By 2025, the global IT outsourcing market will be worth $397.6 billion. This is undoubtedly a positive tendency, considering the same market of $92.5 billion in 2019. The rise of this business practice has been further reinforced by the pandemic-induced…
7 Best Countries to Outsource Software Development
It may first seem like software development is one of those elements of your business that you might want to delegate to your in-house team. After all, it’s a complex process that needs to fit your goals and strategy. Also, a software product has to accomplish a range of other missions. For instance, be technically reliable, user-friendly, and, frankly, simply look appealing. However, the practice of hiring in-house is not always a win-win.
As BusinessWire forecasts, the global IT outsourcing market is expected to reach $397.6 billion by 2025. The reason is that businesses become dependent on the success of efficient apps, and IT is vital for companies to preserve their competitive edge. Following the global trends, Devox Software is ready to offer highly-skilled teams of professionals for software development outsourcing around the globe.
Developing software for your business is a milestone that brings a business to the next level after it’s been completed. Where can I outsource coding? What countries fit this task better? Find out in the article below.
Offshore vs. hiring: hits and misses
We believe that outsourcing is salvation when it comes to developing business software. It is true for many reasons, but especially because a number of the best countries for software developers is actually quite extensive and goes beyond Silicone Valley. Doing so has a range of advantages compared to hiring.
Hiring is Resource-intensive
As a rule, an average software developing team includes a team lead, a project manager, an architect, back- and front-end developers, as well as other professionals depending on the product. Provided that a functional team takes five people as an average minimum, keep in mind that it will take to go through an extensive hiring process while looking for each of them. Oh, and, of course, you’d need a skillful IT recruiter to conduct successful hiring.
On the contrary, outsourcing software development means you hire the one and only agent, a contracting company. Its team is fully established, and there will not be any rush from the operational point of view.
Level of Expertise and Team Unity
It’s crucial that the developing team works together smoothly, has well-established processes, and operates at an at least roughly equal level of skill. If the last thing can partially be avoided by setting a high experience threshold upon hiring, at this point, many things depend on a human factor. The process of the newly established team getting used to each other might sometimes be a blocker preventing tasks from being completed on time.
Outsourced software development services provide a well-established team with streamlined processes and precise estimations, both product- and deadline-wise. As a rule, such teams have considerable experience working together, which is why the human factor influence will be minimized.
Hiring is Financially Extensive
At first, it takes hiring a recruiter, who in turn will have to employ the rest of the team (at least five people). After having allocated funds for salaries, you’d have to think about the operational costs of any operation your newly established team will have: it is mostly about paying for services. This is where a certain benefit of outsource hiring steps in: what you pay is a one-time fixed price, with no hidden fees or unexpected expenses.
Do You Actually Need Full-time Workers?
Finally, retaining a technical team only makes sense if the employees will be provided with everyday tasks and have a particular mission and role in the company (which indirectly corresponds to the argument above).
Ask yourself this: will the newly hired team have any work and be useful after the software is deployed? Will the company be able to offer these people a decent set of work after this particular milestone is achieved? If the answer to both questions is no, it means that outsourcing software development is the right option for you.
Best country for outsourcing starter pack
There are five vital parameters the best countries for outsourcing meet. Let’s dive deeper into what puts a country on that list.
Programming Languages Selection
The most widespread programming languages range within geography, which is an important premise to keep in mind while browsing between the best countries for software developers. The more country’s intellectual potential is engaged in IT development, the wider the range of offered languages. However, it would still help to conduct preliminary research based on the nuances of your request and desired MVP.
The more education is cultivated culturally, the better your chances of choosing the best country for outsourcing software development. You will be amazed how actually rarely do states provide basic information technology and computer science; meanwhile, some countries – mainly thanks to cultural or historical reasons – approach STEM very responsibly, which, accordingly, makes them top-notch players in the software development market.
Although it’s not English-native-speaking countries that are best for where to outsource software development, this criterion is perfect for filtering out potential candidates. It’s not just about clear communication: the better the English level among a particular country’s developers, the better you know that this company (or this nation) is hard-working and ambitious.
Hiring abroad means dealing with an abroad mentality. When speaking about IT business outsourcing, this aspect is of the less visible ones. Companies only evaluate engineers’ soft skills when hiring in-house, but, of course, it is insufficient for offshore professionals.
Make sure that an offshoring team’s mindset and organizational culture fit with yours and that your mentality dictates similar values. It will result in simplicity in communicating effectively on how to accomplish work and therefore deliver fruitful harvest.
We’ve only put this item at the end because, by default, it’s the premiere criterion going through a stakeholder’s head. While the difference in paychecks is evident, it shouldn’t steal the spotlight from other crucial nuances to consider while outsourcing.
Nevertheless, a price matter is determinative of the whole idea of hiring abroad. Developers’ hourly rate depends not only on the country but also on their experience and programming language.
The 7 Best Countries to Outsource Software Development
Below, we’ve accomplished a list of the best countries to outsource software development. Let’s take a closer look at each one’s pros and cons.
India is frequently cited as one of the top nations where to outsource software development since it has the second-largest technical workforce after China. For American businesses, more than 500,000 developers are engaged in outsourcing initiatives. Indian software development check is much less than the majority of other outsourcing countries.
Land grants, tax breaks, and support for education are all provided by the Indian government, which serves as a powerful incentive for its population to work in IT. Thanks to all of that, India is a favorite choice for outsourcing companies seeking to benefit from highly qualified labor at a fraction of American prices.
India’s pros as one of the best countries for outsourcing are its lowest prices on the list and significant competition among internal supply. Its cons, however, include poor quality control, not an ideal level of English, and noticeable differences in workplace culture.
Ukraine, despite going through a full-scale war, keeps its brand as one of Europe’s most technologically developed countries. It comes as no surprise that Ukraine is maintaining its position in the market given that it is home to several cryptocurrency businesses, exchanges, conferences, numerous IT businesses (one of which is Devox Software) and talks. IT industry in the country enjoys a powerful support from the government and its Ministry of Digital Transformation.
Its competitive advantages include a low check (although higher than Indian) and a large talent pool. Local software engineers frequently hold technical university degrees; for instance, 16,000 technical graduates come out annually.
Its cons probably include an at least 7-hour time zone difference with the US and – just temporary – an ongoing war.
Regarding outsourcing software development to Eastern Europe, Bulgaria is a well-liked option. The nation benefits from a developed infrastructure, a strategic position, and affordable prices compared to the rest of the European Union average check. Additionally, the local IT outsourcing economy gains from tight government collaboration and partnerships with international corporations.
The nation also funds a variety of educational initiatives. The 2020 AIBEST Annual Industry Report states that the country has hundreds of educational institutions and produces 2,000 graduates annually. There are currently about 66,000 Bulgarian developers employed in IT outsourcing, and this figure is increasing.
Pluses of hiring a Bulgarian software development outsource team include a lower price within European legislation, while minuses are about a talent pool more minor than, for instance, Ukraine’s.
According to a study conducted by Kearney Global Services Destination Index of 2017, Poland was ranked as the tenth most desirable outsourcing location. Poland has a sizable pool of software engineers and is also reasonably priced.
Poland, like Ukraine, is in Central Europe but has traditionally been seen as being in “Eastern Europe.” New research claims that Poland, which competes with Ukraine and has more than 100 enterprises and 255 thousand highly educated software team professionals.
When it comes to outsourcing, Poland’s advantages include European legislation and work ethics, high-quality tech infrastructure, and good educational background. In this country, children learn programming in school, while the 2018 HackerRank Developer Skills Report states that almost 8%of Polish current programmers became interested in the sphere being younger than ten years old. The country’s drawbacks probably include a higher cost: so far, the highest among the four countries listed.
Georgia aims to showcase technical prowess on its route to EU membership by setting up web design classes, startup funding seminars, international conferences on AI technology for war crimes inquiry, and coding schools for women.
In total, the combination of these factors results in a very nurturing environment for the IT cluster to develop, which accordingly puts the country in one of the top positions when it comes to software development outsourcing. It is going through positive changes in the business area (ranked seventh for ease of doing business in the World Bank Group report) and in education (2004 higher education reform).
Accordingly, Georgia’s hits as one of the best countries for outsourcing include motivated workers at a budget check and their ambition; Devox Software is proud to be among this newly emerging community as well. Misses are probably about the time zones.
Probably, Azerbaijan’s case would be best compared with Georgia’s: although these countries are neighboring, their focuses and challenges as states are slightly different. While Georgia has already succeeded in things business development and education integrity, Azerbaijan’s accomplishments are in the legal organization of the IT cluster: it’s free of taxes and customs duties. Since the startup ecosystem is still in its infancy, there are grants available to assist these fledgling businesses in obtaining funding and a chance to thrive.
Devox Software has a department in Azerbaijan, with our local team ready to breathe life into your project.
Due to Romania’s affordable living expenses, competitive incomes, and cultural closeness to Western Europe, many Western European nations, including Germany, France, Britain, and others, prefer outsourcing there. Compared to workers in other nations in Central or Eastern Europe, Romanian personnel is easier to manage.
Given Romania’s high unemployment rate and thus lower criteria for these occupations, this is particularly true for unskilled labor (i.e., contact center employees).
|Average hourly rate||$25-50||$30-55||$35-50||$50-100||$25-60||$30-55||$25-49|
|Number of registered outsourcing SD companies (Clutch)||3500+||800+||~200||1000+||40||8||300+|
Sources: CleverRoad, Daxx, Sloboda Studio, Upwork, IT Work, Clutch, HackerNoon, HackerRank
How To Choose a Country to Outsource?
Given how competitive the global market supply in software development outsourcing is, it’s barely possible to make a bad choice. To be even more confident about the decision you are about to make, take the following factors into account.
- Time zones. From the point of view of simple convenience, it’s a crucial thing to consider. The closer it is, the smoother the communication will be: a maximum work differential of 1-3 hours is a rule of thumb for time-related businesses. Time zones’ significance is, however, fading in light of cultural similarities and quality rate importancy. Working with a country 7 hours ahead or behind your meridian will not be as painful with the proper offshore team management, shared business outlooks, and a truly qualified team.
- Level of English. The following factor is a lot more vital than time zones. Negotiations and problem-solving efforts will be required of businesses. English is an absolute must for effective team communication, which is essential for business success. In fact, conflicts at work and in teams frequently stem from a lack of grasp of English.
- Cultural nuances. Last but not least: this factor deserves slightly more detail.
How to Deal with Cultural Differences and Communication Issues?
While the 21st century upbrings more or less similar people in terms of everyday life and works ethics, you shouldn’t underestimate the influence of culture. Cultural differences is absolutely the most tricky thing one has to take into account while outsourcing coding, and it can either play to your advantage or throw the process back a few steps.
The most tangible points to consider are culturally dictated business values and communication etiquette. For instance, the choice between silencing the problem and pushing your team or voicing it with the stakeholder is often a choice dictated by the country’s mentality. It directly impacts how freely you can discuss deadlines, KPIs, and other crucial metrics. The best advice for dealing with cultural differences would be to pick a country with a value outlook and mentality closer to yours.
Get Full Software Development on Outsource with Devox Software
Losing control of your project does not always follow from choosing to outsource it. When you make sensible decisions, outsourcing opens up additional sources of information, expertise, and talents for your business, which leads to higher earnings. There is a brave new world out there, so whether you want to tackle it alone or hire some assistance is entirely up to you.
Of course, contacting a reputable outsourcing firm is the main premise of getting the most for your project for a fair price. Devoxsoftware can be your ideal partner in crime: having completed over 70 projects since 2017, we maintain a very high (87%) business satisfaction rate, which we believe is only possible thanks to our team’s hard work.
We offer a broad range of turn-key IT solutions like software or web development, DevOps, and product design with full SDLC and quality assurance. Our offices operate in Ukraine, Poland, Romania, Georgia, and Azerbaijan, so you can select a team for your best convenience. Reach out to us if you’d like to chat: our sociability has no time zones.