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10 Best Countries to Outsource Software Development in 2024

Best Companies   -  

May 22, 2024

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Outsourcing software development can be an optimal solution for enterprises and startups to gain competitive advantages with a low budget. But what are the best countries to outsource software development in this globalization era? This is, indeed, a tricky question for many businesses as the wrong choice can lead to terrible outcomes like financial loss.

So, this article is here to walk you through the top 10 countries for software outsourcing. Let’s check it out!

5 Main Features of a Good Country for Software Outsourcing

Before finding out what the best countries you should consider for software outsourcing, we’ll detail five key factors that help you identify a good one. Coupled with your company’s project goals, these highlight factors will help you decide on where to find a competent partner.

A highly developed IT market

Choosing a country with a highly developed IT market is the first factor towards successful software outsourcing. According to a report by Deloitte, half of executives consider talent acquisition as the top challenge in meeting their strategic objectives. This underscores the importance of having access to a skilled workforce

Therefore, a mature IT market means a wider talent pool of talented developers who are well-versed in the latest techs. They’re not only coders but problem solvers who can understand your business needs and translate them into effective software solutions. 

Resources Availability

The availability of resources is a key factor that can influence your choice of outsourcing companies. Apart from the human workforce we mentioned above, resources also refer to expertise and IT infrastructure. 

First, many companies are confronting skill shortages, especially in cybersecurity, AI/ML, data science, and infrastructure-as-code. However, they increasingly find it hard to seek talents they want to keep up with these next-generation tech skills and stay competitive. If you’re in this case as well, looking for external service providers is the best way to bridge the gap. 

Besides, a country with a robust IT infrastructure can offer a conducive place for software development. This will ensure the outsourced team has essential tools and techs to produce high-quality deliverables that match your expectations. 

Location and time zones

Different time zones among countries is a hard question for many enterprises to handle when collaborating with outsourcing agencies. This is because time zone differences can affect the communication between you and the outsourced team, potentially causing delays and even misunderstandings. So, you should consider this factor carefully when choosing a partner.

However, this challenge can be turned into an advantage with the right approach. For instance, having teams working in different time zones can ensure round-the-clock productivity. While your local team is off work, the outsourced team can continue working on the project, effectively making progress 24/7.

Recommended reading: How Much Does It Cost to Make an App for Your Business?

English language skill

English is a common language in the IT industry. It means English is a popular means of communication in most situations.

Normally, the majority of the software developers are proficient in English at Intermediate and Upper-Intermediate levels while Advanced English is compulsory for Team Lead and Project Managers. So, in the list, we introduce many different countries where English is the second language. That’s why the language barrier is not a big deal for you to choose.

Cultural differences

When inter-crossing cultures, you have to understand deeply the culture of a particular country that you aim to pour your investment into. 

Cultural barriers are no way to remove but we can find solutions to cope with them. Local culture influences how people think and collaborate with others such as not working at the weekend or on local holidays.

The best way is to adapt your communication and working methods to fit with both parties. Respect everyone’s culture with the same attitude as you do to your own culture.

10 Best Countries to Outsource Software Development

10 best countries to outsource software development

The IT Outsourcing marketing market is predicted to reach a staggering revenue of USD 541.10 billion by 2024. With this immense growth, companies are increasingly looking for the best countries to outsource their software development projects. Here’s our list of the top 10 countries:

India

  • Rating (according to HackerRank): 76%. 
  • Services costs (data from PayScale and Glassdoor): $18–40/hour. 
  • Command in English (according to EF EPI): intermediate, with a regional rating of 55,49
  • Time zone: GMT+5:30

When it comes to the best countries for software outsourcing, India is probably on the top list. India is the second-largest English-speaking country in the world, which makes it a competitive advantage to be the largest factory. In addition, India applies Western approaches to education; plus, 34% of students in this country graduate from STEM fields, which offers an abundance of tech specialists.

According to data collected from Gild, Indian engineers outsource their American counterparts on math and logic assessments with 11% of workloads. However, they are not highly focused on PHP and HTML.

India is believed to be an ideal environment for app development initiatives, both native and hybrid. Companies are engaged in Microsoft as well as open-source projects that are powered by machine learning, AI, GIS, and blockchain technologies.   

China

  • Rating (according to HackerRank): 100% 
  •  IT Services costs (data from PayScale and Glassdoor):  $18-40/hour.  
  • Command in English (according to EF EPI): intermediate, with a regional rating of 53.44. 
  • Time zone: GMT+8

In addition to India, China is a potential candidate for software development outsourcing. Accordingly, this country is home to many of the fastest-growing IT companies and provides cheap labor while maintaining developer productivity.

Chinese developers are adept at some prevalent programming languages like Python, Shell, functional programming, and others. These techs stand behind the growth of Artificial Intelligence, Deep Learning, and Robotics in this country. This opens more avenues for foreign and multinational companies to enter this fertile land for relevant projects.

There still remain some disadvantages in this country. First, less than 10 million of China’s 1.4 billion residents speak English, which could be an obstacle for international companies to collaborate with Chinese software agencies.

Vietnam, a promising candidate in the software outsourcing playground

  • Rating (according to HackerRank): 81,1%
  • Services costs (data from PayScale and Glassdoor): $18-40/hour. 
  • Command in English (according to EF EPI): basic, with a regional rating of 51,57%. 
  • Time zone: GMT+7

Vietnam is one of the best countries to outsource software development. The IT outsourcing market in Vietnam has become more attractive than ever due to cost advantages and the high qualifications of software companies.

The country’s strength lies in highly skilled developers with a proven track record. Apart from some popular programing languages like Java, .NET, or Python, Vietnam’s developers also excel at Artificial Intelligence, Machine Learning, and eCommerce.

Besides, the Vietnamese government has increasingly made heavy investments in STEM. This promises to offer more skilled developers in the near future. Realizing a big potential in this market, multiple giants like IBM or Microsoft have shifted their attention and enter to Vietnam.

Designveloper – A Leading Software Development Outsourcing Company in Vietnam

Designveloper

If you are searching for software outsourcing in Vietnam, Designveloper is the top choice.

Based in Ho Chi Minh City, our company boasts a professional team of web developers, mobile developers, UI/UX designers, and VOIP experts. With a systematic approach and advanced techs, we’re committed to delivering the best solutions that resonate with our clients.

Why Choose Designveloper: Designveloper is the top choice for software outsourcing for some reasons:

  • Expertise and Experience: Our team is highly skilled and experienced in different kinds of software outsourcing projects, typically ODC, Lumin PDF, and Song Nhi. Also, we adopt various tech stacks like Golang, Node.js, or Python (backend) and infrastructure platforms (e.g., OVH, Docker, or Grafana) to develop software solutions and support data management. 
  • Agile SCRUM Model: We leverage this software development methodology to be flexible during the development process and ensure timely delivery within budget. Working on this framework, we’ll break down a project into manageable steps (also called “Sprint” lasting from 1-4 weeks). In each sprint, we’ll hold backlog refinement sessions for all team members to identify what to prioritize and sprint planning sessions to discuss how to implement tasks.
  • A Well-Implemented Workflow: We offer a full-cycle service to support your projects from ideation to post-deployment. When a client comes to us with ideas, we’ll clarify their requirements and suggest the best solution with a preliminary list of features and tech stacks. Then, we start by working on the project following the milestones, review any changes affecting the milestones, and continuously make essential updates based on feedback. 
  • Good Communication with Modern Tools: We always listen well to a client’s requirements and understand their existing problems to deliver a high-quality product. We keep clients updated and informed about task progress through regular meetings and communication tools.

Ukraine

  • Rating (according to HackerRank): 88,7%
  • Services costs (data from PayScale and Glassdoor): $25–50/hour. 
  • Command in English (according to EF EPI): basic, with a regional rating 52,13. 
  • Time zone: GMT+3

Ukraine has already attained the position of a country with the largest number of C++ programmers all over the world.

Although English isn’t common here, the majority their IT community speaks English, so communication barriers are an absolutely concerning issue here. An outstanding advantage of outsourcing to Ukraine is a partially overlapping time zone with US and UK times and the same working culture.

The Philippines

  • Rating (according to HackerRank):  63,8%.  
  • Services costs (data from PayScale and Glassdoor): $18–40/hour. 
  • Command in English (according to EF EPI): advanced, with a regional rating of 60,14. 
  • Time zone: GMT+8

The growth of BPO (Business Process Outsourcing) has propelled the Philippines to become one of the potential market in Asia. Beside traditional software development projects, many come to Philippine companies for projects related to Artificial Intelligence, robotics, DevOps, and cybersecurity.

English plays a role as the official language in the Philippines, so no wonder software developers are proficient in language skills. Also, contractors from the Philippines are noted to work faster than experts in other Asian countries. Further, the cultural compatibility with the US, coupled with the government support in tech advancements, turns this country into a sought-after market for software outsourcing.

Romania

  • Rating (according to HackerRank): 81,9%. 
  • Services costs (data from PayScale and Glassdoor): $20-25/hour. 
  • Command in English (according to EF EPI): upper-intermediate and advanced, with a regional rating of 61,36.  
  • Time zone: GMT+3.

Although a small-scale IT outsourcing market compared to other Western countries, Romania is still a compelling destination to outsource software development.

In 2022, the IT industry in this country surpassed 9 billion euros and is projected to exceed 12 billion by 2024. Besides, Romania has an impressive pool of software specialists and a convenient location at the intersection of the time zones of Western Europe and the United States. All these things turn Romania an attraction for such giants as Dell, Microsoft, or Oracle to invest and develop.

Canada

  • Rating (according to HackerRank): 76%. 
  • Services costs (data from PayScale and Glassdoor): $18–40/hour. 
  • Command in English (according to EF EPI): intermediate, with a regional rating of 55,49.
  • Time zone: GMT+5:30.

Canada builds a strong educational infrastructure with a high-qualified point on technology. According to the Statistics Canada, over 148,000 annual graduates have STEM degrees.

When outsourcing to Canada, you can also make use of several perks, especially from US-based businesses. Due to Canada’s location close to the US, it facilitates communication with US clients. 

But it’s not the only one reason why Canada becomes one of the best countries to outsource software development. Canada provides highly skilled workforce, lower development expenses without compromising quality, staffing flexibility, and more importantly, favorable legislation. This makes Canada the fastest-growing tech market in North America.

The Czech Republic

  • Rating (according to HackerRank): 90,7%. 
  • Services costs (data from PayScale and Glassdoor): $25–50/hour. 
  • Command in English (according to EF EPI):  upper-intermediate, with a regional rating of 59,30
  • Time zone: GMT+2.

The Czech Republic provides a wide range of advantages to outsource software development. First, corporate taxes only make up about 21%, which becomes one of the best reasons to choose this destination.

In addition, the IT sector is supported under favorable conditions by EU investments and grants. Therefore, no wonder the Czech Republic has competitive expenses, cultural compatibility, quality infrastructure, and strong data protection to deliver high-quality outcomes. Programmers here focus on three programming languages namely Java, JavaScript, and PHP

Taiwan

  • Rating (according to HackerRank): 91,2%. 
  • Services costs (data from PayScale and Glassdoor): $18–40/hour. 
  • Command in English (according to EF EPI): intermediate, with a regional rating of 54,18.
  • Time zone: GMT+8.

Taiwan is home to the seventh most skilled developers in the world according to HackerRank, with strong proficiencies in terms of functional programming and data structures. The highlight point is that the Taiwanese government has also made a huge investment to transform into “Asia’s Silicon Valley” with an upgraded STEM education system and IT infrastructure.

Although currently considering making English one of their official national languages, the language barrier still remains here because Taiwan only ranks 40th out of 80 countries in terms of English proficiency.

Poland

  • Rating (according to HackerRank):  98%. 
  • Services costs (data from PayScale and Glassdoor): $25-50/hour. 
  • Command in English (according to EF EPI): Upper-intermediate and advanced, with a regional rating of 63,76. English is the second language for 30% of the country’s population. 
  • Time zone: GMT+2. 

Poland provides the third-largest number of skilled programmers in the world. Their programmers ranked first in Java assessments while PHP and .NET are common programming languages there. Also, IT education in Poland is in high demand attracting students from all over Europe. This turns Poland the potential tech hub for outsourcing.

Besides, Poland has multiple IT outsourcing companies that provide a diversity of services, from software development to IT operations. Cost-effectiveness, good working ethics, and minimal cultural differences are other advantages for those wanting to find a great country for outsourcing.

Final Words

To wrap up, we hope that you are fully aware of the best countries for outsourcing software development through this article. It is critical to limit your search and set an apparent system for communication and collaboration to achieve successful outsourcing relationships.

Feel free to leave your comment below to share with us your experiences and thoughts. And don’t hesitate to contact us if you need a faithful companion in software development.

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