The IT outsourcing market was estimated to be around $526 billion in 2021 and is expected to reach $682 billion by 2027. The phenomenal growth of the outsourcing industry points to the fact that outsourcing is an efficient way to build IT products.
Whether you are a startup or an established business, outsourcing your IT project can benefit your project and business. Outsourcing your software development project allows you to tap the top talent in the world. In addition to that, outsourcing also helps you save software development costs and gain access to flexible staffing.
A dilemma that entrepreneurs who want to outsource their IT projects face is where to find top-notch software development companies to whom one can outsource the software development work. Over the years, a few countries have established themselves as the top outsourcing destinations globally. In this blog, we will look at the top outsourcing countries from where you can find top outsourced talent in software development.
Table of Contents
Whenever you select an outsourced team, always take care of a few main criteria. These criteria will help you assemble an efficient outsourcing team of top software developers. Here are the main criteria you need to consider before hiring an outsourced software development team.
Check the technical education standards of the country from which you want to hire your outsourced team of software developers. This will help you gauge whether you will be able to find the required resources from this country or not. Checking whether the hired software developers have a formal technical background or not is necessary. Because without a good technical base, it will be difficult for the resources to complete the project satisfactorily.
The country’s location to which you want to outsource your software development project is an important criterion for selecting the outsourcing destination. If the location of your outsourcing service provider is far away from your location, then there will be time-zone differences.
These time-zone differences can create communication issues. It is best to work with outsourcing software development companies that have minimal time-zone differences. Some offshore software development outsourcing firms even offer to work in your time zone to cut out the time zone differences.
A smooth communication process can help you overcome time-zone differences. That’s why it is important to look at your custom software development outsourcing company’s communication process before hiring. While it’s true that time-zone differences can create some hurdles, in most cases, a top outsourcing company providing the best software development solutions can handle these issues.
The English language skills of your outsourcing software development team will have an overbearing effect on the success of your project. English is the most popular language in the IT world. The level of English language skills varies from country to country. Poor English communication skills can hamper your project. To ensure that this does not happen, choose a country that has a large English-speaking population.
Moreover, you should also check the English language compatibility of your potential software development outsourcing partners. You can do this by conversing with them in English before handing over your project.
The IT world consists of vast technological diversity. There are multiple coding languages and frameworks for building software development solutions. Whether it’s the web, mobile or software, you will find that many technologies can be used to accomplish a certain goal.
Select an outsourcing country with software professionals who work in a diverse set of IT technologies. A wide variety of tech resources provide you with security. Even if some developers leave the project mid-way, you will get other remote developers from the same country.
Cost is, of course, the most significant factor in deciding where to outsource your IT project. You will find a good deal in an outsourcing powerhouse like India. The cost of developing your software product in Eastern European countries like Poland and Ukraine will be more than in Asian nations like India and the Philippines.
Many countries have emerged as hot favourite destinations for outsourcing software projects. We will have a look at the most prominent ones.
The Philippines has emerged as a great software outsourcing destination in recent times. The main benefit the Philippines has is that the country is culturally close to many western nations, especially the USA. There are thousands of Filipinos residing in the USA, and the country has historically good ties with the US. This happens to be a major advantage for the Philippines as, due to close cultural ties, the Filipinos understand the work culture of the western nations.
The communication gap between Filipino software development service providers and their western clients is not too big. This can be attributed to the fact that the Philippines has a large English-speaking population. A study conducted in the Philippines shows that 94% of the adult population knows how to speak English.
Developing your software in the Philippines can be light in your pocket. Developing software in the Philippines can range from $30-$50 per hour. The government’s policies are also conducive to the software industry. According to the Philippines IT market report, the IT outsourcing industry is one of the most established sectors today.
When talking about the best countries to outsource software development India is the hot favourite software outsourcing destination for most western nations. There are a lot of good software development companies in India. India has a huge pool of talented software developers. The country’s robust education system emphasizes developing students’ math and science skills. Some of the brightest software developers come from India. The credit goes to the country’s university education system, which boasts of some of the finest universities in the world, like the IITs and NITs.
The government is also providing impetus to the software industry in India. The government provides freebies like tax holidays to IT companies and builds IT parks for these companies. Research states that the software industry is growing by 65% per year.
India is a country that outsources software services to more than 100 countries. This fact alone is sufficient to show the software development prowess of India. Hiring Indian software development agencies can prove to be around 4-5 times cheaper than hiring developers from western nations.
You can hire Indian software developers in the range of $15-$60 per hour.
Ukraine has emerged as one of the most sought-after software development outsourcing destinations today. According to an estimate, Ukraine houses nearly 200,00 IT specialists. The IT industry in Ukraine is growing at a healthy rate of 20%, and the country plans to triple the total size of the IT sector by 2025. Ukraine has a strong technical base as the education system of Ukraine emphasizes physics, math, and engineering.
Although English is not a popular language in Ukraine, around 70% of the population does understand English. Hence the English communication barrier is not that steep with Ukrainian developers.
The time zone of Ukraine overlaps with US and European time zones. This proves a major benefit. The work culture of Ukraine is similar to that of the US and European work cultures. This is another major benefit, as the outsourced team of dedicated software developers can easily assimilate with their clients.
You can hire Ukrainian software development companies at a rate of $35-$110 per hour.
Argentina is amongst the best countries for outsourcing software development and often considered one of the most educated Latin American nations. The country has a robust higher education system and is ranked 21st in the QS higher education ranking system. Argentina has the largest English-speaking population in the world. The time difference between Argentina and the USA is only 2 hours. The time difference between Argentina and Europe is around 5 hours. The less time-zone difference is a major plus point for Argentina.
Argentina has a strong technical education system. The unique thing about the Argentine education system is that it combines practical exposure with theory. Around 70% of university students in Argentina take up practical projects in their college. This way, a majority of students have some sort of experience working on actual IT projects before they take up their first formal job.
You can outsource software development work to Argentina at the rate of $30-$75 per hour.
Outsourcing your software project requirements to a leading offshore outsourcing software development company can help you scale your operations, save on software costs, and focus on your core competence. That’s why it’s crucial to select your outsourcing destination carefully.
You need to ensure that the destination and the outsourcing solution provider you choose are profitable, offer talent with the suitable skill set, and enable a smooth outsourcing experience with proper documentation for software development.
Go through our list of the top countries for outsourcing your software development requirements to narrow down the right choice for you. Additionally, you can use tools like Time Doctor to manage and boost the productivity of your outsourced software developers team.
An enthusiastic Operations Manager at TopDevelopers.co, coordinating and managing the technical and functional areas. She is an adventure lover, passionate traveler, an admirer of nature, who believes that a cup of coffee is the prime source to feel rejuvenated. Researching and writing about technology keeps her boosted and enhances her professional journeying.