Outsourcing software development projects is getting more and more popular each year. Many large companies use outsourcing, such as Alibaba, Google, Slack and TransferWise.
One of the types of outsourcing is offshoring. Offshoring is choosing countries in which you outsource that are far from you. The US doesn’t have many choices for nearshoring though, as their only options would be Canada and Latin America.
One of the most popular destinations for outsourcing right now is Eastern Europe. They offer a large talent pool, great prices and excellent quality of end products. Even for the USA-based businesses, it’s a reliable and convenient choice, as the time difference isn’t that big of an issue.
Immense talent pool
There are as many as 6 million software developers and IT specialists in all of Europe. Eastern Europe has been one of the leaders in producing skilled developers. While there’s a shortage everywhere, Eastern Europe is rich in IT teams.
There exists an excellent education system as far as IT goes. There’s a great potential for improvement, innovations, new technologies and excellent, professional developers. And the number of programmers and other specialists keeps increasing, filling the worldwide deficit.
People there are passionate about IT and they’re one of the leaders in that aspect. A large number of people there want to start their careers as developers, providing lots of new blood in the market.
For example, Polish coders are ranked 5th by TopCoder and 3rd by HackerRank in the world.
Good English-speaking skills
There’s a large emphasis on English learning among Eastern European countries. Much more so than offshoring countries such as China or India. Although, the closer to the Center of Europe the country is, the better their English proficiency. English is less prominent in countries such as of the Balkans, Ukraine, Russia and Belarus.
English skills are even more developed among IT specialists, as English is the language of programming. With English skills, you get better communication, less potential for mistakes and a smooth workflow.
“There are many cultural similarities between the US and Europe. This allows for smoother communication, better relationships and collaboration. Their direct style of communicating issues helps with workflow, protects you from expensive mistakes and lets you establish a great connection” says one of the senior associates at LVBet.
Central and Eastern Europe software developers use universal business codes, which helps with establishing a contract. This also lets you have transparent, efficient communication with no issues. The location may not be as convenient for US businesses, as Europe’s time zone is 6 hours ahead. In comparison to India, the difference is 10 hours, which is considerably more and may result in inconveniences in communication.
Excellent price-value ratio
The average salary is not as high in Central and Eastern Europe as it is in the West. Choosing to outsource there is a significant cut to your costs. Hiring an in-house developer can be $85 an hour with all the managing and office costs.
Getting an outsourced one can cost as little as $45, because you cut both on their salary, as they earn less money there and you cut the managing costs. Therefore, outsourcing can save you 40%.
While cheap, the quality of the end-products and the whole development process stays on a high level. Their programmers are some of the best in the world. According to SoftwareMind, out of the top 6 countries to outsource in, two are in the CEE – Poland and Ukraine.
The market for Central and Eastern Europe-based specialists is at a state of constant growth. For example, Polish IT services generate about 30% of overall jobs there. The fact that there are so many skilled software developers to choose from makes CEE a perfect location for offshoring IT projects. That’s one of the fastest developing markets in the world.
According to this report, the CEE region has great potential for rapid IT growth. The environment provided there makes the perfect conditions for software developers and engineers to flourish.