commerce systems and payment services.

Location: Poland
Employees: 250-1000
Experience: 12
Based in Poland, the company provides full-stack web app solutions to organizations across a variety of industries using Python Django, Angular, ReactJS and more. STXnext cooperates with clients from the US, Canada, South Africa, Australia, the Middle East, and Western Europe. Its internal team consists of Python & JS developers, UX designers, automatic QA testers and communication experts ensuring smooth cooperation with their partners.

When it comes to outsourcing it is important to know how to search for the best technology outsourcing companies providing custom software development. 

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