Nearshore Agile Development in Eastern Europe: Benefits, Challenges, and Locations

Nearshore Agile development is a dual approach that harbors the strengths of setting up tech teams in neighboring countries and Agile – a popular software development methodology. Eastern Europe plays strong when it comes to the quality of developers and software development rates. Thus, skilled software developers from leading Eastern European tech hubs (Ukraine, Poland, Romania, Hungary, and more) help Western European businesses by developing software solutions and moving their business forward. In this post, we will put the region to the spot and go over the following aspects:

• Key benefits of Agile nearshore development in Eastern Europe;
• Locations for best nearshore Agile software development;
• Challenges you may come across in nearshore Agile software development and ways to overcome them.

Why is it worth considering Agile nearshore development?

Budget savings. According to a study by Deloitte, companies can save up to 40% per year on operational costs by delegating their software development activities across the border – as opposed to building in-house teams. With the addition of attractive rates for local engineers, there’s the potential to cut your software development budget by a significant margin. Moreover, many countries in the region, for instance, Poland, offer tax incentives for investors.

Deep pool of tech talent. Eurostat reports that 53% of companies in the EU have difficulties sourcing qualified technologists. It’s no wonder, given that there’s a shortage of qualified IT workforce globally. According to various studies, in recent years:

• Germany lacks 137,000 IT specialists;
• In Denmark, 63% of companies face difficulties backfilling their IT-related vacancies;
• Sweden lacks as many as 70,000 software developers;
• 95% of UK businesses have encountered a skills shortage over the past year. 

Eastern Europe gives businesses access to 1.3 million technologists and 3500+ providers specializing in Agile software development nearshore. Thus, following this approach business leaders can fix the problem of the shortage of professionals. 

Quality. Eastern Europe isn’t just about the quantity of software developers – it’s also about their quality. The region boasts a pool of highly skilled, experienced software engineers, which ties back to their strong STEM skills fostered by a solid education basis. Moreover, it has strong potential for both generic programming and innovative software development due to the engineers’ vast experience in collaboration with international organizations specializing in multiple fields. 

Skills in diverse technologies. According to the recent research, the most in-demand programming languages in the EU are Java, JavaScript, SQL, HTML, PHP, C++, C#, and Python. This is another reason for nearshoring Agile development in Eastern Europe: JavaScript, Java, and SQL are among the top languages in Eastern Europe. Other programming languages favored by software developers include PHP, Python, and C++.  

Strong relationships with the EU. A significant benefit for UK and EU-based businesses when nearshoring Agile development is the close connection to Western European regulations, tax laws, business practices, and markets. This guarantees better alignment between the client and the provider when it comes to understanding the nearshoring environment. 

Cultural fit. Cultural alignment also plays a vital role in Agile nearshore software development. The better the cultural fit, the simpler it will be to find common ground between your local squad and nearshore Agile software development teams. Luckily, the work ethics of Eastern European developers is similar to their Western European counterparts, so businesses in these regions can work together more efficiently. When a customer is a priority, data is protected by NDAs, team members are committed, adept at problem-solving, supportive, and responsive – chances are high the collaboration will go smoothly. 

Time zone alignment. One of the key benefits of nearshore Agile software development in Eastern Europe is the minimal time difference, which enables comfortable working hours and continuous communication during regular business hours. Countries like Hungary, Poland, and the Czech Republic share the same time zone with Western European counterparts such as Germany, France, Denmark, Sweden, and Spain.

Locations for the best nearshore Agile software development 

So, when the question of why nearshore Agile development is off the table, there’s the question of where to do it. When choosing a location, it is important to consider factors like developer availability, cultural fit, and cost. Let’s review Eastern Europe’s most skilled IT hubs. 

Nearshore Agile software development: Poland 

Time zone: GMT+2

Tech hubs: Warsaw, Kraków, Wrocław, Gdańsk

Software development rates: $50–$99 per hour 

Developer availability. The abundance of skilled developers is a hallmark of nearshore Agile development in Poland. The IT sector in this country commands the lion’s share of Eastern Europe’s technology landscape, boasting a talent pool exceeding 400,000 software developers.

Technologies. Poland is unrivaled in the region when it comes to Java expertise. Additionally, the country excels in a wide array of technologies – from JavaScript and SQL to Python and PHP. Many vendors of Agile nearshore development also provide cutting-edge solutions, including cloud computing, AI, and IoT services.

Skills. Polish programmers are widely recognized as some of the finest in the world: Poland, according to HackerRank, secures an impressive 3rd place in global software development prowess, with 1st position in the field of Java programming.

English proficiency. Poland ranks 13th globally and 11th in Europe on the EF English Proficiency Index. Remarkably, nearly 100% of IT professionals in the market are proficient in English, as per Statista’s 2022 data. 

Education. Polish universities generate over 15,000 tech graduates annually, contributing to the country’s highly skilled pool of IT specialists.

READ ALSO: Nearshoring to Poland: Similarities and Differences with Ukraine

Agile nearshore software development: The Czech Republic

Time zone: GMT+2

Tech hubs: Prague, Brno, Pardubice

Software development rates: $50–$99 per hour 

Developer availability. The Czech Republic is home to over 130,000 highly skilled software developers. The country also boasts a thriving ecosystem of 7,700 companies providing nearshore Agile development.

Technologies. In Mathematics, according to Dealroom’s report, the local developers proudly claim the 2nd spot, while also being ranked 4th in Security. The prevailing technical stack includes Python, C#, SQL, JavaScript, HTML, and CSS.

Skills. In terms of tech proficiency, the Czech Republic shines brightly, securing the 9th position in HackerRank’s global ranking of the world’s top software developers.

English. The country boasts a high level of English proficiency, earning a solid 23rd place in the EF English Proficiency Index.

Education. The Czech Republic is home to a remarkable 70 universities. Each year, this rich academic landscape produces over 16,000 IT professionals.‍

Agile software development nearshore: Ukraine 

Time zone: GMT+3

Tech hubs: Kyiv, Lviv, Odesa, Dnipro

Software development rates: $25–$49 per hour

Developer availability. When it comes to developer availability, Ukraine is a significant presence – the country boasts the second-largest technology market in Eastern Europe, with over 300,000 skilled programmers. Over 5,600 companies feature nearshore Agile development as their primary service. 

Technologies. IT specialists in Ukraine mainly specialize in Java, C++, JavaScript, C#, Python, PHP, Swift, and Kotlin. The country takes pride in securing 4th place in Mathematics and 1st place when it comes to the field of Security. 

Skills. According to HackerRank’s global rankings, Ukrainian software developers play strong on the world stage being ranked 11th globally in terms of software development skills. 

English. Ukraine secures the 35th position on the global scale, reflecting that most developers speak English confidently. 

Education. Ukraine boasts an impressive network of nearly 800 higher education institutions that collectively generate a pool of 30,000 software specialists per year.

READ ALSO: Planning to Hire Developers in Ukraine? Key Facts You Should Know

Nearshore Agile software development: Hungary

Time zone: GMT+2

Tech hubs: Budapest, Debrecen, 

Software development rates: $50–$99 per hour

Developer availability. Hungary has a robust community of over 105,000 skilled professionals. While the market is smaller compared to Poland or Ukraine, it thrives with a concentrated focus, primarily centered in Budapest.

Technologies. Technologists in Hungary have proficiency in a diverse set of programming languages and technologies, including JavaScript, HTML, Python, Java, PHP, SQL, and React. Hungary secures a notable 3rd place ranking in Java, another 3rd place in C++, and a 5th place in Databases. 

Quality. As per HackerRank’s global rankings, Hungarian programmers have earned a remarkable 5th place, which solidifies their position as some of the world’s most accomplished technologists.

English. Hungary secures the 18th position on the global stage in terms of English proficiency.  

Education. Hungary boasts a network of 65 universities. Annually, the country produces an influx of 12,000 technical graduates. 

Agile software development nearshore: Romania

Time zone: GMT+3

Tech hubs: Bucharest, Cluj-Napoca

Software development rates: $25–$49 per hour

Developer availability. Romania’s tech landscape is thriving, with a robust community of 140,000 highly skilled programmers and a flourishing network of 350+ specialized nearshore Agile development firms. 

Technologies. Within the country, SQL, Java, JavaScript, and Python reign supreme as the most commonly used technologies. 

Quality. Romania’s position in the global programming arena presents room for improvement – the country currently takes the 20th spot in the rankings of the world’s best programmers. 

Education. Romania boasts nearly 100 higher education institutions, with approximately 25,000 individuals opting for Computer Sciences degrees annually. 

English. Romania secured 17th place worldwide on the English Proficiency Index, which proves the country’s solid proficiency in the English language.

Nearshore Agile software development in Eastern Europe: Challenges

Addressing cultural differences. Managing cultural disparities is an essential responsibility that managers should keep in mind when running nearshore Agile software development teams. It includes proactively addressing potential issues related to misunderstandings or communication gaps among team members as well as fostering a mutual comprehension of various aspects – attitudes towards deadlines, communication norms, social dynamics, and other elements.

Potential language differences. English skills differ within Eastern European nations. Countries such as Poland and Hungary generally exhibit greater confidence in the language, whereas other regions in the area may have lower English proficiency. In light of this, it becomes the responsibility of the provider of nearshore Agile development to assess software engineers and connect you with those who have adequate English language skills.

Limitations for IoT and Hardware. Agile software development nearshore may not always align seamlessly with hardware and IoT development. Unlike software projects that can be effectively managed remotely, hardware and IoT development often require direct, hands-on engagement with physical prototypes and devices. As such, project leaders in these domains may grapple with logistical difficulties associated with shipping prototypes, which can potentially increase the software development budget.

Hands-on involvement. When it comes to nearshore Agile development – it takes two to tango. As a client, your influence on the development process should be substantial. This serves as a prominent advantage of this approach. Given the distributed nature of tech units across various geographic locations, tech leaders should be effective at task delegation, quality control, and coordination of all software development activities. 

Moreover, managing nearshore Agile software development teams is often about streamlining communication, ongoing progress monitoring, and the consistent maintenance of quality standards. Often, these responsibilities primarily rest on the shoulders of tech leaders. As a service provider, our goal is to alleviate this burden as much as possible. 

READ ALSO: Managing Virtual Software Development Teams: Challenges and Best Practices

How nCube can help you with nearshore Agile development in Eastern Europe

Extensive experience. With more than 15 years of experience in nearshore Agile development, nCube boasts a network of over 120,000 skilled developers in Eastern Europe, having successfully served over 120 companies globally. 

An In-depth understanding of the Eastern European landscape. With our experience in sourcing tech talent in the region, we are well-equipped to assist you in establishing a nearshore branch – all while sparing you the headache of navigating local laws and regulations. 

Trusted clientele. Our extensive portfolio includes esteemed clients like AstraZeneca, doTerra, Life360, Rakuten Viber, and many others, all of whom have entrusted their projects to nCube.

A turn-key approach. We’re committed to supporting you in maintaining a stable team by offering a range of services, including expert nearshore staff augmentation, team building, insurance, HR, and tax assistance, motivation initiatives, and assistance in setting up IT infrastructure for your nearshore Agile software development team. As a result of these efforts, our remote software development company boasts an impressive average retention rate of 3.5 years, which signifies that most developers remain dedicated to the client’s project throughout its lifecycle.

With nCube, you will gain access to a wealth of expertise in building remote tech teams, which ensures the success of your nearshore Agile development in Eastern Europe. Let’s connect.