Exploring Europe’s IT Outsourcing Market: Key Statistics and Insights

Volodymyr Fedorychak
Volodymyr Fedorychak

Inbound marketing specialist with 12+ years of hands-on experience. My core expe...

1 post

IT outsourcing market in Europe

Custom software development is one of the most popular directions of IT outsourcing for companies of all sizes. It allows SMEs, startups and large enterprises to quickly access the right technical talent, like remote developers for hire, and start working on a project with minimal delays.

Tasks of any size can be outsourced – from small fixes on existing projects to complete end-to-end product development from scratch or support for legacy systems.

Belod, you will find interesting statistics about the IT outsourcing market in Europe, like the most popular outsourcing destinations, the size of the industry in general, and other interesting facts and numbers.

****

1. The IT outsourcing market revenue in Europe is projected to reach US$176.40 billion in 2024. It is expected to grow at a compound annual growth rate (CAGR 2024-2029) of 8.23%. — Statista

IT outsourcing revenue in Europe

2. The time zone difference between EU providers also makes it easier to manage projects and collaborate with remote teams, with fewer overlapping work hours and fewer scheduling conflicts.

The time zone difference between European countries and USA
For companies looking to outsource software development, the time zone difference between Eastern Europe and the U.S. is generally a favorable one. Image by Coax Software

3. European countries offer affordable rates for outsourcing application development:

App development rates in different countires
Image credit: The One Technologies

According to Clutch, there are more than 3,900 software development companies in Eastern Europe that provide outsourcing services. — Clutch

4. Top locations of IT outsourcing to Eastern Europe:

  • Poland
  • Ukraine
  • Romania
  • Bulgaria
  • Czech Republic.

5. These countries have the largest number of skilled professionals working in the IT outsourcing and research and development sectors. — N-iX

6. According to Eurostat, the region is home to a thriving community of more than 1.7 million IT professionals.

7. The most popular technologies among the IT companies in Eastern Europe:

Most popular software development technologies in Europe

8. Compared to countries such as the USA, Australia or Canada, outsourcing to Europe can offer companies more affordable hourly rates.

IT outsourcing benefits for businesses

9. More than a third of software engineers (36%) are located in Poland, another 25.6% in Ukraine, and 12.7% in Romania. — Grid Dynamics 

How many software developers live in Europe (top countries)
Countries in the largest pool of developers in Europe, source: Grid Dynamics

10. Nearly 80% of Chief Information Officers (CIOs) in the Netherlands expect to outsource at the same rate or more in the coming years. This is the highest percentage in Europe. — CBI.eu

The UK is the most open to offshore outsourcing and the least cautious about doing business with developing countries of all the European markets. By 2022, technology jobs will account for 14% of all job opportunities in the UK. 

11. According to Deloitte, outsourcers are already part of the delivery model in 65% of successful shared services organizations.

Europe annual commercial ITO contract values
Europe annual commercial ITO contract values (in € billions), source: ISG index

12. 77% of EU companies that outsource IT do so within the European Union. They also actively delegate to other European countries (17%), India (17%), the United Kingdom (14%), or the United States and Canada (11%). — Eurostat

Talmatic: Your Trusted IT Outsourcing Partner

When it comes to choosing a software development outsourcing company, Talmatic is the right choice. There’s no need to waste time comparing quotes from multiple vendors. Just contact us and within 48 hours you’ll have a team up and running.

Read also

More Arrow right
More

Calculate the costs of hiring top developers with our free estimate.

No obligation to hire. No commitment from you.

Photo manager
George Fironov
Co-founder & CEO
  • Skype
  • Linkedin

This 20-Minute Call Will Change How You Hire Developers

Discover how Talmatic can help you solve your hiring headaches. In this personalized call, learn how we match you with developers that fit your technology and team needs.

In a short call, we would like to:

  • Learn about your development needs
  • Explain our process to match you with qualified, vetted developers from our network
  • Share next steps to finding the right match, often within a few days

Not sure where to start?
Let’s have a chat