Software development outsourcing in Europe holds remarkable potential. It can significantly boost a company’s ability to adapt and expand.

The challenges businesses will face in the next decade will be unlike before. Those software development companies that build strong global partnerships through outsourcing will emerge as the winners in this changing landscape.

In today’s business landscape, outsourcing has become an essential element. It enables European software development outsourcing companies to overcome existing challenges, strategize their growth, and enhance their products and services.

About 91% of businesses are satisfied with collaborating with software development companies in Europe for outsourcing. Furthermore, around 80% of those businesses plan to maintain or increase their outsourcing activities.

Nevertheless, choosing a reliable software development outsourcing partner for your custom software development can be daunting amidst the vast market players.

How do you identify the ideal software development companies in Europe for outsourcing software development services? Let’s discover the answer to this question.

In the global outsourcing market, numerous software companies, including software development outsourcing companies in Europe, offer various services.

However, considering European software development companies as your outsourcing partner is a frequent business concern.

Here are three reasons to opt for European software outsourcing companies:

#1 Reasonable Rates

One major benefit of choosing software development teams in Europe is their reasonable rates.

The cost of services is considerably lower due to the lower cost of living in Eastern Europe compared to the US.

This makes Europe an ideal outsourcing destination for startups with varying budgets and needs.

While rates may vary between countries like Norway and Poland, the invoice will still be significantly less than you would pay in the US.

#2 Business Culture And Values

Although it might not seem like a primary factor, the business culture and values of the outsourced company significantly impact the partnership’s process and outcome.

A less obvious but crucial reason for choosing a European software company is their business approach and values.

Software development outsourcing companies in Europe are thriving tech companies, giving birth to numerous startups every year.

The European business environment is highly dynamic, mirroring the processes in the US. This similarity ensures clear and smooth communication between the vendor and the co-founder.

#3 Fluency In English

Proficiency in English is crucial for effective communication.

While English is a universal language, not all IT professionals are fluent in it, leading to potential communication challenges with software companies.

Fortunately, European software development firms offer a solution to this issue.

Europe has experienced significant growth in English proficiency. With countries like Croatia, Austria, and the Netherlands leading the way, surpassing even major economies like France and Germany.

Eastern European countries, including Ukraine, also excel in English proficiency. For instance, Ukraine ranks 35th out of 111 in the global English Proficiency Index Rating.

Ukrainian IT specialists have honed their English language skills through years of professional experience with international clients.

Moreover, the Ukrainian government actively promotes English fluency among its citizens as part of its efforts towards EU membership.

This proficiency ensures transparent and smooth communication with software development partners.

Eastern Europe continues to be a thriving hub for software development, driven by its growing IT sector and widespread adoption of digital technology.

Countries such as Ukraine, Poland, Hungary, Belarus, and Romania recognize IT as a key driver for sustainable growth and technological progress.

In this region, there are between 4,000 and 6,000 specialized software outsourcing vendors.

Let’s take a closer look at some of the popular outsourcing destinations in Eastern Europe:

Ukraine

Ukraine stands out as a leading and rapidly advancing outsourcing country in Eastern Europe.

With over 1,000 outsourcing companies, Ukraine offers a diverse pool of skilled professionals.

Ukraine is home to approximately 300,000 ICT professionals, and a significant 60% of these experts are employed by IT outsourcing and IT outstaffing companies.

The country hosts over 1,600 companies offering a wide range of IT services, with more than 950 of them listed on platforms like Clutch.

These software development companies have expertise in various sectors such as fintech, healthcare, e-commerce, and retail over the years.

More than 12 Ukrainian software development outsourcing providers, including N-iX, were featured in the 2022 list Global Outsourcing 100 by the International Association of Outsourcing Professionals (IAOP) as the best outsourcing providers.

These diverse reasons give Ukraine a strong competitive advantage not only in European outsourcing service providers but also in the global IT market.

Poland

Poland boasts approximately 700 outsourcing companies in the IT sector.

It earned a high score of 70.56 points in the 2020 US Chamber of Commerce IP Index, making it one of the safest countries for outsourcing activities among popular destinations.

The nation possesses a remarkable pool of tech talent, consisting of nearly 500,000 ICT professionals. About 40% of these experts are employed by IT outsourcing firms.

The nation boasts the largest workforce in Central Europe, predominantly comprising individuals under the age of 34.

Additionally, around 12,000 IT graduates enter the Polish software development market annually.

In 2022, the IT services market in the country reached a significant milestone, totaling $12.8 billion.

The primary hubs for software development companies in the country are Krakow and Warsaw, both of which have consistently earned spots on the Tholons Global Innovation City list.

Romania

Romania is known for its strategic location, high-quality services, and developers’ strong English proficiency. It is home to some of the top outsourcing companies in Eastern Europe.

Its IT sector employs approximately 192,000 ICT specialists, known for their top-notch IT services.

Their reputation is evident from their impressive rankings – 23rd by SkillValue and 12th in the TopCoder lists.

Moreover, these experts are proficient in English, as reflected in their 17th position in the EF EPI English proficiency ranking.

The country hosts more than 250 software development companies, making it a preferred choice for businesses seeking reliable outsourcing partners.

The Romanian government plays an active role in fostering the IT industry’s growth.

They exempt software developers from the 16% income tax and offer various incentives to support local IT companies.

Hungary

Hungary’s software development industry stands out as one of the most vibrant sectors in the country.

Within Eastern Europe’s IT market, Hungary has a significant portion dedicated to outsourcing, employing approximately 175,500 specialists in the ICT sector.

Hungarian developers have earned a notable 4th position in the SkillValue ranking, showcasing their expertise and skills in the field.

Hungary boasts a substantial talent pool of around 80,000 coders, making it a hub for skilled professionals.

Its IT services sales reached $1.35B in 2022, with the market’s largest segment being IT outsourcing.

Although it might not be as well-known as other outsourcing destinations, Hungary still houses excellent outsourcing companies, with approximately 50 or more established firms.

In the ever-evolving landscape of software development, Europe stands as a formidable hub for IT outsourcing companies, catering to a diverse range of industries and global clients.

Let’s look at the latest statistics of software development outsourcing companies in European countries in 2023.

United Kingdom

Boasting a robust technological ecosystem, the UK leads with an impressive range of 1,000 to 1,500 outsourcing companies.

These firms cover a wide spectrum of services, from web and mobile app development to cutting-edge software solutions.

Germany

Germany, known for its engineering prowess, houses an estimated 500 to 750 outsourcing companies.

With a strong focus on precision and quality, these firms are sought after by businesses worldwide.

France

In France, a similarly impressive range of 500 to 750 outsourcing companies thrive, offering expertise in software development and innovation.

The country’s rich cultural and technological heritage is reflected in the quality of services provided.

Poland

Eastern Europe’s tech powerhouse, Poland, is home to a community of 500 to 750 outsourcing companies.

Renowned for their proficiency in IT services, these firms have earned a sterling reputation on the global stage.

Ukraine

Ukraine’s IT landscape is rapidly gaining prominence, with 300 to 500 outsourcing companies contributing to its dynamic growth.

Known for their technical acumen and cost-effectiveness, Ukrainian firms are increasingly sought after by businesses worldwide.

Romania

Romania boasts a vibrant ecosystem of 300 to 500 outsourcing companies.

These firms combine innovation with a strong work ethic, making them invaluable partners for businesses looking to stay on the cutting edge of technology.

Netherlands

The Netherlands, though smaller in size, goes above its weight with 200 to 300 outsourcing companies.

Known for their innovation and adaptability, Dutch firms excel in providing tailored solutions to a global clientele

Sweden

With a focus on sustainability and cutting-edge technology, Sweden hosts an impressive range of 200 to 300 outsourcing companies.

These firms embody the Swedish ethos of quality, efficiency, and forward-thinking solutions.

Spain

Spain’s outsourcing sector is characterized by a dedicated community of 150 to 250 companies.

Combining creativity with technical expertise, Spanish firms offer a unique perspective in the global software development landscape.

Italy

Italy, renowned for its art and culture, is also home to a flourishing tech scene.

The country hosts 150 to 250 outsourcing companies, known for their creativity, craftsmanship, and commitment to quality.

Other Countries

Beyond the mentioned nations, Europe as a whole boasts an additional 500 to 1,000 outsourcing companies.

These firms represent a diverse range of cultures, expertise, and approaches, collectively contributing to the continent’s vibrant tech ecosystem.

Software development companies in Europe offer numerous advantages that businesses find exceptionally beneficial.

Let’s delve into the specifics to understand why this region is favored for software outsourcing:

Highly Skilled Workforce

Eastern Europe has a rich talent pool of software developers, engineers, IT professionals and best software engineering companies.

These experts are well-versed in multiple programming languages and cutting-edge technologies, ensuring top-quality solutions for projects.

Cost-Effectiveness

Despite their exceptional skills, outsourcing companies in Eastern Europe offer competitive rates for software development services.

This cost-effectiveness is particularly attractive when compared to the higher expenses often associated with outsourcing in Western Europe or North America.

Quality Focus:

European outsourcing service providers have software developers that prioritize quality in their work.

They are renowned for their meticulous attention to detail and unwavering commitment to delivering outstanding software solutions, meeting the highest industry standards.

Cultural Compatibility

Eastern European software development companies share cultural values and business ethics similar to those in Western countries.

This similarity enhances communication and fosters smooth collaboration between outsourcing teams and clients.

Time Zone Advantage

Many Eastern European countries have overlapping time zones with their Western European counterparts.

This synchronicity ensures real-time collaboration and efficient communication during regular working hours, enhancing productivity.

Language Proficiency

Proficiency in English is common among professionals in Eastern Europe.

This linguistic ability facilitates clear and effective communication, enabling a thorough understanding of project requirements and objectives.

Innovation and Creativity

Eastern European software development companies developers are recognized for their innovative thinking and problem-solving abilities.

They actively contribute valuable ideas and insights, enhancing the creativity and effectiveness of software development projects.

Proximity to Western Europe

Geographical proximity between Eastern European and Western European countries facilitates easier travel and in-person meetings when needed.

This proximity fosters stronger business relationships and effective project management.

Political and Economic Stability

Eastern European nations like Poland, Czech Republic, and Hungary provide stable political and economic environments.

This stability minimizes the risks associated with outsourcing, ensuring smooth and secure collaboration.

Diverse Expertise

Software development companies in Eastern Europe often possess diverse expertise across various domains, including fintech, healthcare, e-commerce, and more.

This broad experience equips them to handle a wide range of project types, providing clients with specialized solutions tailored to their specific needs.

Choosing the right software outsourcing company is crucial. A good choice ensures your requirements are met and the solution you need is delivered. However, a bad decision can lead to significant time and money waste.

So, how do you figure out which company is the best fit for your business? You have to consider several factors.

Let’s explore the six characteristics of a good software outsourcing company.

Focused on Project Objectives

A reputable software outsourcing company is deeply committed to achieving specific project objectives.

When choosing a technology partner, it’s important to ensure they create and adhere to a clear strategic plan for your project.

This strategic approach ensures the methodical, step-by-step execution of your project, leading to its successful completion.

By staying focused on these predefined goals, the development process becomes organized, efficient, and ensures that the end product aligns perfectly with your intended outcomes.

Great Leadership Skills

A lot of clients tend to focus on a software provider’s technology expertise and experience when entering into contracts but often overlook the importance of their leadership qualities.

Remember that excellent development services rely heavily on strong leadership.

Why is leadership so crucial you ask?

Having effective leaders reduces the chances of resource waste and opens up more opportunities for achieving the best outcomes.

When searching for a software development company, make sure the team includes capable leaders.

A leader guides the entire team, ensuring efficient fulfillment of your requirements and enhancing the overall project success.

Their direction and management skills play a significant role in the smooth progress of the project, making them indispensable in the realm of software development.

Best Project Management

Problems arise when your product is not yet finished, but the promised deadline has passed.

This delay wastes time and creates a gap between what customers want and what’s available.

Competitors can take advantage by launching their solutions before you, putting your business at a disadvantage.

This is where a software development company with a well-organized project management department comes in.

They ensure timely deliveries that align with your budget. A dedicated project manager oversees the process, managing resources efficiently to prevent any delays.

This way, your project stays on track, deadlines are met, and you remain competitive in the market.

For ensuring the smooth progression of your project, the presence of a competent project management team is crucial when selecting a software outsourcing company.

CodeNinja has a dedicated PMO department led by a team of experienced project managers who ensure every project’s success.

Professional Team of Software Developers

A top-notch software development company carefully selects its team of developers, the same criteria is for selecting a software outsourcing company.

Each member is thoroughly vetted and possesses extensive experience and in-depth knowledge of both traditional and modern technologies.

These developers excel in handling various frameworks, tools, and programming languages, showcasing their expertise and versatility in the field of software development.

This diverse skill set ensures the company can tackle a wide array of projects effectively, making them a reliable choice for clients seeking exceptional software solutions.

Transparent Communication

Effective and continuous communication plays a very important role in best software development companies as it keeps you informed about the project’s progress.

A top-tier software outsourcing company ensures clear and unhindered communication channels, allowing you to stay in touch effortlessly.

This transparent communication is essential for a smooth collaboration and successful project outcomes.

Quality Assurance

A key aspect of a software development companies is quality assurance.

It’s crucial to choose a company that has a dedicated team of quality assurance engineers to spot bugs right from the beginning.

This early detection leads to fewer crashes in the product, and any remaining issues are ironed out during the development stages.

This meticulous testing ensures a smoother and more reliable final product.

Support and Maintenance

When engaging a software development company, it’s crucial to inquire about the post-development support and maintenance services they provide.

Reliable software development companies don’t just end its services after the project completion; it offers continuous support to ensure your software remains functional, secure, and up-to-date.

Codeninja is a software outsourcing company that offers a valuable opportunity for long-term collaboration in offshore software development.

It is among the most trusted software development companies for hiring offshore developers not only in Europe but in other regions like Asia and South America as well.

Top-notch Tech Stacks for Tailored Solutions

CodeNinja leverages a robust arsenal of technologies to craft bespoke software solutions:

1. Web Development

From dynamic websites to complex web applications development and design seamless digital experiences that captivate users and drive business success.

1. Mobile Development

In the mobile-first era, We excels in developing innovative and user-friendly mobile apps that keep businesses connected with their audience, wherever they go.

1. Desktop Application

Desktop applications combine functionality with intuitive design, providing powerful tools that streamline operations for businesses of all sizes.

1. Database

Their expertise in database management ensures data integrity, accessibility, and security, laying the foundation for efficient operations and informed decision-making.

1. DevOps

Our employs DevOps practices to accelerate development cycles, enhance collaboration, and deploy robust software solutions seamlessly.

1. Cloud Computing

With a mastery of cloud technologies, our architects provide scalable and resilient cloud solutions, ensuring businesses operate with unmatched agility and efficiency.

1. Machine Learning

We harnesses the power of machine learning to drive innovation, enabling businesses to extract valuable insights and make data-driven decisions.

1. Big Data

They excel in processing, analyzing, and visualizing large datasets, empowering businesses to uncover hidden opportunities and gain a competitive edg

What sets them apart?

What sets CodeNinja apart are its three distinct outsourcing models tailored to meet diverse project needs. 

#1 Software Development Outsourcing Model

Outsourcing Software Development offers a seamless experience by entrusting the entire project to a capable third party, eliminating the hassle of hiring or project management. 

This is a boon for startups or companies looking for a hands-off approach.

#2 Team Augmentation

For those seeking a more hands-on involvement, the IT Staff Augmentation model is an excellent choice. 

It allows you to work with your own project manager while tapping into specialized skill sets. This is particularly beneficial for projects requiring specific expertise.

#3 Dedicated Software Development Team Model

Lastly, the Dedicated Software Development Team model is perfect for long-term endeavors. 

With a fixed-salary-per-month arrangement, you have complete control over the dedicated team, ensuring a cohesive and collaborative partnership.

Additionally, the industries revolutionized by CodeNinja are:

• Healthcare
• Construction
• Ecommerce & Retail
• Oil & Gas
• Logistics & Transportation
• Banking, Insurance & Finance
• Telecommunication

By partnering with CodeNinja, you gain access to dedicated and experienced developers, cutting-edge tools, transparent pricing, and outstanding customer support. 

These qualities make CodeNinja an ideal choice for long-term collaboration in the realm of software development.

Selleo

Selleo is a reputable software development company based in Poland. 

They have successfully delivered over 150 software development projects for clients spanning across Europe, the US, Canada, and Australia. 

Selleo specializes in creating applications across different domains using advanced technologies such as Ruby on Rails, ReactJS, React Native, EmberJS, and Elixir.

The skilled team at Selleo excels in SaaS development, crafting cloud-based business process management tools, digital dashboards, e-learning services, AdTech solutions, and data analytics and processing solutions. 

Their expertise lies in building innovative and efficient software solutions for a wide range of clients and industries.

OAK’s Lab

OAK’s Lab is among the reliable software development companies based in Europe that prides itself on being a startup tech partner. 

Their main focus is to assist co-founders in bringing their ideas to life and making a positive impact on the world. 

Since their establishment in 2016, they have collaborated with 35 startups from the US and UK, helping them increase their valuations significantly, with a combined total reaching $1.5 billion.

The OAK’s Lab team provides classic outsourced services like:

• Product Management
• UX/UI Design
• Software Development (Web, Mobile, Desktop) & AI
• Quality Assurance

The company specializes in product discovery, scoping and prioritization, data-driven decisions, and branding.

E-Point SA

Another notable European software development company on our radar is E-point SA, from Poland. 

They specialize in providing a range of services, including:

• Custom software development, various web portals (such as Enterprise Portals and Self Service Portals)
• eCommerce platforms (like Magento Commerce and SAP Commerce)
• Product Information Management (utilizing tools like Akeneo PIM and Pimcore)
• Mobile solutions.

What sets e-point apart is their commitment to understanding their clients deeply. 

They operate on the principles of open communication and active listening, ensuring they grasp their clients’ business aspirations thoroughly. 

This approach helps them forge strong and enduring partnerships.

E-point takes immense pride in their diverse portfolio, which includes notable names such as Santander Bank Polska S.A., Google Poland, ING, and InterCars, showcasing its expertise and reliability in the industry.

N-iX

N-iX stands out as one of the prominent European software outsourcing companies, bringing over 20 years of expertise to the table. 

With a dedicated team of over 2,000 tech experts, N-iX has earned its reputation as a tech powerhouse.

The company runs multiple R&D centers globally, including in countries like Poland, Ukraine, Bulgaria, and beyond Europe. 

N-iX has extensive knowledge in tech consulting and custom software development, covering diverse sectors such as manufacturing, logistics, fintech, telecommunications, and retail.

N-iX specialists excel in a wide array of technologies and services. 

That includes Cloud solutions, DevOps services, Data Science, Artificial Intelligence, Machine Learning development, Data Analytics, Business Intelligence (BI), Virtual Reality (VR), Augmented Reality (AR), enterprise mobility, embedded software, and much more. 

Their expertise ensures comprehensive and top-notch solutions for various technological needs.

Sigma Software

With more than two decades of experience, this software outsourcing company in Eastern Europe provides comprehensive software development services to clients in diverse industries like advertising, education, gaming, and automotive. 

Their skilled experts specialize in tech consulting, Big Data development, extended reality research, Artificial Intelligence, and Internet of Things (IoT) solutions.

They have an impressive client roster, including renowned companies such as Volvo, AstraZeneca, and Scandinavian Airlines.

CodeNinja Consulting stands out as a leading offshore development company in Europe, renowned for delivering outstanding solutions to clients globally.

Several compelling reasons make CodeNinja an excellent choice for businesses looking for a dedicated offshore team.

Access to Diverse Technologies

CodeNinja provides access to highly skilled developers proficient in various technologies. 

This ensures you benefit from the latest tools and techniques for creating exceptional software products.

Flexible Engagement Options

The company offers flexibility in its engagement model. 

Whether you need a dedicated development team or prefer a project-based approach, they tailor their services to meet your specific needs.

Transparency and Communication

They value transparency and clear communication.

Their team ensures a smooth development process, providing regular updates and fostering open channels of communication.

You stay well-informed and actively engaged throughout the project’s lifecycle.

Cost-Effectiveness

Choosing CodeNinja for your offshore development needs is a cost-effective solution.

You can reduce your development expenses without compromising on quality or performance, thanks to their efficient and affordable services.

Wrapping up our comprehensive review of the top software development outsourcing companies in Europe, it’s clear that the continent boasts a wealth of talent and expertise in the field. 

Among these, CodeNinja emerges as a standout choice, particularly in Eastern Europe. 

With a proven track record of delivering innovative solutions and a team of highly skilled developers, they excel at meeting diverse client needs.

Let’s get your journey started. Get in Touch