The Best Countries to Outsource Software Development Projects

Published October 10, 2022, updated November 18, 2022
by Jeffery Thompson
20 min read
Software Development
Best Countries to Outsource Software Development Projects

The software development industry is ever-changing. New methodologies and programming languages are present because of rapid technological advancements.

More innovative approaches take over these days. That is why software outsourcing has become a crucial factor in business growth.

Hence, choose the best countries to outsource software development for your company. Fill in the gaps in your teams and set them for long-term digital success.

What Is Software Outsourcing? 

Software outsourcing is choosing a third-party service provider of software development. It helps you manage tasks in a software development project.

When a company decides to have custom software solutions, outsourcing happens. It boosts security, reduces cost, and improves efficiency.

The concept of outsourcing software is growing nowadays. More companies want to outsource software development because it is cost-effective and swift. 

Why Choose Outsourcing Software Development? 

Why Choose Outsourcing Software Development

Outsourcing software development lets businesses address many challenges. It speeds up the product’s time to market, lowers overhead spending, and builds a remote team fast.

Below are the reasons why you should choose outsourcing software development projects:

Lower Risks

By outsourcing software development services, you can achieve fewer risks. Choosing a qualified team and optimizing processes can cut issues early in development.

Cost-Effective

One of the most common reasons to outsource software development services is cost. The drastic saving on development costs is the first motivation for outsourcing. You can scale and grow your business and keep up with market demands.

Also, you can cut down on labor costs while paying a competitive rate to outsourced teams. Outsourcing providers base the cost on the hourly rate of software developers.

Flexible

Companies can only outsource software development when needed. Unlike getting full-time software developers, you must pay and give them employee benefits. Outsourcing is more flexible since you will only have to pay for a specific project.

Fast Development

An experienced outsourced software development team offers reliable services. There is no need for training and onboarding, which can save time to speed up the development process.

Changes that happen are quick to get addressed to ensure the movement of the project. The remote development team always works faster and delivers projects on time.

Core Business Tasks Focus

Offshore software engineers use various project management and tracking tools. They can work on their own with minimal supervision. Thus, you can focus more on core business processes than managing an outsourced team.

What Are the Best Countries to Outsource Software Development?

When you know your company’s outsourcing needs, look for offshore software development. The best software outsourcing countries you can turn to are as follows:

  1. Ukraine
Software Development Outsourcing in Ukraine

Ukraine is a top option for offshore software development services. It is home to the largest number of C++ programmers in the world. 

With almost 200,000 software developers, the country serves thousands of companies. As the demand for software technologies rises, the labor force grows in the global market.

In fact, the IT industry grows up to 30,000 specialists in Ukraine every year. The country also focuses on education and maintains a thriving tech industry.

You can outsource software development services in Odessa, Kyiv, Lviv, Dnipro, and Kharkiv. The hourly rates are $25 to $100, depending on the developers’ seniority level. 

  1. India
Software Development Outsourcing in India

India is the second largest English-speaking country in the world. And this makes it an ideal outsourcing choice for US and UK companies. 

According to research, India’s software industry is growing at 60% yearly. That is why it is one of the best countries to outsource software development. 

Also, India is notable for its large talent pool and low cost. It is the fastest-growing software developer base that uses different programming languages. The software market in this country is way cheaper than in other countries. 

Here are some factors to consider when relying on India’s software development:

Price

Hourly rates cost approximately $25, as per Clutch in India. In contrast, the rates per hour for web development providers on Upwork are $10 to $15.

Tech Locations

The best Indian cities offering software development are Mumbai, Bangalore, Kolkata, and Chennai.

Programming Languages

The most popular programming languages Indian developers use are C++, Java, and Python.

  1. Poland
Software Development Outsourcing in Poland

According to a report, Poland is the third country to have the most skilled programmers in the world. Additionally, 30% of the Polish population speaks English, making communication easy.

Poland is one of the eastern European countries with a solid educational background. It has some of the best outsourcing companies with a large pool of software engineers. Local developers boast professional skills with an agile approach. They also collaborate with plenty of prominent corporations and startups globally.

The IT community evolves fast, producing valuable Poland talents on outsourced software projects. Prices for outsourcing services are cheaper here than in many European countries. The rates vary between $25 and $100, and the popular programming languages are Python, SQL, C++, and Java. Also, the top cities for software outsourcing are Lodz, Warsaw, Wroclaw, and Krakow.

  1. Romania
Software Development Outsourcing in Romania

Software engineers in Romania are outstanding in many areas of software development. The IT industry in the country also has a high English skill level, so communication is simple. 

Romania has a small time zone difference from most western European countries. This factor contributes to better software project development and smoother communication. 

More so, the time zone differences in the US and western Europe have significant overlap. As a result, working and communicating with Romanian software engineers is easier.

Below are some facts you should know about Romania’s software development market:

  • IT industry growth of 14.3% (which should double in 2025)
  • 7,500 fresh software developers graduate in 2022
  • 90% of Romanian developers speak English and other languages
  • First high-tech software unicorn UiPath
  • Its top tech cities are Sibiu, Cluj-Napoca, Bucharest, and Iasi
  • ReactJS, JavaScript, PHP, .NET, and NodeJS are its popular programming languages 
  • $25 to $49 hourly rates 
  1. China
Software Development Outsourcing in China

One of the best countries to outsource software development is, without a doubt, China. It takes pride in its high-level local software developers. These developers are fully equipped to provide comprehensive outsourcing services.

The country also has software engineers with good English skills and affordable prices. Due to high professional competition and overpopulation in China, software services are cheaper. It creates a stressful business environment for locals. Yet, an excellent advantage for those who want to outsource software development projects.

China’s global outsourcing market rises by 30% each year. Its offshore software development rates range from $18 to $40 per hour. Shenzhen, Shanghai, and Beijing are the best cities to outsource software development. And it is notable for its Python and Shell software products.

  1. Argentina
Software Development Outsourcing in Argentina

Often, Argentina ranks as one of the most educated countries in Latin America. And 70% of its university students study and at the same time work tech-related jobs. It means software development companies here have a strong background in the following:

  • Mobile development
  • Software engineering
  • DevOps engineering
  • Data migration to the cloud

Argentina guarantees to give every company a skilled software developer. Since there are free computer technology studies here, Argentinians are worth the investment. There are claims of cultural differences in the country but never a major issue.

Some programming languages used here are SQL, Java, and Python. And the hourly rates for outsourcing software development are $22 to $25. 

Also, this country has only two hours of time difference from the US. It makes it a strategic location for web development and project evaluations. Plus, Buenos Aires is the best city for software services. It boasts a favorable business environment and software development expertise.

  1. Czech Republic
Software Development Outsourcing in Czech Republic

Yet another best country for software development outsourcing is the Czech Republic. It is one of the most exciting outsourcing countries in the world.

Every year, there are about 150,000 software developers in the country, with the top city in Brno. This outsourcing sector also prides itself on its high-ranking IT industry. And several international companies have their business offices here. 

Corporate taxes in the Czech Republic are low, about only 19%. It is the reason many companies invest in the country’s IT sector. Also, EU grants and investments support the growth of the tech industry.

The Czech Republic is the creator of Seznam.cz and Avast. Its developers’ hourly rates for software development outsourcing range from $25 to $50. And its top three programming languages are PHP, JavaScript, and Java.

  1. Taiwan
Software Development Outsourcing in Taiwan

Taiwan is home to the world’s seventh most qualified software developers. It is one of the offshore software development countries to hire some of the best talents.

Taiwan is among the world’s rising software development outsourcing countries. It is also one of the top cities for enterprise success and digital innovation. Furthermore, the Taiwanese government invests in becoming an Asian Silicon Valley. Taiwan is serious in this field with IT infrastructure and STEM education. 

Taipei’s local web development talents have strong work ethics and a hard-working spirit. But, there might be a little challenge in communicating with them. Taiwan ranks 40th among 80 countries in English skills. 

Nonetheless, it is still one of the best countries to outsource software development. The average pay for offshore software development services here is $25 to $50. And the most used programming languages are PHP, ASP.NET Core, Java, and Ruby on Rails.

  1. Belarus
Software Development Outsourcing in Belarus

There are approximately 1,000 offshore software development companies in Belarus. It is another best country that offers reliable software development services. 

Many companies work with Belarusian programmers because it is cheaper and more convenient. The government encourages learning technologies through its educational system. Hence, the IT industry in the country is well developed.

Belarus is also notable for its superb skills in R&D and JS technologies. Its developers have specializations in the following areas: 

  • Cloud computing
  • Machine learning
  • High-load systems
  • Fintech
  • Internet of Things
  • AR/VR
  • Big data

The country is famous for its rapid software development and growing talent pool. Many developers here can speak English well, making communication very easy. Moreover, time zones are not a big problem for outsourcing countries. And the hourly rates for software services are from $25 to $50.

  1. Philippines
Software Development Outsourcing in the Philippines

The Philippines is one of the largest English-speaking nations in the world. It has undergone innovations that shaped its outsourcing software development industry. 

Over the years, it has been one of the best countries to outsource software development. It specializes in the STEM high school system and implements serious educational reform. Thus, making the country one of the top software outsourcing countries in the world.

Manila ranks as the second-best city for global outsourcing. Many contractors from the country work faster than in other countries in Asia. Additionally, the service from Filipino tech experts is of high quality and affordable. Clients say the Philippines is one of the best offshore software development countries.

The hourly rate of an average software developer in the Philippines costs $15 to $49. And the popular programming languages here are Ruby on Rails, ASP.NET Core, and PHP. 

  1. Brazil
Software Development Outsourcing in Brazil

If you are looking for developers in Latin America, Brazil can also be one of your choices. With more than six million fluent English speakers in the country, you can work with ease.

The Brazilian government works hard to build a better technology education system. And this makes the country a rising hub for outsourcing software development.

Outsourced talents from Brazil can adjust to the client’s needs and beat deadlines. The country offers affordable prices on its offshore development services, too. Since the IT community is young, you can find many junior developers here. But this does not mean they cannot handle advanced projects.

The hourly rates range from $25 to $50, depending on the experience level of the developers. Java is the most popular programming language, but developers also use SQL and Python. And the top cities to outsource here are: 

  • Londrina
  • Rio de Janeiro
  • Blumenau
  • Porto Alegre
  • Curitiba
  1. Egypt
Software Development Outsourcing in Egypt

Egypt is also one of the best countries to outsource software development. It invests in the development of the STEM high school system that produces a great number of talents. And since most schools here teach English, communication is very easy to deal with.

The affordability of this country’s software development services attracts most businesses. You can hire a skilled developer for only $25 to $40 per hour. Outsourcing services to Egypt is cheaper than the other top outsourcing companies. Nonetheless, you still get high-quality software engineering services. 

Factors To Consider When Outsourcing Software Development to Another Country

Factors to Consider When Outsourcing Software Development to Another Country

A few critical factors help you determine where to outsource software development. These will lay a foundation for your research on the top outsourcing countries.

Consider these things when looking for the best countries for outsourcing software development:

Technical Education Level of the Resources

Corporate education is a major factor when looking for countries to outsource software. Central Asia and Eastern Europe offer excellent secondary and higher education. Meanwhile, computer science and mathematics reach the highest university development in Latin America.

If you want outstanding software development, you must look for a high level of education. Know the difference between providing basic computer science education and profound STEM studies. The former does not offer good programming skills. The latter brings those who can lead artificial intelligence development.

Location and Time Zone Differences

The best country to outsource software development has a considerable time zone difference. When working based on an outsourcing model, you must think of the location and time zones. 

Many contractors work in a team with a manager who takes charge of communication in the entire team. Having good communication is one way to achieve successful project development. 

Also, you need to prepare for online meetings at different times. Make sure you foresee time delays between communications. Indeed, time zone differences should be a priority for offshore development.

English Language Skills

Clear communication is a vital factor for successful outsourcing projects. Companies need constant communication, and the most preferred language is English.

When choosing an offshore software development company, identify their English level first. The basic level is not enough, so consider the following:

  • Intermediate level
  • Upper-intermediate level
  • Advanced level

Most of the time, the lack of English understanding can cause team disputes. Avoid this from happening and find developers who can communicate in English well. They must not have a fear of a language barrier.

Project Complexity Experience

Nowadays, most companies prefer expertise more than anything else. Several businesses in the US outsource 80% of their projects to developers in Ukraine. This country takes pride in its expertise in different programs, such as:

  • C++
  • Unity 3D
  • Magento
  • JS
  • Scala
  • Ruby
  • Python
  • Node.js
  • ASP.NET

Furthermore, other offshore software development countries boast project complexity experience. Poland handles the best internal product development and user interface creation. Meanwhile, India has the best IT professionals with broad knowledge of programming languages. This country’s primary expertise is mobile development.

Resources Availability and Tech Competency Diversity

When outsourcing countries for software development, consider tech competency diversity and available resources. Depending on your needs, you must choose the best country to provide what you are looking for.

Different regions and countries have distinct resources and competencies to offer to you. Make it a point to know your requirements first and opt for the best countries to outsource software. 

For example, there are now more than 100,000 IT experts in Ukraine. They provide 60% of their services based on an outsourcing model. So, you can take advantage of its front-end technologies and various programming languages.

Another country is Poland, with 250,000 developers. They are the ones to outsource for experts in Java, Ruby, or Python programming languages.

Check out India’s outsourcing market with three million developers if you need these:

  • Machine learning
  • Web development
  • Artificial intelligence
  • Robotics

Looking for the best country to outsource IT services depends on your needs. Hence, take into consideration their resource availability and tech competencies.

Cultural Differences

One of the factors that influence how people work is cultural differences. Once you search for developers for your software projects, consider their local culture. 

Here are a few vital things you need to identify to select the top outsourcing companies:

  • Work ethics
  • Level of productivity
  • Manners of communication

So, find partners you can connect with and accept their culture. It helps when you know an expert’s mentality and the culture aligns with your business. Then you can learn mutual language about the approach to work.

Why Choose BIT Studios as Your Software Development Outsourcing Partner?

With decades of experience in the software industry, BIT Studios is a company to trust. We are a reliable software development outsourcing partner. 

Since 1990, we have been focusing on custom software development. Our strong commitment to improvement is a testament to our outstanding services. Whether you are a big enterprise or startup, we have the right tools and expertise to help your business.

Our software and web development services meet all your requirements. You can always count on us for your software needs. 

Below are what makes BIT Studios the top software development outsourcing partner:

Speed and Efficiency

We have completed many projects already, so we are efficient in what we do. Our expertise in software development makes us productive and work fast.

29+ Years of Experience

Through our decades-long experience, we guarantee to give you exceptional solutions. Our team of experts ensures professional and superior services.

Cost-Effective Solutions

We make sure to be with you every step of the project. Our company creates cost-effective solutions that help your business grow.

Impressive Portfolio

Our client list and portfolio are excellent. We work with either Fortune 500 companies or new enterprises. It is our job to help you succeed.

Offshore Software Development Countries FAQs

What Is Offshore Outsourcing?

Offshore outsourcing means hiring a third party in a different location to do your tasks. It offers you a platform to expand your company in a global setting.

Companies go offshore when they see their project scaling up in a specific country. It benefits you with cost and time savings. Also, the outsourcing country manages all the settlements, and the employment cost lowers.

Why Is the Popularity of Offshore Software Development Growing so Fast?

Offshore software development’s popularity has grown so fast because of the shortage of local IT experts. The US and other European countries look for developers since they do not have enough.

Another reason is to cut development costs for tech companies. Some of the top outsourcing countries offer cheap hourly rates. Hence, it is the best choice for those companies searching for affordable services.

Software development outsourcing is not a new phenomenon. It has evolved through the years. As a result, remote working has been a successful alternative for most businesses.

What Kind of Projects Are Most Suitable for Offshore Development?

Big and small projects are suitable for offshore software development. Once you have regular small tasks, you can hire an offshore developer to save time and money. There is no need to get a local professional with the skills and experience for every project. 

With big projects, you can profit more by getting an outsourced team. It will work only with your project, and you can manage the team like your own.

Additionally, it is not rare to see companies have long-term relationships with vendors. They can send them almost all their outsourcing projects. 

What Level of Education or Training Should the Developers Hold?

The level of education needed for software developers for offshore development jobs should be a bachelor’s degree in computer science or software engineering. And a master’s degree in business administration is an advantage.

More so, you can ask for their previous training to know if they are competent enough. It can help you grasp the developers’ knowledge of software development and how they work.

How Do You Build Solid Outsourcing Relationships?

You can build a strong relationship with the development team members by responding to questions or problems on time is one way to connect. Thus, this allows you to have an excellent outsourcing experience and relationship.

Aside from hiring the best developers from outsourcing countries, business relationships also matter. The importance of maintaining good communication with the offshore teams is crucial. It helps in monitoring the progress of the projects and meeting deadlines. Also, it aids in delivering the best results.

Do I Lose Control When Outsourcing Software Development?

No, you do not lose control. An offshore outsourcing service provider just takes partial control over the project. Since you do not want to get involved day by day, be sure to trust your outsourcing partner. It can be scary, especially if it is your first time. But you are here for the final product. As long as it meets your deadline, requirements, and budget, you are all good.

Still, be sure to follow everything that is on your agreement. It should contain all the information about the software, such as the following:

  • Specifications
  • Processes
  • Procedures
  • Milestones

These things must be in the contract so that you can resolve any problems fast. And you have something to look back on when things go south.

What Are the Benefits of Offshore Development in Different Countries?

Here are the benefits of offshore development in different countries. Take advantage of the most innovative solutions available today at a lower price. 

  • Offshore software development lets you reduce costs and achieve better services. You will notice that your company has more resources and time. You can focus on improving your core business functions. More companies recognize the benefits of offshore outsourcing these days. So, this is the best time to invest in it. 
  • Also, getting offshore development in other countries gives you a great outsourcing model. It reduces the recruitment timeline and cost so that you can save up money. Thus, you can get your product ready for the market launch faster.

What Is a Typical Return on Investment in Outsourcing?

The ROI in outsourcing is impressive. Depending on the details of the outsourcing project, you can get an excellent ROI. Opting for outsourcing never hurts your pocket, for you can save more from it. All you have to do is choose a partner that can help you finish your project on time and within budget. 

Many businesses plan their outsourcing budgets, expecting that they cut costs by 30%. In case this expands to labor costs, it may go up to 50% cost reduction on the following:

  • Implementation
  • Training
  • Development

Get the talents you need from the best countries to outsource software development. Contact BIT Studios today.

Jeff eats and breathes technology. His undying passion for software development inspired him to establish BIT Studios, a reputable custom software development company that caters to SMEs and Fortune 5...
Originally published October 10, 2022, updated November 18, 2022

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