If you are looking to outsource software development, there are a few things to know about the top countries for outsourcing. Here’s a tip – The United States and Western European countries are not among them. This may seem surprising to you, but there is a reason behind it.
Most of the time when companies outsource, one of the main things they look for is cost reduction. However, in the case of the US and Western Europe, due to the high cost of living, the salaries are much higher than in other places.
So although these countries are well-developed in terms of talented individuals and technology infrastructure, it’s not really a good choice for outsourcing software development.
We know how difficult it can be to find a country with reliable software engineers, as there are many factors that you need to consider. That is why we made a list of 5 of the most popular countries that companies choose when outsourcing their projects abroad. Let’s get started!
What is outsourcing?
First, let’s understand what outsourcing is. Outsourcing means that a company hires another firm to handle specific business functions instead of dealing with them in-house. This could be anything from customer service to software development or even research & design work.
This hiring practice became increasingly popular, especially after the pandemic forced many companies to switch to remote work. Due to the affordability of outsourcing, it is no wonder that software engineering and programming are on the top list of outsourced services globally.
Things to consider when choosing a country for outsourcing
Before you start choosing your outsourcing partners, there are some important details to research about the countries from which they operate.
Researching average salaries by industry is important as it will give you a rough understanding of hiring costs. It is an indicator of how much money you can expect to save by outsourcing software development projects abroad.
Another good way of checking if salaries are reasonable in a country is by looking at their GDP per capita. This also gives you the idea of living standards and cost of living there, which will help with making salary comparisons between countries.
Stable Internet availability
The internet is an essential part of modern-day business and it’s no secret that we rely on it more than ever. That is why another crucial factor to consider when outsourcing is the Internet.
You should check if the country has a fast and stable connection, as this will greatly benefit the communication between your team members, especially when handling your software development tasks. Nobody wants their work to slow down because of connectivity issues!
Time zone differences
With the rise of remote work practices, it is no longer strange when different team members work from different time zones. However, finding a country with a time zone close to yours will make management much easier and efficient.
Ideally, there should be some time overlap so that you can easily communicate with each other, without having to wait for hours until your teammates come online and answer.
Political stability and human rights record
When you are outsourcing software development projects abroad, especially when the work is sensitive in nature, it’s important that you consider political issues as well.
Some countries have a poor reputation for violence or corruption which may affect the security of your information and data. Make sure that the country you choose has a stable political system, if possible democratic, which will ensure that there are no threats to your employees or company.
An important detail that you will need to consider when choosing a country for outsourcing, is how well-educated its citizens are. In the case of outsourcing software development, you might pay attention to technical universities and colleges which are known for their excellent computer science departments.
Also, if the outsourcing company is from a non-English speaking country, make sure that the country has a high level of English proficiency. It is always better to handle your projects in the same language as it will greatly facilitate communication and smooth software development processes, resulting in a higher quality product!
Another thing to consider is whether there are other people from different cultures working on your project. It’s always good to have a diverse team of people from different backgrounds and cultures, as you can learn new things from each other, which can also help with long-term innovation. However, do make sure that despite differences there is still a cultural fit within the team.
Best countries for outsourcing software development
Now that we’ve discussed important things to consider before choosing an outsourcing country, let’s see which countries made the list of best software development providers.
Ukraine is a good outsourcing destination due to its high-quality developers at relatively low prices. There are a lot of IT graduates every year which drives competition up and forces companies to lower their rates even more for this talented workforce.
Ukraine has an excellent education system that produces high-quality developers who are proficient in the English language and have good knowledge of modern technology trends.
Ukraine’s startup environment is also flourishing, which means that there are many interested developers who want to work on innovative projects and get involved in the latest technologies.
In Ukraine, outsourcing a software engineer ranges from $30-$55 per hour.
Georgia is a great place to outsource software development, with prices even lower than in Ukraine. But this is not the only reason why the country should attract your attention.
Georgia is still an undiscovered pearl when it comes to IT talents in Europe. After effective educational reforms and the promotion of the startup ecosystem, the number of people choosing IT careers increased. However, excellence and distinction in technical fields are no novelty to Georgia
Even back when Georgia formed a part of the Soviet Union, the country was famous for its leading schools and universities (Komarov Physics & Mathematics school, Vekua Public School, Georgian Technical University, etc.).
Georgia’s history and rapid technological development contributed to the country’s increased number of talents, especially in the IT field. This did not go unnoticed and leading international companies like Microsoft, Skype, Google, Amazon, etc. started employing Georgian talents.
With a high literacy rate, good English proficiency, high internet speed and wide availability, it’s no wonder Georgia is at the top of the software outsourcing list.
You can expect experienced software engineers for $ 20-55 an hour in Georgia
Poland has an excellent IT workforce which enables companies and individuals from all over the world to access high-quality development at very competitive prices.
Poland’s economy continues growing every year and with its increasing GDP per capita, it attracts more and more foreign investments. With a high-quality workforce and low prices, Poland is becoming one of the best outsourcing destinations in Europe.
The country has invested heavily into education which results in an increasing number of IT graduates every year from famous universities such as Warsaw University or the Poznań University of Technology.
Due to great opportunities, safety and security, as well as being a member of the European Union, Poland is a famous destination for foreign talents from all over the world.
Outsourcing in Poland costs between $50-$100 per hour.
India is one of the countries with a great IT workforce that continues increasing every year. It has become an international outsourcing destination because of its English-speaking developers at competitive prices.
In addition, the Indian workforce is very flexible and adapts quickly to new technology trends which leads to a better quality of software development at lower prices compared to many other outsourcing destinations.
Outsourcing in India costs between $20-$50 per hour.
The Philippines is an IT outsourcing destination that continues to attract more and more companies due to its low-cost workforce that has the ability to learn new technologies very quickly.
Due to the country’s history, Filipinos are more used to Western culture, which allows them to work well with foreign co-workers and causes less communication and cultural barriers. English is also widely spoken in the Philippines, making it easier to communicate and collaborate with international clients.
When outsourcing software development in the Philippines, you can expect a cost range between $20- $45.
Which country should you choose?
Outsourcing is a bold step for businesses, this is because you trust a third party with your valuable data and the success of your business. Therefore, when choosing an outsourcing partner, it is important to ensure that you choose a reliable one at reasonable prices.
All of the countries mentioned above are great options and each of them has its individual advantages and disadvantages.
Countries with cheaper rates tend to be riskier because they do not have the same legal framework as Western nations. By choosing a cheaper outsourcing destination, you are taking a higher risk in terms of integrity and protection your data.
On the other hand, although countries like Poland have more trust in terms of protecting customer information and tend to be more security-oriented because of the EU legal system, you need to be ready to pay a higher price for services rendered.
That is why the golden mean would be Georgia. As we mentioned, the cost of living in Georgia is one of the cheapest in Europe and therefore will result in lower expenses when outsourcing Georgian companies.
Additionally, due to the country’s aspiration to become part of the European Union, most companies are regulated on the protection of customer information, which results in taking data security seriously. The country’s progress in integrating European laws gives you a guarantee that in case of any problem, you will be protected.
Georgia is an amazing country with a wealth of talented people and it is the perfect place if you are looking for an affordable but high-quality IT workforce while guaranteeing the security of your business.
When choosing an outsourcing partner, it is important to balance your requirements and needs with the costs of doing business in that country. You need to research all the details to ensure that your project is carried out successfully.
Things like technology development, education levels, and security laws can play a huge role in determining whether or not the outsourcing destination works for your company.
In case you decide to search for Georgian outsourcing companies that offer software engineering talent, look no further.
MaxinAI offshore software development team has years of experience working with startups and large companies alike, so we know how important it is to find solutions specifically tailored to our clients’ needs without sacrificing quality or speed.
Fill out our contact form and let us show you how our team can help you fill your software engineering talent gap and accelerate your projects.