Outsourcing Software Development to Eastern Europe

Outsourcing Software Development to Eastern Europe
Digital technology has been showing an unstoppable growth rate for the past decade. Humanity has come from the first iPhone to the cloud computing, to the mixed reality, to paying for services with their phones and fingerprints.

Seeing all this change happen before their eyes, businesses try to go in hand with time. Companies take measures to ensure what they offer is what today’s customer needs. However, in a hectic rush to develop a new user-friendly product or a platform to raise customer satisfaction, companies have little to no time looking for the right tech experts.

Thus, they decide to outsource, but laying their hands on a trustworthy business partner with the required skills is also troublesome. Where to start? What to consider?

In this article, we’re going to talk about one of the common outsourcing destinations – Eastern Europe – and what you can find there.

Eastern Europe as part of the Global IT Outsourcing

Eastern Europe has established itself as one of the world’s best software outsourcing destination. Its IT sector offers an impressive diversity of tech professionals, developed infrastructure and provides a good educational background.

Eastern Europe as part of the Global IT Outsourcing

Countries such as Ukraine, Belarus, Poland, and Romania have been acknowledged for their sustainable growth and adoption of the latest technological advancements.

Having so many options laid out before you, you may find it difficult deciding what country or city to consider first. So we have put together an overview of the most common destinations for outsourcing software development in Eastern Europe.

Why should you consider outsourcing to Eastern Europe?

Geographic location Geographic location

 

Cost-effectiveness Cost-effectiveness

 

Number of service providers on the market Number of service providers on the market

 

Extensive tech expertise Extensive tech expertise

 

Insignificant communication barrier Insignificant communication barrier

Most Common Destinations for IT Outsourcing in Eastern Europe

Belarus

Belarus

Belarus hosts nearly 4K IT companies with over a million tech professionals, among which 35K focus on providing software outsourcing services. In addition, around 4K graduates join the IT workforce annually

Despite that, the IT sector in Belarus still doesn’t account for a major share of the economy with 2.2% of employment rate and 5.1% of the country’s GDP, the IT revenues have reached $4 billion in 2016 ($1.15 million from export).

The Sphere of Informational Technologies continues to stand out among the other sectors with stable revenue growth, solid export rates, and continuous flow of foreign investments. It is less exposed to regular economic shocks, making this sector pretty attractive to foreign investments and new projects.

Moreover, some of the major Belarus IT companies were mentioned in the Software Magazine’s Software 500 ranking of the world’s largest software and service providers and were recognized by the International Association of Outsourcing Professionals (IAOP).

You may also be interested in Software Development Outsourcing Markets in Belarus

Ukrainian market of IT services

Ukraine

The Ukrainian market of IT services has shown steady growth through the years. Outsourcing reminds the leading segment of Ukrainian IT industry with $3.6 billion in 2017 (grew by 20% in comparison to 2016). The Association “IT Ukraine” expects the export of IT services to reach $4.5 billion in 2018. Right now IT industry makes 3.34% of Ukrainian GDP.

In Ukraine, businesses can expect to meet a range of benefits beginning with extensive tech expertise, to cost-effective development teams and world recognized engineering education.

Having over 1K companies, whether it’s outsourcing, product or a promising startup business, Ukraine offers a wide range of IT-related services. The DOU.UA-based survey shows an astonishing number of over 130K IT professionals occupied in developing fintech, healthcare, gaming, automating, manufacturing, managing, IoT, AR/VR software.

Ukraine is home to over a hundred R&D subsidiaries of famous international corporations like Microsoft, IBM, or Samsung. Having been recognized by Gartner as one of the Top-30 offshoring and outsourcing destinations, Ukraine is a great place to contract out your IT needs.

You may also be interested in Software Development Outsourcing in Ukraine

Romanian Software

Romania

Relying on the data provided by the Romanian Software and Services Association, the growth of IT industry in Romania has amounted to $4.2 billion in 2017, providing for 5% GDP growth.

After Romania became a part of the European Union in 2007, it started to attract global tech companies like Huawei, Ericsson, and Microsoft. According to A.T. Kearney’s 2016 Global Services Location Index, Romania ranked 13th due to its financial attractiveness, people skills and availability, and business environment.

Despite that, Romania still lags behind in technology activity, the Romanian government has created and successfully implemented a law on tax exemption for “software development activities” to trigger and support the IT sector’s development. It basically made Romania a true fiscal paradise, especially for investors.

Occupying a top 10 position in both Europe and worldwide regarding certified IT specialists, Now it employs over 120K professionals, of which 60K are engulfed in the software outsourcing. Currently, it is a great place to offshore the development of a promising project or start a company.

You may also be interested in Outsourcing Romania vs Ukraine. Which Country Suits Your Needs?

Poland

Poland

Being one of the EU’s fastest-growing economies, it has become an attractive outsourcing location for various European organizations. It has over 140K professionals working in nearly 450 companies specializing in offering IT outsourcing services. Moreover, annually the country receives over 15 thousand technical specialists that graduate from the state’s universities.

In 2016 the volume of Polish IT market reached $7.9 billion, ranking them #25 among the most innovative countries in the world.

On the other hand, being a member of European Union with a strong well-developed economy and stable political situation, Poland is not a place where you will be able to save by outsourcing software development. However, here you will find a lot of highly qualified human resources.

Finally, we have cleared up on the situation on the IT markets for the most common destinations for outsourcing software development in Eastern Europe. Now we are going to tell you a bit about where to look for the best technical vendors.

You may also be interested in Exploring IT Outsourcing: Ukraine vs Poland

How to Find Outsourcing Company in Eastern Europe?

Try going through your personal network. There are solid odds some of your friends or acquaintances actually know a good firm.

 

Surf the net. Online directories of forums are going to give you an understanding of what you are in for. Go through specialized websites like Clutch, ContractIQ, AppFutura, or GoodFirms. There you will find reviews of company’s work, their portfolio, and much curious stuff.

 

Turn to local IT communities. For example, Ukraine has a number of local IT Clusters, e.g., Kyiv IT Cluster, that offer to set clients up with the most suitable outsourcing companies.

 

In a DevOps environment, the entire team is responsible for releasing new features and app improvements. The combination of a shared code base, continuous integration, automated testing and deploys results in more reliable releases.

 

Improved communication and cooperation processes between departments streamline bug fixing at any development stage.

 

If you have more questions about how to find a software development company, go read our extensive article about it.

Conclusion

Eastern Europe is a truly promising region for offshoring software development. There are thousands of skillful IT specialists from programmers to designers and managers who offer high-quality services for a fair price.

If you are searching for a company to do offshore software development, come to IDAP. We offer a wide range of services from iOS and Android mobile development, to the construction of complex business management systems like ERP or CRM.

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