Tharini Dasanayaka

January 15, 2022

Choosing a Country for Outsourcing Software Development

Software development outsourcing is one of the smartest ways to reduce your company’s costs and access fresh talent.

Whether you’re looking for outside talent for long-term projects or one-time endeavors, you can make some great progress for your business through outsourcing. It is an everyday process for business with many pros. 

There are tens of thousands of software development agencies all over the globe. Ranging from small to large companies that specialize in providing the best software solutions to their clients. Below, we have compiled a list of countries you can choose to hire an offshore software development agency. 

This simple guide will allow you to pick the right country that fits your business needs and context. 

Criteria for selecting a country for offshore software development 

Choosing a Country for Outsourcing Software Development

The following criteria will help you find a company that suits your needs and generate the best results. 

 

Time zone differences 

Time zone differences matter a lot when outsourcing any task. It has to do with communication. Major time zone differences can make communication difficult, especially when working with razor-sharp deadlines. 

English language skills 

Talking about communication, the developers and teams must have a certain English proficiency level. This is no problem when choosing a country where English is the national language. For other countries, Bilingual developers will be better able to discuss the nuances of each project with you. 

Technical education level 

The technical education level of the resources in a country determines whether the country is the right choice for outsourcing. Countries with higher education levels can offer better talent. It’s riskier to outsource from a country with less technical education.  

Specific technical skills 

When choosing a country for outsourcing your software development, you should ensure that the developers have technical skills in programming languages (Java, Python, React, Angular), problem-solving, and mathematics. 

 

In addition to these factors, your budget and other individual needs will also dictate the criteria. Now let’s look at some of the best countries you can choose for outsourcing software development talent.

Top 8 Best countries for outsourcing software development 

European countries for software outsourcing 

First, let’s look at the top 4 European countries for outsourcing software development. 

1. Ukraine

Ukraine is one of the best countries for outsourcing your software development. Developers here are known for their expertise in tech and software. Local IT markets have been growing rapidly, and the future of software development in this country sounds promising for local businesses and international markets. 

 

Most IT students in Ukraine consider programming to be their forte which will be useful for any business looking for software development talent. In 2021, the number of IT specialists in Ukraine exceeded 250 thousand individuals. IT specialists favor programming languages such as Java, C #, and PHP in Ukraine. Python is also used for data processing. 

 

Developers in Ukraine favor remote work more than other kinds of employment. As for English language proficiency, Ukraine ranks 49th in that regard. The development team you hire from the country will likely communicate effectively. 

2. Poland 

Poland is another European country where IT education is in high demand. Over 14,000 IT students graduate annually from Poland. These students are passionate about tech and have received much appreciation for their craft in international coding competitions such as the Central European Olympiad in Informatics and Google Code-in. 

 

These tech specialists are known for their broad knowledge in IT and can do wonders for your business. Polish software developers are skilled in JavaScript, React, Angular, PHP, and. NET. The highly educated workforce has made the country an ideal hub for IT outsourcing. NimbleFins recognized Poland as an IT startup-friendly country in 2021. 

 

Furthermore, Poland ranked fifth in Harvard’s Business Review’s 2019 list of the most tech-skilled labor markets in the world. Even though English is not a native language, it is the second-most spoken language in Poland. You will easily find speakers who are bilingual in Poland. 

3. Argentina 

Companies from the USA can really benefit by hiring Argentine developers due to time-zone overlap, English language proficiency, and technical knowledge. According to the 2020 Coursera Global Skills Index (GSI) report, Argentine developers rank number 1 in technical skills globally. 

 

The index further adds that Argentine developers have shown exceptional technical expertise and incredible performance in software engineering. The developers in Argentina are tech-savvy and can bring the same incredible performance and results to your business. These developers are not only talented but very common in Argentina. 

 

The government of Argentina has been taking steps to educate more people in software development. Thanks to the government initiative, there’s a large pool of software developers in Argentina. Another attractive feature of Argentina’s IT talent is that it’s easier to approach them thanks to the 2020 Teleworking Law. 

4. Belarus 

Belarus is one of the best outsourcing choices globally for software development. This country has plenty of outsourcing experience and is considered a hub for technology and IT. More than 80,000 IT specialists are in the market, and around 60% of the IT talent is being outsourced to other countries. 

 

IT and tech are the forte of Belarusian students. With over 16,000 IT graduates each year, Belarus is considered one of the best places for outsourcing software development talent. Due to this reason, software developers in Belarus are readily available. Around 2.2% of the population is actively working in IT and tech.  

 

International corporations have already established more than 50 research and development centers in Belarus. Deutsche Bank, eBay, and Bank of America are among the companies outsourcing software development talent from the country. A lot of people in Belarus also have command over the English language. 

Asian countries for software outsourcing 

 

Choosing a Country for Outsourcing Software Development (2)

Here are the top 4 best Asian countries for software outsourcing. 

1. Sri Lanka

This Asian country is the best option for outsourcing for Western companies looking for competitive prices. The main benefit of hiring IT talent from Sri Lanka is the value you get for the price you pay. Many businesses choose Sri Lanka over other Asian countries due to the information security that the country provides. 

 

Talent in Sri Lanka is rapidly expanding as IT infrastructure is steadily developing in the country. The future sounds promising for this Asian country. More than 5,500 IT graduates join the industry each year. More than 25 private institutes are also offering diplomas in IT and tech services. The country is a hidden gem for outsourcing. 

 

The government has also been taking initiatives to further expand the IT market in Sri Lanka. Compared to many other Asian countries, Sri Lanka has excelled in its quality of education. Nearly two million Sri Lankans can speak English very well.  

2. India

India is another low-cost cost option for Western companies on this list. Businesses choose India for outsourcing an array of different services. According to OurStockPick, India’s market share in the global services sourcing industry was 56% in 2018. India has a huge talent pool due to the large IT infrastructure. 

 

There is a huge demand for IT graduates and students with technical knowledge. IT has shaped Indian society in noticeable ways and will continue to contribute to the development of the country. The IT industry in India is expected to grow, and IT students from India have taken prominent positions in IT sectors all over the world. 

The workforce in India is hardworking and is known for submitting projects. If you are looking to save costs and want quality talent, you should consider India as your outsourcing hub. India is the world’s second-largest English-speaking country, so there will be fewer communication barriers. 

3. Bangladesh

Bangladesh is another Asian country with low-cost and quality software development services. According to BASIS (Bangladesh Association of Software and Information Services), more than a hundred thousand freelance software developers are working in international companies. These software developers are hardworking and meet the global industry demands. 

 

There are over 4500 software and ICT companies registered in Bangladesh. These companies have employed over 300,000 local ICT specialists and software developers. The IT infrastructure in Bangladesh is expected to grow more in the future. You can easily find capable talent in Bangladesh that meets your company’s demands. 

 

Well-known software companies such as IBM have set up their development centers in Bangladesh. Programming languages such as Python, JavaScript, and SQL. Many people in Bangladesh speak English, so you won’t face any communication issues when outsourcing software development talent. 

4. Vietnam

IT outsourcing from Vietnam is a great choice for western companies looking for quality services at a low cost. Along with China and India, Vietnam is now also appearing as a major software development hub for international corporations. Software developers of Vietnam can provide you with high-quality services that meet international demands. 

 

According to Market Insider, Vietnam is ranked 5th in the “Best countries to outsource in the world” 2019 list. The Government of Vietnam has been taking initiatives to promote technical education to citizens. The labor force is hardworking and holds exceptional command over software and technical skills. The population is highly educated and is ideal for outsourcing. 

 

According to a report, Vietnam has over 400.000 IT Engineers and over 50.000 IT graduate Students. With time, Vietnam will soon become one of the biggest outsourcing destinations for companies. More than half of the country knows and speaks English; therefore, there are no language barriers. 

Conclusion 

While each country can also have its cons depending on the needs of the business, the criteria will allow you to select the right country to outsource according to demands, budget requirements, and project specifications. 

 

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