Picking a destination for outsourcing and choosing the right outsourcing partner can be a challenge for business owners. Would you face a language barrier if outsourcing offshore or lose control of the project due to the distance?
Yet, the global market size of IT outsourcing is valued at more than $92 billion, meaning there’s a hefty demand for such services.
From private entrepreneurs to big-time companies, many businesses find it more beneficial to outsource development rather than hire in-house because it results in better quality and is more cost-efficient. And it is even more beneficial if you’re outsourcing software development to Eastern Europe.
In this article, you’ll find out about the key advantages of IT outsourcing to Eastern Europe, top destinations, as well as which country will be worth every cent.
Table of Contents
Key advantages of software development outsourcing to Eastern Europe
While saving costs is a priority for most businesses, Eastern Europe software development outsourcing provides many more benefits. Here are a few examples:
A high percentage of well-educated people The vast majority of Europeans have completed higher education thanks to the financial resources that the government has been channeling into this field. The GDP percentage of expenses on the education of people aged 20–24 in Ukraine and Belarus, for example, was consistently higher than that of EU countries for almost a decade (from 2009 to 2016).
A big pool of tech professionals The high literacy rate has caused the growth of a large labor force and talent pool that is perfect for jobs in software development. So, you will have no difficulty hiring skilled professionals to do the job – outsourcing companies sure don’t.
Cost-effective business relationships In Eastern Europe, the average compensation of a developer is far lower than the rates of developers located in Western Europe or the US. This is due to the difference in the economic and socio-political situations in these countries.
Strong data security Eastern European countries conform to the same norms as the rest of Europe. This means abiding by copyright laws, keeping non-disclosure agreements, and applying policies, such as the General Data Protection Regulation (GDPR).
High proficiency in English Many people in Eastern European countries are fluent in English, as well as other European languages. This helps when it comes to communication and building a strong partnership in different regions.
Challenges of IT outsourcing
Outsourcing to Eastern European software development companies does come with a couple of challenges:
The difference in the tax collection processes Tax collection methods can vary from country to country. That’s why businesses opt for outsourcing agencies – a tech partner will take care of any documentation related to taxes.
Remote communication Outsourcing companies in Eastern Europe are most likely in a different time zone than you, especially when you are outsourcing development offshore. This limits the time when you can supervise the team directly and get results immediately. Discuss the communication plans before making a deal in order for the outsourcing partner to ensure a smooth communication process.
Ukraine is number one on our list for several reasons, including the following:
Global recognition of technical specialists Ukraine is known for its skilled tech specialists and reputation for producing high-quality specialists and results in the tech industry. The country can offer more than 210k tech specialists. It is the birthplace of many renowned start-ups, such as Grammarly and Petcube.
A balance of quality and quantity Many reputable organizations, like SkillValue, have marked Ukrainian engineers among the best in the world. They have also shown off their skills in coding challenges by HackerRank, scoring an average of 88.7%. They have ranked 11th on the global leaderboard, thus surpassing highly developed countries like the USA.
Affordable developer rates Ukraine has one of the lowest tax rates in all of the Eastern European countries. In addition, developers’ salaries in Ukraine are between $25–$45. This is far lower than the salaries of developers in western countries like the USA or the UK.
High quality of work Lower or reasonable fees does not mean there will be a compromise in the quality of the work. Considering the focus on and praise for technical education, Ukrainian developers are known for being hard-working and having exceptional technical skills. In addition, most outsourcing companies in Ukraine have long adopted the agile approach to development which is known to show great results.
High language proficiency Software companies place a lot of focus on furthering language education. Due to this, Ukrainian developers have a good command of the English language.
Poland is another mainstream destination for outsourcing software development. Here are a few reasons why:
Good education standards Software development is a popular subject in Poland. The country places much focus on STEM subjects, especially in large cities. This has led to a large talent pool consisting of 250k skilled specialists. Besides its large talent pool, Poland also scored 98 at Hackerrank’s Global Coding Olympics.
Relatively low rates The cost of outsourcing to Poland ranges from $40 to $56. This rate is at the higher end, definitely higher than that of Ukrainian developers, yet much lower than what US salaries cost.
Quality of work Polish developers have substantial experience and a progressive viewpoint that allows them to provide good quality work.
Belarus has gained a reputation for its fast-paced growth in the technology and IT industries. Thanks to its location near the UK, and large community of English-speaking people, Belarus IT outsourcing comes with many advantages.
Good education level Belarus has an amazingly high literacy rate, and there are over 50k specialists ready to be hired.
Affordable rates The salary of developers in Belarus is between $28 to $43 per hour. This places it at the lower end of Eastern European rates.
Good understanding of English Learning English is part of everyone’s education in Belarus. Thus, the developers there understand the significance of English in software improvement and worldwide outsourcing.
Thanks to its highly desired geographical position, Romania has secured a place in the top five destinations for Eastern Europe software development outsourcing. Here are a few reasons why it may be worth outsourcing to Romania:
Proper skill and training Romania focuses a lot on STEM subjects and has implemented several methods to link IT industries with educational institutions. However, you may face a lack of qualified candidates. Romania has a lower talent pool compared to the countries mentioned above.
Affordable rates You can hire Romanian developers for $26-$45 per hour. This also places the country at the lower price point of Eastern Europe software development outsourcing.
Technical prowess Software development outsourcing to Romania is also a good idea because the country has scored 81.9 in the coding Olympics and has secured 20th position on the leaderboard.
Multilingual environment Romanian developers are trained to be fluent in English and several other languages, like French, Italian, German, and so forth. Romania has an EPI score higher than its European counterparts.
Tech specialists from the Czech Republic have gained an excellent reputation worldwide. Many business owners prefer to hire workers from the Czech Republic, and even large companies, like Microsoft, have offices in this country. Here are a few reasons for Czechia’s popularity:
A good level of higher education Every year, more and more graduates specializing in STEM come out of the Czech Republic.
Affordable rates The salaries of Czech developers range from $34 to $53 per hour. This places the Czech Republic at the high end of rates in Eastern Europe.
Substantial tech pool The country also has 100k specialists in IT. Czech developers have gained a good reputation among their Eastern European counterparts. Czechia ranked 9th in the World Programming Olympics and has better scores than advanced Western countries, like the US and UK.
The Czech Republic vs. Romania vs. Belarus vs. Poland vs. Ukraine: Which country is best for your outsourcing project?
All of the above-mentioned countries have more or less affordable rates, big IT hubs with a large talent pool, and people fluent in English and other languages.
Therefore, choosing a country from these five could be tough. So here’s a comparison table including all the info given above.
Approx. Number of Specialists
$25 to $50
Kyiv, Lviv, Odesa, Kharkiv, Dnipro
Grammarly, Petcube, Bookimed, Preply, YouScan
$40 to $56
Warsaw, Krakow, Wroclaw, Lodz
DocPlanner, Stepwise, Mood Up Team, STX Next, Gecko Dynamics
The laws and taxation systems of Ukraine make it a favorable environment for clients.
Considering these factors, Ukraine comes out as the winner among the five countries. It is the most favorable destination for software development outsourcing to Eastern Europe.
How to choose the right IT outsourcing company
Now that you have selected the outsourcing destination, the next essential step is finding the right outsourcing partner. There are many professional software companies that can help you accomplish even the most challenging projects.
Here are the factors that you need to consider when choosing the right tech partner:
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Infrastructure means the basic physical resources a company needs, like computers, workspaces, etc. We recommend choosing a company with good infrastructure as it will have sufficient tools and equipment required to do the job. This way you can make sure that your progress is not hampered by someone else’s lack of resources.
The scalability of a company means that it can adjust the team size according to your needs. If you are planning on forming a long-term deal with an outsourcing company, it is better to check whether the company has the staff and infrastructure required to scale up—add more specialists to the team—or scale down, in case your needs change.
A skilled and experienced team
If the company you outsource has competent staff, they will be able to perform the job efficiently. Competent people will have the skills required to develop programs that meet your needs and fix any issues with ease.
To determine the competence of the staff, you can either check other clients’ customer reviews or work with them yourself. You can always change partners if you are not satisfied.
One of the best ways to choose a company is to look at its portfolio. That way you can find out about its clients and performance.
Check out relevant case studies on the company’s portfolio to find out what projects they’ve successfully delivered to their clients.
A reliable company should be able to provide you uninterrupted services. You should always choose companies that are reliable in the long run and can assure you that they will provide uninterrupted services regardless of what happens on their side. You can check the reliability of companies by visiting their portfolios or asking their previous customers.
With high literacy rates, location and time zone benefits, a large talent pool, and fluency in multiple languages, outsourcing software development to Eastern Europe provides many advantages.
Among all reviewed countries, Ukraine provides higher data protection, lower tax rates, lower salaries, and a higher talent pool compared to the other countries. But Ukraine has many outsourcing companies, which should you go for?
Choose a reliable company that has:
an experienced team,
the necessary technology and infrastructure for your project,
The ability to be scaled according to your needs, and
has cases that are relevant to your project’s objectives.
At Relevant Software, we provide clients with senior tech talent with deep expertise in different technologies and business niches. Our services include web, mobile, and SaaS development; DevOps; and quality assurance.
If you’re looking for a reliable outsourcing partner, get in touch with our team to discuss the specifics.
What are the best countries for outsourcing in Europe?
Some of the best European countries to outsource software development to are Ukraine, Poland, Belarus, and the Czech Republic. All these countries have high literacy rates, fluency in English, and solid expertise in the IT and development industries.
Why is Ukraine a popular outsourcing destination?
Ukraine has the second-largest talent pool among the top five Eastern European countries with a workforce of over 210k. The salary rates and taxes are very low, which makes outsourcing to Ukraine pocket-friendly. Besides that, Ukrainian developers have a high level of expertise in various languages. Also, Ukrainian law prevents your sensitive data from being stolen or sold.
How do you hire software developers in Eastern Europe?
If you are hiring software developers in Eastern Europe, you can check their profiles and reviews on public platforms like LinkedIn. Or you can use recruiters located there who would find the right candidate for you. However, the best and most efficient way is to hire an outsourcing company. Such companies screen and recruit professionals, so you don’t have to worry about that part.
How much does it cost to hire programmers in Eastern Europe?
The salary rates can vary in different countries based on the economy and taxes. – Ukraine: $25 – $50 – Poland: $40 – $56 – Belarus: $28 – $43 – Romania: $26 – $45 – Czech Republic: $34 – $53
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