December 21, 2022

What’s the Best Country to Outsource Software Development?

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For several years, software development outsourcing has been a growing trend. Now, it’s an established strategy that has proven its efficiency. Both large enterprises and small startups can benefit from IT outsourcing. That’s why this market is expanding, and experts forecast it to reach $397.6 billion worldwide by 2025. After all, when considering this model of cooperation, you can accelerate your development process with a strong team. You can also read why this is essential in our article “4 IT Operational Challenges and How to Handle Them With a Dedicated Team”.

However, even if a business decides to step on an outsourcing path, choosing a country to outsource software development remains a question. Today, companies are not limited by geography, so the pool of options lies worldwide. Which countries are best for outsourcing, and how to identify the optimal destination? Keep reading to find out.

What are the best countries to outsource software development?

The top locations for IT service outsourcing are Central and Eastern Europe. Below you can see the list of the top 10 countries to outsource IT projects based on data from several sources. The range also includes the number of outsourcing companies in each country and the average software development rates for outsourcing per hour.

# Country Top Outsourcing Companies Average rates per hour
1 Poland 537 $45-75
2 Ukraine 500 $35-50
3 Romania 173 $35-50
4 Bulgaria 121 $35-50
5 Croatia 81 $40-50
6 The Czech Republic 69 $35-50
7 Estonia 61 $35-70
8 Hungary 60 $40-55
9 Lithuania 53 $35-70


Some of the leading IT outsourcing companies in the region are Poland and Ukraine. Ukraine, in particular, features an extensive talent pool and favorable rates. Furthermore, the software developers in this country have profound skills and a broad experience across industries, including the financial sector, healthcare, IoT, e-commerce, gaming, and more. They are innovative and speak good English. Even at war, Ukrainian software development companies continue to work and support the country’s economy in this challenging period.

Poland is a central destination on a European map, meaning this country is the gateway to East and West. The 30 years of American investments in Poland report by KMPG and the American Chamber of Commerce also represents that every dollar invested in Poland by American companies creates 50% more value than other foreign investments. Nonetheless, the software development domain in this country provides affordable prices for cooperation. Polish technical specialists are proficient in English. 

Why are outsourcing software development companies in Central and Eastern Europe reliable partners? 

  • Affordable services. The creativity and professionalism of European software developers are equal to those of their North American colleagues. For example, according to DOU, the average software developer’s salary in Poland is about 3,300$ compared to 2,600$ in Ukraine. This is considerably lower than in other countries. 
  • Service reliability. Central and Eastern Europe is a great outsourcing destination when you need to streamline your software development processes and develop new features in your product. The thing is that such service providers have vast experience and can offer you their strong support. 
  • Excellent English skills. Most European software engineers are fluent in English. So, there will not be problems with communication. Moreover, American and European cultures have some of the same features allowing you to build strong relations with your partner. 
  • The opportunities for progress. To decrease operational costs, extend your in-house team, and streamline delivery processes, it’s possible to open R&D centers in Europe. 

By the way, Coreteka opened a new office in Wroclaw, Poland. This allows us to develop our company as a reliable international partner, prevent any delivery risks due to military actions in Ukraine, and offer our clients high-quality software development processes without significant increases in rates. Now, we have representatives in the USA, Poland, and Ukraine.

How to select your outsourcing route

Before determining a proper destination to delegate your project, you should consider several predominant factors that range from cultural compatibility to specific outsourcing software development terms. Here are the criteria we recommend you consider.

Analyze the outsourcing software development rates

One of the essential goals of outsourcing is reducing expenses. After all, 59% of customers start their outsourcing path by comparing costs. Therefore, choosing the most cost-efficient option is paramount.

However, you should not forget the quality requirements when comparing rates or salaries. Although resource optimization is important, you should ensure that it will never compromise the final result. So, establish your project goals, set out product requirements, and search for a team capable of performing value for money.

Our selection of the best countries to outsource software development will light up your way as it introduces the average rates you can expect to pay in the top 10 countries.

Evaluate the project complexity against the developers’ experience

You can specify your search if you know the technical stack and expertise needed for your project. Some software developers specialize in particular industries or types of products. 

Thanks to its data protection regulations, Poland is a solid destination to outsource web development, UI-related projects, and front-end and back-end development. Most IT engineers in Poland are adept in Java, Python, and Ruby.

Czech software developers are proficient in all fundamental programming languages and frameworks. The prevailing technical stack comprises CSS, HTML, JavaScript, SQL, Python, and C#.

Ukraine offers a vast array of highly qualified professionals who quickly learn new technologies and implement innovative approaches. Java and JavaScript engineers constitute the largest group. 

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Consider cultural and language aspects

Efficient communication is the backbone of a project’s success. The parties should gain mutual understanding in terms of both mentality and language.  

Culture and traditions affect working behavior and style. Therefore, you should be aware of the cultural features in the country where you will outsource your project. For instance, if you adhere to a so-called Western approach, then you should better focus on the European partnership options.

A language barrier can likewise impede a working process. During your cooperation, you’ll need to interact frequently in various forms. To make your communication productive, you should better choose a country where developers are fluent in English. 

The table below demonstrates the global ranking of countries according to Coursera’s technological skills report 2022. 

Country Technology Level
Ukraine 93%
Poland 92%
Bulgaria 86%
Romania 76%
Lithuania 75%
Hungary 72%
Estonia 62%
Croatia 45%
The Czech Republic 41%


FAQ: reliable destinations in Europe to outsource your software development

🔴 What’s the best country to outsource custom software development?

According to the ranking by Upwork, Clutch, GlassDoor, and AppFutura, the reliable destination for outsourcing are Central and Eastern Europe. However, you should make sure that the destination and the team are optimal for attaining your business goals.

⚫ How much does it cost to outsource custom software development?

Each country has its own prices. The average rates for software development outsourcing in the top 10 countries span from $30 to $75 per hour. 

🔴 How to choose an IT partner for custom software development outsourcing

You should primarily evaluate the expenses, project complexity, engineers’ experience, cultural differences, and English fluency of the developers. The skills and experience of your IT partner must match your project requirements, while cultural differences and a language barrier must not impede cooperation. 

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Final thoughts

Among the top destinations to outsource software development, Central and Eastern Europe hold leading positions. For example, Poland and Ukraine have highly qualified professionals well-versed in innovative technologies and programming languages, experienced in a wide array of industries, and fluent in English. Moreover, these countries offer the optimal combination of outsourcing software development terms and rates.

Coreteka is one of the prominent IT companies with Ukrainian roots, bringing innovations to your service. We have offices in the USA, Poland, and Ukraine. For six years of our successful experience on the market, we have completed multiple projects in retail, logistics, agrifood, and more. We specialize in developing custom solutions on an outsourcing basis to propel our customers’ businesses forward and also provide dedicated team services.