Top Best Countries To Outsource Software Development

You do not have to stick with India when outsourcing development your software projects. In this article, we will explore seven top countries besides India to outsource software development projects. These countries all have affordable talent with strong technical skills and fluency in English.

Canada

Canada is known for its strong software development talent and ability to build high-quality software. The average hourly rate for software developers in Canada is $102 per hour, which is significantly lower than in the US and the UK. Canadian developers usually work in an agile development environment. You can expect these developers to be well-versed in SCRUM and other agile methodologies (1).

“Canadian engineers are well-educated in the latest programming languages. Furthermore, they have an excellent knowledge of technology and information systems in different business sectors. Canadian IT professionals are also very experienced in designing, developing, testing, and deploying software systems.”

– Intersog

Canadian outosrcing work in all sectors, including healthcare, financial development services, and development telecommunications. Canada is a top choice if you are looking for a wonderful place to outsource your software development projects. Canadian developers are highly skilled and have great critical development thinking skills. They also have an exceptional understanding of the software development lifecycle, which is handy on larger projects.

Philippines

The Philippines is a suitable place to outsource software development projects, especially if you are looking for an English-speaking development team. The Philippines has one of the strongest English-speaking workforces in the world, with an estimated 99% fluency. The average hourly rate for a developer in the Philippines is $38, which makes it one of the most affordable countries in the world to outsource software development. Most programmers in the Philippines specializing in web development, but you can also find strong teams specializing in other software development domains, like mobile app development. But if you are looking for more specific software or language be mindful that (2):

“Software developers with Scrum or Agile certification are less common in the local market.”

– Microsourcing

It is easy to find a talented team in the Philippines thanks to sites like Upwork and websites dedicated to connecting businesses with Filipino developers. You can also hire a team in the Philippines through a developer-recruitment company like Codal.

Mexico

If you want to outsource your software development projects but are looking for a team outside the US, then Mexico is a great option. Mexican developers usually work in an agile development environment and report fluently in English. Thanks to its proximity to the US, hiring a team in Mexico is easy. Most Mexican developers are located near the US border, which makes it easy to have team meetings with your development team in person. The average hourly rate for software developers in Mexico is $58, so it is one of the more affordable countries to outsource to. Mexico has a strong IT industry and a large talent pool according to Tecla (3).

“Mexico’s ICT outsourcing surpassed $60 billion in revenue in 2021. According to experts, the software industry revenue alone will reach nearly $5 billion by 2026. These impressive numbers show that Mexico has a strong track record of software development outsourcing.”

– Tecla

The country is also known for its English-speaking population, making it an excellent choice for outsourcing. One downside of collaborating with a Mexican team is that you have to consider time zones. Since most people in Mexico work during the day, they are a good option if you want to work during the day in your local time zone.

Ukraine

Ukraine is another excellent option for hiring a team outside the US. Ukraine has a strong IT industry, with many developers working on IT projects for large companies worldwide. The average hourly rate for a software developer in Ukraine is $72 which makes it a very affordable place to outsource. Most Ukrainian developers work in an agile development environment and are fluent in English. They are an excellent choice if your project spans web and mobile app development. Since many Ukrainian developers work remotely, they work on various software development projects. You should look elsewhere if you are looking for a team that specializes in a particular project domain.

Bulgaria

Bulgaria is another excellent option for outsourcing software development outside of the US. The average hourly rate for Bulgarian developers is $51, making it one of the more affordable countries to outsource to. Much like Ukraine, Bulgaria has a strong IT industry and many developers specializing in software development. You can expect most Bulgarian developers to work in an agile environment and to be fluent in English. Suppose you are looking for a team specializing in a particular project domain. In that case, you can find software development teams in Bulgaria that specialize in various technologies, including Java, Python, and . NET.

Romania

Romania is another excellent option for outsourcing software development projects outside the US. The average hourly rate for a Romanian software developer is $48, making it one of the most affordable places to find an outsourced team. Romanian developers usually work in an agile development environment but are also highly skilled in waterfall methodologies. Like many other countries, you can find Romanian developers who specialize in different sectors, like healthcare and finance.

Indonesia

If you want to outsource your software development projects but you want to find a team in a country with a lower cost of living than other destinations, Indonesia is a smart choice. Indonesian developers usually work in an agile development environment. The average hourly rate for software developers in Indonesia is $22, making it one of the most affordable countries to outsource. Most Indonesian developers are located near Jakarta and work in English. If you want to find a team with a strong focus on Java, you can find many great teams in Indonesia with experience in Java development.

Japan

If you want to find a team in Asia but want to avoid hiring a team in India, consider Japan. The average hourly rate for a software developer in Japan is $55, but many companies have been hiring developers in Japan due to the high rates of skilled developers there. If you are looking for a Japanese team, you can expect to find developers who work in an agile environment and who usually work from home. Many Japanese developers work remotely for companies in the US and other parts of the world.

China

If you want to find a team in Asia but want to avoid hiring a team in India, then consider China. The average hourly rate for a software developer in China is $51, making it one of the most affordable places to outsource software development projects. If you are looking for a Chinese team, you can expect to find developers who work in an agile development environment and who usually work from home. Many Chinese developers work remotely for companies in the US and other parts of the world.

Poland

If you want to find a team in Europe but want to avoid hiring a team in the UK, consider Poland. The average hourly rate for software developers in Poland is $69, making it one of the more expensive places to outsource. If you are looking for a Polish team, you can expect to find developers who work in an agile development environment and who usually work from home. Many Polish developers work remotely for companies in the US and other parts of the world (4).

“When it comes to the IT industry itself, the Polish software development services market is the 33rd biggest industry in the country, representing about 8% of the country’s entire GDP.”

– Stratoflow

You hire a team outside your company to develop software for you when you outsource software development. It may be a single project or ongoing. You or your internal team will often manage to select the vendor, negotiate the contract, and oversee the work to ensure it is in line with the scope of work agreed to. You can outsource to a company or an individual developer. Understanding the pros and cons of outsourcing is essential to ensure it is right for you and your business. Outsourcing has been around for decades. It has evolved significantly over the years as technology has advanced, and new ways of working have emerged.

Advantages of Outsourcing Software Development from other countries

There are many advantages to outsourcing software development, whether outsourcing to a partner or hiring an agency to develop the software in-house. Here are some of the most common reasons.

• Access to Expertise: Building an in-house team or hiring a start-up with limited staff can be challenging, especially if you want to bring people to the executive level or senior team members. You can find the right people, but it may take some time and come at an inflated cost. Outsourcing allows you to tap into a larger talent pool with more experience and at a faster pace.
• Faster Time to Market: With internal teams, there is usually a lead time before they can deliver their first products. Outsourcing allows you to have a product or prototype in hand much more quickly.
• Reduced Risk: It is hard to predict what the future holds. An economic downturn could put the viability of your business in question. Outsourcing can give you more flexibility and help you reduce the risk of relying too heavily on internal resources.
• Cost Savings: Internal teams are often paid higher salaries, making managing costs challenging. Outsourcing provides a way to get great work at a lower price.

While this just a high level overview of the advantages, they’re many other more in-depth benefits to outsoucing IT.

Disadvantages of Outsourcing Software Development from other countries

Outsourcing software development does have its pitfalls and risks. You need to manage those risks and be realistic about the advantages of outsourcing. Here are some of the potential disadvantages to be aware of. –

• Finding and Managing Vendors: Finding and managing vendors is the top challenge of the outsourcing process. It can take a lot of time and effort to find the right vendor, negotiate a contract, and stay in touch with them to ensure they understand and follow your needs.
• Quality Control: Managing quality control can be challenging when outsourcing. You have to work with your vendor to ensure they are addressing your quality needs and expectations.
• Cultural Differences: You also must be aware of cultural differences that could affect your project. Some cultures and vendors might value different things than you do, and you might need to be mindful of it.
• Ownership and Intellectual Property: Finally, you have to understand who owns the intellectual property from your project, who owns the data, and what happens if the vendor goes out of business.

Different Types of Outsourcing or outsourced

There are several types of outsourcing or software outsourcing, and each type has a distinct set of benefits and challenges. The best way to understand the types of outsourcing is to look at the different ways outsourcers can be used. Here are the several types of outsourcing.

• Software Development Outsourcing (SDO): When you outsource software development, you hire a vendor to develop software. The vendor might also help with software development consulting, testing, design, and more. With SDO, you have the vendor own the IP, but you own the software at the end of the project.
• Vendor Management Outsourcing (VMO): VMO is when your vendor manages the vendors who build your software. This means they tend to select the vendors, work with them to ensure the project is going as planned and ensure the vendors meet your key metrics.
• Hybrid Outsourcing: Hybrid outsourcing combines two or more of the above types. You might use one vendor for designing your software and another for building the software. You might also use your team for some aspects of the project.

Types of Partners You Can Outsource To

There are many types of partners you can outsource to, but you need to understand the vendor landscape before you start looking. RFPs are standard and necessary with more prominent vendors. Here are some of the types of partners you can consider outsourcing to.

• Product Development (Product Design, Product Engineering, Product Marketing, UX/UI Design, Quality Assurance): These types of partners can help with the front-end and back-end work needed to build your product. They are often technology-focused but could also be focused on business or marketing.
• Content (Copywriting, Content Strategy, Design, Research): You can outsource content work to agencies or individual freelancers. They can help with copywriting, content strategy, design, and research.
• IT Services (Cloud Hosting, Network Administration, Security): You can outsource IT services to vendors who specialize in specific tasks. Cloud hosting and network administration are popular outsourced services.

The Scope of Services to Consider Outsourcing

The services you choose to outsource are up to you and depend on your company’s needs. Here is a list of services to consider outsourcing.

• Outsourcing Software Development: When you outsource software development, you hire an outside vendor to build software.
• Outsourcing Product Management: Product management is deciding what features to build, prioritizing them, and managing the product roadmap.
• Outsourcing Design: Design services can include UX/UI design, branding, visual design, or AR/VR design.
• Outsourcing Content: You can outsource copywriting, content strategy, and design work.
• Outsourcing Infrastructure is the physical environment where your software is hosted or used.
• Outsourcing Maintenance: Maintenance is the ongoing work to keep your products running smoothly.
• Outsourcing Project Management: PM work includes managing individual projects and guiding teams through the entire project lifecycle.

Common Pitfalls to Avoid When Outsourcing

There are a few common pitfalls to avoid when outsourcing. Make sure you manage risk, keep communication open and transparent, and choose your vendor wisely. Here are some ways to avoid those pitfalls.

• Communication: Make sure you and your vendor have open and transparent communication. Keep lines of communication open at all times and be clear about expectations from the start.
• Risk Management: Make sure you manage risk at every stage of the outsourcing process. Before you sign the contract, look for red flags that could indicate problems with the vendor.
• Vendor Selection: When selecting a vendor, do your due diligence. You should have a list of the top vendors you want to work with, and you should research them.

Today, software development is one of the most critical functions in any company. And as the needs of businesses grow and change, so do their software needs. These days, most companies opt for outsourcing software development instead of hiring a team inside their organization. Outsourcing lets businesses focus on their core competencies while simultaneously providing them access to more affordable services. Suppose you are looking for ways to improve your business processes or build new software applications without significantly increasing your operational costs. In that case, consider outsourcing your software development needs. In this section, we will explore why outsourcing software development makes sense and give you some tips and guidance on how to start outsourcing effectively.

Outsourcing makes sense because of its flexibility.

One of the main reasons companies decide to outsourcing or outsource software development is because of its flexibility. Businesses that outsource their software development needs usually have two options: Full-service or partial service. Full-service means the business will hire a company to do everything from ideation to product launch. Partial service, on the other hand, is more limited in scope. The firm employs a team to help them with creativity, requirements gathering, design, and testing. It does not include software development, project management, testing, deployment (or any other activities). This flexibility makes outsourcing software development a desirable option. You can hire a company to do everything or help you with a few crucial parts of the development process. As business needs change, you can add more services in the future if needed.

Outsourcing allows you to build without hiring.

Another reason companies outsource their software development needs is that it allows them to build without hiring. If you want to develop a new software application or improve your existing system, you should hire a team of developers, at least temporarily. This can take much time because you will need to go through the entire hiring and onboarding process, which can take several months. With outsourcing software development, you can start building your application immediately. This is particularly useful if you need to bring a new application to market quickly or want to provide a unique service to your customers now. In addition to software development, they’re many in demand IT jobs that can be outsourced

Outsourcing is the only way to hire great software developers.

Another reason companies decide to outsource their software development needs is that outsourcing is the only way to hire great software developers. Some companies believe they can hire good software developers and train them to be great, but that only sometimes works. If a company employs software developers and expects them to hit the ground running, they will need to catch up to expectations or quit before they even start. Outsourcing is an excellent option for building software applications without hiring new people. With this approach, you can hire the best software developers for their specific skills and put them to work immediately.

More reasons why outsourcing

There are many more reasons why outsourcing software development makes sense. Here are a few of them:

• Faster development cycles: If you outsource software development, you can expect more rapid development cycles. This is because outsourcing enables you to access a more incredible pool of developers while removing the overhead associated with hiring and managing your team.
• More control over project timelines and costs: If you decide to outsource, you will also have more control over project timelines and costs. In-house developers work for your company, so you can only oversee their progress. With outsourcing, you will have more control over the project timelines and costs.  , Senior Director Analyst at Gartner, says outsourcing can provide cost-saving benefits. “However, while determining what to outsource to reduce customer disloyalty, CSS executives must keep CX demands in mind.”
• Access to a greater pool of specialized skills: If you need technical skills, you will have to hire developers with those skills and bring them on board full-time. When outsourcing, you will have access to a much more diverse pool of developers and can hire specific skills as needed.
• Access to a global talent pool: If you decide to outsource, you will also have a global talent pool. This is especially important if you have a global customer base and need to hire developers who can work in different time zones.
• Access to a broader range of services: Many businesses outsource software development and have access to a more comprehensive range of services. This includes everything from design to product management.
• Access to technical resources that you may not have inside your organization: Some businesses need the right technical resources to build specific applications or deliver certain services. Outsourcing software development can fill those gaps.

Frequently Asked Questions About The Best Countries To Outsource Software Development

How to find a suitable outsourcing partner?

If you are ready to outsource software development, finding a suitable outsourcing partner is first. Finding the right outsourcing partner can be challenging, especially if you have never outsourced. You must first know your organization’s needs to find a suitable outsourcing partner. You must also understand your budget, timeline, and other essential factors. Once you decide what you need, you can start looking for outsourcing partners. How do you find the right outsourcing partner if you have never outsourced? Here are a few tips:

• Ask the right questions: When interviewing outsourcing partners, ask the right questions. First, you need to understand your organization’s needs. Then, you need to map those needs to a corresponding set of services. You will also need to define your budget, timeline, and other vital factors. Make sure you ask outsourcing partners about all of these things.
• Go through a vetting process: After you have narrowed down your list of outsourcing partners, you must go through a vetting process. You will want to ensure that each outsourcing partner is a good fit for your organization.
• Consider outsourcing long-term: Are you looking to outsource on a short-term or long-term basis? If you outsource short-term, you will find a suitable outsourcing partner much easier. If you want to outsource long-term, you will need help finding a good partner.

Outsourcing software development is simultaneously a simple and complex process. It is simple because you only need to find the best partner for your project. It is more complicated because there are so many factors you need to consider when making this decision. As such, it is essential that you understand how to choose the correct country for outsourcing your software development project. This way, you can get the most out of this opportunity while minimizing potential risks. If you plan to outsource your next software development project – which we strongly recommend – this blog post will serve as a practical guide.

Why Outsource Software Development?

One of the primary reasons to outsource software development is to reduce costs. While hiring domestic developers may seem cheaper, the truth is that their salaries are often much higher than what you would pay to hire outsourced developers. You can also incur much higher costs when hiring domestic developers, as you have to consider employee benefits, taxes, and more. It is also important to remember that not all countries employ the same work standards as most Western countries do. For example, the US and Canada have strict regulations regarding the work environment, safety measures, and more. On the other hand, several Asian countries have less stringent standards. Outsourced developers in these countries can often provide high-quality services at a much lower price.

What To Look For In A Country For Outsourcing

To determine which country is best for outsourcing your software development project, you first need to decide on the type of talent you would like to work with. Here are some of the most common options to choose from:

• Native English-speaking developers.
• English-speaking developers that are not native.
• Non-English-speaking developers that are fluent in English.

The next step is to determine the type of project you want to outsource. Depending on that, some of the most crucial factors to consider include the following:

• The type of project.
• The skills and experience of the team.
• The type of work environment.
• The communication channels.
• The cost.

You can use these factors to help you determine which country is best for outsourcing your next software development project.

Check the local market first

When considering a software outsourcing location, it is essential to check out the local market first. To determine if a country is suitable for outsourcing, you need to look at the engineering talent pool’s size and technical resources’ availability. To find the right engineers for your project, ensure the country you choose has the proper supply and demand balance. It is also essential to understand the local rate for engineers. For you to stay within your budget, choosing a country where engineers are paid a fair rate is a good idea.

Access to a diverse group of engineers

If you are outsourcing to another country, you will want to ensure you have access to a diverse pool of engineers with the right skill sets. This means you will want to consider outsourcing to a country with a high volume of engineers who are trained in computer science and related disciplines. When choosing a location for software outsourcing, it is essential to consider the size of the engineering talent pool in the country. You will want to ensure enough engineers meet your project needs. You will also want to ensure diversity among the engineers in the country.

Proximity to your client

After you have determined the size of the engineering talent pool and you have found engineers who are trained for your project needs, you will want to consider the proximity of your client. When outsourcing to another country, you will want to consider the distance between your client and the engineers working on your project. If the engineering team is located in another part of the world, you will want to ensure you have an appropriate communication method. This will help you stay efficient while completing your project.

Good quality of life for remote employees

Additionally, you will want to ensure that the engineers working on your project have an excellent quality of life. You do not want to hire individuals who are overworked and stressed out from the outsourcing market. Instead, you want to find engineers who have an excellent work-life balance. Many factors determine if a country is suitable for software development outsourcing. To select the best location for your project, you will want to consider the size of the engineering talent pool, the proximity of your client, and the quality of life for remote employees.

References:

1. Canadian engineers are well-educated in the latest programming languages. Furthermore, they have an excellent knowledge of technology and information systems in different business sectors. Canadian IT professionals are also very experienced in designing, developing, testing, and deploying software systems. – Intersog Quote
   https://intersog.ca/blog/is-it-good-or-bad-to-outsource-software-development-to-canada
2. Software developers with Scrum or Agile certification are less common in the local market– Microsourcing Quote
   https://www.microsourcing.com/build-your-team/job-roles/software-developer/
3. Mexico’s ICT outsourcing surpassed $60 billion in revenue in 2021. According to experts, the software industry revenue alone will reach nearly $5 billion by 2026. These impressive numbers show that Mexico has a strong track record of software development outsourcing. – Tecla Quote
   https://www.tecla.io/blog/software-outsourcing-mexico-report
4. When it comes to the IT industry itself, the Polish software development services market is the 33rd biggest industry in the country, representing about 8% of the country’s entire GDP. – Stratoflow Quote
   https://stratoflow.com/outsourcing-software-development-in-poland/