As an IT decision-maker, finding ways to cut costs is essential for your organization's success. Offshoring presents a promising opportunity, but how can you ensure maximum profitability?
Our guide is here to help. Follow our tips and learn what are the offshore software development rates in top European and Asian destinations, and make sure you make the best possible choice.
Choosing the right outsourcing destination is crucial for cost optimization and leveraging competencies. While Western Europe's salaries reach high figures like $6,000 in Germany or the Netherlands, and even $10,000 in Switzerland, Eastern Europe, and Asia emerge as attractive options.
However, before you make your final choice, we recommend considering not only offshore rates for software development but also other factors, such as:
Now, let’s take a look at the average offshore software development costs in the most popular offshoring destinations.
CASE 1: DELEGATE A MINOR PART
Your needs: You only want to delegate the development of a minor part of your software.
Recommendation: You may want to choose Asia because of the lowest cost.
CASE 2: GET IT DONE QUICKLY WITHOUT MY ENGAGEMENT
Your needs: You don't want to take part in the development process, just need to get it done quickly without your engagement.
Recommendation: If English profficiency and culture similarity are not your priorities, you may want to choose Asia because of the lowest cost.
CASE 3: CUT COSTS BUT PRESERVE QUALITY
Your needs: You need to cut costs but also care about quality, want to keep the finger on the pulse and take part in the development process.
Recommendation: You may want to choose Eastern Europe locations or China because of the top cost-quality ratio. Scroll down to learn more about that.
CASE 4: CUT COSTS BUT CARE ABOUT COMMUNICATION
Your needs: You need to cut costs but care about transparency and mutual communication.
Recommendation: You may want to choose Eastern Europe locations, since many countries offer great English fluency and Western-like culture. Scroll down to analyze the outsourcing conditions in Eastern Europe to choose your top destination.
As offshore software development costs are just one piece of the puzzle, it's essential to consider other crucial factors. Let’s move on to discussing other outsourcing conditions that will help you to compare top outsourcing destinations.
Tech expertise: Poland is one of the fastest-developing technology hubs in Europe. The tech sector already takes up 8% of the Polish GDP. This translates also into access to more than 400k talented developers and other IT specialists with various skills and competencies. There are also 25 technical universities with 15k graduates annually.
English proficiency: According to EF English Proficiency Index, Poland is the #13 country out of 111 included locations. This is considered a very high proficiency, which makes Poland the top choice in terms of the ability to communicate in English.
Choose Poland if you:
Tech expertise: Outsourcing to Ukraine means a great balance between rates and quality. The country is considered one of the best IT outsourcing destinations. As a result, several tech giants such as Microsoft, Uber, and Apple work with the Ukrainian workforce. Ukraine is also home to more than 120 promising startups.
English proficiency: According to EF English Proficiency Index, Ukraine offers moderate proficiency in English, reaching the #35 position in the overview.
Choose Ukraine if you:
Tech expertise: Romania, as well as Poland, is one of the top European outsourcing destinations. The IT and outsourcing market is constantly growing, and Romanian programmers are more and more valued internationally.
English proficiency: According to EF English Proficiency Index, Romania is the #17 country in the overview which is considered a high proficiency.
Choose Romania if you:
Tech expertise: Access to skills and talented developers make the Czech Republic one of the world’s top outsourcing countries. As numerous educational programs are provided to support tech adepts in finding jobs, the Czech IT workforce is strong and continuously expanding.
English proficiency: Czech Republic is the #23 country on EF English Proficiency Index, which is behind Poland and Romania, but still considered as high proficiency.
Choose the Czech Republic if you:
Want to discover more about Eastern Europe conditions? Read the guide Easter Europe software outsourcing with 10 top vendors revealed.
Tech expertise: India is one of the world’s top outsourcing destinations. Low fares and access to IT specialists make it an appealing destination for international companies seeking cost-efficient software development solutions.
English proficiency: Although India is an ex-British colony, it reached the #52 position in the EF English Proficiency Index which is considered moderate English proficiency.
Choose India if:
Tech expertise: The Philippines is one of the top outsourcing destinations in Asia chosen by tech giants such as Facebook, Apple, and Google. The country offers both software development services as well as BPO/SSC centers.
English proficiency: As an ex-US colony, the Philippines absorbed the Western culture and English language, reaching the #22 position of the EF English Proficiency overview which is considered a high proficiency.
Choose The Philippines if you:
Tech expertise: As China is the world’s second-top technical empire, it can provide you with top specialists in mathematics, data structures, functional programming, and other IT-related areas.
English proficiency: With the #62 position in the EF English Proficiency, English proficiency in China is considered low.
Choose China if you:
Now, after you got familiar with our overview and offshore rates for software development, we hope it’s much easier for you to choose a great outsourcing destination.
In case you have any doubts that we can dispel, feel free to contact us. We will provide you with more tips on choosing an outsourcing destination, and advise you on the best solutions in top European outsourcing destinations.
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