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In this article, Fireart team shares the results of recent research on the top software development outsourcing countries in the world. 

Today, from startups to big companies, like Microsoft and Google, businesses choose to outsource software development as a great alternative to save a lot of time and money. They hire external software teams located overseas to build a software product while their in-house team can concentrate on developing other features or even products. 

Software outsourcing might be the right solution for your project too. However, before choosing the outsource software developer partner, you need to know some essentials of this type of collaboration with software development companies from different countries. Here we provide the list of the best countries to outsource software development and their peculiarities in terms of costs, reliability, and professionalism. 

Top Outsourcing Countries

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India

India is the classics of software outsourcing in the world. It’s the number one on the list, as it’s been the pioneering country that started outsourcing software services to companies from around the world. One of the most significant advantages of software outsourcing in India is a large pool of IT professionals with various technical backgrounds, comparatively lower prices for services than in the USA and Europe, and a high English language proficiency level. Furthermore, India is located in a timezone that is equally convenient for online communication with clients from both the US and Asia. 

Ukraine

Ukraine is one of the best countries for outsourcing software development in the world. Companies like to build their software in Ukraine because it’s much cheaper than in most European countries, the Americas, and Australia. Although English is not widely used by the Ukrainian population in general, around 80% of the IT community speaks English well. That’s why the language barrier with Ukrainian software developers is minimal. 

Moreover, the local government pays particular attention to bringing up the new tech-oriented generation. Today, we can see a great number of IT-specialised educational programs arising in this country. Software engineering is a fastly growing and expanding industry in Ukraine. It’s well-popularised as one of the most prestigious professions there. It helps to generate more and more IT talents.

China

China is one of the top outsourced countries as well. Its most significant benefit is a significantly less expensive software development cost. The overall labor cost is much cheaper than in other countries due to the overpopulation problem and high professional competition in China. It creates a challenging and stressful environment for local people. However, it’s an undeniable advantage for businesses that have decided to outsource their software projects to China. 

Additionally, China has many high-level IT professionals that can offer you a full spectrum of product development services. The top proficiency is mostly the result of the high competition among developers and a narrow-specialized Chinese educational system.

Poland

Poland is considered one of the best outsourcing countries in Eastern Europe. Local developers combine professional skills with an Agile approach and collaborate with many famous startups and corporations worldwide. According to TopCoder, Polish developers are recognized 5th globally in the Top Coder ranking, and 3rd at Hackerrank. 

The IT industry quickly evolves in Poland and produces new technology talents that become valuable assets on outsourced software projects. Additionally, prices for software development services are relatively lower than in many European countries like Switzerland, France, Germany, and others.

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Romania

Romania is on the list of the best countries for outsourcing. Romanian software engineers are highly skilled and experienced in many areas of product development. Another vital advantage of collaborating with local developers is a significantly lower cost of services. 

The Romanian IT community has a high English language proficiency level, so communication on the projects happens much easier. Moreover, Romania has a very little time difference from most Western European countries that also contributes to smoother business communication and better project outcomes.

Belarus

Many corporations from around the world collaborate with Belarusian programmers, as they find it less expensive, more convenient, and more effective for them. The Belarusian government has set an educational system that encourages learning technologies. Thus, the local IT industry is relatively well-developed and may bring many benefits for companies from other countries. Belarus is also known for the local teams’ superior skills in R&D and innovative JS technologies.

The Philippines

With a growth rate of 46%, the Philippines have become one of the top IT outsourcing countries on the list. It’s beneficial and cost-effective for companies from the US and Europe to collaborate with software developers based in the Philippines because of the low labor cost across different industries. Many clients working with local software teams say that the Philippines are one of the best offshore software development countries.

Billing rates

In these seven top IT outsourcing countries 2021, the highest cost for software outsourcing services ranges between 85-110 USD/hour. It’s usually paid to software architects, DevOps, lead programmers, and QA testers. Digital designers and middle-level programmers usually charge around 65-85 USD. Juniors commonly receive from 52 USD to 89 USD hourly. Below, you can see the average software outsourcing price list.

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Credit to Daxx

Skill ranking

We are used to the fact that India leads the list of the top outsourcing countries in terms of the highest software developers’ proficiency and skills. However, recent studies showed that skill ranking in Poland and Ukraine have become significantly higher in the latest years. HackerRank, a platform scoring engineering skills according to their coding skills, rated these two countries closer to the top positions this year.

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Policy and legislation

In terms of IT laws and software development outsourcing, the US remains the most advanced country on the list. It serves as the guide and an excellent example for other countries to follow. However, most companies (even US-based) turn to software service providers located overseas as the price for American software services is still almost the highest on the global market.

Cultural compatibility and communication

Considering cultural compatibility and communication, Poland, the Philippines, Ukraine, and Romania are still the most convenient options. These countries often become the top choices for software outsourcing because of these two essential factors. Although India has been the leader in the offshore software market, these countries are quickly taking advantage.

Conclusion

In this article, we have reviewed the top outsourcing countries 2021, their advantages, and peculiarities. We have also considered the most critical factors affecting the efficiency of collaboration with the developers based in these countries. Hopefully, our expertise and outsourcing market research would be helpful for you. 

If you have any questions on software development outsourcing, don’t hesitate to drop us a note at [email protected]. We’re always happy to answer all of your questions!

 


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