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The potential of the software development market is impressive. In 2021, total spending on IT services over the world is expected to reach $1.2 trillion. Covid-19 has only accelerated its growth. IT services have seen a 9.8% increase compared to the previous year. Today, competition also surges among the best countries to outsource software development.
US, Western Europe, Eastern Europe, Asia - they all have differences in software development outsourcing. For example, the US has high salary rates, while Asian specialists are considered the cheapest.
However, salary rate is not the only factor that influences the choice of the country to outsource software development to. Competency and skill level matter a lot. If you are looking for a Scala developer, you won’t hire a C++ engineer because the price is lower.
Let’s compare all crucial factors for choosing dedicated developers and define what countries are perfect for software development outsourcing. Ukraine, Poland, India, Argentina - these are basic countries that evoke the curiosity of the businesses when it comes to choosing the best countries for outsourcing software development. Are they the best? We’re going to find the answer together.
Read Also: Why Engineers Can't Estimate Time: Software Development Estimation The Right Way
What makes a country good for software development outsourcing?
Before we start our analysis, we need to define the factors that are vital for all companies. They will lay a foundation for the research of the best overseas software development countries.
Costs
We’ll be honest: the hourly rate of the specialist is one of the most important aspects. Costs vary in different regions, and they are different across the states.
According to Indeed, the average salary rate for software developers in the US is $43.62. However, if we take different regions (states and cities), the situation isn’t the same. In New York, NY, the hourly rate of the software developer is $52.72. A software developer from San Francisco, CA, will earn $62.42 per hour. In Miami, FL, the same-level specialist will get only $37.48.
Also, the hourly rate will depend on the specialization of a software developer. Programmers use different languages for coding, and these languages vary in complexity, popularity, and demand.
For example, the top 5 programming languages in 2021 are JavaScript, HTML/CSS, Python, SQL, and Java. In 2015, the situation was different, and the top 5 languages were as following: Java, JavaScript, SQL, C/C++, and C#.
The hourly rate also depends on the level: trainee, junior, middle, senior, team leader, or CTO.
A trainee and a junior-level specialist have lower rates, while rates of CTO are far higher. Indeed reports demonstrate that a junior software developer can get around $18.38 per hour (in the US), while the rate of a CTO is approximately $57.82.
Popular programming languages
In different regions and countries, the preferences in programming languages vary. When choosing amongst the top software outsourcing countries, you should remember this fact. It will help you save time and money, as you will start recruitment from the countries with a bigger number of such specialists.
Education
The best country to outsource software development is always the one with a high level of education. The difference between countries providing basic computer science and information technology education and a profound approach to STEM studies is phenomenal. The first rarely demonstrate good programming skills, while the second is those who lead artificial intelligence development.
Knowledge of English
The best IT outsourcing countries are not English-speaking. But it’s not a problem for some of them since they operate globally. They see that if they want to work with a team from any part of the world, they need to speak English. The basic level is not enough, as communication requires understanding from both parties.
Mentality and soft skills
It is perhaps one of the least obvious points when discussing team outstaffing in the IT industry. When working with in-house engineers, companies only test their soft skills. But for offshore experts, it is not enough. It would help if you were sure that an expert’s mentality and culture fit aligns with your business. Thus, you will easily find mutual language regarding the approach to work.
Best countries for outsourcing software development
What are the best countries for outsourcing software development? In our list, we will compare the representatives of 5 main destinations for outsourcing: Ukraine, Poland, India, Argentina, and China. Perhaps, next time you will hire a specialist to develop an application from one of these top outsourced countries.
Top supply IT services regions
Ukraine
Recently, Ukraine has become one of the best countries for offshore software development. According to the Software Development in Ukraine, Poland, Belarus, and Romania report, Ukraine has 172,000 IT professionals, 23,000 annual engineering graduates, 750+ IT services companies.
Samsung, Siemens, Sitecore, and other Fortune 500 companies have their R&D services in Ukraine. Ukraine has a developed ecosystem with various companies, associations, and investors. It regularly provides offshore recruitment services and attracts vendors from all over the world.
H4 Costs for software development in Ukraine
According to the local Ukrainian IT website DOU, the prices for software development differ depending on the programming language, level of specialists, and region.
The average salary for a Java software engineer in Kyiv (one of the largest Ukrainian IT clusters) is $2,500. In Lviv, the average salary is $2,400. In Dnipro - $2,000.
Read also: Offshore Software Development Rates
Programming languages
Ukraine is one of the top IT outsourcing countries where the market for programming languages is huge.
The top 10 programming languages in Ukraine are:
- JavaScript
- Java
- C#
- Python
- PHP
- C++
- TypeScript
- Swift
- Kotlin
- Ruby
- Go
- 1C
- C
- Scala
Education
In Ukraine, IT education is on a high level. Still, the number of students is mediocre, about 16,000 per year. It is expected that in 2024 the number of students will reach 20,000 and demonstrate an increase of 23%.
Knowledge of English
According to one of the latest researches, 85% of Ukrainian tech specialists have a good command of English: Intermediate and Upper-Intermediate.
Any foreign firm planning to hire IT specialists from Ukraine may expect that communication with developers will not be a problem.
Mentality and soft skills
One of the biggest advantages of Ukrainian IT developers is the mentality. The matter is that Ukraine is a European country. Therefore it shares a lot with the EU countries. Ukrainians’ mentality and business approach won’t be a problem for US companies that work with the EU.
Poland
It’s impossible to imagine the list of the top IT outsourcing countries without Poland. Currently, Poland has 255,000 IT specialists, with 15,000 students graduating annually. According to Statista, the turnover in the IT market will reach $12.4 billion by 2021.
Many international companies have R&D offices in Poland: IBM, Nokia, Intel, Motorola, and Samsung. The overall number of IT specialists working for these companies is 15,000.
Costs for software development in Poland
Glassdoor provides a review of salaries for software developers from Poland. The average monthly wage is $2,463.
However, according to Payscale, the hourly rate of an average software developer from Poland is approximately $13. The senior software developer rate is about $27. CTO hourly rate is $32.
As we can see from these numbers, the salary and the rates of software developers from Eastern Europe are almost the same.
Programming languages
In 2020, the most popular programming languages in Poland were JavaScript, Java, and Python. Additionally, Poland is one of the best outsourcing countries with specialists who use C#, PHP, C++, TypeScript, Swift, and other programming languages.
Education
Poland is one of the IT destinations with a strong educational background. University of Warsaw (the country’s number one university to study computer sciences) is ranked 260 in the World Rank of Best Universities.
Knowledge of English
Where to outsource software development with good English and other languages? Poland is the answer. According to the latest studies, 31% of Polish IT specialists have an advanced level of English, while 53% have Upper-Intermediate and Intermediate.
Many Polish developers also speak German, Russian, French, Spanish, and Italian, making Poland one of the most comfortable countries for software outsourcing.
Mentality and soft skills
Like Ukraine, Poland is an Eastern European country with almost the same mentality as many other European countries. Therefore, there will be no problems with communication.
India
India is known for its low cost and a huge number of specialists working with different programming languages. According to the latest studies, India is the fastest-growing software developer base.
However, there’s one big problem the Indian IT industry is suffering: Aspiring Minds states that less than 5% of candidates can write correct custom code. Therefore, over 95% of developers are unfit for the job worldwide.
Still, IT service exports from India reached $79 billion in the fiscal year 2020.
Costs for software development in India
India is the country with the lowest outsourcing rates for software developers. PayScale gives us the following data:
- The average software developer salary in India is only $6,46 per hour
- CTO average salary per year is $39,378
- A junior software developer will earn only $4019,59 per year
Programming languages
Indian developers follow the world's tendencies and choose the most popular languages for programming. In 2020, about 35% of Indian respondents named Python as the best language for programming.
Education
There are four basic IT specializations in India: Bachelor of Computer Applications, Bachelor of Science in Hardware & Networking, Bachelor of Science in Information Technology, and Bachelor of Technology. However, the level of education is pretty low, which results in the level of graduated specialists.
Knowledge of English
Mostly, Indian software developers have a satisfactory command of English. It won’t be a problem for you to discuss some work issues rather in written or oral form.
Mentality and soft skills
For US and EU companies working with Indian specialists will be comfortable, though some miscommunication issues may appear. We would recommend discussing all work agreements beforehand to make sure that both parties are ready for commitments.
Argentina
There are over 134,000 developers in Argentina. In 2019, the number of employees in the IT sector was over 111,000, with general revenue of 149 billion Argentine pesos.
Argentina has a favorable climate for software development. Different governmental initiatives support the industry, like Programa Aceleradoras Buenos Aires Emprende and Plan 111 Mil.
Costs for software development in Argentina
Like in other top IT outsourcing countries, the salary rate of software developers depends on their skill set and experience.
The average developer salary is $58,392 per year, while Senior specialists earn up to $82,796.
Programming languages
Three most popular programming languages in Argentina are:
- JavaScript
- HTML
- Python
C# and C are also among the most demanding languages.
Education
Just imagine: Coursera’s Global Skills Index Report 2020 ranked Argentina 22nd in global data science skills rating!
Moreover, in 2019, Argentina was 29th on the list of top countries for education. There are no problems with education in the country.
And finally: 7 Argentinian universities are among the Best Global Universities. It makes Argentina the best country for getting an IT education.
Knowledge of English
Although Argentina is a Spanish-speaking country (which makes it attractive for Spanish-speaking firms), the English Proficiency Index in the country is 566 out of a maximum of 800 points. It is the highest rate in Latin America.
Mentality and soft skills
It’s easy to work with developers from Argentina, but you need to remember: management processes must be clear, and both sides must obey all the arrangements.
Tips for Choosing the Best Country to Outsource Software Development
The best countries to outsource software development cannot be put into one single list. We always have certain preferences which help us to make a choice.
Here are some effective tips that will help you define the best destination
for IT outsourcing:
- Check the costs of software development: low costs are not always good, but $15-20 per hour is normal for many Eastern European and Asian countries
- Check the time zones: it’s always better to work with a specialist from the same time zone as you
- Check the location: if you are planning to communicate with an outsourcing specialist directly, it will be nice if you could travel to the destination point within 3-4 hours
- Check the programming languages: obviously, the most popular programming languages are popular everywhere. However, some regions prefer certain languages over others, which affects the demand and the prices. If you are looking for an expert for medical or healthcare startups, the choice of languages will differ from fintech.
- Check how to communicate: languages and means of communication are equally important!
Ready to outsource overseas? Try Softermii
With a huge variety of destinations for outsourcing, you may be frustrated with the options. All offshore software development countries have their pros and cons, and it’s hard to choose only one.
We don’t insist you choose the country for outsourcing. Better look for a team of specialists for the particular product. In this way, you will be sure that no matter where the developer is located, the results of the cooperation are perfect.
We at Softermii are always ready for cooperation as outsourcing professionals. If you are looking for a dedicated team, we’ll be the best choice for you. We hire only professional developers. It allows us to deliver the best services at a reasonable price and provide complex architect solutions for worldwide companies, R&D centers, startups, and SMB.
An outsource dedicated Softermii team will help you save costs on development, work with the best talents and industry experts, scale your growth and start working on the project whatever you want and wherever you are.
Every team member has a good command of English (at least B2), which
makes us open to worldwide projects.
Let us know if you're interested in
cooperation, and we'll contact you to discuss how we can help you!
Frequently Asked Questions
What are the benefits of software outsourcing other than cost-saving?
Outsourcing companies allow you to start working here and now. They do not require time for the buildup. Outsourcing companies have extensive development experience. Based on their experience, they will help you avoid mistakes when creating your software.
What is the best country for software development?
It is very difficult for us to name the single best country for software development outsourcing. Rather, we can single out the TOP of such countries. This is what we did in our study. Among other things, in our opinion, the countries of Eastern Europe, such as Ukraine, Poland and Romania, remain the best.
What are the risks of software development outsourcing?
The biggest risks associated with software development outsourcing include hidden costs, communication barriers, security and privacy risks, and inefficient task management.
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