Software Development Outsourcing to Eastern Europe: Which Country to Choose in 2023?

Top Coder ranking currently features Polish developers at 4th place in the world in terms of skills. Number of certified IT specialists has increased by 29K, which in total means 212,000 professionals. Such international enterprises as Fluke, Gogo, Currencycloud, and many Fortune 500 companies are among our clients. With over 20+ years on the market, N-iX has opened its offices in many countries of Eastern Europe, including Poland, Ukraine, and Bulgaria.

Slovakia has the highest score for software development skills worldwide. In the last decade, the country grew in both software development and computer technologies. Also, the Slovak IT sector has over 92% of professionals who are fluent English speakers. People consider the United States, China, and India as excellences in software development. However, in the past few years, countries in Eastern Europe came into play with talented software engineering talent. As a result, established tech giants like Microsoft, IBM, Google have shifted their focus to hiring programmers in Eastern Europe.

Convenient location and time zone

Bulgaria—In Bulgaria, there are more than 3,000 IT and engineering graduates each year. Internationally, Bulgaria’s software developers are ranked #12 as the best developers, while its Java and Python developers are ranked #2 and #3 as the best developers with domain expertise. Poland — According to infoShare, Poland has nearly 250,000 software engineers with about 20% of them involved in outsourcing. This pool of engineers is a rich resource for different types of programming languages such as Java, Python, and Ruby. According to PayScale, the average salary for a software developer in Poland is $23,912 a year while a software developer in the U.S. has an average salary of $69,083 per year. Besides, specialists follow the newest development tendencies and work with the most popular programming languages.

• For example, if your company is in Western Europe, the divergence is almost non-existent .
• In fact, Eastern Europe software outsourcing is so big in Ukraine that it’s now home to affiliate research facilities for some of the world’s biggest companies.
• Now in Ukraine, there are about 285,000 IT professionals, over 30,000 entry level-specialists, and more than 110 R&D centers of international companies, including Microsoft, Dell, Cisco, SAO, etc.
• Also, we considered certifications, partnerships, and the biggest clients.
• As a whole, more than 65% of companies who outsource do so in Europe, according to Deloitte’s research.

Our superpower is connecting you with a perfect, highly skilled developer from Eastern Europe and ensuring you and our IT professionals are satisfied with the result. This region has been dubbed the Silicon Valley of Europe and has attracted numerous multinational companies to set up their research and development here. Western Europe is slightly more expensive for employers and business owners than Central and Eastern Europe in terms of outsourcing tech teams. When you’re jump starting a business, one of the first steps you’re bound to take is doing the math thoroughly and calculating the potential costs.

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I will also share an actionable plan and a checklist for sourcing top developers and entire tech teams, verifying their capabilities, evaluating proposals, and signing contracts. These are fast solutions if you are in urgent need of hiring a developer. However, there is no vetting, so you could spend time and resources interviewing many candidates with no guarantees. Poland’s tech industry generates over 29% of jobs in the Polish labor market, with over 250,000 programmers. Predictions estimate that by 2021 the revenue will grow up to $12.1 billion.

The highest rates for all types of developers among the reviewed countries are in Poland—$50-$99/hour, which is still lower than in Western Europe. Not surprisingly, software development javascript engineer salary companies in Eastern Europe did very well here, with Poland at #3, Hungary at #4, and Ukraine at #5. But of the outsourcing companies in Eastern Europe, Ukraine comes out ahead.

Reasonable development costs

Check the key statistics on software development outsourcing to Ukraine below. Not only is there a vast talent pool, but Ukrainian professionals also rank 7th in the level of technical knowledge in the world, according to Coursera Global Skills report for 2021. Solid expertise in custom software development and new product launch since 1996.

Furthermore, R&D companies pay no income tax during the first ten years. Romania offers offshore software development services to big technology businesses such as Gameloft, HP, and Oracle. Bamboo Agile offers full-cycle software development services in Telecommunications, Shopify solutions, High-load systems, Educational technology, and more. This trusted company sticks to the Agile approach and Continuous delivery in their work. Namely, affordable offshore development rates, many talented professionals, low taxes, a large number of companies on the market, etc. We will focus on the three most common reasons companies outsource over traditional in-house teams.

Around 75,000 STEM graduates hail from Belarus every year and are projected to increase by 22% by the year 2025. The technical excellence of these graduates displays competence as they undergo training from major software companies like IBM, Microsoft, and Micro Focus among others. Additionally, the low cost and geographical location pose a favorable and practical advantage to any organization that will offshore to the country. However, there is something about Europe that makes it fit for many companies to offshore their business. In the past few years, Eastern Europe-based software developers became the new power for technology rise. In Eastern Europe, software development companies have a diversified tech specialization.

ServicesCustom Software DevelopmentFind a reliable offshore software development company with proven experience in your particular domain. The IT sector in the Czech Republic earns $3 billion in annual revenue and currently employs approximately 155,000 people. The country has over 180 service companies, most of them located in Prague. It’s also a rich software talent pool because most of its tech professionals are fluent English speakers. The software development industry represents about 6% of the Hungarian economy.

The best software development vendors in Eastern Europe

To successfully verify skills and experience when opting to hire developer in Europe, it is best to work with an outsourcing company or recruiter who can take care of these processes. Eastern Europe has a convenient geographical location that allows for productive cooperation and communication with the clients from the Western markets. There are 580,000+ IT specialists in Eastern Europe, which translates into a broad pool of developers to hire. Outsourced software development accounted for 6.6% of Bulgaria’s GDP, or $3.8 billion, in 2020. Not surprisingly, it is one of the most important Eastern European countries for tech outsourcing.

Compare that to the salary of a senior software developer in the U.S. with USD 138k/yr. Did you know Ukraine has the second-largest global JavaScript, Java, and C# communities? Are you considering hiring an experienced Eastern European developer but are still undecided? Technical experts from Eastern and Southern Europe are outstandingly qualified.

Among the 280,000studentsenrolled in universities, over115,000specialize in the fields of IT, Mathematics, Economics, and Administration. Now in Ukraine, there are about 285,000 IT professionals, over 30,000 entry level-specialists, and more than 110 R&D centers of international companies, including Microsoft, Dell, Cisco, SAO, etc. The Ukrainian IT industry accounts for about 5% of the country’s total GDP and is a prevalent sector of the Ukrainian economy.

The region is close to Western Europe, so the choice of popular languages is almost the same. Ukraine, Poland, Romania, Belarus, Czech Republic, Hungary, and Bulgaria are the main IT outsource destinations in Eastern Europe. The technical storage or access that is used exclusively for anonymous statistical purposes. Software development in Eastern Europe is a major business enabler of digital transformation and acceleration. Infopulse has helped one of its clients replace an outdated data center with an IT infrastructure in the Cloud. ELEKS has built a network of 47 smartwatches for real-time phone-free communication and boost interactions among the AdForum Worldwide summit participants.

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This article reviews software developers’ hourly rates in the European outsourcing market — one of the most comprehensive worldwide. The numbers you’ll see are based on the rates indicated by the two largest rating & review platforms in the IT field — Clutch and GoodFirms. So if you’d like to find the perfect country to outsource software development – keep reading.

Part I. Top 15 software development companies in Eastern Europe

Local developers work using mostly JavaScript, Java, and PHP stacks for their projects. All in all, there are more than around 100 IT outsourcing companies in the country. Another location that houses a considerable number of Eastern European software developers is Romania. The main industry vectors among Romanian developers are e-commerce, education, healthcare, and telecom. Clutch lists more than 200 midsize and large engineering companies in Eastern Europe. Rather than small vendors, larger companies usually have optimized development processes and available resources to scale.

Why choose Sigma Software as an IT outsourcing development company in Eastern Europe?

However, there are certain challenges that are encountered by the software development industry in Eastern Europe. Regardless of the 1 million and growing number of software developers, there is still a shortage of talent in their backyard relative to the demand for developers from clients around the globe. Full Scale is a company that helps businesses find and hire programmers, designers, project managers, web and mobile application developers, content developers, and QA testers.

They can solve complex problems, create human-centered digital products. Leading technologies this company leverages are Node.js, C#, Python, Golang, PostgreSQL, SQL Server, MongoDB, Firestore, Redis, Heroku, AWS, GCP, Azure, React, Gatsby.js, Next.js. Ukraine is one of the leaders in the quality of development in Europe, as the legacy includes a large number of research centers and quality technology education.