Your Complete Guide to Eastern Europe Outsourcing 

Hiring top developers locally is expensive and slow. But what if you could build a senior-level team in 4 weeks, at 50% less cost and without compromising quality?

Home to tumultuous powerhouses like Poland, Romania, Ukraine, Hungary, and the Czech Republic, Eastern Europe offers businesses a proven way to scale their teams quickly and efficiently, without the costly delays often associated with traditional hiring.

In this post, we break down the region’s top outsourcing destinations, including their cost, tech strengths, business environment, data regulations, and English proficiency. We also review the benefits of outsourcing to Eastern Europe and the concrete steps you can take to kick off this strategy. Let’s begin!

Why is outsourcing software development to Eastern Europe so popular? A brief overview

#1 A broad talent pool with strong tech backgrounds:

• 2 M+ skilled tech professionals available for IT outsource in Eastern Europe;
• 35,000+ ICT graduates yearly from top-ranked technical universities;
• 180,000+ students enrolled in IT programs;
• 3.2% of the workforce is employed in ICT.

#2 Up to 70% lower costs than in North America and the EU:

• $25–$49/hour average cost of development outsourcing for verified vendors;
• $37–$101/hour vs. $100–$150/hour in the U.S. software development rate for senior-level professionals.

# 3 Quality without compromise:

• World-class experts in backend, frontend, AI/ML, Data, Cloud, DevOps, and cybersecurity;
• Fluent in English;
• Vast experience in software development outsourcing in line with Western delivery standards;
• Outsourcing to Eastern Europe has built-in scalability with flexible price models, such as Staff Augmentation, Dedicated Team, R&D center, and more.

# 4 Cultural and communication fit:

• Strong English proficiency across Poland, Romania, Ukraine, Czechia, and more;
• Outsourcing in Eastern Europe aligns with US and EU business ethics, agile workflows, and tech practices;
• Faster onboarding, clearer collaboration, and fewer project risks due to broad experience in European outsourcing.

# 5 Time zone & regulatory advantage:

• Full overlap with the EU; partial day overlap with the US, enabling real-time collaboration;
• Outsourcing to Eastern Europe is GDPR-compliant, with strong IP protections and clear legal frameworks.

Top countries for software development outsourcing in Eastern Europe

Several software development outsourcing destinations stand out in the region for their robust IT sectors: Poland, Ukraine, Romania, Bulgaria, Hungary, and the Czech Republic.

For your convenience, here’s a snapshot of this destination:

Country	Tech talent population	Average rate ($/hour)	Popular technologies	English skills
Poland	~400,000	$30–$55	Java, Python, React, .NET	High
Ukraine	~350,000	$25–$50	JavaScript, PHP, C#, QA	Moderate
Romania	~250,000	$25–$45	Java, C++, .NET	High
Hungary	~80,000	$30–$55	Python, Java, Mobile Dev	High
Czech Republic	~110,000	$35–$60	Java, C++, Scala	High
Bulgaria	~70,000	$25–$45	PHP, JavaScript, Python	Moderate

Poland

Poland offers one of the strongest, most well-rounded outsourcing landscapes in Eastern Europe. It combines a deep talent repository, competitive costs, high English proficiency, and robust alignment with EU legal and cybersecurity standards. If you’re looking to build a scalable, long-term engineering capacity, Poland checks all the boxes.

Based on the Emerging Europe 2024 Index, Poland ranks high as Eastern Europe’s software outsourcing hub:

• #4 overall;
• #5 in Talent (Score: 18.83);
• #5 in IT Infrastructure (Score: 10.58);
• #6 in Economic Impact (Score: 10.36);
• #9 in Business Environment (Score: 13.98).

The largest IT talent population in the region: Poland boasts over 400,000 software developers.

Strong startup and R&D ecosystem: Poland is among the most competitive and digitally mature countries in the region, with robust support for VCs, accelerators, and digital transformation programs.

High English proficiency and tight EU integration: Poland ranks 13th globally in English proficiency. As an EU member, it also offers GDPR compliance, modern digital infrastructure, and a secure legal framework for IP and contracts, making outsourcing in Eastern Europe as secure as possible.

Tech specializations: Polish developers bring depth and versatility in modern technologies, including:

• Java;
• Python;
• .NET;
• AI/ML;
• DevOps;
• Cloud.

Competitive rates: Despite its maturity, Poland remains a cost-effective option across Eastern European outsourcing. Developer rates range from $30–$55/hour, offering up to 50% savings compared to US and Western European equivalents.

Major tech hubs: Top cities that play a key role in the European software outsourcing include:

• Warsaw: Poland’s tech and enterprise capital;
• Kraków: Global delivery centers;
• Wrocław: A fast-growing R&D hub.

Ukraine

In the landscape of Europe software development outsourcing, Ukraine is a source of deep technical expertise, strong academic backgrounds, and competitive pricing. Despite ongoing challenges, Ukraine continues to deliver top-tier talent trusted by global companies.

Based on the Emerging Europe 2024 index, Ukraine ranks:

• #16 overall across the region;
• #7 in Talent (Score: 17.62);
• #11 in IT Infrastructure (Score: 9.10);
• #12 in Business Environment (Score: 7.82);
• #12 in Economic Impact (Score: 7.79).

A robust IT talent pool: As of 2024, Ukraine has approximately 300,000 IT specialists involved in IT outsourcing Eastern Europe, placing it among the largest tech workforces in the region.

Technical versatility: Ukrainian developers are highly capable across:

• Front-end and back-end development;
• Mobile engineering and QA;
• AI, data science, DevOps, and other emerging tech fields.

Thanks to deep tech capabilities and a problem-solving mindset, Ukraine is a strong pick for both product development and sustainable innovation.

Established tech hubs: Major IT hubs like Kyiv and Lviv are home to over 4,000 software development outsourcing companies.

Global readiness: Most local developers are fluent in English, familiar with agile workflows, and experienced in collaborating with US, UK, and EU-based clients.

Competitive rates: The rates of local software engineers typically range from $25 to $50/hour. With savings of up to 60% compared to the US and EU, Ukraine remains one of the most affordable outsourcing options for companies seeking senior-level talent at competitive rates.

Romania

Romania’s tech sector has grown significantly in recent years, expanding from 202,000 software developers in 2023 to over 250,000 in 2024.

Based on the Emerging Europe 2024 index, Romania boasts:

• #5 overall across the region
• #3 in IT Infrastructure (Score: 12.82)
• #5 in Talent (Score: 16.82)
• #6 in Economic Impact (Score: 10.43)
• #10 in Business Environment (Score: 12.97)

Versatile tech expertise: Local developers are experienced in:

• Java;
• C++;
• .NET
• Cybersecurity;
• Cloud;
• Enterprise software.

This diversity makes them a great fit for projects across Fintech, Healthcare, SaaS, and AI solutions.

Strong English skills: Romania consistently ranks among the top globally for English proficiency, making the country a reliable choice for IT outsourcing in Eastern Europe.

Best development rates in the region: Rates typically range from $25–$45/hour, which means Romania is the most affordable outsourcing destination among the countries we reviewed.

Established tech hubs: Bucharest is the hotspot for Eastern European software development outsourcing, accounting for 68% of IT activity in the country. Other IT hubs with strong ecosystems include Cluj-Napoca, Timișoara, and Iași.

EU-backed business environment: As an EU member, Romania offers GDPR compliance and strong IP protection, providing a lower-risk route for companies building R&D centers or outsourced product teams.

Hungary

Hungary is a cost-effective and technically advanced outsourcing hotspot in Central & Eastern Europe. The country boasts the EU’s lowest corporate income tax (9%), strong IT export orientation, and focused specialization in the Automotive and Mobility verticals.

Internationally oriented IT workforce: Hungary is home to 80,000+ tech professionals, many of whom work at R&D centers. The local IT sector is highly globalized, with 55% of local tech companies generating revenue from international clients.

Based on the Emerging Europe 2024 index, Hungary is positioned across the region:

• #8 overall across the region.
• #4 in Talent (Score: 19.00);
• #9 Economic Impact Score;
• #6 in IT Infrastructure (Score: 10.88).

Technical capabilities: Local developers bring strong expertise in:

• Backend (Java, .NET, PHP);
• Embedded software;
• Connected mobility;
• Enterprise digital transformation.

Strong English proficiency: Ranked #17 globally in English proficiency, Hungary’s staff will ensure effective communication with your local teams.

Cost advantage and favorable tax policy: Developer rates range from $30–$55/hour, which is some of the highest costs in European software development outsourcing. However, corporate income tax of 9% is the lowest in the EU, providing financial advantages for long-term R&D or project outsourcing initiatives.

Tech hubs: If you’re searching for an outsourcing company in Central and Eastern Europe, Budapest is the core hub in the region for outsourcing partners, R&D centers, and product companies.

Czech Republic

The Czech Republic is one of Central Europe’s most technically mature nations. It combines deep tech expertise, EU regulatory stability, and an innovation-first mindset. The IT workforce is focused on embedded systems, gaming, and industrial software projects. If your company stems from Automotive, Healthcare, or Finance, the country is ready to meet your needs.

Skilled, educated talent pool: With an estimated 110,000 tech professionals, roughly 4.3% of the national workforce is employed in ICT.

According to the Emerging Europe Index 2024, the Czech Republic ranks:

• #9 overall across the region;
• #10 in Talent: 15.22;
• #8 Economic Impact Score: 11.06.

Technical expertise: Local developers are recognized for strong capabilities in:

• Embedded systems;
• Hardware-software integration
• Big data and complex software architecture
• Game development;
• Sector-specific solutions in Automotive, Fintech, and Healthcare.

Innovation and digital competitiveness: International businesses appreciate the Czech Republic as a notable European outsourcing destination for its commitment to R&D, digital transformation, and STEM education.

Strong English proficiency and proximity to EU markets: Ranked 25th globally in English proficiency, local developers integrate well into international teams. Located in the heart of Europe, the Czech Republic offers a convenient time zone overlap with both Western Europe and the US East Coast.

Premium talent at predictable rates: Ranging from $35–$60/hour, the rates are above average for Eastern European outsourcing. While higher living costs and taxes are contributing to this, the country compensates with a mature ecosystem and world-class STEM education.

Key tech hubs: Prague is the country’s capital and a financial and startup hub. Brno has a developed gave dev and embedded ecosystem, while Ostrava is a fast-growing industrial tech and R&D center.

Bulgaria

Bulgaria is a rising player in outsourced development in Eastern Europe, offering reliable engineering capabilities, highly competitive pricing, and one of the most diverse tech workforces in the region. If you’re looking for affordability, EU compliance, and communication ease, Bulgaria is a strong candidate.

A growing workforce: Bulgaria is home to 70,000+ ICT professionals, with the sector growing by 7% annually over the past decade.

Here are the highlights from the Emerging Europe Index 2024:

• #12 overall ranking across the region;
• #13 in Talent;
• #7 in IT Infrastructure.

Technical capabilities: Bulgarian developers bring practical expertise across:

Web development: eCommerce platforms and automation

• JavaScript;
• C#;
• Java;
• C++;
• PHP;
• .NET;
• Python

High English proficiency: English is common among Bulgarian IT professionals. Moreover, the country’s work culture and communication styles align well with those of Western business.

Cost-effective rates and business-friendly taxation: Average developer rates are $25–$45/hour, given that the country has one of the lowest costs of living in the EU. A flat 10% income tax, making it easier for outsourcing companies to offer competitive pricing.

Diversity: Bulgaria leads the outsourcing in Europe in terms of gender diversity, with the highest proportion of women in tech. This is a clear advantage if you prioritize inclusive hiring when you plan to outsource development in Eastern Europe.

Key tech hubs: Sofia is the capital and home to multinationals and startups alike. Other notable IT hotspots that offer competitive operational costs are Plovdiv, Varna, and Burgas.

Regulatory and IP confidence: As an EU member, Bulgaria guarantees GDPR compliance, robust IP protection, and transparent outsourcing contracts.

Benefits of outsourcing software development to Eastern Europe

Access to highly qualified, multilingual developers

For tech leaders looking to scale quickly with high-impact talent, European software development outsourcing is backed by the world’s most robust developer pipelines, estimated between 1M and 1.3M engineers. The countries we review in our post account for a pool of 1.15 million IT talent.

Backed by strong STEM education systems in countries like Poland, Ukraine, Romania, and the Czech Republic, these developers bring advanced degrees, hands-on experience in fields like AI, ML, cybersecurity, and data analytics, alongside capabilities to support complex IT projects.

Plus, with strong English proficiency and widespread multilingual capabilities (German, French, Spanish), Eastern Europe software outsourcing makes collaboration seamless and culturally aligned.

Up to 50% budget saving without sacrificing quality

A lower cost of living drives savings, but it’s the technical excellence and professionalism that make IT outsourcing in Eastern Europe a reliable long-term talent strategy.

With senior-level developers charging $30 to $59/hour, compared to $78 to $125/hour in North America, outsourcing software development to Eastern Europe is a great cost-cutting tool. You can save as much as 70% while still working with top-tier talent.

Cultural and time zone alignment

One of the common reasons to outsource development in Eastern Europe is how well teams integrate both culturally and operationally. The region shares many business values with the Western world, including collaboration, reliability, and innovation. Moreover, local IT experts value creativity, hard work, and communication.

As a tech leader, you’ll notice that their communication style and approach to problem-solving are familiar, which reduces the onboarding period and makes daily teamwork smoother.

Software development Eastern Europe enables real-time collaboration with both Western Europe and parts of the US:

• Central & Eastern Europe (CET/EET) vs. Western Europe: 0–2-hour difference
• CET/EET vs. US East Coast (EST): 6–7 hours ahead
• CET/EET vs. US Central Time (CST): 7–8 hours ahead
• CET/EET vs. US West Coast (PST): 9–10 hours ahead

This allows you to align the morning hours of your Eastern European team with the late-night hours of your US-based team.

Fast ramp-up of teams with deep technical expertise

When you need to scale fast and fill niche roles, whether in Data, AI/ML, Cloud, or Embedded Systems, Eastern European software outsourcing stands out as a smart, strategic move.

Countries like Poland, Romania, Bulgaria, Czechia, and Ukraine consistently rank among the top global development outsourcing destinations, backed by a strong bench of engineers and fluency in modern tech stacks.

According to the IT Competitiveness Index, Poland and the Czech Republic lead the region thanks to their strengths in talent availability, R&D investment, and IT exports. Poland ranks first in data science and analytics, while Czechia is recognized as a top destination for robotics and automation.

Thus, tech leaders working on AI-powered platforms, scalable cloud infrastructure, or complex backend systems, Eastern European outsourcing offers the speed and skillset to ramp up quickly.

Strong focus on data security and compliance

Eastern Europe outsourcing offers not only technical excellence but also peace of mind when it comes to data protection and legal compliance.

Most countries in the region are members of the EU, such as Poland, Romania, the Czech Republic, and Hungary. It means that they fully adhere to the General Data Protection Regulation (GDPR). This ensures that any software development project done with an outsourcing company in these countries will be aligned with the strictest standards for data privacy.

Even non-EU countries like Ukraine have aligned their data protection frameworks with EU expectations, actively implementing GDPR-aligned reforms.

Thus, the benefits of outsourcing if you choose to hire remote developers in this region include:

• GDPR compliance from EU member states;
• Secure handling of customer data;
• IP protection and contractual transparency are a must in outsourcing agreements.
• Risk mitigation if you’re handling sensitive data.

Your guide to outsourcing software development to Eastern Europe

Step 1. Define your goals, scope, and budget

Start by identifying what you want to achieve with Eastern European software development outsourcing, whether it’s faster delivery, cost savings, or access to niche skills. Outline your project scope, tech requirements, and budget to evaluate potential providers.

Step 2. Shortlist companies based on expertise and case studies

Create a list of potential vendors and filter it based on your goals, tech stack, and budget. Look for partners with proven experience and strong case studies.

Step 3. Evaluate teams through interviews or test projects

Review their tech portfolio, client list, and domain expertise. Ideally, choose a vendor that understands your industry and has delivered similar projects. Run interviews and test tasks with the candidates they provide. At nCube, you don’t have to pay upfront until you’ve decided to move on with a candidate(s).

Step 4. Choose your engagement model

In Europe, software development outsourcing is represented by the following models:

• Dedicated Team: Best for long-term projects where you need access to full-time developers integrated with your team.
• Project-Based: Ideal for fixed-scope projects with clear deadlines and deliverables.
• Team Extension: A great option when you want to add specific skills to your in-house team without outsourcing the entire project.

Other models you might be interested in:

• Hybrid (nearshore vs onshore vs offshore outsourcing): Combines local project leadership with offshore/nearshore development teams to balance proximity and cost-efficiency. It’s ideal for complex or regulated environments.
• Outsourcing vs. Outstaffing: In outsourcing, the vendor delivers a completed solution or project. In outstaffing, you manage remote developers directly, as if they’re part of your internal team, while the vendor handles HR, contracts, and admin.

Step 5. Establish communication tools and workflow

Set up clear communication channels and define your collaboration process from day one. Use tools like Slack, Jira, or Trello to stay aligned and agree on meeting cadences, reporting formats, and feedback loops. We at nCube help our clients set up the right operations within the Eastern European outsourcing setup.

Step 6. Onboard, align KPIs, and start iterating

Kick off with a structured onboarding process to integrate your new European developers into your workflows. Define clear KPIs, share project goals, and start with short sprints to build momentum, validate collaboration, and adjust as needed.

Why top companies choose nCube as a trusted software outsourcing partner in Eastern Europe

At nCube, our approach to outsourcing in Eastern Europe has let us become a trusted partner for companies like AstraZeneca, Life360, doTerra, and other leaders.

Here’s what makes us different from traditional outsourcing:

Team formation at speed: With nCube, you’ll see your first candidates within 48 hours after our initial call. Most of our clients build their full team in 4–6 weeks.

The top 1% tech talent in Eastern Europe: We pull from a network of 125,000+ developers across Eastern Europe. Instead of wasting time screening, rely on our multi-step vetting process that includes hard skills, communication, English, and culture fit interviews.

98% retention rate: Your team will stay stable and focused throughout the project life cycle. Instead of dealing with turnover, work with developers who get competitive bonuses and professional growth opportunities.

You stay in control: With direct access to the staff, it’s 100% your team, your tools, your process. We handle HR, workspace, and logistics while you lead the development process.

FAQ

FAQ about Eastern Europe software development

What should you look for in an Eastern Europe outsourcing company?

Look for a provider with proven experience delivering to clients in your domain, access to a broad pipeline of local software developers, and strong communication skills. Focus on companies like nCube that offer transparency, cultural alignment, and the flexibility to scale teams at speed. 

What industries benefit the most from outsourcing to Eastern Europe?

The biggest beneficiaries of outsourcing to Eastern Europe are companies in Fintech, Healthtech, eCommerce, Automotive, and Enterprise. Eastern Europe offers deep expertise in AI/ML, cloud, DevOps, and embedded systems, making it ideal for complex industries with a drive for innovation. 

How do the costs of IT outsourcing differ across Eastern European countries?

IT outsourcing costs in Eastern Europe typically range from $25 to $100 per hour. Countries like Ukraine, Romania, and Bulgaria are more budget-friendly, while Poland, Czech Republic, and Hungary tend to offer higher costs.  

 

 

What factors influence the cost of outsourcing software development to Eastern Europe?

The cost of outsourcing software development to Eastern Europe depends on the location, project specifications, and developer seniority. Other factors include vendor fees and the speed of team ramp-up. 

What are the potential challenges of outsourcing to Eastern Europe, and how can they be mitigated?

Challenges may include time zone coordination, communication barriers, meeting local labor laws, and tax regulations. Mitigation comes down to selecting a reputable partner (like nCube) who can build strong operational processes as well as have local legal expertise.