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17 May 2023

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Top IT outsourcing destinations of Eastern Europe_ Market report

When it comes to Eastern Europe, its IT outsourcing segment revenue is projected to reach US$4.17bn in 2023, meaning that the location is a promising destination to those looking for reliability. If compared to the US market, businesses will find cost-effective solutions without compromising quality. Tech experts in Eastern Europe have vast experience with different technologies, a great work ethic, and a high level of English proficiency. All summed up, their skills make them invaluable in software development and maintenance. Let’s dive deeper to learn more about the best IT outsourcing destinations in Eastern Europe today. 

Eastern European Outsourcing Market: General Overview

The Eastern European outsourcing market has been rapidly growing in recent years, attracting businesses from all over the world. The region has a highly skilled workforce with a strong focus on technology and innovation, making it an attractive option for companies looking to outsource their IT needs. Countries in Eastern Europe that are popular for outsourcing include Poland, Romania, Ukraine, Bulgaria, and the Czech Republic. These countries have developed a reputation for providing high-quality services at competitive prices.

 

One of the key advantages of outsourcing to Eastern Europe is the cost savings that can be achieved compared to outsourcing to other regions, such as the United States or Western Europe. The average salary of Eastern European developers is around $20,000 a year, though it depends on the experience level, skills, and project complexity. At the same time, US engineers make around $111,105 per year, meaning that you’ll have to pay five times as much for the same service. But cost savings are not the only benefit. The region also boasts a strong cultural fit with Western Europe, making communication and collaboration easier for companies based in this region.

 

Besides, the region has a favorable time zone difference from the United States, allowing for efficient communication and collaboration during business hours. The countries in the region also have a highly educated and skilled workforce, with a focus on technology and innovation, which can provide companies with a great competitive advantage.

 

Read more: TOP 10 team extension destinations in Europe

 

The Best Countries for IT Outsourcing in Eastern Europe

Although the entire region has a lot to offer when it comes to agile and responsive software development, here is a narrowed-down list of the best countries for IT outsourcing in Eastern Europe along with their advantages:

 

  1. Poland’s workforce is highly skilled, with an emphasis on technology and innovation. According to the research, the country currently has over 400, 000 software engineers. It also has a favorable business climate and a great cultural fit with Western Europe, which facilitates communication and collaboration. Poland is well-known for providing high-quality software development services at a reasonable cost.
  2. Ukraine has a substantial and highly qualified IT workforce (250,000+), with a significant emphasis on software development and engineering. The country also has a beneficial time zone difference from the United States, making communication and collaboration simpler during business hours. Ukraine is also known for its affordable prices and adaptable engagement strategies.
  3. Romania has a sizable (200,000) and developing IT sector, with a workforce that is highly competent and multilingual. Also, the country has a cheap cost of living, which translates to lower labor costs for enterprises. Romania is well-known for its capabilities in software development, automation, and testing.
  4. Bulgaria has a highly educated and professional IT workforce of over 66,000 people, with a significant emphasis on software development, engineering, and cybersecurity. In addition, the country offers a good business climate, with low taxes and a highly competitive cost of living. Bulgaria is well-known for providing high-quality IT services at reasonable prices.
  5. The Czech Republic has a large IT workforce (about 100,000 people), with a heavy emphasis on software development and engineering. In addition, the country boasts a favorable business climate and a highly competitive cost of living. The Czech Republic is well-known for its IT consultancy, software development, and cloud computing capabilities.

 

These countries offer a variety of advantages for IT outsourcing, including highly skilled workforces, favorable business environments, and competitive pricing. Companies looking to outsource their IT needs to Eastern Europe should consider these countries based on their specific needs and requirements.

 

Related: A Guide to the Software Development Team Structure

 

Possible Disadvantages of IT Outsourcing in Eastern Europe

Outsourcing IT services to Eastern Europe has numerous benefits. They include highly qualified workforces, advantageous business environments, and low pricing. Yet, there are certain possible disadvantages that businesses should be aware of. Communication difficulties and time zone variations can lead to misconceptions or breakdowns in communication. In some countries, political and economic volatility can cause uncertainty and dangers for outsourcing enterprises. Keeping quality control over outsourced services can be difficult, and intellectual property protection in some Eastern European countries may be worse. As the demand for IT services in Eastern Europe grows, there may be more competition for talent. It results in an increased turnover or rising labor costs. Businesses considering outsourcing their IT services to Eastern Europe should carefully examine the potential benefits and drawbacks before selecting a reliable outsourcing partner to assist reduce these risks.

 

Eastern European IT Outsourcing: Conclusions

Overall, the Eastern European outsourcing market is a highly attractive option for companies looking to outsource their IT needs. The region offers a highly skilled and educated workforce, a favorable time zone difference with the United States, and cost savings compared to other regions. Still, your project’s success mostly depends on the software development partner you choose to collaborate with. Nearshorefriends is a reliable partner with 7+ years of experience, and development centers around the globe including Bulgaria, Portugal, Tunisia, Ukraine, and LATAM. We know what it takes to develop quality solutions for your business. Contact us today to discover more. 

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