Why Should you Consider Hiring a Coder in Eastern Europe vs. Asia vs. Latin America?
In this day and age, when one can live in one country and work in a completely different place, businesses can easily hire a coder overseas and reduce the cost of software development. However, the average cost of hiring developers globally varies from case to case, depending largely on the country where a coder resides, their tech skills and experience, and the vendor’s (or platform’s) hiring model.
According to a recent study, many US-based startups prefer to hire senior-level developers. It is a rare occasion that a junior or even a middle-level expert can find a vacancy with a startup. There are many reasons behind this, including a startup’s need for a quick launch, a crucial role of strong leaders at all levels, and last but not least – limited resources to hire and run large teams of coders. A similar situation is observed in Western Europe (especially in Germany and the Netherlands), where many European startups are concentrated.
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An increasing shortage of senior-level coders in these regions drives higher wages and fierce competition for available resources. While large enterprises can afford to pay top dollar to hire a coder, most startups will have to look for talent in countries with a lower cost of living. Therefore, Eastern Europe, Latin America, and Asia have become known as hotspots for sourcing app developers for hire.
Why should you hire developers in Eastern Europe?
According to many reports, countries in Eastern Europe (for example, Ukraine, Poland, and Romania) belong to the top five centers where you can find app developers. The total volume of IT exports from these countries amounts to $13 billion. Other notable players in this region are the Czech Republic, Hungary, Bulgaria, Croatia, Serbia, and Moldova.
Thanks to a large number of highly qualified technical specialists, many investment transactions have occurred in the local IT outsourcing sector in recent years. The IT services market is growing due to three factors:
- Increasing economic interdependence.
- The willingness of companies to move their operations abroad.
- The growing need for the digital transformation of enterprises.
Here are more figures on the state of the IT industry in the Eastern European region:
- Five billion dollars: the profit of 477 IT companies that took part in the study.
- 900,000: the number of IT professionals in the region is constantly growing.
- 60,000: annual number of graduates from technical universities.
- 20-25%: yearly revenue growth in the region.
According to the Coursera Global Skills Index 2020, Ukraine, the Czech Republic, Poland, and Hungary rank first in the technology category, including software development, databases, security, operating systems, and computer networks human-computer interaction. Hungary and the Czech Republic are the two countries in Eastern Europe that have taken top places globally in data science, including trends such as Python, SQL, and others.
The revenue of the IT outsourcing industry in Central and Eastern Europe is growing 4-5 times faster than the world’s average: by 20-25% per year vs. 5% per year. Combined with high profitability, this makes the region an attractive M&A destination, as well as a place to hire developers.
Why hire a coder in Asia?
Oftentimes, global companies prefer to hire coders from India. Due to historical implications, India offers a western-like approach to education. Although the country’s literacy rate is relatively low, there is an increasing focus on mathematical research, which contributes to technological advancements. In this regard, India is considered to be the best country for app development ventures.
Mobile application development is the central area of outsourcing in India. If you choose to find app developers in India, it is best to have a well-coordinated and structured project with strict guidelines and precise requirements. If you’re looking to innovate, it’s best to consider other locations.
China is home to many fast-growing IT companies. About 4.7 million technology specialists graduate annually in China. Among all the countries hypothetically ready to take part in the “Programming Olympiad,” China would take first place, according to HackerRank.
However, China has several potential downsides. First, only 10 million out of the 1.3 billion population speak English, which creates a significant communication barrier for many international employers when they plan to hire a coder in China.
Second, China is notoriously lax in its enforcement of intellectual property laws. This can be overcome by hiring a reputable outsourcing agency to help you find app developers and setting clear rules before starting the job.
Approximately 92% of Filipinos speak English, making the Philippines one of the largest English-speaking countries in the world. They also have a reputable STEM education system and have made major educational reforms in the past few years.
These factors, alongside the low cost of living, make the Philippines one of the top destinations for hiring a coder. In fact, the capital of the Philippines, Manila, is ranked the second-best outsourcing city in the Tholons Globalization Index.
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Why consider app developers for hire in Latin America
Proximity to the USA has made Latin America the primary location to find app developers for US-based companies. For the Latin American startup ecosystem, 2021 has been a landmark year as venture capital firms have invested up to $20 billion in the region, which is more than ever before.
Experts estimate that by 2025 there will be 10 million new IT jobs in the region, driven both by local companies and growing demand from organizations looking elsewhere for cheaper talent in the same time zone.
There are 500,000 IT professionals scattered across Mexico, Colombia, and Chile. Consequently, Latin America is attractive to most global players in the technology market. More than 50 universities in these countries generate 350,000 technical graduates annually.
The global IT outsourcing market will continue to evolve in the coming years. Businesses will have to hire more experienced developers to win the technology race, but the global talent shortage will only make it harder to find skilled app developers.
Contact us to learn more about opportunities to hire a coder in such destinations as Eastern Europe and Latin America.