Outsourcing is a popular way for companies to cut costs and enjoy greater flexibility. Many firms are choosing to go this route as they hope to make substantial upgrades to their operations. Many countries have become outsourcing hubs, but cost and quality varies widely. 

So where are the best countries for outsourcing? This guide gives a rundown of outsourcing, how you stand to benefit, and lists some of the best countries to hire developers.

Outsourcing basics for IT companies

Companies can reduce costs and still get access to top industry skills by hiring external teams. By working with a skilled external service provider, your firm can capitalize on expertise without building a team of experts in-house.

IT outsourcing has become a great way for modern businesses to launch new products and services. Many companies search for professional teams to help reach their goals in regions with qualified developers. Better internet connection and new technology is making it easier to work across borders. 

Some common IT services that get outsourced include:

  • Custom software development
  • Web and mobile application development
  • UX design
  • Team extension and dedicated software development teams

The primary benefits of outsourcing for IT companies include:

Faster recruiting

One big benefit is that you’ll have your pick of the senior experts. If you don’t have experience in software development, you might find it easier to move your operations to one of the best offshore software development countries instead of hiring and training new staff on your own.

Expertise

External teams will come with the experience that you need to move your business forward. By applying their knowledge, these people will add incredible value to your business operations.

Scaling

Outsourcing can help you scale your business. For companies that attain critical mass, it’s vital to grow your workforce as you gain new users. If you can’t find developers in your local market, you can hire outsourced developers to jump in. 

Savings

Cutting overhead is one of the primary reasons why companies outsource. Of course, the cost of outsourcing your IT tasks can vary based on what you’re looking for and in which country. Most outsourcing countries, however, charge lower hourly rates than Western Europe and North America. 

Agility

As your company grows, its needs to evolve. You need to keep pace with developments in the industry as well. For most companies scaling isn’t easy. With an outsourced service provider, it becomes easier to adapt to the business and industry needs when you need to. 

Productivity

Even if you have a team of talented developers in-house, you don’t necessarily have to delegate every single task to them. Instead, they could focus on their core strengths. By outsourcing more mundane tasks, you can ensure that your existing team can focus on things that benefit your business. 

Criteria for choosing the best countries for outsourcing

Choosing where to look for an outsourcing partner should take more than looking for the lowest hourly rates. Selecting the right outsourcing destination for your firm is a serious business decision that consumes resources to change. Your decision also requires effective communication, active involvement as well as clear requirements and objectives.

So, a search for the best country to outsource software development won’t work. Do your research, talk to your network and choose wisely. With that in mind, here are some considerations you will need to keep in mind as you look to outsource.

Cost

Instead, go more in-depth and consider the quality of the services you’re getting and whether or not the talent available can support your business needs. Quality is the crucial thing here, and you shouldn’t compromise.

Cost is often the main driver in a decision to outsource. While many countries can offer low prices, it shouldn’t be a race to the bottom.

Talent pool

Some countries have mastered their ability to provide the best in training for IT professionals. Universities and educational achievement are good indications of this.

Technical skills aren’t everything, however. Communication, adaptability and leadership are a few vital skills in any app development project. 

Cultural differences

Cultural differences also play a role in your choice of the best IT outsourcing countries. To work as an outsourcing provider is a competitive global business. So choose companies that hire a multilingual workforce as it shows their commitment to market demands. Low cost or low quality providers might skimp on this or struggle to retain skilled workers. 

As for the culture fit, learn about working practices — especially adherence to deadlines and quality control. For instance, some teams in Europe won’t work overtime or on weekends and will have to take long Summer vacations. Teams in South Asia meanwhile may face service disruptions during their rainy season. If you expect your developers to be available round the clock, you could be in for some culture shock.

Legal considerations

Make sure you understand the country’s data protection and intellectual property laws. Finding out you don’t own the copyright to the app you paid for is not a detail you want to learn too late. 

A functional court system in the country that upholds contract law is also vital should you have a dispute.

10 best countries for outsourcing software development today

Poland

Poland boasts a rapidly growing economy and a thriving tech sector. As a member of the European Union, the country has strong data protection and intellectual property laws. Poland’s focused technical education system pumps out highly skilled developers every year, so there isn’t a shortage of developers. It’s well connected to the rest of Europe, often a short-haul flight from major hubs. 

While Poland’s tech scene isn’t as specialized as Western European countries, it’s catching up fast. Once a destination for inexpensive development, Poland’s developers are rapidly specializing in new cross-platform frameworks such as Flutter and others. This culture of innovation makes it a serious contender among popular outsourcing countries in Central Europe. 

In the second half of 2019 alone, the Polish venture capitalist scene invested over 1 billion Polish zloty ($267 million) in startups. Several firms were able to attract considerable investments too.

Polish developers understand the need to pair technical expertise with soft skills. Most are fluent in English. Many also can build the right relationships with you and your team. So when you find developers in Poland, they’ll integrate seamlessly into your company and you can all get to work. Effective communication is a given, and these developers will easily understand your needs to deliver great applications.

Czech Republic

When you think about the Czech Republic, you most likely think of its famous beer and thriving tourism sector. However, this land-locked European country also has an impressive tech talent pool.

There are thousands of IT specialists in the Czech Republic. The market is also getting more saturated as about seven thousand computer science graduates enter the labor market every year. Coders in this country are proficient in a wide array of domains and languages. The Czech Republic has it all, from back end and front end development to mobile app design.

You’ll also find an impressive software industry here. Currently, the country has one of the best and fastest-growing software hubs in Europe — along with peer  countries like Poland, Ukraine and Romania.

Ukraine

Like many countries in the region, Ukraine is capitalizing on its tech sector in a big way. One of Ukraine’s main benefits is the level of education and it has one of the highest literacy rates in the world, so you won’t have any problems finding qualified IT specialists to work with your company. About 130,000 engineering graduates exit Ukrainian universities every year, so there are plenty of developers to choose from. 

Another benefit of this country is its affordable hourly rates. Ukraine falls on the low end for hourly rates in Europe. 

Ukraine is also open for business and travel. If you’re visiting the country from the U.S., Canada, or the EU, you won’t need a visa for stays up to 90 days. So, you and your team members can easily visit the country to visit and meet your development team.

Romania

Romania has just about everything you need as you search for a software provider. Like Poland and Ukraine, Romania has a large population with a healthy pipeline of IT graduates.

When it comes to special benefits, Romania has three primary points going for it. The first is its membership in the European Union, which ensures that the country aligns with the Union’s business practices. Since the EU sets broad legal standards, it’s less risky. You also don’t have to worry about intellectual property since EU member states tend to uphold contract law.

Software developers are primarily located in hubs like Cluj-Napoca and the capital Bucharest.

With effective service delivery and competitive rates, there’s no reason you shouldn’t be able to outsource to Romanian developers.

Belarus

Over the past decade, Belarusian IT outsourcing has grown significantly. According to estimates, about 60.5 percent of developers in the country work in offshore software development. Belarus’ IT industry is set to grow at five times the rate of the global average. So, it’s clear that Belarus has a bright future.

The Belarusian government has invested heavily in the country’s IT sector. The government also set up the Belarus High Technologies Park, where tech companies don’t have to pay income or value added tax for services. Located in Minsk, the park is a hub of innovation and development, with hundreds of companies onsite.

Belarusian developers have stronger English proficiency than many countries in Eastern Europe — including Russia and Ukraine. As of 2019, the country scored 52.39 on EF’s English Proficiency Index.

India

India’s IT industry has a reputation for being competitive. As of 2018, the country already had a significant stake in the global outsourcing industry. That trend has continued, with the country capitalizing on its large, young population.

In addition to India’s impressive talent pool, English is a second language for many there. India ranks third in Asia on the English Proficiency Index

Meanwhile, wages in India are much lower than you’ll find elsewhere, including Central and Eastern Europe. 

One negative may be the odd time zone India sits in. It’s 9.5 hours ahead of the U.S. East Coast and 5.5 hours ahead of Greenwich Mean Time. On one hand, the time difference means that your team can work around the clock, but communication with an IT team could be more asynchronous.

The Philippines

The Philippines is a thriving hub for IT talent and has one of the highest literacy rates in Southeast Asia at nearly 98%. Filipino workers have excellent English skills since it’s the country’s lingua franca. Philippines ranked 2nd in Asia, and 20th globally, at English proficiency.

What’s more, the country has one of the lowest labor rates on our list, so you can significantly reduce those operation costs by outsourcing your software development there.

Vietnam

Vietnam is another fast-rising tech ecosystem. Intel, IBM, Canon and Foxconn already do business in this Southeast Asian nation. These firms enjoy the benefits of outsourcing to the country and can easily scale their operations. 

Vietnam has a 95% literacy rate and about 30,00 to 40,000 students graduate annually in IT fields out of the country’s average 319,000 graduates.

Over 250 Vietnamese universities focus on IT, while another 187 vocational schools provide strong IT-related courses.

Argentina

Argentina is one of the largest and most developed economies in South America. The country is primarily known for carnivals and its love of football, but it also has a robust tech sector. 

As of 2019, the country ranked 29th globally on education according to U.S. News and World Report. Graduates are looking to prove themselves as well, and you can enjoy a deep talent pool from the very beginning.

Argentina’s software development sector has been steadily growing, with programming becoming one of its most in-demand jobs.

Argentina has one of the highest English proficiency levels in South America. Its score on the English Proficiency Index is 58.38. So the developers you hire here will have an upper-intermediate knowledge of the language.

Mexico

Mexico is already the neighbor of the United States and one of its primary trade partners. So, why not just look south for your software development talent?

There is no doubt that Mexico’s proximity is its main selling point. Since it is so close, you can enjoy real-time collaboration. Several companies have already set up shop in Guadalajara – Mexico’s Silicon Valley. HP, Dell, Oracle, IBM, and others have offices in Mexico and are thriving. 

Mexico has a healthy talent pool as well. The country has been churning out hundreds of thousands of engineers and IT specialists annually for most of the past decade, so you can find offshore staff that will be ready to work for you.

Conclusion

Choosing the best countries to outsource is a constant balancing act between cost and quality across the many popular destinations. Among the many factors that you should consider, data protection, hourly rate, cultural proximity and communication skills are just a few. Outsourcing is a great way to save on overhead and get high-quality software. But not all outsourcing companies are the same. Choose the one you can trust to work and deliver your project on time and within budget. You can check our How to Choose a Mobile App Development Company article to get more tips before hiring a tech partner.

Have a software project in mind? Drop us a line and we’ll be glad to walk you through our process and discuss your project with you. 

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Hi, I’m Marcin, COO of Applandeo

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