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Best places to outsource software developers

February 6, 2022 Business

Companies worldwide need more and more highly competent specialists who are ready to apply new, innovative technologies. When calculating how to optimize the development budget, it is not even a question of whether you should outsource or not.

What is the definition of outsourcing software developers?

For example, a business owner has a product that starts growing, so they need to hire outsourced experts when reaching the limits of his tech resources.

Outsourcing software development has a lot of advantages that include cost reduction, mitigated risk, and improved efficiency.

Software development outsourcing and cloud-based solutions are great options for companies that want to scale.

Main benefits of software developer outsourcing

When reaching out to services of foreign companies, businesses are able to:

  • Access Global expertise
  • Complement existing infrastructure
  • Speed up the process without compromising on quality 
  • Reduce costs
  • Reduce risk

What are the best countries for outsourcing? 

Finding talents, especially when hiring a software developer in another country, has always been challenging; therefore, outsourcing has increased during the last few years. That is why in 2022, the best countries to outsource software developers are those to keep a close eye on.

The only right question is which countries might help outsource your project development and gain profit? 

These are the best countries to outsource:

  • India
  • The Philippines
  • Hungary
  • Ukraine
  • Latin America
  • Serbia

India

India has spent over 20 years earning its place in the global outsourcing marketplace. 

India’s current population is 1,400,976,358, and according to the latest statistics, the software industry in this country is growing by 60% each year.

  • The country’s main IT hubs—Mumbai, Chennai, Bangalore, Kolkata, and others are home to many outsourcing companies. The majority of them offer flexible working hours and ensure maximum time zone overlap. 
  • According to the software sector reports, software developers from India are technical graduates of high quality. 
  • Indian IT professionals are best known for offering low hourly rates at $7-$8. Also, they are willing to take projects, not questioning their complexity. 
  • Developers from India are experts in software development with multiple ranges of skills in all frameworks, specifically cross-platform development.

 The Philippines

The growing IT sector in the Philippines provides adequate compensation for overtime work and makes the time difference rarely a problem. This is why the Philippines became a preferred choice for software development outsourcing for many EU and US companies. 

  • An essential fact about the Philippines is that English is the second official language in this country, and most people speak it with a neutral accent.  
  • Finding talented people in the Philippines is no problem with a long list of outsourcing companies. Outsourcing companies are connecting organizations with the right data experts; there are many software firms to choose from, and hourly rates could be compared to those in India.
  • The Philippines government values the outsourcing landscape and provides friendly initiatives to make collaboration with IT talent much more manageable. 

The Philippines workforce will cover 24/7. Their experts can meet your requirements regardless of the company’s time zone or the clients’ timezone.

This means you will not only find cost-effective talents but team members with excellent soft skills and good communication to easily blend with your in-house team.

Hungary

According to stats from Eurostat, about 3,000 IT students annually graduate, so there is a constant influx of fresh Hungarian developers. The country boasts a fantastic workforce of approximately 170,000 IСT specialists. 

  • Hungary is located in the GMT+2 central Europe time zone and a convenient nearshoring destination for software development for most EU clients. 
  • This country follows the latest programming languages and technologies trends. Most Hungarian developers are skilled in Python, HTML/CSS, JavaScript, PHP, SQL, and React. 
  • Compared to India and the Philippines, developers’ rates are higher, usually reaching $60/hour and above. 
  • Hungarian professionals are well known for their diligence and dedication. The workweek is limited to 40 hours by law, but overtime is very common.

The conclusion is that the talent pool of software developers and IT specialists in Hungary maintains outstanding standards in terms of both quality and quantity. 

Ukraine

According to last year’s market overview, over 5,000 software companies in Ukraine, with

more than 200,000 IT specialists.

Many consider this country one of the best to outsource software development since it combines average hourly rates of $26-$43 and high satisfaction ratings from clients. 

  • Ukrainian IT industry English language proficiency is rated at 85% for the intermediate level.
  • 13 IT firms from Ukraine made it to the prestigious 2020 Global Outsourcing 100 list. You have probably heard of some of their successful startups like Ring and Grammarly.
  • JavaScript is the #1 programming language among Ukrainian developers. 

Source: Relevant software

  • More than 100 famous IT companies are Ukrainian IT company’s clients, including Google, Amazon, Lenovo, Swedbank, Visa, and many more.
  • The average software developer’s monthly salary is approximately $3770 in Ukraine. At the same time, US IT specialists get paid $86,523 annually, which means $7210 per month. This means by hiring software developers from Ukraine, companies may save almost half of their money compared to nearshoring resources in the US.

Latin America 

When thinking of software outsourcing destinations, countries like Ukraine, Hungary, and India usually come to mind. These regions have a competitive advantage in the outsourcing market thanks to competitive prices. 

Latin America is a relatively new region to outsource from, and it has kept a good track record of passionate IT specialists eager to do great work. Putting together a team from South America has a few good things going for it. 

Here are some great reasons to learn more about software outsourcing in Latin America.

  • When working with Latin American developers, companies don’t have to think of sacrificing the quality of work for lower prices.
  • Their governments invest in tech education, which gives an excellent opportunity for many talented developers to work on global organizations projects, learn and implement new skills and ideas in the process. 
  • Depending on the complexity of the tasks, the average hourly rate for an experienced software developer is between $30 and $50. 
  • English is widely spoken in these countries, making nearshore locations a favorite here. 

The top countries to hire a software developer in South America are:

  • Argentina
  • Colombia
  • Peru and
  • Brasil
  • Uruguay

So far, these countries have shown the most stable growth to get the attention of global companies from all over the world.

The top three programming languages in this region are:

  • JavaScript
  • HTML

Serbia

Employing more than 28,000 IT professionals, Serbia generates 10% of its GDP from the ICT sector. World tech giants such as IBM, Intel, and Microsoft have set up their offices in this country. 

Learning programming starts very early and continues through every level of education. This focus on education produced skilled professionals, especially in this particular field.

  • Serbian programmers deliver quality output keeping their rates low, between $25 and $49/hour.
  • IT experts from Serbia have good computer skills and speak English almost fluently, which means not much of a language barrier exists. 
  • Serbia is also considered a country with acceptable work ethics for Western companies.
  • Numerous multinational companies have already settled in Serbia to discover outsourcing.
  • Serbia has similar laws as the EU, so your data is safe and secure.

Serbia is located in the Central European Standard Time Zone (GMT+1). This is ideal for working with companies in the EU. There is only a difference of a few hours between European countries.

Communication is a bit more difficult for companies in Asia or the USA, but IT professionals from this country are willing to adjust working hours to contact their clients.

Conclusion

One of the top reasons companies tend to outsource their work is because outsourcing will get the job done quicker and cheaper. Working with a limited number of team members, you will be able to bypass time-consuming tasks to external IT specialists.

The outsourcing industry is rapidly growing, and this is the best time to hire quality developers to help the project get done most effectively.