The choice of outsourcing destination is the key question that comes out – reaching cost and time efficiency, finding experienced and certified developers and preventing communication barriers are the key things that define the choice of location. What are the best countries to outsource software development? Where can you find the best vendor? What kind of projects can you outsource?
Global IT outsourcing market will grow at $481 billion by 2022, according to Statistics MRC. Last year, it was 88.9 billion U.S. dollars. The worldwide revenue of the outsourced services was 76.9 billion U.S. dollars in 2016. The biggest share of revenue came from Eastern Europe and the Middle East.
Here’s the software development country ranking:
Besides the IT industry, there are other outsourcing segments: energy, healthcare, business services, pharmaceuticals, travel, retail, and transport. The key benefits that motivate businesses to switch their attention to such services are the ability to save money and free up their personnel, speed up the processes. Scroll down to see the reasons for outsourcing and a quick offshore software development pricing guide.
Three reasons for outsourcing
A good way to decide whether outsourcing is a good idea is understanding why you need it and what you can’t cope with your project inside of your office. A good-looking word “outsourcing” shouldn’t push you to making quick decisions and delegating your tasks to the first vendor you like. However, there are five precise reasons that will surely mean it’s time to find an outsourcing offshoring or nearshoring companies.
Reason #1. No qualified people in your location
It’s a sad fact but this is a very common situation if you don’t have an office in a city with a few dozens million people. Looking for a talented person that will have enough expertise and desire to perform all the tasks with high quality is a hard task. And the process of finding may take a few months.
Outsourcing may rescue the whole projects especially if you need a new team player in a few days. A great benefit of hiring a remote coder is no need to train this person and spend costs on maintaining the working place. You get the right person to complete the tasks that will also give you benefits in a form of some free time and money.
Reason #2. A limited budget
When you have a budget for a new project, you try to create a team that will not blow it up. If you have an in-house team, you may face a problem that you cannot afford having a full team. You may try to start building a project and expect from your team to do more than they are supposed to do or find a remote partner.
Outsourcing doesn’t always mean cheap pricing. It may mean cost and time efficiency in most of the cases. However, there’s a common belief that outsourcing to Asia is much cheaper than to Europe. You can look through different variants of the cost and choose the right software vendor.
Reason #3. A limited period of time
If you have an idea in mind that will help you enter a new market niche or leave your current competitors somewhere behind you, time matters. The earlier you release a new project the better profit you will get. When time matters, there’s no sense in creating new teams in your company.
Outsourcing will let you get a full team of developers that are ready to start when you need. You won’t spend time on training new people in your team or time on improving their qualification. All you need is a talk with a business analyst and planning your work with a remote software partner.
Benefits of outsourcing
When you know why you need an outsourcing partner, it’s time to take a closer look at real benefits that you get from mutual cooperation.
Focus on solving business needs
There’s no need to search what kind of stack is better for one of your projects or if your team meets the requirements about the code quality. There are so many things about building a new software product that you may spend too much time solving them. When you have an outsourcing partner, you have a good chance to focus on the things that will influence the overall growth of your business.
Go beyond your expectations
If you don’t have an IT team in your company but you need software products that will let you increase revenue and provide a better user service, a remote partner may give you more than you expect. The first stage of cooperation is a discussion of what you need and what goals you want to achieve with a new product. You may get a wider choice of features or options that a new project will have.
Release a new product faster
There’s no big difference what kind of niche you are in. If you are able to provide your customers with on-time solutions, you have a good chance to be a market leader. A reliable outsourcing vendor is a remote company that will always provide you with a team of certified developers and other experts for a cost and time efficient cooperation. What you get is a high-quality product delivered to you in a short time. All you need to do next is focusing on your marketing campaign.
Best countries to outsource software development
Here are the top outsourcing destinations (2018):
- Eastern Europe: Poland, Ukraine, Romania, Czech Republic, Russia
- South America: Brazil, Mexico, Argentina, Colombia
- Asia Pacific: China, Philippines, India, Malaysia, Vietnam
And here a few worst countries for outsourcing:
- Saudi Arabia
- El Salvador
What do we mean by saying the best countries to outsource? How do they differ from hundreds of other countries in the world? How do people pick up the best outsourcing destinations? It’s obvious that there are some criteria for making such a choice and we will share this information with you.
How do countries get into the top list? Here are a few factors:
- Education. If a country has a big number of qualified IT experts, they will look for work after graduating from universities. They will unite and create teams that will either solve the needs of local businesses or go global. If a number of teams is big enough, the domestic market will no longer be in need of their services and this will surely make them go global.
- Communication. We choose partners that are easy to make a deal with. It’s great when we have a chance to describe how we see some projects, how we see a user interface and what kind of experience a user should have and a remote partner does their best to meet our requirements and expectation. And one more thing – language barriers.
- Comfortable location. If a team of developers has good conditions for work in their native country, they will not have a need to relocate. Such conditions may comprise low taxes, low cost or rent and so on. Such teams go global and perform all the tasks remotely.
- Marketing efforts. Each outsourcing company does their best to promote themselves. The more companies we have in one single country, the more information you will google about this very location. And we can also have more reviews about the work of these vendors and their location as well.
Outsourcing to Eastern Europe
Eastern European countries offer a time zone friendly environment and cultural comfortable cooperation. Countries like Bulgaria, Poland, Ukraine, Romania, and Latvia are very attractive for British businesses because of their abilities and desire to improve the whole strategy and the company’s processes.
Moreover, most of the best countries for app development are part of the European Union and this fact simplifies cooperation. They have a good education system, especially for technical professionals.
Most Eastern European countries are less risky with the opportunity to get services at lower costs. Web developers from Ukraine, Romania, Poland, and Moldova offer quality services that rank highly on both TopCoder and Hackerrank.
Key facts about Eastern European developers:
- Report by Stack Overflow showed that more than 1 million programmers are there in Central & Eastern Europe. More than 42% of them live in Ukraine and Poland.
- Ukraine, Romania, Poland, Bulgaria, Estonia, Czech Republic are recounted in the top 10 countries in software industry according to the AT Kearney’s 2017 Global Services Location Index. The index evaluates 55 countries taking into account such factors as employees’ skills and time to deliver, financial attractiveness, and business conditions.
- HackerRank ranks Ukraine to take the eleventh place that makes it a good outsourcing destination.
- Ukraine and Poland are among the top 10 European countries with the biggest pool of IT talents.
- Ukraine, Lithuania, Estonia, Poland, Hungary, the Czech Republic, Romania, Bulgaria, and Latvia are ranked highly in the top 50 of Bloomberg Innovation Index 2018.
- Ease of Doing Business 2018 rating emphasizes that Eastern European countries show significant growth in the last few years. Poland has grown from 74th place to 27th place in 2018, Hungary – from 60th to 49th, Romania – from 71st to 45th, and Ukraine – from 132th to 76th.
- Warsaw, and Budapest, Krakow, and Prague are among the top 25 in Tholons Services Globalization City Index 2017. This Index assesses cities and countries taking into account the startup ecosystem, innovation, and digital transformation.
- According to the EF English Proficiency Index 2017, Hungary, Czech Republic, Poland, Romania have a high level of English skills.
- HackerRank believes that the best developers by Domain challenge are based in Eastern European countries with these leading positions: Ukraine in Security, Poland is the first in Java category, Hungary in Tutorials, the Czech Republic in Shell.
- There are approximately 5.5 million developers in Europe, EU-28 countries will feel a shortage of 500.000 software engineers by 2020.
What country to choose for outsourcing?
We’ll give you a short guide to the offshore software development rates by country and provide you with the benefits of each location.
Why choose Ukraine?
Ukraine has an excellent educational system, so there’s a big number of graduated developers and other IT experts. They usually start working during their education at the university. It lets them gain experience and improve qualification. Outsourcing companies choose the best candidates that will be able to cope with a fast pace of work and the need to constantly upgrade the level of expertise.
Ukraine outsourcing rates: $25,082
Why choose Poland?
The economy of Poland creates good conditions for IT companies to provide outsourcing services. A bigger part of IT experts can speak a few languages that makes communication smooth. It’s easy to get to this country by plane or another transport if there’s a need to have a personal meeting with a vendor.
Poland outsourcing rates (a yearly income of a developer): $24,500
Why choose the Czech Republic?
There’s a big number of reliable companies that provide outsourcing services. There’s a big number of qualified developers thanks to a good level of education. Location is good and you can get there without any problems. There are no problems with communication or cultural barriers.
The Czech Republic outsourcing rates: $27,400
Why choose Romania?
Romania IT outsourcing market is growing and expanding. There are enough reliable vendors with a positive reputation and hundreds of completed projects. There’s also a big number of talents that unite into teams to provide high-quality services. It’s one of the best countries to outsource web development.
Romania outsourcing rates: $25,021
The bottom line
Outsourcing is good in a matter of cost and time efficiency. You can find talented people that will deliver a new project in a short time and focus more on your business. Eastern Europe has gained popularity as a perfect outsourcing destination thanks to a big number of talents. Diceus is one of the leading outsourcing partners in Ukraine with solid experience in the successful release of various projects.
We are a team that cares about the reputation and success of our partners. We do our best to do something more than code delivery. We are a reliable partner that can help you reach your business goals. Let us know more about your project and we will offer you top-notch solutions.