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Best countries for outsourcing software developers in 2022

By
Derek Abram
|
CEO of Prio
|
6 min read

With rising costs in the software development industry, companies are looking  to outsource their technology expertise requirements outside of the United States. Outsourcing developers not only helps these companies save costs but also helps them scale their operations rapidly and keep up with business. 

In this article, we will look at what makes a country good to outsource software development from, and which are some of the best countries to outsource software development. 

What makes a country good to outsource from

Here are some of the key points you should consider if you want to outsource your software development to another country:

Low cost

One of the key aspects businesses consider when outsourcing is how cost-effective the option is. You want to determine the best countries to outsource your software development to while saving costs and hiring the best international talent.

Cost cutting is one of the biggest factors that drive outsourcing internationally, reducing overall development costs by 70%. 

Time zone

Time zones can play a crucial role in how productive your business is. When you outsource your software development, working with companies ahead of your timezone allows them to work while the in-house team is not at work, and vice versa.

Additionally, this adds more service time to your business, and even 24/7 if you hire from different countries across timezones. This increases productivity and the speed of your software development. 

Easy communication

If you are outsourcing software development from the US, you are most likely looking to outsource to a country that speaks English or can communicate easily. This means having at least a few team members from the outsourcing company that can communicate in English.

This is not of huge concern as most countries that have a huge IT infrastructure are also fluent or can communicate basics in English. Alternatively, hiring multilingual candidates can help if you are looking to build your software for markets in that particular country/geography.

Developed IT sector

You want to outsource your software development to a country that has a developed IT sector. This ensures that you have a huge talent pool to hire from initially, and later when scaling your operations.

You also want to ensure you are outsourcing to a team that is experienced and reliable. Therefore, hiring from a country that has a developed IT sector gives you more options to choose from. 

Education infrastructure

Similar to having a developed IT sector,  having an education infrastructure is also important. This ensures that the talent pool is increasing as students graduate and contribute to the country’s IT sector development. This plays a crucial role in scaling your business and hiring new talent for junior or entry-level positions. 

Manageable cultural differences

Lastly, outsourcing your software development to a different country also requires you to understand the country’s way of life, work culture, and beyond. Hiring for the IT sector is common, with an expected market volume of US$587.30bn by 2027 (source: Statista). This means that countries are prepared to work together as work is outsourced to them. As a result, managing cultural differences will become part of the process and easier with time. 

Best countries to outsource developers from

Now that we know what we need to look for in countries when outsourcing, let us take a look at some of the best countries to outsource software developers to

India

India is known for being a tech hub, with one of the highest percentages of software developers worldwide. It is also a top preferred destination for outsourcing development due to its affordable rates and flexible government regulations.

It is also known for its state-of-the-art technology, startup culture, fast-developing infrastructure, and a large talent pool for businesses to choose from for outsourcing. India is 10 and a half hours ahead of the US, making it easy for projects to be worked on almost 24 hours a day between the US and India. 

Ukraine

The Ukraine government puts great emphasis on software education in their country. As a result, the country has the largest number of C++ programmers and 80% of its programmers speak English fluently (source: DistantJob). Ukraine is 7 hours ahead of the US, making it easy to collaborate on timelines to complete projects in time. 

Singapore

With rapid digital transformation and a pathway toward more futuristic technologies, Singapore has been encouraging its country to upskill and reskill their workforce as demand for tech jobs increases.

Singapore is a more competitive market, albeit one of the most skilled workforces for software development. Keeping this in mind, it is crucial to manage expectations and cultural differences of the work at hand if you decide to outsource to Singapore. 

Romania

Romania is a common country for other European countries to outsource their work. The US market also outsources to the country, as Romania’s workforce of developers is easier to manage and oversee.

31% of the country’s population is proficient in English and it has over 100K developers offering you a large talent pool to hire from. Romania is also 7 hours ahead of the US, allowing ample time difference for both remote teams to work on projects collaboratively leading to more productivity. 

The Philippines

Around 58% of the Philippines population is proficient in English, and 95% of their developers can read, write, and speak fluent English.

The country offers a large pool of tech talent to choose from and with such high English proficiency rates, the people are easy to communicate and collaborate with, especially if it is your first experience in software engineer outsourcing.

The country is 13 hours ahead of the US, allowing teams across the two geographical regions to collaborate on projects promptly. 

Poland

Poland has a large supply of tech talent to hire from. Hiring international talent can be challenging but Poland was ranked 5th worldwide as a country that provides tech talent according to Harvard Business Review.

Many of the country’s students specialize in Engineering and the country also promotes technology in its educational curriculum. Poland is 6 hours ahead of the US and is ranked one of the world’s best speakers of English. 

Mexico

Mexico has a long relationship with the US resulting in many partnerships in the labour force.

Whether it is building technologies like computers or exporting and importing computer parts, the long-lasting relationship has resulted in Mexico being one of the preferred destinations for outsourcing software development.

The country also offers affordable rates compared to others and makes collaboration easy collaboration as they are in similar time zones with just a one-hour difference. 

China

China is a popular choice for businesses to outsource their software development. The country is rich in not only technology but also produces a large number of tech graduates every year. It is a country with a growing talent pool of engineers and tech experts, making it an easy choice for countries to outsource their development.

There are a couple of concerns when it comes to hiring from China, the first being a communication barrier as only 10 million of the country’s population speaks English making communication difficult for companies from the US.

Secondly, China is known to have a restricted policy on Intellectual Property (IP) laws which can be sorted by going through the right agency and establishing clear protocols before starting to work together. 

How Prio can help you manage outsourced talent across geographies

Prio is your solution to the challenges of managing a team of outsourced talent.

The tool makes it easy to organize time entries by category, project, and client, giving you access to insights on productivity and income values. It allows you to assign projects to remote workers and accurately track time spent on tasks while improving productivity with insights into where team members spend their effort.

Prio also automates invoicing by letting you predefine the process for each worker and client, so invoices are prepared on a schedule ready for your adjustments and approval. Get started with Prio and simplify managing and outsourcing developers today!

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