CEO at Relevant

4 Best Countries to Outsource Software Development To in 2023

February 28, 2023

If you are a forward-looking business owner, you may know that software development outsourcing is a well-accepted way to optimize costs and expand your talent pool. This business strategy not only relieves the burden of hiring and empowerment costs but also delivers the highest quality product on time and within budget.

Outside expertise is so beneficial financially and business-wise that most entrepreneurs have no doubts about outsourcing. Yet like you, they may also have trouble deciding which countries are the best for outsourcing software development.

Given that there are hundreds of IT outsourcing centers worldwide, each boasting quality services, culture, and experience, you will have to conduct a lot of research to choose the destination where to hire a development team.

We at Relevant Software have done this painstaking work instead of you and analyzed the particular qualities of the best countries for offshore software development by main criteria. Our study will help you make the right decision based on your priorities. So let’s get comfy and read.

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What Factors Indicate a Country’s Suitability for Software Development Outsourcing?

Let’s begin with the fact that in countries with product-oriented IT markets, there is an acute shortage of qualified developers who are not busy with other projects. Hiring locals in, say, the US, Western Europe, and the UK can be incredibly time-consuming (the recruitment process can take 6-12 months) and expensive as these countries’ salary rates are extremely high. 

Fortunately, the global economy and communication channels make it possible to hire skilled software engineers abroad. Outsourcing to low-cost countries is reasonable due to cheaper infrastructure, lower labor costs, and considerable tax benefits. It remains only to find one that offers the best pool of advantages and meets all companies’ requirements for outsourcing. We will list these below, and they will lay the groundwork for comparing these countries as outsourcing providers.

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You can choose an outsourcing provider from anywhere in the world. Still, you should consider the level of technical education of specialists in the country where you are going to work. There is a sharp difference between nations that provide a basic education in computer science and information technology and those that take a more in-depth approach to studying STEM. The former rarely demonstrates good programming skills, while the latter lead AI development.

Tech Stacks

When evaluating necessary technical experience, outsourcers must consider the project’s complexity level and the technologies used to overcome these problems effectively. The countries outsourcing may differ in technology usage from the countries projects outsourced to.


The best countries for outsourcing are non-English speaking countries. But IT’s language is English, so you expect the outsourced developers you hire to be fluent in reading, writing, and speaking English to negotiate and look for ways to solve problems. 


Only a few pay attention to the differences in mentality before starting profitable cooperation. However, this seemingly insignificant nuance can play a cruel joke, as different approaches to collaboration and problem-solving can prevent consistent interaction.


While the primary benefit of outsourcing is cost reduction, the focus should not be on price alone. The common misconception is that any software provider may offer you the same services and vary in price, but this is far from the case. Companies differ in expertise and tech stack and provide different types of services. Thus, finding the optimum price/quality ratio rests on your shoulders.

Time zone

We’ve added time zones as a factor, but we want to point out that nowadays, most software companies have learned to collaborate across different time zones. Modern control systems make it possible to minimize possible inconveniences at work; therefore, the difference in time zones does not significantly impact the process.

So we will focus on the abovementioned factors in our further comparison. We will look at the basic criteria that show the general scope of strong and weak points related to each country to help you choose one of the best offshore software development countries.

Top 4 Outsourcing Countries Overview

Going back to the question of which countries are the best for software development outsourcing, we will try to answer it by comparing representatives of 4 global outsourcing destinations. While we have focused on a few top countries in the software industry in this article – Ukraine, Poland, India, and Argentina, they represent other countries in their respective regions.

The best countries to outsource software development to, top outsourcing destinations


Ukrainian IT is at the forefront of the most sustainable industries, with a pool of specialists of about 240 thousand. By October 2022, about 44% of all services exported from Ukraine were delivered by Ukrainian IT outsourcers.

This is not surprising because a convenient time zone, open culture, and high professionalism make Ukraine one of the best destinations for software outsourcing. In turn, the Ukrainian tax policy, payment practices, and labor costs allow setting rates below the average for the CEE outsourcing market with equal or even higher quality.

That is why Boeing, Siemens, Oracle, Samsung, and many other largest technology giants have R&D centers in Ukraine, and startups like Grammarly, GitLab, and DepositPhotos have dominated their niches for years.

  • Expenses. According to Upwork, hourly rates for agency developers in Ukraine are usually $35-76. It helps implement the most progressive technologies for the lowest rates in Europe, saving up to 60% of client total IT expenses.
  • Education. In Ukraine, education is at a high level; in 2024, the number of technology students will reach 30,000. But IT education as such is received by the majority in programming and advanced training courses from large companies.
  • English. A good grasp of Upper-Intermediate and Intermediate English is present in 85% of Ukrainian IT specialists. Any international company intending to hire Ukrainian software developers may anticipate that communication with developers will be effective.
  • Mentality. The European mentality of Ukrainians significantly simplifies communication for Western customers considering outsourcing to Ukraine. Flexible and open-minded Ukrainians easily overcome communication barriers because they act in a creative and customer-friendly way.
  • Popular programming languages. You can find a specialist of any technology stack and seniority level in Ukraine, but senior developers prevail over middle and junior software specialists. Ukraine’s most popular programming languages are JavaScript, C#, Python, Node.js, C++, PHP, .NET, Java, and React.
  • Top Tech Hubs: Kyiv, Dnipro, Lviv, Odesa, Kharkiv, Zakarpattia
  • Time zone: GMT+2
Ukraine as top outsourcing destination


Poland is located in Central Europe, although sometimes it falls into the list of “Eastern Europe” countries. In the 2021 Kearney Global Services Location Index, Poland was ranked the twelfth most attractive country for outsourcing. The developer pool in this country consists of 295,000 specialists. Most are programmers (57%), and the rest are QA specialists (15%).

Polish developers are known for being tech-savvy people who can do amazing things in everything from e-commerce to video games. In addition, they are in the same time zone as their main customers in Western Europe. Otherwise, most Polish companies understand their advantages and charge higher rates than others in Eastern Europe.

  • Expenses. According to Clutch and Upwork, the cost of offshore software development in Poland ranges from $60 to $90 per hour. 
  • Education. IT education in Poland is in high demand, attracting students from all over Europe. It topped the popularity rank in 2013, with several graduates reaching 15,000.
  • Popular programming languages. Poland’s most popular programming languages are Javascript, Java, Python, TypeScript, PHP, and C#, followed by Swift, Kotlin, Scala, and Ruby.
  • Mentality. According to clients’ reviews, software engineers in Poland demonstrate a good work ethic and minimum cultural differences.
  • English. It’s clearly the language of business, and Poland ranks 11th in the world regarding English proficiency. That makes it easier to communicate with clients who are located abroad.
  • Top Tech Cities: Warsaw, Wroclaw, Krakow, Gdansk, Poznan
  • Time zone: GMT+1
Poland as top outsourcing destinatio


Known for its European cultural roots, Argentina has become one of the largest technology hubs in Latin America, with a tech pool of 114K specialists. Despite recent economic difficulties, Argentina’s IT industry has experienced exponential growth, mostly due to a renewed emphasis on education, government assistance, a big pool of tech specialists, and favorable labor costs and time zones.

  • Expenses. According to Clutch, the standard hourly rate for web development in Argentina varies from $41-82, depending on the seniority. The average Upwork rate is $60 per hour. 
  • Education. The country is home to a highly skilled and educated workforce, with 40% of young people having a tertiary education, placing Argentina above the G20 average. Argentina’s tech sector offers a wide variety of technical roles, making the country an excellent location for investors and commercial alliances.
  • Mentality. In Argentina, during meetings, people can interrupt each other. It is regarded as a way to express enthusiasm and interest rather than as being disrespectful. However, the real problem is the lack of punctuality and timing issues, which customers in the US and Europe often complain about.
  • Popular programming languages. Most developers in Argentina are proficient in C, Java, PHP, JavaScript, .NET, etc.
  • English. Argentina is a Spanish-speaking country, although it scores 566 out of 800 points on the English proficiency scale. That is Latin America’s highest rate.
  • Top Tech Cities: Buenos Aires, Cordoba, Mendoza, Rosario.
  • Time zone: GMT-3
Poland as top outsourcing destination


India was one of the first countries to successfully capitalize on the first wave of demand for IT and BPO outsourcing. The country has consistently developed a low-skilled workforce to meet traditional demand. By 2024 India will have 5 million developers, the largest base in the world. However, there is a gap between the need for digitally savvy professionals and the talent pool that India is producing.

India as top outsourcing destination
  • Expenses. Companies can cut their IT spending by 20% to 30% by outsourcing to India. The hourly prices for Indian web development companies start at $40 per hour on Upwork and Clutch.
  • Education. In various fields such as mechanics, computer science, electronics, and electrical engineering, more than 350,000 new students have registered annually, and their number continues to grow. Yet, working with Indian outsourcing companies can have significant disadvantages. For instance, many self-taught vendors provide poor-quality services. Additionally, the Indian software market also faces challenges with data protection and privacy laws.
  • Mentality. Compared to their international colleagues, Indian developers are much more hierarchical and obedient. Clients, however, require innovation and need to be challenged. As a result, Indian engineers still have a long way to go regarding shedding their cultural constraints.
  • Knowledge of English. For the most part, Indian software developers have sufficient English. However, Indian English has a strong local accent that interferes with communication.
  • Popular programming languages: When it comes to popular languages like Python, Java, C++, TypeScript, and Kotlin, India is among the top five countries.
  • Top Tech Cities: Bengaluru, Chennai, Mumbai, Kolkata
  • Time zone: GMT+5:30

Offshore software development rates by country

Location, individual professional experience, and company policy, among others, are the key factors defining the cost rate in every particular country. So, when considering costs, you must research and explore every opportunity to suit your needs best. The table below shows average rates in several professions, according to Accelerance. (Note that these average figures may differ from software companies’ rates).

Sr. Software Engineer$41-49$40-70$68-76$65-82
Sr. QA$35-46$40-63$54-74$59-72
Business Analyst$40-61$50-70$57-81$56- 68
UI/UX Designer$38-4340-60$$53-71$48-75

Whether you decide to outsource software development to Argentina, India, Poland, or Ukraine, strive to work with highly qualified professionals who can comprehend a client’s objectives and turn a creative idea into an inventive solution. That’s the end goal, isn’t it?

Final words

The four best countries to outsource software development are now known to you. Although ratings and descriptions are subjective and can not offer a complete picture, knowing what to expect is the initial step toward success. The second step is to choose the development team – professionals in technology and innovation.

If you decide to outsource your software development to Ukraine – you couldn’t get better! Then you don’t need to worry about looking for the right outsourcing vendor because you have already found it here – in Relevant Software. We have been in the outsourcing market for over 10 years, and our track record encompasses long-term cooperation with clients from the US, Europe, and the UK. 

Our specialists are well-versed in web and mobile development, сloud deployment, AI and ML solutions, Data Analytics, DevOps, embedded software, and more. Wide knowledge has helped us to deliver 200+ unique software products that fully match clients’ expectations. So don’t look for a needle in a haystack but contact us to get relevant developers today.


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