12 Best Countries to Outsource Software Development

Linh Nguyen

Linh Nguyen | 16/05/2024

12 Best Countries to Outsource Software Development

Outsourcing software development has become a global trend and continues to gain traction as companies now understand the benefits of going this route. Companies can have the same high-quality work done at a fraction of the cost when outsourcing their projects and looking for software solutions.

However, don’t rush outsourcing your software project without researching your future outsourcing partner. Placing your budget on an unsuitable software development company can bring no other than wasting resources.

Besides the expertise and experience of the development team, the outsourcing destination is often the deciding factor that poses a problem to the project’s success. Depending on the locations of software development companies, clients receive different labor costs, time zone capabilities, skill availability, and language proficiency.

So, which are the best countries to outsource software development? This article focuses on bringing some of the best places to the forefront and highlighting their strengths to help you in the decision-making journey.

Best Software Development Countries in Asia

The Asian region consists of some of the best software development countries, with some countries ranking among the top 10 in the world, according to a 2017 Index Report. The region has over 200 software agencies with over one million employees.

India

Software outsourcing statistic of India

India is a popular outsourcing destination with a large number of talented software developers and programmers. The reason for this is that the urban population is highly educated and semi-skilled, and most of its youths are turning towards IT.

The country has about 120,000 IT professionals added to its workforce every year. Moreover, it is the second-largest English-speaking nation in the world, so communication is fairly easy.

A software developer in India charges $12 - $99, while a developer in the US can charge anywhere from $50 - $300 an hour. When compared to other countries, India stands out from the rest in terms of scale and the availability of skills.

  
Number of developers5.8 million
Average hourly rate> $25/hour, according to Clutch
Top tech citiesBengaluru, Hyderabad, Chennai, Kolkata, Mumbai
Popular programming languagesJava, C++, Python, TypeScript, Kotlin
Time zoneGMT+5:30

Vietnam

Software outsourcing statistic of Vietnam

Fairly new to the IT outsourcing field, Vietnam only started about 25 years ago but is rapidly becoming one of the top outsourcing countries. The country has come a long way in terms of technology and now hosts large companies such as IBM, Intel, Samsung, Microsoft, and Nokia.

With labor costs 90% less than in the US, Ho Chi Minh City was named one of the best cities for outsourcing due to quality, costs, and infrastructure. The city is famous for its quality software outsourcing services at a comparatively lower price than anywhere else in the world. The local population is well-educated and excels in IT, especially artificial intelligence.

Vietnam is another really affordable destination for the IT sector. An IT specialist can be hired for anything between $25-$49 per hour, depending on the expertise of the professional.

  
Number of developers500,000+
Average hourly rate> $25/hour, according to Clutch
Top tech citiesHo Chi Minh, Hanoi, Da Nang
Popular programming languagesJava, C++, Python, SQL, Ruby
Time zoneGMT+7

Philippines

Software outsourcing statistic of Philippines

With the rise of IT professionals graduating from top technical universities across the Philippines, the country is now able to meet the demands of the rising IT industry, with over 30,000 graduates in the IT and technical fields.

The country is the third-largest English-speaking nation with a 94% English literacy rate, which is ideal when outsourcing. The cost of hiring a software developer from the Philippines costs a fifth of what developers in the Western world charge, yet the quality of work is fairly equivalent. A decent developer from the Philippines can cost you anywhere from > $25 to $99 per hour.

  
Number of developers190,000+
Average hourly rate> $25/hour, according to Clutch
Top tech citiesManila, Cebu, Davao City
Popular programming languagesJava, JavaScript, C#, PHP
Time zoneGMT+8

Thailand

Software outsourcing statistic of Thailand

Thailand was ranked number 6 in a 2016 survey by A.T Kearney as a country that is an efficient offshore software development outsourcing center. Boosting their IT sector is a robust university and college system that enables citizens to zero in on their IT skills.

The country is trying to improve its English level to attract foreign business owners. It is now one of the best countries for mobile applications, IT consulting, and software testing services on budget, costing businesses anywhere from $25 to $49 per hour for a very decent developer.

  
Number of developers100,000+
Average hourly rate> $25/hour, according to Clutch
Top tech citiesBangkok, Chiang Mai, Phuket
Popular programming languages.NET, C++, C#, Java
Time zoneGMT+7

China

Software outsourcing statistic of China

China offers some of the best tech and IT services across the globe together, with a focus on Maths and Science education. Many companies are setting up in China to take advantage of their expertise, such as UI, full-stack, mobile, enterprise, and game software, which are present in the country.

China has taken up the initiative to develop, educate, support, and train its citizens to be experts in the IT field. China’s IT talent pool is huge and consists of over 7 million professionals with excellent skill sets that could cost you between $25-$149 per hour. However, Chinese English proficiency remains low globally and is even poor compared to some Asian countries, leading to communication barriers during partnership.

  
Number of developers7 million+
Average hourly rate$50/hour, according to Clutch
Top tech citiesShenzhen, Shanghai, Beijing
Popular programming languagesPython, Java, JavaScript
Time zoneGMT+8

Top Outsourcing Countries in Eastern Europe

According to the same report in 2017, countries in Eastern Europe offer high-quality work, reasonable prices, great communication skills, and convenient time zones. There is a huge talent pool in this region, with most developers in the software development sector having a university technical degree.

Ukraine

Software outsourcing statistic of Ukraine

With a skill pool of more than 250,000 IT experts, Ukraine is shaping up to be one of the most promising countries for outsourcing software development projects. Companies such as Intel USA, Microsoft, and Nokia are already taking advantage of Ukraine’s software services.

The country has a total of 20,000 students graduating in IT and IT-related fields every year, with as much as 57% of them having STEM degrees. Ukraine is an ideal choice for companies looking for an excellent ratio of quality and price with an average rate of anywhere from $25 - $99 an hour for a Ukraine outsourcing developer.

  
Number of developers250,000+
Average hourly rate$40/hour, according to Clutch
Top tech citiesKyiv, Odesa and Dnipro
Popular programming languagesJavaScript, Java, Python, Ruby
Time zoneGMT+2

Romania

Software outsourcing statistic of Romania

Romania is another emerging IT outsourcing destination. The country has more than 41 technical universities with over 7,500 IT graduates per year.

Romania contributes almost 20% to the outsourcing software development sector in Central and East Europe. Developers from this country are skilled in various software methodologies and popular programming languages. Their work is evident in some of the big names in the IT world, such as Microsoft, Dell, and IBM.

These services cost your business anywhere between $25 to $99 per hour, depending on the requirements and experience of the engineer.

  
Number of developers100,000+
Average hourly rate$40/hour, according to Clutch
Top tech citiesBucharest, Cluj-Napoca, Timisoara
Popular programming languagesPHP, ASP.NET, Python
Time zoneGMT+2

Poland

Software outsourcing statistic of Poland

Poland has 80,000 students majoring in IT and IT-related fields, with an average of 15,000 graduates from 18 local technical universities every year.

Poland is also the IT partner of over 100 companies with over 255 software specialists ready to offer offshore custom software development services. Poland’s talent pool is full of professionals who are experts in Java, Python, and Ruby.

This allows the country to be ranked among the top Eastern European countries with affordable programming experts who are well-versed in software development technologies. Generally speaking, you can avail of the services of a software specialist for around $50-$99 an hour.

  
Number of developers300,000+
Average hourly rate$60/hour, according to Clutch
Top tech citiesWarsaw, Kraków, Wroclaw, Lodz
Popular programming languagesJava, SQL, Python, C++
Time zoneGMT+1

Hungary

Software outsourcing statistic of Hungary

Research shows that Hungary ranks as the fifth-best country to outsource software development worldwide. It is one of the top destinations to find the best software developers. Hungarian developers are well-trained and experienced in helping you build databases and write code in Shell, C++, and Java.

Despite the small size of this country, its IT sector has grown significantly over the years. When placed side by side with their counterparts in the Western Hemisphere, the cost per project is significantly lower.

Hungarian IT specialists are relatively affordable, ranging from as low as $50 to a high of $99 for intermediate engineers.

  
Number of developers300,000+
Average hourly rate$60/hour, according to Clutch
Top tech citiesWarsaw, Kraków, Wroclaw, Lodz
Popular programming languagesJava, SQL, Python, C++
Time zoneGMT+1

Czech Republic

Software outsourcing statistic of Czech Republic

Offering affordable software solutions and development skills to companies overseas, the Czech Republic is another high-ranking IT outsourcing country. Top IT conglomerate Google has an office in the Czech Republic to take full advantage of the software development sector.

The reason for this is that the country offers over 15,000 IT graduates every year since there are many famous technical universities. Besides, the Czech Republic is also one of the most affordable countries for IT specialists, ranging in price between $50 to $99 for beginner to expert-level engineers.

  
Number of developers100,000+
Average hourly rate$60/hour, according to Clutch
Top tech citiesPrague, Brno, Ostrava
Popular programming languagesPHP, Java, SQL, Python
Time zoneGMT+1

Top Outsourcing Countries in Latin America

In a location report done in 2017, countries in Latin America showed up as a popular choice for businesses looking for outsourcing software development. Countries in this region are a popular choice for most North American countries because of the cost, minor cultural differences, and small time zone differences.

Brazil

Software outsourcing statistic of Brazil

Brazil ranks 9th in the world for providing software solutions and services, according to the Panorama and Trends 2018 report.

Additionally, Brazil’s software market is worth a whopping $19 billion, with the IT sector taking up as much as 50% of the Latin American Software market, specializing in programming languages such as Java, Python, and SQL.

With millions of English speakers, communication is not a problem when it comes to hiring a Brazilian developer to work on your software development project. The average rate for a web development developer is from $25 - $99 an hour.

  
Number of developers500,000+
Average hourly rate$40/hour, according to Clutch
Top tech citiesSão Paulo, Campinas, Recife
Popular programming languagesJavaScript, SQL, Java, HTML, Python
Time zoneGMT-3

Argentina

Software outsourcing statistic of Argentina

Argentina offers free education opportunities to its citizens, which has led it to rank as one of the most educated countries in Latin America. They are also the country with the highest level of English in Latin America.

Both of these combined provide a workforce that is highly skilled and able to communicate effectively. The country has over 100,000 IT professionals and over 1000 companies involved in the outsourcing software development industry.

Hiring a developer in Argentina could cost you around $25-$99 on average, depending on the experience of the engineer.

  
Number of developers100,000+
Average hourly rate$40/hour, according to Clutch
Top tech citiesBuenos Aires, Cordoba, Mendoza
Popular programming languagesJavaScript, SQL, Java, HTML, Python
Time zoneGMT-3

Conclusion

Software development is definitely not the easiest of industries to get into, and so it requires great effort, skill, and understanding in order to be successful. Thus, choosing a country to outsource to can be a tedious task as it will all depend on the needs of the client.

There are many different aspects to choosing the best country, and it is based on personal preference. Some factors to take into consideration are location, language level, costs, political stability, and technical capabilities. Ultimately, the software developer should have the necessary skills required to complete the job, charge a competitive price, and communicate effectively.

If you are in the middle of nowhere during your software development process, it is advisable to connect with industry experts like Orient Software. As a Vietnam-based outsourcing partner, we are here to help businesses, regardless of size, reach their full project potential while ensuring cost-saving pricing models. Contact us by leaving a message.

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