Eastern European Outsourcing Destinations

Lyudmila Kucher
Lyudmila Kucher

I specialize in outstaffing and staff augmentation, and I have extensive experti...

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As the COVID-19 pandemic rummages through every corner of the world, global businesses have experienced the need for digital transformation to cope with ever-evolving consumer needs. The average company uses 137 unique SaaS apps, with small and medium companies using an average of 102 and 182 apps, respectively.

Despite the large number of companies depending on enterprise software to tackle various management, finance, marketing, logistics, and accounting issues, there has been a global shortage of computer programmers. More than half the IT job roles are left unfilled for at least two months in the UK alone, proving that the shortage is real.

Today’s article digs deeper into why businesses must consider Eastern Europe software outsourcing.

 

Eastern European Software destinations

Before the pandemic, many businesses were already struggling to hire computer programmers. The situation escalated when the pandemic crippled traditional work systems and businesses started looking at tech solutions to aid the delivery of products and services.

With that, here are the most popular Eastern Europe software development destinations in 2021.

 

Ukraine

The Ukrainian IT industry has some of the world’s best developers for hire which are even regarded higher than those in the UK and the US. Ukraine has long been recognised as the go-to outsourcing country with some of the unrivalled software development companies in Europe. The country has a well-developed scientific and educational background.

According to statistics, Ukraine sees a 26% annual growth in the IT industry. The same report states that the country has approximately 200,000 IT experts and 1600 IT companies, reporting annual revenue of $5 billion as of 2020. Over 60% of its IT specialists work for IT outsourcing services, and out of the total number of computer programmers, over 58% have at least three years of coding experience. The country also has over 100 R&D centres with global tech giants, including Dell, Cisco, and Microsoft.

 

Belarus

Belarus is a country neighbouring Ukraine, Russia, and Poland. It is one of the largest tech hubs in the eastern bloc, with over 54,000 belarusian developers and approximately 1500 companies in the IT sector. Belarus has long been home to some of the best software development companies Europe has to offer. The country’s IT market has clients in over 50 countries, a good chunk of them coming from the US and Europe.

One of the major drivers of the Belarusian IT sector is the High Tech Park (Silicon Valley’s equivalent), started in 2005 by the Belarusian government. The project aimed at creating favourable conditions for the development of IT companies.

High Tech Park features a unique pool of IT talent. AIn 2020, the export level reached over $2.7 billion, with over 90% of the software products being exported to Europe, Canada, the US, and Russia.

 

Poland

Poland is a state located west of Belarus. It has made technological advancements and is one of the most highly ranked software outsourcing places of all time.

Thanks to its political stability, highly educated computer programmers, especially Ruby and PHP, low cost but high-quality code, and experienced programmers, the country remains a top place. In addition, Poland is ranked 16th by the EF EPI English Proficiency Index, whereby a large population are highly proficient in English.

 

Hungary

Hungary is another eastern bloc country bordered by Ukraine and Romania, where you can hire a dedicated offshore software developer with a unique set of skills. According to Clutch, there are over 580 IT companies and over 80,000 computer programmers in the country. IT services generate about 6% of the country’s GDP, while companies like Nokia, Siemens, and Microsoft run their R&D centres within its borders.

 

Romania

Romania is also worth mentioning in our list for its vast talent pool, including over 100,000 computer programmers. According to the 2019 Global Services Location Index, Romania is ranked 28th best place for outsourcing.

 

Benefits of IT Outsourcing to Eastern Europe

The high demand for tech services has left countries like the United States and Canada with a shortage of IT professionals. However, as the need for quality applications and technologies grows, entrepreneurs are outsourcing their software development to Eastern Europe, thanks to their vast IT talent pool.

So, what are the benefits of Eastern European outsourcing?

benefits-of-it-outsourcing

Big talent pool to respond to the rising demand for technology

There is a massive pool of IT talent to choose from. Currently, there are over 2000 companies dedicated to IT services and over 1.3 million computer programmers specialised in various fields in the IT sector. These professionals are well-versed in desktop, web, and mobile software development. So if you decide to hire full time developer remotely we highly recommend starting with outstaffing companies in Eastern Europe. Indeed, it is the best market to suggest competitive alternatives to Upwork and other freelancing and outsourcing platforms.

English proficiency

Language barriers can often lead to miscommunication. Most countries in the eastern bloc are well-versed in English. For instance, the EF English Proficiency Index ranks Ukraine 40th out of 112 countries ranked for their English proficiency. Belarus is ranked 38th out of 112.

High-quality technical education

Countries in the eastern bloc offer world-class education to both local and international students. Several universities, such as the Taras Schevchenko National University of Kyiv and the National Technical University of Ukraine, have been ranked in the list of emerging European and central Asian study places by QS world universities rankings.

Ideal geographical location

Building an offshore team and research and development centres requires constant communication. The eastern block is conveniently located a few hours from Western Europe. A single flight from Germany to Belarus takes roughly one hour and a half. For Western-based clients, a flight from the US to Ukraine takes a little over 12 hours.

Such convenience makes it possible to monitor and coordinate communication with the team and monitor their activities up close.

Challenges faced in the outsourcing process

Outsourcing provides a long-term solution to the IT talent shortage, the rising costs of in-house development, and risky deals through freelancing platforms, just explore what is Bairesdev main uncertainty to confirm this. Key players in the industry have already begun outsourcing, but they have also had to face many challenges along the way.

 

Time zone difference

There is a five to seven-hour time difference between Eastern European countries and the United States and Canada, which may bring about collaboration challenges.

Luckily, these time zone differences are unlike other outsourcing destinations like Asia, which are 14+ hours ahead. Besides, IT companies in Eastern Europe work-out-of office hours, scheduling meetings at the convenience of their clients.

 

Project management challenges

Failure to define expectations and set proper guidelines from the get-go may cause a lot of back and forth. Such derailments strain the project, making effective management difficult.

Coming up with an excellent project management plan is a great way to ensure a smooth running of development processes and tasks. Talmatic is one such outsourcing company that boasts proper management of your project. We practice clear documentation, keenly tracking all development processes, and quickly addressing client needs to ensure great project management.

 

Miscommunication

Despite not being native English speakers, developers in Eastern Europe have learned the language and established proficiency. However, some developers are not used to communicating with clients. Such miscommunications might affect the project, especially causing time-to-market delays.

For this reason, the need for a strong management team is imperative-—something that Talmatic can provide. The management team will work hand in hand with the developers to optimise overall performance and improve productivity. They will also pay particular attention to compliance requirements and other factors that boost the project’s success.

 

Trust issues

We are in a digital era where data breaches are escalating at a high rate. In 2020 alone, over 155.8 million records were exposed. As a result, many clients are unwilling to share some vital business information in the software development process.

Being a reputable tech company, Talmatic implements the stringiest cyber security measures to ensure the safety of all client information. Our dedicated tech experts understand all data security protocols, building client trust.

Get in touch with us today and learn how to help you get the most out of your team.

 

How to find a software development outsourcing company in Eastern Europe?

Several factors come into play when choosing the right place for outsourcing to Eastern Europe. Here are some more details to take into account while choosing Ukraine or Belarus as your outsourcing destination.
IT outsourcing services in Ukraine
Other than having highly talented computer programmers, Ukraine has:

  • A rapidly growing IT sector;
  • 100+ R&D centers;
  • Excellent education with over 20,000 new IT graduates joining the workforce annually;
  • Exceptional skills in AI, IoT, and Big Data;
  • High literacy rates (99.8%);
  • Conveniently located;
  • Moderate rates for IT services;

 

IT service outsourcing to Belarus

IT services make up about a third of the country’s total exports to the USA. Belarus also offers:

  • Access to a wide pool of talent with 2.2% of the working population in the IT industry;
  • Excellent candidates skilled in Android and iOS development;
  • More than half the existing IT professionals have experience with offshoring companies;
  • Proper education with 16,000 IT graduates;
  • Moderate rates for IT services;

 

How does Talmatic cover all potential troubles with outsourcing?

A lot can be said about software development. But finding the right team of computer programmers in a pool of hundreds is incomplete without a trustworthy outsourcing Eastern European partner. At Tamaltic, we help companies evade the troubles of hiring freelance computer programmers and instead bring you verified and experienced computer programmers.

Our company has a wide experience in IT outstaffing – we help our clients find expert computer programmers in fintech, e-learning, ed-tech, and e-commerce with ongoing support whenever needed.

We also offer a fast and efficient outsourcing process to help you find the ideal software company in Europe. We understand that outsourcing in Eastern Europe is an investment. So, if you’d like to get a feel of what we can do for you, contact us for your risk-free trial. No commitments until you’re satisfied with our services.

Sum up

Eastern Europe has one of the fastest growing IT sectors, with the IT Service industry and Software R&D markets growing four times faster than any other IT market in the world. Digital transformation is now inevitable as more and more companies turn to digital solutions for better performance. And since the software is the glue that holds it all together, there is no better time than now to entrust your project to a reliable software development company in Europe.

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