In recent years, IT outsourcing has become an increasingly popular way for companies to reduce costs and access specialized expertise. Among the destinations that have emerged as attractive outsourcing hubs in Eastern Europe is a region with a long history of technical innovation and a growing pool of skilled talent.
From software development and IT services to customer support and back-office operations, Eastern European countries like Poland, Romania, Ukraine, and Belarus are gaining recognition as prime outsourcing locations. These countries offer a range of benefits that make them competitive with more established outsourcing destinations in Asia, such as India and China.
Taking advantage of the Eastern European tech talent pool and expertise has become a widely discussed topic among companies searching for skilled professionals, plus an economical software solution.
Poland, the Czech Republic, Hungary, Romania, Slovakia, Belarus, Croatia, Ukraine, and Moldova are all nations in this region that have seen remarkable success as advantageous outsourcing locations. Experiencing a surge in growth and popularity amongst global business owners.
If you're considering outsourcing software projects to Eastern Europe, this article is for you. We'll dive into the advantages and disadvantages of doing so and all the opportunities it can present. Moreover, we'll discuss some of the most popular countries in Eastern Europe that provide outstanding outsourcing services.
Europe has become a popular destination for outsourcing, and companies have a variety of reasons for doing so. Some of these reasons include affordable offshore software development partner' rates, the availability of skilled professionals, favorable tax policies, many software development companies on the market, and more.
One of the primary reasons that companies choose outsourcing in Europe is cost-effectiveness. Many European countries have lower labor costs than developed countries, making outsourcing a more cost-effective solution than maintaining an in-house development team here. Outsourcing can help companies reduce their operational costs and increase their profitability.
Access to top-rated developers in your country is excellent, but it may only be feasible if their services are affordable. It could result in companies limiting their options, settling for an incomplete solution, or seeking more funding.
Fortunately, outsourced web development or mobile development can be a more reasonable option for most companies. For instance, outsourcing to Europe can provide companies with more affordable hourly rates than countries like the US, Australia, or Canada. It can help businesses maximize their budget and maximize their investment value.
Even if you live in a city with a population of millions, competition in the IT market can be fierce, and finding the right software developer can take time. In fact, the search for qualified software developers can take several months. However, outsourcing can be a convenient solution when finding developers quickly.
Outsourcing to a reputable provider can allow companies to find qualified developers in just a few days. It can be especially beneficial for businesses with urgent project deadlines or looking to scale up their operations quickly. By outsourcing, companies can save time and resources that would have been spent on the recruitment process and focus on other critical aspects of their business.
In recent years, companies have increasingly turned to outsourcing to Europe. According to Dan Kiely, the CEO of outsourcing company VoxPro, outsourcing to Eastern European countries offers several advantages, including cost savings and geographic proximity.
Despite producing some of the world's top IT talents, the economies of many Eastern European countries still lag behind their Western counterparts. Outsourcing software development is an attractive option for businesses looking to reduce costs.
Eastern European software engineers are highly skilled and knowledgeable, with a reputation for being at the forefront of software development. They are also known for quickly learning and applying new technologies to their work.
Suppose companies require further convincing of the benefits of outsourcing software development to Eastern Europe. In that case, there are several compelling reasons to consider. These include access to a vast pool of skilled talent, lower labor costs compared to Western countries, proximity to the EU market, and favorable government policies that support business growth.
Compared to countries in South Asia or Southeast Asia, such as India and the Philippines, Eastern Europe's wages may not necessarily be lower. However, the value that Eastern European countries offer is on par with and meets the requirements of North American or Western European companies at a fraction of the cost.
Historical policies and the limited bargaining power of labor have contributed to lower wages in Eastern and Central Europe compared to Western Europe. For example, the wage rate in the US is almost twice that of Eastern European countries. This wage difference makes outsourcing software development to Eastern Europe a cost-effective solution for businesses seeking high-quality services.
In contrast to many Western countries that face a shortage of skilled professionals, Eastern Europe has a sizable and highly skilled talent pool that can provide their services.
For example, over one million tech professionals are available in major top tech companies' hubs across Eastern Europe.
In addition, the tech talent pool in Eastern Europe is continuously expanding to meet the demands of various industries, including software development, web development, accounting, and HR services. It provides businesses many options for finding skilled professionals to meet their needs.
Eastern Europe's location and time zones make it easily accessible for businesses in Central Europe or North America, such as Germany and the USA, in terms of travel and communication.
Clients can visit vendors in Eastern Europe within just a few hours, thanks to the region's proximity to major business hubs. Furthermore, the time difference between Eastern Europe and these regions ranges from five to eight hours, allowing real-time communication without significant scheduling conflicts.
This convenience can help businesses streamline their project and task management, allowing for more efficient communication and collaboration with their outsourcing partner partners in Eastern Europe.
The time zone difference between Eastern and Western European countries is relatively minor, making it easier for IT vendors to visit their clients quickly.
In contrast, clients from the US typically experience an eight-hour time zone difference when working with Eastern European vendors. However, this still allows for real-time communication and collaboration between both parties.
The influence of Western culture has shaped business etiquette in Eastern Europe, resulting in a similar approach to business practices as seen in North America and Western Europe. It contrasts Asian countries, where cultural differences can lead to communication and cooperation challenges.
This cultural similarity between Eastern Europe and the West can facilitate more efficient business operations and deals. Furthermore, software developer experts in Eastern Europe understand Western laws and regulations, resulting in fewer compliance issues for clients from these regions.
Eastern European countries like Poland have implemented strong copyright protection laws and regulations to safeguard intellectual property. For instance, the Polish Copyright Law governs the rights of authors and publishers. It ensures that their work is protected from infringement.
It makes Poland a safe and reliable outsourcing destination for businesses looking to protect their intellectual property. Additionally, Poland has a favorable tax system, with a corporate income tax rate of 9%, making it an attractive location for companies looking to outsource at a lower cost.
It should be noted that the most suitable countries for outsourcing software development in Eastern Europe are those with proficiency in English and who offer their services at a reasonable cost.
In addition, several other highly sought-after outsourcing destinations in Eastern Europe are worth considering.
Poland has experienced remarkable economic growth in Eastern Europe and has become an increasingly popular destination for outsourcing software development services. The country boasts over 300,000 IT professionals, and the education system continues to add around 17,500 skilled software development professionals annually to its workforce. However, only a fraction of this talent pool is directly involved in the outsourcing industry.
As an established economy, Poland has a relatively high software outsourcing take rate compared to other countries in the region. In 2023, the country's IT services industry was worth $5.5 billion and is projected to grow steadily. Several multinational companies such as Google, IBM, and Microsoft have established R&D centers in Poland, making it an attractive destination for software development outsourcing.
Poland has emerged as a strong software development outsourcing industry player for several years. The country's strategic location in Europe and its focus on technological development have contributed to its success in the outsourcing market. In addition, Polish developers are considered among the best in the world, which makes them a valuable asset to businesses seeking to outsource their software development needs.
Moreover, the country's emphasis on high-quality work and effective communication makes it appealing as an outsourcing destination. If you are still deciding whether Poland is the right choice for your business process outsourcing needs, we prepared a helpful review of Why Choose Outsourcing to Poland?
Outsourcing IT services to Ukraine has become increasingly popular over the years due to various reasons. Ukraine has a vast pool of highly skilled IT professionals, with over 200,000 developers and engineers in the IT sector. These professionals are well-educated, with many holding advanced computer science, mathematics, and engineering degrees.
Ukraine also has a favorable business environment, with competitive prices and low taxes. Outsourcing to Ukraine is a cost-effective solution for businesses looking to save money without compromising quality. Additionally, Ukraine has a relatively low cost of living, meaning that wages for IT professionals are lower than in Western Europe or North America.
Another significant advantage of outsourcing to Ukraine is the country's strong commitment to intellectual property protection. Ukraine has implemented strict laws and regulations to protect intellectual property, which helps ensure that businesses outsourcing software development or other services can operate without worrying about intellectual property loss.
Overall, outsourcing IT services to Ukraine offers a range of benefits to global companies, including access to a talented pool of professionals, a cost-effective business environment, strong intellectual property protection, and convenient time zone and communication capabilities.
Due to various factors, Bulgaria has emerged as a leading outsourcing destination for global business services in Eastern Europe. The country's thriving IT sector accounts for 5.5% of its GDP and contributes around $3.5 billion to the government's revenue. This industry is supported by a pool of 56,500 highly skilled IT professionals and a robust educational system with over 220 institutions dedicated to tech education.
With a strong focus on innovation and technology, Bulgaria is well-suited for businesses looking to outsource IT services such as software development, web development, and digital marketing. The country's IT industry continually evolves, with the government investing heavily in developing infrastructure and promoting entrepreneurship. This commitment to progress and Bulgaria's favorable business climate make it a prime destination for many outsourcing professionals.
After it acceded to the European Union in 2007, Romania has become a leading destination for tech firms, including industry giants such as business and technology leaders such as Hewlett Packard, Oracle, and Bitdefender. The IT sector in Romania has been thriving, experiencing an impressive average annual growth rate of 20% since 2010, and today it counts on a workforce of 130,000 highly skilled professionals.
Romania's developers are widely respected in the offshore software development community. The country has recently climbed to the 18th position in the TopCoder rankings. The educational institutions in Romania are also highly regarded and have a strong track record of success in the Math Olympiad, consistently winning more medals than any other European country. These factors and the country's favorable business environment make Romania an attractive destination for companies looking to outsource their IT needs.
Eastern Europe is an excellent choice for software outsourcing, thanks to the region's numerous benefits. Undoubtedly, the most significant advantage of Eastern European countries over others is highly qualified software developers who create great products for reasonable prices. Creativity and the ability to look for optimal solutions are also features that distinguish developers in this region. If you add to this the ideal location on the map of Europe and access to the latest technologies in which many Eastern European countries are leaders - you have a ready recipe for success.
Our company has created great software projects in Eastern Europe for several years as part of IT outsourcing. If you are considering cooperation with a team of programmers from Eastern Europe, make an appointment for a free consultation with our specialists, who will answer all your questions. We are happy to share our knowledge and experience.
Milo founded mDevelopers in 2010, bringing his over 10 years of sales management, B2B solutions, and business relations. Milo acts as the general director, as well as a mentor and advisor. In everyday work besides managing the company, he supports the sales department in networking and building relationships.
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