Top 10 Countries to Outsource Software Development

Outsourcing software development is one of the most effective budget optimization strategies, particularly for small and medium-sized organizations considering minimizing operational costs. Today, there are thousands of vendors across all continents offering outsourcing services.

However, the different destinations vary depending on experience, expertise, and technical competencies.

This post provides a list of the top outsourcing destinations, detailing the unique features and offerings that make them a worthy consideration for you.

1. Vietnam

Vietnam has attracted some of the world’s leading brands, such as Microsoft, IBM, Intel, and Standard Chartered. The attraction in Vietnam as a software outsourcing destination is perhaps largely attributable to the cost-effective pricing. It is estimated that the cost of outsourcing is 90% less compared to the cost of acquiring similar services in the United States.

But the attraction goes beyond the low costs. The country is known to have one of the highest literacy levels in the Asia-Pacific region. This translates to high technical skills, particularly in the fields of software engineering.

Another attraction is the level of quality offered. This trickles down from the quality of education and the industry practices maintained. The country has invested substantively in improving the quality of education. Consequently, the workforce is highly knowledgeable and competent in applying the latest technologies and frameworks to deliver impactful software solutions.

With proficiency in English, stable political client, government support for the tech industry, and a deep talent pool, Vietnam remains a worthy consideration as an ideal outsourcing destination for software development.

 

2. India

For a long time, India has been the outsourcing capital of the world. While other ideal destinations have emerged over the recent years, most firms in Europe and the United States consider India as the top outsourcing destination globally.

One of the major attractions in India’s outsourcing landscape is the language. Almost the entire IT community in India is conversant with the English language and can communicate effectively with clients across most countries. Additionally, the country’s education system is STEM-oriented. This translates to constant growth in the IT talent, with the country producing more than 2.6 million graduates in the STEM fields annually.

For years, India has demonstrated its competencies and cemented its position at the top as a leading outsourcing destination. Developers from India have an admirable command of top programming languages, are conversant with the latest technologies and frameworks, keep up industry practices, and adhere to the highest quality standards. These, coupled with the low software development cost, make it an ideal destination worth considering.

3. China

China is home to an extensive IT company portfolio and follows India closely as the second most preferred outsourcing destination. Like in India and Vietnam, China produced many new technology graduates – up to 4.7 million every year. Furthermore, the country has invested substantively in its technology industry and boasts of one of the most advanced IT infrastructures.

In recent years, there has been a notable increase in the quality of tech services in China, building to its attractiveness. Additionally, the favorable business environment and political climate support thriving software development and the larger IT industry.

China is the right place to look at if you are looking to hire competent professionals from a vibrant destination at cost-effective prices.

 

4. Ukraine

Over the last decade, Ukraine has climbed the ranks and earned its spot among the world’s top software outsourcing destinations. This rise is attributable to the astronomical growth in the country’s IT industry. Today, the country hosts more than 1600 IT outsourcing firms, with a workforce of close to 200000 IT specialists.

Ukraine boasts of a large pool of IT talents. The high quality of education in the country produced highly skilled professionals with technical competencies to deliver quality software solutions to clients across industries. Every year, more than 23000 professionals with STEM-based degrees are added to the country’s IT workforce. Further, the large talent pools and a number of firms offering software outsourcing services means clients can access quality services at cost-effective prices.

The Ukraine software outsourcing industry does not show any signs of slowing down. It has even been featured in the Offshore Destination of the Year by Global Sourcing Association and listed among the top 30 global offshoring and outsourcing destinations by Gartner.

5. The Philippines

The Philippines’ technology revolution yields fruits, as evident from the country’s emergence as a leading offshoring and outsourcing destination globally. The country has a decent proficiency in English, which provides its leverage among international clients.

Over the years, a lot of effort has been channeled towards improving the country’s education sector, particularly in mathematics and science courses. As a result, the country produces a large pool of knowledgeable software engineers and IT specialists experienced in applying the latest technologies and industry practices.

The Philippines has built its reputation by maintaining high-quality standards and offering unmatched technical expertise at economical costs. These are sufficient reasons to give the Philippines a chance when considering an ideal offshore software development destination.

6. Poland

Poland is a member of the European Union. This means its education system matches the high standards prescribed by the union. Consequently, the talent pool has high professional qualifications to deliver creative software solutions to the most complex business problems. In fact, Programmers from Poland rank third as the most skilled programmers globally. They rank first in Java assessment and among the top 5 in other top programming languages, including Shell, Python, and Ruby.

Beyond technical expertise, Polish outsourcing companies are known for their ethical working cultures. The country’s increased preference as an ideal outsourcing destination is attributable to its promising outlook for clients. Poland’s English proficiency, admirable working culture, and cost-effective services remain worthy of consideration as an ideal outsourcing destination.

7. Canada

Canada boasts of a strong educational infrastructure that maintains a strong focus on technology. It is estimated that approximately 18.6% of annual graduates from Canada’s higher education institutions have STEM degrees. This translates to the presence of a wide pool of highly skilled and competent professionals capable of transforming client’s ideas and challenges into innovative software solutions.

Another attractive attribute of Canada is its proximity to the United States. The easy access to resources, shared time zones, common language, and overlapping cultures makes it easy for collaboration and partnerships, particularly in America. However, the country’s culture and quality of services also make it ideal for clients globally.

However, it is worth mentioning that the cost of outsourcing in Canada is relatively high compared to the other destinations listed here. Nonetheless, workers’ quality, stable currency, and vibrant workforce tilt the scale, earning Canada a spot among the top outsourcing destinations globally.

8. Taiwan

The Taiwan tech industry enjoys government support. The Taiwan government is committed to transforming the country into a technology hub in the region. Over the years, there has been substantive investment towards introducing STEM into the education system, with a particular interest in technology and innovation. The fruits of these investments are now becoming evident. Today, Taiwan boasts of a highly skilled and competent workforce capable of delivering impactful software solutions for businesses across industries.

The technical expertise is admirable, but the quality of work, easy communication due to a large segment of the workforce being proficient in English, and the economical pricing of software development services make it an ideal destination in the larger Asia-Pacific region.

If you are looking for a destination with a rich talent pool, high-quality services, and democratic prices, look no further than Taiwan.

9. Brazil

Brazil is home to many IT firms offering software outsourcing services at extremely affordable prices. In fact, when thinking about South America’s IT landscape, Brazil is often what comes to mind, and there is a good reason for this. The country boasts an IT workforce with rich expertise, talent, and skills necessary to transform complex problems into innovative software solutions.

English proficiency, one of the key considerations when selecting an outsourcing destination, is also decent. Up to 6.18 million Brazilians speak English fluently, which translates to ease of communication.

The outsourcing industry in Brazil is quite young but has an auspicious future. If you are looking for junior developers, this is the ideal country to look at. However, the country’s talent pool also comprises experienced professionals who can handle complex software projects.

The bottom line is, Brazil’s outsourcing industry is already booming, and being a new entry on the list of top destinations for software outsourcing, the country’s outlook is very promising.

10. Romania

Romania has invested substantively in its education system. It runs an egalitarian education system and offers the same free to its citizens. As a result, Romania has one of the most diverse tech landscapes on the entire European continent. Its developers rank among the top globally, with their extensive skill set and mastery of top technologies and frameworks.

The substantive investment in IT has propelled it to the list of top outsourcing destinations globally over the last year. The rich culture, extensive technical expertise, and an appealing business environment make it an ideal destination to consider when evaluating your options.

Its strategic position in Europe, vibrant culture, and conversance with English add to Romania’s appeal as an ideal outsourcing destination.

Conclusion

Identifying the ideal destination to outsource software development is only the first step towards a successful outsourcing venture. Nonetheless, it is an important step that needs attention as it’s implications trickle down to the final output of your software product. Overall, when evaluating an outsourcing destination, technical expertise, ease of communication, and costs are the most critical factors to consider.