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13 – Best Countries To Outsource Software Development in 2023

13 – Best Countries To Outsource Software Development in 2023
Zobaria Asma
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28 September, 2023

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20 minutes minutes

Best Countries to Outsource Software Development

Software development and IT are one of the most outsourced industries in the world. According to a Clutch report, 90% of organizations planned to outsource at least some business functions in 2022. With the sudden boom of technology, businesses all around the world are using technology in their operations regardless of their industry. Therefore, the need for software development outsourcing and qualified outsourcing partners is increasing.

But how would one determine where to outsource their software development projects? There are some of the best countries to outsource software development in different regions around the world. These top software outsourcing countries have established themselves as top IT outsourcing countries globally due to factors like cost efficiency, time management, political stability, work culture and ethics, etc.

This article explores best IT outsourcing countries in different regions and their characteristics. This will help you make informed decisions about outsourcing software development services.

Let’s get started!

Read More: What is Software Development Outsourcing? Basics, Types, Comparisons, Cost

How to Choose a Country for Outsourcing Software Development?

Software development outsourcing isn’t always utilized to stay ahead of the curve. Rather for some businesses, it is the only option to survive in the challenging landscape and stay afloat.

Therefore, there are some factors to consider before choosing a country for outsourcing software development services. If these features align with your mission and business goals, you are good to go:

Level of Technical Education in the Country:

Assessing the level of technical education provided by the country is really important. There are some countries that do not provide STEM education but teach basic computer science. As a result, the resources are not competent enough to cater to your complex project needs.

Tech Stacks and Programming Languages:

This factor is very important before choosing among the top countries for outsourcing. Professionals from each country specialize in tech stack different than others so choose as per your project’s requirement and complexity.

Also, you will find popular programming languages everywhere but if you wish to hire a developer specializing in a specific programming language, you should choose the country accordingly. Programming languages vary from project to project. The language used for developing a logistic platform will differ from that of a fintech.

Availability of the resources and ability work in diverse IT environment:

When outsourcing software development, problems like leaving the project midway by developers often occur. In this situation, you should have a backup.

Therefore, always choose a country where software professionals can work with different sets of technologies. Also, check the availability of other developers in the country. In case, one leaves, you can find others to carry on the project.

English Language proficiency:

Communication is the major driver keeping the remote software development teams intact. English, the most popular language in the IT world, makes it easier for both parties to negotiate terms and requirements.

Since the best countries for outsourcing are non-English speaking countries, you should look for resources fluent in English. Poor English skills can cause misunderstandings or even hinder the project’s progress.

Cost and Average Hourly Rate of the developer:

When you decide to outsource your software development project, cost is the main driver behind the decision. Even among these popular outsourcing destinations, the cost varies. The developers from Asian countries are much cheaper than those of Eastern Europe. Also cheaper doesn’t mean cost efficient. As a developer with low hourly rate and less competence can you cost you the same as hiring a developer with more price. So, there should be a balance.

Note: The cost of offshore software development in each country depends on these factors:

  • Salary range
  • Cost of living
  • Taxation system
  • Supply and demand
  • Experience of the developer
  • Project complexity
  • Programming languages

Mentality:

The difference in mentality is often overlooked while hiring an outsourcing partner. However, this insignificant factor can cause a lot of trouble later and interrupt the project flow. Different approaches to collaboration and problem-solving can cause conflict.

Work culture:

Make sure your work culture aligns with your outsourcing partner. It facilitates:

  1. Smooth communication and collaboration
  2. Establish shared goals and objectives
  3. Build Trust
  4. Promote productivity
  5. Avoid risks and address issues

Time zone difference:

This factor should be considered while hiring offshore software development countries. The difference should be minimal or at least the vendor should offer to work in your time zone.

It is to be noted that with the advancement of collaboration tools and techniques, software companies have learned how to work across different time zones and minimize any inconvenience.

Business values compatibility:

Make sure your business values align with those of your outsourcing partner to successfully achieve the goals of the project.

Read More: Top 8 Reasons Why Do Companies Outsource Software Development

13 Best Countries to Outsource Software Development

Here is the list of region-wise best countries to outsource software development worldwide are Asia, Eastern Europe, and South America – LATAM,

Best Outsourcing Countries in Asia

As per the global Services Location Index report Asia countries stand among the top 10 outsourcing countries in the world including India, China, Taiwan, Philippines, and Pakistan.

Pros:

  • Huge Pool of software developers with the lowest rates, India and Pakistan are on top
  • currency exchange rate advantage for company vendors to make it easy to sign contracts.

Cons:

  • Lacks of security like state breach notification, data protection, privacy legislation, and health insurance.
  • independent education without funds is the main reason for the lack of education.

Outsource Software Development to India

Outsource Software Development to India

As per Toptal,  India is considered one of the best countries to outsource software development in the world

Average hourly rate of developers: The average hourly rate of developers in India is $18-$29

Number of developers: 5.8 million

Education: The number of talented software developers in India is huge. The reason is the country’s robust education system that has a strong emphasis on developing STEM skills. India is also home to some of the world’s finest IT universities, like the IITs and NITs. Also, India annually produces 1.5 million IT graduates.

English speaking proficiency: India ranks 52 out of 111 countries in the 2022 EF English Proficiency Index published by EF Education First. As per this index, the English-speaking proficiency of the country is “moderate”.

Work ethics: The Indian developers are more process and detail-oriented rather than result-oriented. Also, they are very obedient and follow hierarchies. This may sometimes challenge the innovation and creativity that the clients expect. Since they follow your instructions, you can’t expect anything out of the box.

Popular programming languages: Python, Java, C++, TypeScript, and Kotlin

Time zone: GMT+5.30

Outsourcing Software Development to China

Outsourcing Software Development to China

Just like India, China is one of the best countries for outsourcing and emerged as an IT outsourcing power dominating the Labor market. 

Cost of developers: The average rate of a developer in China is $25-$45.

Number of developers: 70000+

 Education: China’s education system is considered one of the best in the world.

As per the Program for International Student Assessment (Pisa), China’s academic results are first-rate, and topped the rest of the world in reading, math, and science in the latest test.

English speaking proficiency: Less than 10 percent of the Chinese population can understand and speak English. This can pose a problem for European and American companies. For instance, if there is a striking difference in language skills, it can be hard for the client to get to know the peculiarities of their business ethics and get the work done.

Work ethics: Based on Confucian principles, Chinese people are known for their hard work. Chinese software engineers mostly follow the 996-work rule, which means working from 9 a.m. to 9 p.m., 6 days a week. They are highly disciplined and task-focused. and just like Indians, they have respect for authority and hierarchy.

Popular programming languages: JavaScript, Java, Python, Kotlin, C/C++

Philippines Software Development Outsourcing

Philippines Software Development Outsourcing

Software Development Outsourcing Philippines

Cost of developers: $20-$60

Number of developers:190k+

English speaking proficiency:

Besides Filipino, English is the official language of the Philippines. English proficiency is high in the region with a score of 592.

Work ethics: The Philippines has close cultural ties with the US. This is a big advantage for the nation as it understands the work culture of other Western countries. 94 percent of the population speaks English, and the IT sector is the most established sector in the country. So, you can expect a high code of conduct from Filipino software engineers and optimum results as well.

Popular programming languages: JavaScript, Java, C#, PHP, and others

Time zone: GMT+8

Software Development Outsourcing to Pakistan

Software Development Outsourcing to Pakistan

Software Development Outsourcing to Pakistan

Cost of developers: $20-$30

Number of developers: The number of software engineering graduates annually in Pakistan is 25000 and roughly 0.26 million engineers are registered with the Pakistan Engineering Council.

Education: The education system in Pakistan is evolving. Most of the schools and universities have introduced STEM education and critical thinking in the curriculum but there is still a long way to go. The students are taught basic computer science knowledge as of now

English speaking proficiency: Pakistani software engineers can speak and understand the language well. Although the Asian accent can be a bit challenging for Western countries.

 Work ethics: Pakistan software developers are not only experts at their jobs but have a strong dedication towards their work. They are adaptable I.e.; they can quickly learn new languages and adapt to the changing requirements of the software development project. They generally work best in teams as compared to working individually.

Popular tech stacks and programming languages: Java, JavaScript, Python, Swift, SQL, Ruby

Time zone: GMT+5

Software Development Outsourcing to Taiwan

The hourly rate for developers is $28-$30

Education:

As mentioned above, Taiwan is striving to become the Silicon Valley of Asia. Therefore, the government has implemented educational policies that promote STEM education and produce high-quality graduates. IT graduates from Taiwan stand at the 7th position among skilled developers around the world.

English Speaking proficiency:

Taiwan ranks 48th out of 88 non-English speaking countries with a score of 51.88. As per the score, Taiwan falls into the “low proficiency” category, but the country is striving to become bilingual by 2030.

Work Ethics:

Taiwanese developers are known for their integrity at work. Here are some of the characteristics of Taiwanese work culture:

  • Unwavering commitment to their work
  • Respect for authority and hierarchy
  • Continuous learning
  • Consensus building in the decision-making process
  • Politeness in communication
  • Confrontation is avoided in case of conflict
  • Prefer work-life balance

Popular programming language:

  • PHP.
  • Microsoft ASP.NET.
  • Lua.
  • Java.
  • Ruby.
  • Node.js.
  • Perl.
  • Python

Time Zone: GMT +8

Best Countries for Outsourcing in Latin America

Software Development Outsourcing Brazil

Software Development Outsourcing Brazil

Brazil is a good destination for hiring junior developers

Software Development Outsourcing Brazil

Brazil is a good destination for hiring junior developers as 38% of the population is young. As per Hacker Rank assessments, the average Brazilian programmer’s score is 71.3%.

Cost of developers: $20-$50

Number of developers:500k+

Education: Although the literacy rate is high in the country but same is the ratio of dropouts. Brazil is working on some major reforms in the education system and making it compatible with world standards.

English speaking proficiency: As per the English Proficiency Index 2017, Brazil is ahead of India and China, yet the proficiency score is low as compared to other countries I.e., 497

Work ethics: Brazilian programmers are usually known for their exceptional problem-solving skills. They are punctual people and maintain a healthy work-life balance. Also, you can trust them with confidentiality and intellectual property rights.

Popular tech stacks and programming languages: JavaScript, Java, SQL, HTML, Python and others

Time zone: GMT-3

Mexico Software Development Outsourcing

Mexico Software Development Outsourcing

Outsourcing Software Development to Mexico

Cost of developers: $30 to $100

Number of developers: 100k+

Education: The standard of the higher education system in Mexico is like that of the U.S. and Europe. The country was featured in the last edition of the QS Higher Education System Strength Rankings at #31st, being one of the best in the world.

So, this information indicates you can get some high-quality engineers from the country.

English speaking proficiency: A large part of Mexico is in proximity to the US. Due to this reason, the typical English proficiency of Mexican developers is upper-intermediate.

The shared cultural aspects and robust educational sector make Mexico a great choice for outsourcing software development.

Work ethics:  Mexican software developers have incredible work ethics. They are highly flexible and can work long hours if needed. They prefer face-to-face communication.

This is not possible in an offshore setting but rather than voice calling them for a meeting, it is better to communicate on a video call.

The decision-making procedures are quite hierarchical and sometimes you can’t expect them to make quick decisions. Also, they prefer to work with individuals directly associated with the business rather than the representatives.

Popular programming languages: Python, C#, Kotlin, and others

Time zone: GMT-6

Argentina Software Development Outsourcing

Argentina Software Development Outsourcing

Argentina Software Development Outsourcing

Cost of developers: $20 to $60

Number of developers: 100k+

Education: Argentina is one of the forebearer countries of quality education and has a long history of providing tuition-free access to local schools and universities, which in turn helps to generate a qualified workforce.

Four of Argentina’s higher educational institutions are listed in the “Times Higher Education (THE) World University Ranking 2021”. Argentine universities are interested in forming partnerships with U.S. higher education institutions to teach Spanish and Latin American studies courses to U.S. students coming to study in Argentina.

English-speaking proficiency: Most Argentines speak Spanish, yet their English-speaking proficiency is high with a score of 556.

Work ethics: The software developers from Argentina can work best in a cross-functional setting as they are known to be the best team workers. You will not face any office politics-related challenges while working as they prefer comradery over competition.

So, this is a plus point to keep the team intact. They are a little bit undisciplined when it comes to punctuality and meeting deadlines. They value life outside work equally to their work. So, you can expect them to take time off from work for a personal commitment.

Popular programming languages: Python, SQL, R, TensorFlow, Cloud APIs, NLP, and others

Time zone: GMT-3

Read More: Everything About Software Development Outsourcing in Latin America

Top IT Outsourcing Countries in Eastern Europe

Software Development Outsourcing Ukraine

Hourly rates of developers: The hourly rates of the developers vary depending on the programming language, specialty, taxation, project complexity, and the region they are in. The hourly rate of a software engineer in Ukraine averages between $36/hour and $60/per hour.

Number of developers: Ukraine has 200k+ IT professionals, and 23,000 annual engineering graduates. The IT industry is growing at the rate of 20% and it is anticipated that the number of IT graduates per year will grow to 30,000. one of the best country for software developers

Education: Ukraine has a strong focus on IT education for its citizens. To establish a strong technical base, the education system emphasizes subjects like math, physics, and engineering.

English speaking proficiency: 85% of IT professionals have intermediate or upper intermediate English-speaking proficiency

Work ethics: The mentality, work ethic, and business approach are very similar to the other European countries. It is not going to be a problem for US companies who want to outsource their software development projects in Ukraine. The Ukrainians are known for their professionalism, extraordinary efforts to meet deadlines, and firm commitment. They are also popular for their Entrepreneurial spirit.

Popular programming languages: JavaScriptJava, C#, Python, PHP, C++, TypeScript, Swift, Kotlin, Ruby, Go,1C, Scala

Time zone: GMT+3

Why Outsource Software Development to Romania?

Why Outsource Software Development to Romania?

outsource software development to Romania

The talent pool in Romania software outsourcing is vast and bottomless. Finding and hiring top-notch and skilled developers requires minimum effort as compared to other countries.

Cost of developers: $30 to $60

Number of developers: 100k+

Education: Almost all major cities in Romania are home to at least one prestigious university. This provides a favorable chance for the citizens to launch a career in software development or engineering.

Romania’s capital, Bucharest produces top quality software engineers graduating from the University of Bucharest and The Polytechnic University of Bucharest. By quality engineers, we mean that they are directly recruited by renowned companies such as Oracle, IBM, or Ubisoft.

So overall, the talent pool is big in Romania given more than 10,000 new software engineers graduate each year.

English speaking proficiency: Romanians are good English speakers. The accent is not native, yet the English-speaking proficiency is higher with a score of 598

Work ethics: Romanian software developers are resilient and passionate. They are known for finding and implementing the best solutions. You will find them much more agile and work independently.

Popular programming languages: PHP, Microsoft ASP.NET, Python

Time zone: GMT+2

Software Development Outsourcing to Poland

Cost of developers: The average hourly rate for software development in Poland is around $35-$50, depending on the project’s complexity and technology stack

Number of developers: 410,000+

Education:

Poland has a landmark education system that focuses on modernizing the education enabling the next generation with good fundamental cognitive skills needed for 21st century jobs. Countries across Europe are following Poland’s education system to understand and implement systems to strengthen cognitive and problem-solving skills.

English Speaking proficiency:

When it comes to command on the English Language, Poland stands among top twenty countries as per EF Education First English Proficiency Index. More than 14 million Poles speak English. So there will be no issue of communication gap while working with them.

Work Ethics:

The Polish developers are known for:

  • Resilience I.e., they do not give up on challenging tasks easily
  • They are ambitious
  • Loyal and have Entrepreneural spirit
  • Highly experienced as they work with big multinational companies more often

Popular programming language:

SQL, Java, JavaScript, and Python, followed by C#/*.

Software Outsourcing Development to Czech Republic

The hourly rate of developers is $60.

Number of developers:

The Czech Republic houses over 104,500 professional developers.

Education:

The Czech Republic is ranked 12th globally for the quality of its higher education system. The Czech Republic has some of the world’s best universities. As per World University Banking 2021, there are 10 universities in the Czech Republic ranked as the top universities in the world.

English Speaking proficiency:

The Czech Republic ranks 27th among the top English-speaking countries. 50 percent population especially the young generation can speak fluent English.

Work Ethics:

Here are some key points of the work culture of Czechia

  • Punctuality and Hardworking
  • Business structures are hierarchical
  • Relaxed attitude in terms of business attire
  • The work culture resembles to that of Germany
  • Willing to work on weekends (need-base)
  • Open communication

Popular programming language:

JavaScript, PHP, Java, SQL, Python, others

Time Zone: GMT+1

Best Country to Outsource in Africa

Software Development Outsourcing to Egypt

Software Development Outsourcing to Egypt

Software Development Outsourcing to Egypt

Cost of developers: $30-$80

Number of developers: 121k+

Education: Egypt’s education system is focused on increasing its pool of tech workers. In the past years, reforms have been made to introduce the development of STEM-focused practice in high schools, producing a large pool of tech-savvy workers. Also, English is also taught besides Arabic in the schools which helps the students overcome the language barrier.

As per Article 19 of the 2014 Constitution innovation and scientific thinking are promoted countrywide in educational institutions. To improve “digital literacy” among all citizens different implementation mechanisms are in place.

English speaking proficiency: 90% of Egyptian software engineers can speak quite good English and have Intermediate or Upper-Intermediate English skills.

Work ethics: Egyptian software engineers are known for their warm, friendly, and welcoming nature with strong work ethics. This is the reason that developing a seamless collaboration and fostering positive working between the in-house team and the outsourced developers becomes easy. Also, they are known to be the best problem solvers and are pros at dissecting complex issues, devising effective solutions, and implementing them efficiently.

Popular programming languages: JavaScript, PHP, C#, Java, and Python. 

Time zone: GMT+2

Related Article: 12 Best Countries For Offshore Software Development in the World

Code Ninja: One Stop Solution for All your Software Development Outsourcing Needs

Now that we have shortlisted the best countries for software development outsourcing, still making decisions can be challenging. Factors like cultural differences, language barriers, taxation laws, and time zone differences can be a hurdle in deciding which is the best country and can fit your requirements.

However, given the advantages of geography, the talent pool, and the cost-effective rate, Pakistan is an emerging and trusted spot for offshore software development outsourcing.

Code Ninja is a US-based tech powerhouse with proximity centers in Pakistan and other parts of the world. We provide world-class software outsourcing solutions, and cloud services with an agile approach.

Our top-notch teams of experts are working with partners globally providing the best services. If you are looking to fill your missing technological piece with the best on the market, reach out to us today.

Conclusion:

It can be sometimes overwhelming for companies looking for outsourcing partners with so many options in the market. The above-mentioned list of top software development outsourcing countries helps limit the search and find the best fit for your business. Although it’s not a one-size-fits-all solution. Each country has its own advantages and drawbacks.

The decision ultimately depends upon your business priorities and project needs. So before choosing an outsourcing destination define your requirements and assess factors like budget, project complexity, time constraints and requirement of special skills.

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Zobaria Asma

Article Writer

Zobaria is a Technical Content Writer at CodeNinja – scaling businesses in the SaaS, Quick Commerce, Food-tech, Data Analytics, Healthcare, Ed-Tech sectors through SEO & Content Marketing. For the last 5+ years, she’s been working with both local and international marketing agencies.

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