Is outsourcing only for startups or small businesses? The software for NASA operations and US Navy submarines was developed in Central and Eastern Europe (CEE). 59% of tech leaders feel a shortage of tech skills. This is where outsourcing steps into the game: a great pool of talents, good value for money and project on-time delivery.
Top 10 Countries in Software Industry Outsourcing
Mindfield Consulting believes that Ukraine is one of the leading and promising outsourcing countries. This country has a lot of bright tech talents with engineering expertise. Ukraine outsourcing rates are affordable. Timezone overlap seems like not a big deal because many companies find a good fit in cooperating this way.
China offers strong tech services. PWC’s report found out that top fastest growing IT companies are located in China. Besides, customers may choose multiple languages for the business partnership. There are low rates but they are higher than in CEE.
Canada is a nearshore country for the USA with a very comfortable timezone for the US clients. This is a home for startups. The main reason why this country is interested in outsourcing is a chance to work with flexible work hours. IT professionals wanted to have agile schedule to have work/life balance.
Canada attracts companies by predictable quality, culture and language similarities. Because of lower currency exchange, they have cheaper prices than the US IT market.
Outsourcing to India is a controversial issue. The main disadvantage is that you can’t predict what quality of services you get. IT companies are so versatile, that you may get either a brilliant unicorn or unqualified developers. Sometimes, companies need to re-order services to make the products better.
An average hourly rate of a software developer in India is extremely low. That’s why some tech leaders are willing to invest in this country. Moreover, India’s urban population is highly educated and have good experience in delivering IT services.
Experts predict that BPO in Malaysia will reach $1,4 billion by 2021. It gained popularity because of customer-oriented services, development of enterprise applications and building innovative business processes.
This outsourcing empire was estimated at $23 billion last year. In 2016, Manila took second place as the biggest outsourcing city globally. According to the Information and Communications Office, the Philippines had a 30% increase in the number of outsourcing services over the past decade. English is the official language there that makes it easy to communicate.
It has a good location to place delivery centers (mostly around São Paulo) to work with partners in Latin and North America. The Brazilian IT labor will fit call center support, ADM (particularly Oracle and SAP ERP), or infrastructure management services. For instance, a French provider recently used an alliance-to-acquisition approach to cooperate with Brazilian outsourcing team.
Last year, Brazil’s government provided modernization of the labor laws to make outsourcing services more attractive for the global market.
This is an important player in the international market for outsourcing software development and BPO. According to the 2016 A.T. Kearney Global Services Location Index, this country holds the 6th place among other countries.
Indonesia presents one of Southeast Asia's biggest economies. It is a financially attractive country with a good business environment but there’s a small pool of IT talents and a limited number of software development services. The Indonesian government is working on economic policies to maintain its outsourcing industry.
Romanian IT outsourcing services may surprise international clients with a large talent pool and qualified professionals. Bucharest is one of the quickest fast-growing cities in Europe and a popular location for startups.
What you Should Know about Outsourcing to Another Country
Time zone difference can be a problem only if you cooperate if you find inexperienced employees even in the best countries for outsourcing. It’s good to work with those IT service providers who are ready to shift their schedule to fit your timezone and have good cooperation.
An innovation-driven environment is of high importance for the competitive business environment. That’s why worldwide tech brands look for IT companies from innovation-friendly locations.
Let’s briefly have a look at the level of innovation for the countries from our list.
Ukraine. The country has a growing ICT sector that was worth $2.5 billion in exports in 2015. Ukraine hosts well-known startups such as PetCube, Looksery, which were purchased by Snapchat for $150 million, etc.
China. China thrives in developing an attractive ecosystem to boost innovation In sectors like IT and e-commerce. That’s why they don’t need to search for international markets because there is a big potential in China to meet business needs.
Canada. Based on the Global Economy’s research, the average value was 55.86 points with a maximum of 57.6 points in 2013 and a minimum of 53.7 points last year.
Skills and Qualification
Programming skills are an important factor as you will collaborate with IT professionals and it’s valuable for you to know their qualification. Feel free to explore our table to hire only skilled programmers.
Billing factor is not the most important category but it helps you plan your budget and be aware of the existing rates. Many companies look for outsourcing options in order to cut the costs. In this case, cooperation with Ukraine, Romania or Indonesia can save you 30–50% of the price with a local hire.
Outsourcing to Eastern Europe: Value for Money
Programmers from Eastern Europe are highly appreciated by VentureBeat, Gartner, and Stack Overflow. Their machine learning, IoT, Artificial Intelligence have captured global attention in recent years.
Weforum noticed that outsourcing to Eastern Europe is becoming more like outsharing. It means that Eastern European developers are equal remote partners with deep experience in handling complex IT tasks. Outsourcing service providers may be treated as remote CTOs with a possibility to propose the best tech solutions and strategy to develop needed products.
The outsharing partnership is built on transparency and trust with the opportunity to align this collaboration with the company’s culture and values. Moreover, it’s about innovation and an increase in the quality and speed of software development.
For instance, the code for the world flight search engine Kayak was written in CEE. They made software applied by 25% of the global heavyweight vessels. The largest peer-to-peer lending marketplaces and biggest aviation parts marketplaces in the world were developed by the Eastern European developers as well.
Diceus - Top Outsourcing Company in Ukraine
At Diceus, we don’t treat you as a client and we don’t sell hours of work to build a new project for you. We treat you like a partner. A business analyst provides deep research to find the most appropriate approaches and technology for building a new software product:
- We make a business analysis to understand the requirements for the future project and what kind of tech stack we can use for building a new app.
- We sign a legal agreement where we define the specs and the scope of a new project, we also mention the deadlines and the cost. We don’t charge anything for a specific number of hours. If we don’t deliver the app on time, you won’t have to pay more.
- You’re involved in the development project and you can control the way each component is released and tested.
- You get the app that fully responds to requirements and expectations that were defined at the beginning of our cooperation.
What you get as a partner is good communication with the team, smooth and thoroughly planned workflow, regular milestones checkups and on-time delivery within the fixed budget. You give us your idea and we deliver a solution that will let you reach your business goals.