Demand for offshore development services is driven by supersonic technological advancements and the increasing need for automated cost-effective solutions. Statista reports that the global It outsourcing market will probably reach $591.20 billion by the end of 2025. The anticipated compound annual growth rate of 8.28% from 2025 to 2029 will turn it into $812.70 billion by 2029.
In these conditions, choosing a reliable tech partner to cover your digitalization needs is a smart strategy and one of the digital transformation best practices. Depending on your business needs, the trusted partner will:
The thing is in the choice of the right partner. In this article, you’ll find our insights on the best countries to outsource software development in different regions of the world and hints on how to select a vendor for outsourcing. Stay tuned.
Eastern European countries are well-known for their large IT market and diversified talent pool. They offer solid tech education that ensures access to highly skilled engineers, making Eastern Europe often preferred for complex or large-scale projects. European values, time-zone proximity and close mentality make these regions ideal for digital projects from Western European countries.
We compared the engineers’ hourly rates according to Glassdoor data to find that Ukraine and Romania have the most cost-effective rates, while the Czech Republic and Poland offer greater stability and proximity to Western European countries. Read further to compare offered benefits and find the best country to outsource software development in Eastern Europe.
With a $15 billion IT market fixed in 2023, and about 500,000 high-quality IT experts Poland is often chosen for large-scale long-term projects. A strong EU alignment ensures stability and advanced expertise for client development projects.
Warsaw, Krakow, Wroclaw, and Gdansk are tech hubs with the largest workforce and IT vendors. Polish skilled software developers choose Java, Python, JavaScript, PHP, and .NET as their core tech stack. The other emerging programming languages are widely represented though. The hourly rate for a skilled senior Java or Python engineer falls in the $40-65 range.
Pros | Cons |
Solid technical education ensures a strong and growing workforce pool. | The labour cost is higher in comparison to other Eastern European countries, which influences the overall project cost. |
European values and high proficiency in English are the basis of comfortable cooperation inside mixed European teams. | The tech talent shortage that affected Europe is also tangible in Poland. |
Strategic location is comfortable in terms of small time zone differences and proximate travelling. | |
The software development industry is thriving and international companies are offering their services. |
Despite all threats and obstacles. The Ukrainian IT market reached $8 billion in 2023, where $3.05 billion belonged to IT services according to Statista. Around 285,000 skilled software engineers adapted to realities and ensured their accessibility in any circumstances.
Major IT hubs of Kyiv, Lviv, Kharkiv, and Dnipro have become centres of offshore development in Ukraine and a home for innovative tech startups and strong multi-lingual tech teams. Ukraine is often chosen among the best offshore software development countries for the best price-quality ratio and unparalleled access to top-tier talents.
The most widespread programming languages are: JavaScript, Java, Python, C#, and PHP. The hourly development rates for the senior specialist fall in the $35-55 range.
Pros | Cons |
A large skilled talent pool gives space to cover talent needs. | Geopolitical instability imperils infrastructure and project flow. |
The competitive rates help to keep projects within budget. | Sufficient time zone differences to cooperate with the US clients. |
A strong focus on international cooperation makes proficient remote teams. | |
Proven experience working with Western teams and high-level English make developers perfect members of international teams. |
The Czech Republic’s IT market reached $13 billion in 2023, and around 200,000 digital professionals contributed to this result. Thus, the country is a perfect choice for completing a high-quality, complex project, especially if the client’s headquarters are in Western Europe or the US.
Famous tech hubs of the country are Prague, Brno, and Ostrava. These cities are the places where clients tend to find the best digital partners. Among the top-used programming languages are Java, C#, Python, and JavaScript. The hourly rates of the Czechish developers are closer to European ones: senior-level programmers charge around $45-70 per hour.
Pros | Cons |
High education standards ensure a focus on top-quality products. | Higher developer rates compared to other Eastern European countries. |
Proximity to Western Europe promises cultural alignment and small or no time zone difference. | Smaller tech candidates pool compared to some other countries. |
Numerous multinational corporations and R&D centres have their representative offices there. | |
The Czech Republic is a member of the EU which makes regulatory compliance easier. |
Unlock the best countries for outsourcing and build high-performing remote teams with confidence.
Asian countries for outsourcing offer noticeable competitive advantages but also comprise unique challenges. This region is famous for cost-effective solutions and vast workforce markets. On the other hand, it often becomes challenging for European and American teams to build efficient communication and collaboration due to the sufficient distance and cultural differences.
Asia is attracting world-famous companies and startups and helps them build solid products. Its tech market is rapidly developing, growing both in size and in quality. We’ve conducted a quick analysis that will help to understand whether any of these countries is worth delving deeper into for your digital project.
In the list of the best countries for outsourcing software development, it is impossible to bypass India. Its IT market size reaches $245 billion, making the country’s industry one of the largest in the world. India owns an enormous army of software developers with a headcount of over 5 million professionals.
It is easy to find, onboard, and change Indian coders on a project. However, it might be more challenging to build a comfortable working process due to time and cultural differences.
Pros | Cons |
Vast talent pool possessing extensive experience in the field. | India is located far enough to challenge Western clients with a significant time difference. |
Client-oriented work and quick adaptation to changing requests and circumstances. | Notorious for vendors and workforce with poor qualifications, so requires careful vendor selection. |
Solid infrastructure for business process and IT outsourcing. | |
Most developers know English well enough to participate in the teamwork without any trouble. |
China is the largest IT market in Asia. Its size reaches $360 billion, with over 7 million professionals. It is a home for advanced technologies and a good place to build large-scale projects. However, it challenges businesses in terms of regulatory compliance and requires strict attention to detail.
Among the widest-used programming languages there are Python, Java, C++, JavaScript, and Go. The hourly rate of the senior coders falls in the $25-60 range depending on the tech stack.
Pros | Cons |
Teams possess great expertise in advanced technologies like AI, IoT, robotics, and big data. | Greater language and cultural gap between China and the Western world, and less English fluency compared to India and the Philippines. |
The country has governmental support for R&D initiatives. | Complicated data protection and cybersecurity regulations make cooperation harsh. |
The workforce is well-educated, highly skilled and possesses expertise in emerging technologies and languages. | |
The broad workforce market allows for building potent teams for large-scale operations. |
Despite being much smaller than China and India, Taiwan offers clients great expertise and niche skills of their engineers. On the top of the industry are IP-sensitive projects in hardware-software integration.
Although Taiwan is world-renowned thanks to its hardware manufacturing, its software industry also can impress. It is especially valued for the narrow-specialized IT solutions.
Taiwanese engineers prefer Python, Java, C++, JavaScript, and Go programming languages most of all. Their hourly rate is comparatively higher than in other Asian countries: $40-70 per hour for a senior-level programmer.
Pros | Cons |
The teams are highly focused on timely and highly-qualitative delivery. | Significant distance from European and American countries makes cooperation with their businesses challenging. |
Engineers have unparalleled expertise in working with hardware and hardware-software integration. | Higher cost compared to other countries of the Asian region. |
Vendors pay great attention to strong IP protection and international standards compliance. | |
Proximity to major Asian tech hubs makes cooperation in this region easier. |
Latin America offers comfortable-to-use and qualitative IT outstaffing services mainly for clients from the US and Canada. They can fully benefit from the proximity and time zone alignment, together with access to skilled talent and competitive rates. The industry of software development provides businesses with expert fintech, blockchain, and AI solutions.
Argentina is known as one of the top countries in the IT sector of Latin America. Its IT market size reaches $7 billion thanks to 130,000 excellent software professionals. Businesses value this country for the high skills of the developers, competitive pricing, and focus on emerging technologies. Businesses can hire a senior software developer for $30-50 per hour.
Pros | Cons |
Argentina boasts top-educated IT experts in Latin America and boosts their expertise with advanced educational programs in blockchain, AI, and mobile development. | The country suffers from frequent inflation, insatiable currency, and economic uncertainty, that threatens business operations and project flow. |
The location is comfortable for North America because of the time zone alignment. | There is a high demand for Argentinian tech talents, which results in retention and headhunting challenges. |
The country’s tech hubs are home to many startups and innovative businesses. | |
Argentinian experts are known for their expertise in blockchain, fintech, and game development projects. |
Discover how to reduce costs, access top talent, and scale your development team efficiently.
Brazil is the largest IT outsourcing market in Latin America and one of the top 10 in the world, its size reaches $30 billion. Here different companies from startups to global tech giants find partnering vendors or additional workforce for their projects. The hourly rate of a senior Brazilian engineer falls in the $40-70 range.
Pros | Cons |
A large talent pool ensures closed positions and high scalability for large projects. | A complex tax system and bureaucratic hurdles can become a significant obstacle for a project start. |
The Brazilian government offers support in the form of funding, tax incentives, and organised innovation hubs. | Compared to other Latin countries, Brazil has higher rates and requires more stable budgeting. |
Similar time zones, language and cultural alignment make Brazil the perfect choice for US companies. | |
Strong tech infrastructure and robust internet connectivity ensure seamless communication and operations safety. |
It is important to choose the right one among the best countries for offshore software development, as this choice will directly influence your business success. It will depend on multiple factors like the estimated budget, project complexity, required technologies, location, and communication needs. We’ve defined the core steps that will bring you towards your perfect software:
Talmatic is an expert in outstanding software outsourcing and outstaffing. We cooperate with businesses all around the globe to deliver attractive and productive digital products. To cover clients’ requests, we’ve developed a strong diversified base of seasoned engineers from the best offshore software development countries. Thanks to it, our clients get the following benefits:
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