Why is it Worth Outsourcing to Eastern Europe?

The global pandemic has changed the way we understand and treat the workforce. Why struggle with hiring in-house (which can take months) when you can partner with a reliable software outsourcing company in Eastern Europe and get the same results faster? 

With that in mind, more and more companies are opting for outsourcing and remote teams. In this article, we are going to take a look at four major reasons why outsourcing to Eastern Europe is so attractive for aspiring startups, small-to-midsize businesses, and global enterprises. 

Market overview of outsourced development in Eastern Europe

Out of the three established outsourcing regions in the world, such as Asia, South America, and Eastern Europe, the latter has an impeccable reputation for the quality of services and software developers’ dedication to projects. You may know that such world-known brands as Google, Oracle, IBM, Deloitte, and many others have chosen Eastern Europe for IT outsourcing. There are also thousands of smaller companies outsourcing in this region as well.

In Eastern Europe, software development outsourcing is among the top contributors to the countries’ exports. It means that many companies specialize solely in outsourcing services. In order to be able to compete in the global arena, these companies hire the best experts and help them grow professionally. So what makes Eastern Europe so attractive for IT outsourcing?

4 major reasons to outsource development to Eastern Europe

While there are many things that contribute to the overall popularity of the region, in this section, we want to focus on the main aspects that can tilt the scale in favor of Eastern Europe.

Tech talent pool 

As for the number of software developers in Eastern Europe, the ABSL report suggests that in 2021, the combined tech talent pool in the region exceeded 1.3 million experts. Among the top countries that have the largest number of IT specialists are Ukraine, Poland, Romania, the Czech Republic, and Bulgaria. Technically, Poland has the largest number of software developers in Eastern Europe. However, if we take a closer look, we will see that the majority of those experts are employed in companies that offer global business or shared services. And only ⅓ of them are actually involved in software development. For comparison, Ukraine has the second largest number of developers, with more than 85% of them working for IT outsourcing and outstaffing companies.

As for the remaining countries, the Czech Republic has the next largest pool of tech talent employed in Eastern European software development outsourcing. Romania has a wealth of developers, but research shows that the lion’s share of them are working for companies specializing in Business Process Outsourcing (BPO) and Global Business Services (GBS). Hungary and Bulgaria have the same tendencies as well.

Another critical aspect is the financial attractiveness of this region. The average hourly rates of professional software developers are lower in Eastern Europe than in the US, the UK, and the majority of Western Europe.

Additionally, the competition for tech talent in Eastern Europe is much lower as compared to Western Europe or the USA. There are fewer global leaders (like Microsoft), hiring directly in these countries. It means that instead of your regular 10 to 14 weeks (e.g., in the US), you can source software developers in Eastern Europe in 3 to 7 weeks, depending on your needs and capabilities of the selected vendor.

The number of companies

Overall, there are more than 3,500 software outsourcing companies in Eastern Europe, from small, boutique agencies to large IT outsourcing companies with 10,000+ employees. You can find vendors that specialize in software development, IT outstaffing, as well as niche expertise, e.g. AI & ML or Java development. The companies in this region also boast vast domain expertise. You can easily find vendors with in-depth expertise in any vertical, including fintech, e-сommerce, business services, or any other industry.

Favorable business climate

Eastern Europe has a reputation as a reliable IT outsourcing destination. Many companies have chosen to outsource their operations there or even open dedicated R&D facilities. Ten Eastern European countries were included in the A.T Kearney Global Services Location. Ukraine and Bulgaria have made it into the top 20 countries for outsourcing and are recognized for the availability of tech talent, financial attractiveness, and business environment. Many Eastern European countries are also ranked high in the Ease of Doing Business Ranking by the World Bank and Bloomberg Innovation Index. 

Finally, some countries have come to recognize IT outsourcing as a strategic industry and established programs of government support to attract potential investors. 

High-quality technical education

Many companies choose Eastern European developers for their technical education. Compared to other outsourcing destinations (e.g, Asia and South America), many countries in Eastern Europe have high-quality Computer Science education and provide easy access to higher education. Many countries have government-funded programs or provide free technical education in general.

Proper education means that Eastern European developers are more likely to have a good understanding of Computer Science, Software Engineering, and related fields and possess specific knowledge in the needed areas. They are also more likely to speak English confidently. Moreover, many companies have in-house educational programs, IT academies, and training arrangements to help their personnel grow.

Final thoughts

IT outsourcing to Eastern Europe is a great way to tap into the global tech talent pool, get access to unique or rare technical expertise, and expand your development capabilities without having to go over your budget. The region has a large number of IT experts and vendors alike, an established reputation, and a favorable business climate.

If you are looking for a reliable software outsourcing company in Eastern Europe, it’s best to choose the one with access to tech talent, an excellent business reputation, and a strong portfolio.

Why choose nCube as your IT outsourcing partner in Eastern Europe? 

• nCube has 14+ years of successful partnerships. Prominent companies, such as AstraZeneca, Greenpeace, doTerra, Life360, Encore, and many others have chosen us to become their tech partner.
• Our engineers have strong technical expertise with major technologies, including Java, .NET, Python, iOS, Android, and more.
• We boast an amazing retention rate: 85+% of experts stay over the lifetime of a project.
• More than 60% of our clients choose to expand their teams within the first year of our partnership.