IT outsourcing has established itself as a usual part of operation for many companies worldwide. It delivers multiple benefits. These are optimization, cost-effectiveness, scalability, and, of course, access to special-purpose knowledge and skills. At the same time, choosing a service provider is far from easy, even if you resort to the help of outsourcing management software. That’s why we decided to shortlist the best IT outsourcing countries and cover the possible pros and cons of each option.
Key Industries That Outsource IT Processes in 2024
Nowadays, a business that drives innovations or simply wants to grow faster opts for external IT services. They help to reach the goals set faster. In this context, outsourcing software development for startups is worthy to highlight since proficient IT services facilitate bringing innovative ideas into reality. Overall, in 2024, IT services were widely requested by the entities operating in the following sectors:
- Fintech – fintech software outsourcing helps to elaborate on effective solutions for users’ payments and transaction monitoring. Professional IT services enable many existing entities and startups to be well-informed about the latest developments.
- Healthcare – bolstering the remote interaction between hospitals and patients benefits the industry a lot. For example, healthcare software outsourcing can contribute to remote patient monitoring, predictive analysis, diagnostics, nanomedicine, and so on.
- Telecommunications – the primary point for applying IT advancements is to boost the speed of connection, ensure the network's resilience, facilitate data processing and storage, as well as implement effective billing.
- Cybersecurity – third-party experts can respond to emerging threats and help to smoothly address the existing ones. Advanced IT algorithms they implement help to detect fraudulent transactions and prevent customers from losing their money.
- Education – advanced IT algorithms are now widespread across many universities worldwide. The latter can arrange steady and effective remote interaction with their students.
Checklist on How to Choose a Country to Outsource Software Development
Having plenty of IT outsourcing services offers to choose from is surely good. Where competition is intense, the quality is always good. At the same, the prices are balanced under such conditions. On the other side, choosing among multiple offers is a bit time-consuming. The below criteria will help you to sort all the available options out faster:
- Quality is a primary aspect to take into account. Cheaper never means better. In fact, it may turn out that low-quality products may take even more funds, especially, when it comes to corrections. However, the complexity of the task should be kept in focus as well. For more complicated assignments, the quality of outputs has to be superb.
- Tech education – the specialist you would like to assign should have sufficient tech background and skills. Emphasize whether a provider draws attention to the ongoing training. In addition, true IT experts should be ready to address the specifics of your projects effectively as well. Therefore, take time to discuss this aspect in advance.
- Cultural aspects – this nuance is often underestimated, however, it plays a great role. There are jurisdictions that are closer to the Western standards. However, some states are more keen on preserving their local specifics. Make sure you understand it well while being on the shore.
- Timezone – the perfect option in this case is nearshore software outsourcing. When your state is adjacent to the neighboring one where you decide to hire developers, it is always possible to arrange a closer collaboration. If you consider developers from the other part of the globe, make sure you have at least 3-4 hours of overlap.
- English proficiency – price and quality can mean nothing if there is a significant language barrier. While choosing your service provider, ensure developers have sufficient English level. Upper-Intermediate will work well for projects that do not require your constant supervision. However, more complicated ventures, especially innovative ones, will definitely require a more advanced level.
10 Best Countries to Outsource Software Development
There is a list of 10 top technology countries where you will be able to find the best IT experts:
- Ukraine
This country is a worthy place to hire developers. The reason is simple. It ensures price-quality balance without sacrificing the latter by any means. The state has a truly impressive pool of skillful workforce. Even more, lots of local talents are spread across the globe.
The rates are much lower than in the vast majority of the European jurisdictions. Such prices are determined by the affordable costs of living in Ukraine. At the same time, the local talents improve their level of education regularly. Also, they fully immerse themselves in the Western approaches. That's why the quality of their products is bolstered steadily. These endeavors make Ukraine probably the best option for software development outsourcing in Eastern Europe.
Although there is a huge time gap with the USA and Canada, local developers are also flexible at this point. Many of them are often ready to tighten their work to another time zone. The level of English is well here, both written and spoken.
If you need to hire someone who can elaborate on innovative tech solutions, you can find the right professional here as well – Ukrainians are capable of thinking outside the box.
Ukraine fosters advancements and investments in this industry. There is even a separate Ministry of Digital Transformation in charge of ensuring a favorable landscape. Ukrainian specialists are also aware of and apply Western and European standards, including GDPR.
Hourly rates: $20-55
- Poland
This is the EU location that ensures optimal price-quality balance. The rates are slightly higher compared to Ukraine since living in Poland is much more expensive.
In this country, the greater emphasis has been placed not on state regulation but on market self-regulation. Here, you can find probably the largest software outsourcing companies in Europe. The scope of available services is comprehensive. English proficiency is very decent here, both written and spoken. This country also facilitates tech education.
Poland is a definitely great option for bringing large IT projects to life, where a level of complexity is above the average. On the contrary, this country is not too keen on promoting innovations. It adopts those that come from other European or North American states. However, the culture and approaches to doing business in Poland are Western overall.
Hourly rates: $35-55
- Bulgaria
This is another European country that is a good destination for IT outsourcing. Bulgaria has gained a reputation as a reliable IT hub with a highly skilled workforce. In this jurisdiction, a special emphasis is placed on robust IT education and ongoing training.
The local professionals provide a comprehensive set of IT services. Bulgarian IT professionals can ensure the quality of the products at a good level. The prices of their services are even a bit higher than in Poland.
The level of English is sufficient for communicating with foreign partners. Bulgarian IT specialists have a mindset focused on Western standards and problem-solving. The local timezone greatly overlaps with the USA and Canada, for instance.
Hourly rates: $40-90
- Switzerland
This country is famous for its professionalism. Local specialists excel in most spheres, including IT. Due the standards of living are more than high here, this determines the high costs of outsourcing software development, including high salaries for developers.
Switzerland has an extremely favorable legal and regulatory landscape. It greatly fosters innovations and high-performance standards. Switzerland may also be characterized as a calm place with political stability and democracy.
The English level is extremely high, both written and spoken. Ensuring worldwide collaboration is easy here since the time zones with the USA and Canada greatly overlap.
Hourly rates: $100+
- China
Dealing with Chinese developers is both an opportunity and a challenge. On the one hand, this country ensures a high level of tech education and training. At some points, this education is considered to be among the best ones in the world. Following the Confucian lifestyle, local people are very hardworking and dedicated. Hiring Chinese developers is a good option from the point of pricing.
On the other side, there are too severe cultural differences. This makes it difficult to deal with the Chinese developers at many points. Another drawback is the time difference. Arranging real-time collaboration with local specialists can be challenging. Finally, the level of English is a bit below the average level. This is probably the main obstacle on the way to the sufficient integration of Western standards in the Chinese IT industry.
Hourly rates: $35-75
- Philippines
This is probably one of the fastest-growing IT outsourcing markets. The IT sector is one of the most developed in this country. However, the rates for the IT services are reasonable. That is mostly because of the affordable living costs that characterize this jurisdiction. The scope of services is diverse here.
Speaking about the collaboration, it is generally easy to implement. English is the official language in the Philippines. Local IT specialists have excellent knowledge of IT terminology common to the Western world. This country also had a long history of dealing with the USA. This enabled it to absorb American business standards immersively. Finally, time zone differences are slight.
Hourly rates: $20-60
- Colombia
If you are interested in outsourcing to low cost countries, Columbia may be the right choice. In general, this is a growing market. The rates are below the average ones in the market. But it happens that the quality of services can be decent.
At many points, it implements and shares the standards common for the North American states. It is also convenient to work with locals since the time zones of the USA and Canada are very close. Still, the level of English should be better for more effective communication.
Hourly rates: $30-50
- Mexico
Mexico is not a widely known option, but it is still a good destination for IT outsourcing. First of all, it has lots of skilled professionals who are dedicated and flexible. The level of IT education in this country is high. Even more, close proximity to the USA makes it possible to share common business standards. Mexicans are keen on agile software development. The level of English among the Mexican developers is Upper Intermediate and higher.
The prices for IT outsourcing services vary depending on the complexity of the project. However, the local rates are a bit below the average in the global market.
In terms of cooperation, there are some cultural aspects to consider. Mexicans prefer close face-to-face communication. Given that this country is in the same time zone approximately as the USA and Canada, establishing communication has no difficulties.
Hourly rates: $30-100
- India
This is one of the top tech countries which remains a global leader in this context. It has a vast pool of skillful tech professionals. Moreover, this state ensures balanced, even say, low prices for the IT assignments done. The level of English is high. In fact, India is among the states with the highest ratio of people speaking English.
Having a population of around 1.5 billion people, it is possible to bring to life large projects here (even more, this means that in India, you can find the cheapest developers in the world). As for the prospects, this country invests a lot in tech education. Overall, the Indian business framework is mature given its historical bounds with the West.
Speaking about the drawbacks, a variable quality should be mentioned in this first turn. Cost optimization in this case can be made by sacrificing the quality of the final product. Another downside is the time difference. It may greatly impact real-time interaction in certain cases. Unfortunately, there may be only several hours of overlap with the USA and Canada.
Hourly rates: $15-50.
- USA
This is probably one of the best countries for software engineers. It is open and encourages innovations and advancements in all terms. The level of technical expertise among developers here is very well.
The USA not only follows the strictest standards for software development. It also upgrades them and introduces new ones. The USA gave to this world plenty of advanced technologies, AI is the latest one. Also, it is worth highlighting UX design outsourcing, as the USA has the biggest talent pool of designers in the world. Therefore, this country can be considered the right place to implement complex ideas.
Still, the prices for the services are pretty high. However, depending on the complexity of the tasks you want to assign, it may be worthwhile to outsource them exactly in the USA.
Hourly rates: $40-80
Final Words
Summing up the above, the complexity of the project determines the choice of the service provider. Of course, for the high profitability of a project, it is reasonable to save as much as possible. Still, this should be made without sacrificing the quality by any means. Attempting to save a lot may have a reverse effect – you may have to pay more than intended initially. Correcting a poor-quality product is always a far more expensive endeavor.
If you want to find the perfect ratio between the quality of services provided and their cost, you can consider our company. We will implement your ideas in the most cost-efficient way without compromising its viability and competitiveness, just contact us.
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