Outsourcing Software Development to Eastern Europe Destinations

Outsourcing custom software development is a popular approach and option to create solutions successfully and cost-effectively. The EU talent pool has many seasoned experts providing high-quality and innovative services. Eastern Europe software outsourcing attracts clients from different contingents of their favorable benefits, which we review in this article. Moreover, we will discover why Eastern Europe is considered the best place to outsource custom software development and why businesses are looking for a vendor to outsource their projects.

Benefits of Software Outsourcing in Eastern Europe

Eastern Europe undoubtedly stands out among other regions as a prominent IT center. According to the Statista investigation, the expected annual revenue growth rate will be 12.88%, driving the market to reach 9.66 billion USD by 2028. What factor contributed to the popularity of this outsourcing destination?

1. Experienced Talent Pool and Macroeconomic Factors

The first is the significant talent pool and macroeconomic factors. Many Western European and North American companies choose Eastern Europe due to the highly skilled workforce, lower cost, and at the same time high-quality software development services.

Eastern European development teams have extensive experience with multiple programming languages and industries, including healthcare, e-commerce, blockchain, AI, and IoT. Moreover, software engineers are skilled in mobile app development, web development, and quality assurance testing and attain the custom needs of each client.

2. Increasing Market Trends

The second factor is growing market tendencies. The IT outsourcing industry in Eastern Europe increases through several trends and flexibility to implement these trends in each business. More and more organizations using cloud-based services or solutions as they reduce IT costs and increase operational efficiency. Companies demand partners that employ digital solutions and focus on digital transformation to optimize performance and improve customer service.

3. Regional Peculiarities

The last is regional peculiarities as Eastern Europe has a considerable concentration of qualified IT professionals with exceptional skills and technological savvy. The region has a powerful educational system that produces a sizeable number of IT graduates every year. In addition, the region has a favourable business climate that is conducive to the expansion of the IT outsourcing sector. Several Eastern European governments have introduced tax incentives, streamlined administrative procedures, and simplified the process of establishing companies to attract international investment in the region.

Why Businesses Outsource Software Development

Today, firms prefer outsourcing not only to reduce development costs but also to create strategic alliances that will drive innovation and expansion.

IT outsourcing allows organizations to:

  • Minimize the time required to deliver their products to market.
  • Increase the capacity to handle larger workloads.
  • Obtain access to a large pool of highly skilled professionals with expertise in innovative fields.
  • Effectively recruit specialized development teams and easily adapt their potential according to corporate goals and priorities.
  • Improve quality by leveraging market best practices and the latest technologies in the industry.

Top Eastern European Countries to Outsource Project Development

While considering building software with Eastern European vendors, some countries emerge as prominent choices. Among the top locations for outsourcing IT services are Poland, Ukraine, and Romania.

Poland

Poland is well-known for providing high-quality software development services and average prices. Also, it provides ideal conditions for businesses considering outsourcing software development since it is an EU member with a dynamic GDP. The IT market in the country has demonstrated consistent growth, with an annual rate of 5% – 10%. As a result, it continues to be the leading offshore destination in Eastern Europe.

In addition, the technology sector is expanding rapidly, supported by a multitude of associations and educational establishments that promote innovation and progress.

English level: High

Price: 41-87$ per hour

Size of talent pool: 401,000

Technologies: PHP, Java, .NET

Ukraine

After russia launched a large-scale invasion, Ukraine suffered significant damages and faced challenging circumstances. Nevertheless, it continues to maintain its strong reputation in the software development market with cost-effective prices and highly qualified professionals. Ukrainians have proven experience and are diligent in their efforts to deliver work to the highest standard on time and within budget.

Kyiv and Lviv are the main centers of the IT industry in Ukraine. The Ukrainian It sector has more than 1,500 software development companies employing 300, 000 IT professionals. Moreover, this number is projected to grow due to the annual graduation of 15,00 tech graduates from the country’s colleges and universities.

English level: High

Price: 35-57$ per hour

Size of talent pool: 285,000

Technologies: JavaScript, TypeScript, Python, Java, and C#

Romania

Romania is among the best European software destination, with numerous developers and organizations providing specialized software development solutions for businesses of all scales.

Moreover, it is a desirable country for outsourcing due to its competitive salary market. A skilled workforce and growing tech sector make Romania also one of the best places on the continent to provide product development services.

The country currently has around 140,00 IT experts working in approximately 20,00 companies, with another 8,500 technical graduates emerging every year.

English level: High

Price: 35-65$ per hour

Size of talent pool: 140,000

Technologies: PHP and Java

To Summarize

The need for outsourcing software development is growing and is projected to gain more significance by 2024, driven by global geopolitical and economic shifts that necessitate digital transformation. Companies are engaging in the practice of outsourcing software development to have access to skilled professionals and necessary resources, particularly during periods of uncertainty.

The advantages of outsourcing include cost reduction, migrating developer turnover, addressing the scarcity of technical expertise, facilitating collaboration among hybrid teams, and providing resilience against interruptions.

Eastern Europe has emerged as a sought-after location for outsourcing, primarily because it offers a wide range of highly experienced developers and engineers who possess extensive coding knowledge and skills, all at cheap prices. Ukraine, Poland, and Romania are the leading locations for outsourcing in Eastern Europe, renowned for their advantageous pay, skilled developers, and adaptable labor regulations.