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Best countries for outsourcing software development by region

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When it comes to the best countries for Software outsourcing, you would want to focus on the country’s IT workforce standards, the Cost, the Infrastructure and Innovation or Digital resonance, the Government initiatives... as your main criteria. However, like other outsourcing business, we should not neglect the other important factors such as stability of the social and economy, compatibility in culture and communications, time zone...

Backing up this information with your particular projects’ goals help you determine easily where to go for outsourcing software development efficiently.

Technical education level

This is an important factor, as companies want to delegate their tasks to high skilled professionals. Selected outsourcing teams are those who have gone through good high school and higher education. There are numerous ways to assess the technical education level of staff like the national statistics of STEM (Science, Technology, Engineering, Math) students every year, the ratio of technology-oriented universities on total universities of the country. According to statistics, the countries in Eastern Europe and Asia have good focus on education. Computer science also gains high development in the universities in Latin America, especially in Argentina.

The production cost

The prices of outsourcing services are determined by the experience, the skills of the employee, and the average level of wages in the country. In North America, hourly rates for software developers range from $70 to $190. The prices are a significantly lower in offshore outsourcing companies in other areas. India is the most affordable outsourcing country while Argentina is among the most expensive.

Culture and Communications

English is the most accepted as an international communication language, which is greatly relevant in software industry. The entire software development heavily depends on English, which reflect in libraries, terminology, tutorials, and manuals...

Most countries that offer software outsourcing have sufficient skills in English language and able to deliver effective communications. To be competitive in the global outsourcing market, team leads, project managers and senior-level developers must be at advance level in communication in English while the other employees likely at intermediate command in English.

Local culture also impacts the way people work and communicate. To deal with differences in culture and communication, both parties need to settle all the conditions in advance to co-working, make clear of the requirements and expectations as much as possible for a fruitful cooperation. And importantly, try to adapt your communication and working methodology to suit both parties, as well as respecting each other’s cultures.

Digital Infrastructure and Innovation

Beside the above considerations on human factors, a research in the country’s infrastructure and innovation, or digital resonance is necessary for companies to select the suitable outsourcing providers. Some of the indexes in this domain are ICT (Information and Communications Technologies) Development Index, Global Cybersecurity Index, Average Download Speeds, Global Innovation Index...

Social Stability and Government Initiatives

Last but not least, social stability and economic growth of a country are taken into account in decision making when it comes to any outsourcing business, and software development outsource is no exception. The government policies in your destined country, whether they are for your specific industry or for the whole nation economy, make certain impact on the success of your projects. You can find the information about Digital Economy in the government report.

Best Software Development Countries in Eastern Europe

This region has a huge talent pool with most developers possess a university degree. Countries in Eastern Europe offer high quality work at reasonable prices; and most of all they are in the convenient time zones.

UKRAINE

This is one of the rising stars in outsourcing software development. The country ranks 44 in Global Ranking of English proficiency in 2020 (according to EF EPI), which is a moderate level. Although English is not popular here, about 80% of the IT employees speak the language.

The IT industry in Ukraine is growing at the fastest pace in the past few years which become one of the significant advantages of this country. The country has over 20,000 ICT graduates each year with 57% of them having STEM degrees. Ukraine offers a lot of highly skilled software development professionals for reasonable prices. Services costs range from $25 – 50/hour, according to data from PayScale and Glassdoor.

IT companies in Ukraine focus on Big Data and AI, mobile development, blockchain, and crypto currency projects. Gartner lists Ukraine in Top 30 offshore destinations in the world.

POLAND

Poland offers a very diverse IT background workforce. This country is in the top of mind for outsourcing software development in Eastern European region. Their engineers are proficient with a good work ethic. As a member of EU, Poland follows inclusively date protection regulations, which is one of the major benefit for your projects.

PHP is the most used language here, then come Python, Ruby, Java and .NET.

IT education in Poland attracts students from all over Europe due to their affordable programs. Services costs range from $25 – 60/hour (data from PayScale and Glassdoor)

Moreover, the command in English here is from upper-intermediate to advanced, with ranking 16 as per EF EPI. The outsourcing businesses in Poland have gained in-depth experience so your projects are in good hands in terms of professional process and technical skills. The only setback is the time zones GMT+2 which making a huge gap in communications for the United States companies.

SERBIA

One of the big benefits in outsourcing your software development to Serbia is low prices. This country has a large talent pool since it offers free higher education and electro-technical engineering facilities. Services costs range from $20 – 50/hour.
Regarding English proficiency, Serbia ranks number 15 according to EF EPI, relatively high amongst the best countries for software outsource in this region. English is the second language in this country so there is no language barrier.

ROMANIA

Romania has smaller outsourcing market than those of Ukraine and Poland. However, their IT professionals contribute to 20% of the software outsourcing sector in Central and East Europe. The fact that some big names in IT industry have stationed their international offices here proves the competitive stand of Romania in Eastern Europe region, such as Dell, Oracle, Microsoft, IBM...

Developers from this country are advanced in a wide range of software methodologies and programing languages like C, C++, Java, P, .NET, Mobile. They also have good compensation, three times higher than the average income of a Romanian. The software industry here is constantly fresh and very competitive. That makes Romania your best option when you need to develop software urgently. This country is also ideal for those seeking Fintech software development, but not so much in other area. Services costs range from $25 – 50/hour.

The country has high rank in English proficiency which is number 17 (EF EPI). In addition, Romania is at the intersection of the time zone of Western Europe and North America, which makes it easier for communications across borders.

CZECH REPUBLIC

Czech Republic offers affordable prices for overseas companies and their IT resources seem to be always available. This is because the country has over 15,000 ICT graduates every year.

The government heavily invests in the tech sector and supports it with many good policies. Top 3 programming languages are Java, JavaScript, and PHP. Services costs range from $25 – 50/hour.

The level of English proficiency is upper-intermediate, ranking 19 in Global Ranking (by EF EPI).

Best Software Development Countries in Asia

This region has some of the best countries ranking in top 10 in software development industry.

SINGAPORE

Singapore is the top Asian country that has very high ranking in English proficiency, at number 10 in EF EPI global ranking. This is the most advanced level. All population is well versed in English, as it is one of the three mandatory languages of the country. It is really a significant offset for the differences in culture.

Most large outsourcing deals happened in Singapore fall in the domain of public sector, manufacturing, and fintech. The IT services that the country offers mainly in cloud technologies, cloud migration, hybrid cloud... Services costs range from $18 – 50/hour.

The time zone of Singapore is GMT+8.

PHILIPPINES

The Philippines has gone through a revolution in technology in the recent years in order to meet the new demands in software development outsourcing sector. The country now has over 30,000 graduates in technical fields

According to Philippines Software Industry Association, there are more than 190,000 technical developers in the country. This third-largest English speaking country in the world also has the similar culture to Western countries. The people here are well known for their customer-oriented mindset and for their quick service, come at an affordable cost. Services costs range from $15 – 50/hour.

INDIA

With the capability to offer a large number of software programmers for outsourcing business, India has been the most popular country for software development outsourcing industry for more than two decades. The country is well known for its competitive low prices in IT outsourcing. Services costs range from $10 – 40/hour.

Although the country has low level of literacy as a whole, the government put more efforts on conducting mathematical technologies. India is adapting Western education and able to introduce 2.6 million STEM graduates from universities per year.

Microsoft technology and its related applications are the most favorite development area here, as well as open-source projects in Machine Learning, AI, Blockchain, and GIS technologies.

CHINA

China offers a huge number of IT talent; with over 30,000 software experts having excellent skill sets in UI, full-stack, enterprise, and game based on Python and Shell as well as Big Data.

The education system here has high priority for Math and Science as one of the government’s initiatives to support the national IT industry. The command in English is intermediate and only 10 million of the China population of 1.3 billion people speak English. Services costs range from $18 – 50/hour.

Despite the fact that the outsourcing services market in China is growing pretty fast, by 30% annually, one of the biggest drawbacks is the lack of compliance of intellectual property laws. It is advised to work with well-rated outsourcing teams and establish rules in advance to project kick-off.

THAILAND

Thailand is one of the uprising countries for IT outsourcing in the recent years. With a boost for IT sector in university and college, the country increases IT related workforce every year.

The country is known for IT consulting, digital marketing, web design, mobile application development, and software quality assurance services. Services costs range from $15 – 40/hour.

The government is trying to improve their English level as well as investing on high education system in order to get more outsourcing business in the coming years. Currently the level of English proficiency of Thailand is intermediate, ranking number 89 on global scale according to EF EPI 2020.

VIETNAM

Vietnam is best known for the quality of the services delivered, at a very reasonable production cost. With the labor cost 90% less than those in the US, most clients expect to see some cost reduction if they outsource their projects here, especially at Ho Chi Minh City due to its high potency in infrastructure, human resource, cost, and standard of quality. Services costs range from $15 – 40/hour.

Vietnam has numerous IT talents in various fields of software development regardless an interesting fact that the country only started the IT outsourcing business about 20 years ago. The government recognized the importance of systematic education in IT field and has been heavily investing on it by many supportive policies. Vietnam has 80,000 IT graduates per year, 1 million active IT professionals working in 30,000 ICT businesses. The government aims to make this country the Silicon Valley in Southeast Asia.

Vietnam has best developers in AI. IT programmers in Vietnam are known as early adopters in technology yet creativity and innovation are not their strength. Regarding English proficiency level, most of the management level or team leaders in software development companies are well versed in English language; the rest is at intermediate level. The country ranks number 65 in global ranking in English proficiency by EF EPI.

Intellectual property protection is fully aware in Vietnam as one of the government’s efforts in the national digitalization process.

Despite the success of Vietnam in software outsourcing business, the fact that the IT workforce here is young and flexible makes it sometimes a problem when you are looking for some seniority in an IT specialist for your specific projects.

If you want to find out whether it works for your projects to be outsourced in Vietnam, contact us for a free consultation on defining your scope as well as the required workforce for your project. Dicom Interactive is one of the top boutique software development with offices located in Ho Chi Minh City – Vietnam and Victoria – Australia, with over 15 years experience in the business.

We have been working on a variety of projects across the continents, with focus on education, transportation, entertainment, game, healthcare, insurance, food & beverage, automobile, and travel industry. We offer high standard in software solutions, which suit your utmost demands whether they are your business plan of growth, or product budget, or project deadlines.

Check our Services and Portfolio here.

Best Software Development Countries in Latin America

Countries in Latin America are the popular choices for many North American countries because of the economy cost, minimal cultural differences and somehow similar time zones.

ARGENTINA

Argentina is one of the most educated countries in Latin America. The government even offers free computer technology education to the citizens. The country has 100,000 tech graduates from universities every year, and over 70,000 IT professionals. There are many IT university students taking work while still studying, which make Argentina a big talent pool for offshore development services. Services costs range from $30 – 50/hour (data from PayScale and Glassdoor).

The common outsourcing domains in this country are mobile development, DevOps engineering, and cloud computing. Argentina also has the highest rank in English proficiency in Latin America. It is becoming the first choice of many European companies besides North American businesses. The only disadvantage here is making negotiation, which is often observed as cultural differences.

BRAZIL

Brazil is popular for its affordable prices and world-class talent. The country provides numerous reliable software providers that contribute to 50% revenue of the Latin American software market. The most used programming languages are Java, Python, SQL Services costs range from $20 – 50/hour.

Command in English in Brazil is at position 53 in global ranking, not too high in comparison to other outsourcing countries in the same region. However, their outsourcing companies are highly proficient in English communications. Not to mention that most people have good command in other common languages such as French and Spanish.

Conclusion

The heat of software development outsourcing has never dropped even during the COVID-19 pandemic. More companies are working hard on their businesses transformation which digitalization is at its center. Global spending on IT outsourcing have increased by 13.6% comparing to the same period of 2020, which distributed among Western Europe, Argentina, India, and some countries in South-East Asia.

Choosing the most suitable country for your projects requires a comprehensive overview of the country as a whole, as well as a look into details of your potential offshore co-workers, to make sure both parties benefit from a long-term and fruitful corporation.

Get in touch with Dicom Interactive today to share the requirements of your products. We fully grasp the importance of listening and understanding your business, your missions, and visions. Whether your need is a Low-level Outsourcing, or a High-level Outsourcing, or a Complete Technical Outsourcing, we constantly offer world-class software development services. Our team members are well trained and have high working ethic, not only to fulfill the international standard but also to promote the global rating for software outsourcing business in Vietnam in the coming decades.

Get in touch for a free consultation from project feasibility check to defining your scope, minimum workforce required and more... Dicom Interactive is one of the top boutique software development in Vietnam with offices located in Ho Chi Minh City – Vietnam and Victoria – Australia. With the experience of team members ranging from 4 to 15 years, we successfully deliver our services to our clients by a well implementation of the latest technologies in the industry.

We have been working on a variety of projects across the continents, with focus on education, transportation, entertainment, game, healthcare, insurance, food & beverage, automobile, and travel industry. We offer high standard in software solutions, which suit your utmost demands whether they are your business plan of growth, or product budget, or project deadlines.

Check our Services and Portfolio here.