Outsourcing software development is a proven strategy to reach a wider pool of professionals and optimise costs while getting high-quality software products.
A startup or enterprise can easily hire a dedicated team or plug expert developers with their in-house team and finish software development projects quickly. However, there are some things to know about outsourcing before it can be done effectively.
For a start, you need to know where to outsource your software development project. This means choosing a country – whether far or near. This article advises where to outsource software development and the criteria for choosing an outsourcing company.
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Top Software Development Outsourcing Destinations (12 Best Countries)
Where you outsource matters because it affects how you collaborate and communicate with the team, the rates and the development quality.
You can choose several development outsourcing destinations if you want to hire an external team to build your software. Businesses can outsource their project to Europe, Asia or Latin America.
Europe is a popular outsourcing destination and one of the main consumers of software development services.
The hourly rates developers in Western Europe and Eastern Europe charge vary greatly. So, businesses in Western Europe can easily outsource to Eastern Europe.
Aside from that, it is a top destination for businesses in the US and the UK looking for experienced developers.
Where to Outsource Software Development in Europe
The most popular outsourcing destinations in Eastern and Central Europe are Ukraine, Estonia, Romania, the Czech Republic and Hungary.
Poland has the largest pool of IT professionals in Central and Eastern Europe. This makes it an excellent outsourcing location.
The diverse startup scene combined with the digital infrastructure encourages some of the biggest corporations from Western Europe and the US to establish hubs in Krakow, Warsaw and Wroclaw.
More than 250,000 software developers work in Poland and specialise in different areas of development. This makes it easy to find expert programmers to build your software.
Ukraine's IT outsourcing industry is growing because of the increasing demand for Ukrainian technical expertise.
This explains why many companies, including Apple, Snapchat and Uber, have workforces in Ukraine. It provides top-notch talents and budget-friendly rates, which any startup and enterprise will want in an outsourcing partner.
Ukrainian software developers typically charge between $25 and $50 per hour, which is cost-effective compared to what developers in the UK, Western Europe and North America will charge.
Clients from Western Europe can easily outsource to Ukraine because of the slight time zone difference.
Although Ukraine and the US have a wide time zone difference, most US businesses that don't mind hiring offshore developers are outsourcing there.
Estonia is one of Europe's best tech countries to outsource software development. It has over 20,000 expert developers that can offer high-quality services and is home to popular startups such as TransferWise, Skype and Prezi.
One reason Estonia is good for outsourcing is the high percentage of English speakers, which will make it easy for companies in the UK or the United States of America to hire offshore developers.
Romania's thriving IT industry is built around the outsourcing business model, making it possible for software development companies to offer their services to businesses worldwide.
It has a large percentage of programmers who understand and can speak English, making it easy for them to work with US and UK companies.
The hourly rate for software development in Romania is between $10 and $15 per hour, which is cheaper than in countries in Western Europe.
Hungary's location near the centre of Europe is one reason to outsource there. The time zone overlaps most countries in Western Europe, making it easy for companies that want to hire a nearshore team to outsource to Hungary.
And since many developers speak English, firms in the US and UK can easily find expert offshore devs who understand their business language.
Another reason Hungary is good for outsourcing is that the business culture is based on Western values, which means you can find developers with the same work culture effortlessly.
The average developer's rate is between $25 and $50 per hour, more inexpensive than what US or UK programmers will charge.
The Czech Republic is another place where you can outsource software development in Europe because the tech industry is growing fast, with more developers joining the IT sector.
Czechia falls under Central Europe Time (CET), which is one hour ahead of GMT. The slight time zone difference makes it easy for businesses in the UK and Western Europe to hire nearshore developers.
Software developers in the Czech Republic are proficient in various technologies, including Java, C, PHP, C++, Python, Ruby, CRMs like Salesforce, and front and back-end frameworks.
The average hourly rate for programmers in Czechia is between $25 and $50 per month, which is cheaper than in the UK or Western Europe.
Asia is another prominent location to outsource software development. It is a great place for businesses in the UK, the US or Western Europe wanting to hire offshore software developers because of the large tech skills and low hourly rates.
Where to Outsource Software Development in Asia
The top destinations to hire software developers in Asia include India, China and the Philippines.
The IT sector in India is robust because millions of developers who understand English are joining the workforce, and the government is investing in producing high-quality IT professionals.
It is 9 hours and 30 minutes ahead of the United States, 3 hours and 30 minutes ahead of Europe and 4 hours and 30 minutes ahead of the United Kingdom.
US and UK businesses can use the offshore outsourcing model for hiring developers while those in Europe can nearshore to India since the time zone difference is not much.
Another outsourcing destination in Asia is the Philippines. It is an established software development outsourcing centre with more than 200,000 IT specialists who have a high level of English proficiency.
The IT sector in the Philippines is growing rapidly, with more Western companies investing in the country. Businesses of all sizes can use the development ecosystem and hire expert offshore developers to build their software.
Software developers in the Philippines charge between $15 and $30. The top skills in the Philippines are PHP, Java, ASP.NET, Ruby, Python and C#.
China's large talent pool makes it a perfect destination for any business that wants to outsource software development. It has over seven million IT professionals spanning different technologies, including rare skills like artificial intelligence and machine learning.
Since the hourly rate for software development in China is around $50 per hour, less than in the US or Western Europe, companies can save costs when outsourcing to China. The setback of hiring programmers in China is the time zone difference and the low number of English speakers.
Another place where you can outsource software development is South America. This region has less time difference, flexible labour laws and shares a similar work culture with countries in North America.
Aside from that, South American countries have been investing in their IT sector to ensure they produce expert IT professionals, making them the most sought-after destination for development outsourcing.
Where to Outsource Software Development in South America
Argentina, Brazil and Mexico are the top destinations to outsource your development project in South America.
Mexico is a leading country in software development outsourcing due to its proximity to the United States of America.
The population of programmers in Mexico is above one hundred thousand, with more than 12.9 per cent proficient in English.
Since Mexico shares a similar time zone with several locations in the United States and Canada, organisations can easily find expert nearshore developers there.
Also, Mexico is a good option for businesses in the UK or Western Europe to hire offshore programmers.
Argentina is a popular outsourcing location in South America where companies in the United States and Canada can find highly skilled and English-proficient developers.
It has a two-hour time difference from the US, making it a preferred choice for clients who want to hire programmers they can collaborate with. Although Argentina's official language is Spanish, many people are multilingual.
Brazil is another place where you can outsource software development in Latin America.
It shares a similar time zone with the United States East Coast, which is just one hour behind. Due to this time zone overlap, companies in North America can hire a dev team from Brazil and incorporate them with their in-house team.
The little time zone difference will allow for collaboration and real-time communication with the dev team, making it easier to get tasks done faster.
The average hourly development rates in Brazil are between $25 and $60, which is cheaper than what devs in the US will charge.
What Are the Criteria for Choosing an Outsourcing Development Company?
Now that you know where to outsource software development, let's examine the criteria for choosing an outsourcing company.
One criterion for choosing an outsourcing partner is niche expertise. This means getting a development team familiar with your business and can build a software product that speaks to your customers' needs.
For example, a fintech company will hire a development team specialised in building software for businesses in that niche. Also, a healthcare agency will get a quality product if it outsources to a team that builds software for healthcare providers.
Outsourcing to niche experts will guarantee that you work with developers who know what they are doing.
Hiring experienced programmers to handle your project matters. That is why you should consider the developers' seniority levels before outsourcing. If your project is complex, hiring senior developers would help as against building a team of junior developers who may not fully understand the requirements.
Another criterion for choosing a software development partner is the location. You can hire a team in a far country if you prefer offshoring or hire from a neighbouring country if you want nearshore developers.
And if you prefer to work with a local team, you can hire from your country, which in that case, you would be on shoring. Since location affects software development rates, businesses cut costs by nearshoring or offshoring.
Another thing to consider before you settle for an outsourcing company is up-to-date technology.
Using the latest technological infrastructure will show that the IT outsourcing firm can handle your project, even when the requirements become complex.
Ask the company about their infrastructure (software and hardware) and if they are up-to-date.
The company culture is the shared behaviours, values and standards of a business work environment that creates the day-to-day experience of the business.
If a software development company focuses on quality development, it will reflect on the team and the products. You can evaluate the company culture by engaging with the team to see if its values are consistent with its employees.
Team communication is vital when building software. You must negotiate with the team, provide feedback and find ways to solve problems. When choosing a development outsourcing company, it is crucial to consider the English level of the outsourcing providers and ensure you hire one with the ability to communicate effectively.
Outsource Software Development to Deazy
There are several reasons to outsource software development to Deazy. You get intelligently matched software developers with the right skills and experience to handle your project.
Also, you hire flexibly – being able to switch developers in the team 'on' and 'off' based on the workload. Whether you want to hire a dedicated team, add more programmers to your in-house team or hire on a project basis, you can explore any hiring model that suits your needs.
Our team span various technologies, so no project is too complex for us. At Deazy, our goal is to make software development easy! Feel free to give us a call.
There are several countries where you can outsource your software development. Although you can select any country, remember to choose one with a large talent pool and experienced developers.
Aside from that, the country you outsource to depends on whether you want to hire onshore, offshore or nearshore developers.
For example, a business in the United States that wants a nearshore team can easily outsource to Mexico. In contrast, the same business can outsource to India if it prefers offshore development.
Other criteria to consider are English language proficiency, infrastructure and culture.
Frequently Asked Questions
Which location is best for IT outsourcing?
Some top destinations for outsourcing software development include Poland, Ukraine, India, Mexico, Brazil, Argentina, the Philippines and Estonia.
Can software development be outsourced?
Companies that don't have an in-house team can outsource their software product development to an external service provider. This makes it easy to build the software faster, reduces development costs and improves efficiency.
How much to outsource software development?
The cost of outsourcing software development varies according to the country and the experience level. Outsourcing to Eastern Europe, Asia, and Latin America means cheaper hourly rates than hiring developers based in the US or Western Europe.