For decades Silicon Valley has been portrayed as the staple tech hub that offers various software development services. Yet, in recent years, globalization and rapid technological advancement have broadened the scope and brought Eastern Europe to light. Statista indicates that IT services in Eastern Europe are expected to reach $15.7 billion by 2027, a massive increase from the current market value of $2.69 billion. To get a clearer picture of why and how the IT segment booms there, let’s look at the top tech hubs in Eastern Europe

Why look at top tech hubs in Eastern Europe at all?

The reason for looking at software development companies in Eastern Europe is simple – it is a great outsourcing destination. Grand View Research shows that the global outsourcing market is currently valued at $245.9 billion. To get a piece of such a massive pie, many vendors direct their attention to Eastern Europe. Besides, the software development firms in the area often charge lesser fees than providers in other destinations, such as North America, Australia, and Western Europe. For a reasonable price, a client gets:

  • A cost-reduction strategy in reaching the talent pool and boosting innovation.
  • A tool for jumpstarting digital transformation.
  • A way to mitigate risks and stay competitive in the market.

These reasons are enough to look at Eastern Europe as a prospective IT services source. Envisioning which countries have the biggest outsourcing potential, there are several top tech hubs in Eastern Europe to explore. 


About two decades ago, Ukraine was considered a typical post-Soviet nation. Now, it is one of the top tech hubs in Eastern Europe with a hundred thousand seasoned IT experts offering and delivering services worldwide. Currently, more than 2,000 start-ups flourish in Ukraine. Have you heard about GitLab or Grammarly, which are billion-dollar companies originating from Ukraine? As a tech hub, this country has a young and eager population willing to explore the IT world and become well-recognizable experts in the global arena. Moreover, Ukrainian IT specialists offer their services for fees much lower than in other Eastern European tech hubs. 

The Czech Republic

A part of the European Union, the Czech Republic is a nation with a rapidly growing IT industry. In terms of the rates for software development services, the country competes with major European tech hubs like Germany, Spain, and France. IT experts from the Czech Republic offer similar-quality services for a lower price. The nation has a long history in automotive manufacturing. Its IT industry prioritizes R&D and offers some of the best software development companies in Europe in this field. As a tech hub, the Czech Republic is all about innovation. 


Forbes suggests that Poland currently takes the 34th position among the best countries for business. The reason for that stems from the nation having more than 400 R&D centers. They offer services for such giants as Google, Motorola, and IBM. In Poland, ⅕ of all IT professionals work in outsourcing, while ⅘ of experts are occupied in R&D centers. It means that with fierce competition in R&D, companies have massive access to the talent pool in the area. Poland provides services to distant nations and its neighbors alike, hosting some of the top 10 best software development companies in Europe.


As one of the ​​top tech hubs in Eastern Europe, Hungary harbors a fast-growing IT sector. The nation is ranked 4th in the SkillValue rating when it comes to the quality of software development talent. Hungary gets a massive share of outsourcing contracts in Eastern Europe. Multinational corporations like Microsoft, Nokia, and Deloitte appeal to more than 175,000 experts employed in the Hungarian IT sector. Besides recognizing the importance of the IT industry, the nation’s government continuously launches incentives and grants to help boost various start-ups. 


Similar to Poland’s case, Bulgaria invests heavily in R&D. How do we know that? Multinational firms like Oracle, CISCO, and ATOS have their R&D offices in Bulgaria. In addition, in 2015, the United Kingdom’s National Outsourcing Association labeled Bulgaria as the “Offshoring Destination of the Year,” which further validates its reputation as one of the top tech hubs in Eastern Europe. The nation’s IT industry greatly inputs the state budget. Recognizing the importance of being an outsourcing destination, one can expect Bulgaria to develop even further and offer services to a growing number of global clients as it sets up the best software development companies in Europe


In 2007 Romania became a member of the European Union, which has granted the nation access to copious investment. Since then, Romania has become one of the top tech hubs in Eastern Europe. The country managed to expand its IT sector and make it accountable for about 2 percent of the nation’s GDP. Besides, Romanian IT professionals have a history of working with massive global businesses like Oracle, Gameloft, and Hewlett-Packard. Impressively, Oracle alone employs several thousand Romanian IT professionals, showing that multinational companies see a lot of prospects in Romania. 


Moldova is a tech hub with a focus on outsourcing: About ⅘ of, its IT industry is all about offering its IT services to global companies paying a reasonable price. While being a part of a free economic zone, the nation managed to implement simplified tax regimes, which paved the way for building potentially the best software development companies in Europe. Compared to other countries we mentioned above, Moldova as a tech hub is still in its infancy. However, the nation increased its IT experts by 7 percent in recent years. One can see Moldova on par with such tech hubs as Poland and Hungary shortly.

Wrapping up

When it comes to software development companies in Eastern Europe, there are plenty. However, finding the best ones is what everyone is looking for. Appealing to the list of the top tech hubs in Eastern Europe above, you will get a proper perspective of its IT sector. It is a great starting point for further research to find a great outsourcing vendor or a development partner, for example, nCube. Contact us and let’s see if we can build your tech team in one of the destinations we reviewed.

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