Top 10 Countries To Outsource Software Development
Shifa Martin
Technology Consultant | Driving Innovation and Efficiency for Businesses through Strategic IT Solutions | Growth Hacker | Automation Expert
Developing software is complex and time-consuming, but it doesn't have to be if you outsource it. Outsourcing your software development can free up your internal resources and allow you to focus on other business aspects.
However, it can be challenging to know where to start.?
You don't want to hire an unreliable team overseas that takes your money and doesn't deliver the product or service as promised.
But which country should you choose?
To make things easier, we put together this list of the ten best countries to outsource software development to help you decide which ones are the most likely to meet your budget, timeline, and talent needs.
India
India is one of the best countries for outsourcing software development. With a rich technical talent pool and cost-effective labor, it's an attractive destination for businesses looking for the best outsourcing software development companies.
India is the world's second-largest English-speaking nation, which makes it an excellent choice for US or UK-based businesses to outsource. The education system also extensively focuses on mathematics, producing up to 2.6 million STEM graduates annually.
Gild research found that Indian developers outscored their American counterparts by 11% on maths and logic tests.?
In contrast, they received significantly lower scores on PHP and HTML tests, so if you're looking for web development, ensure the outsourcers you're considering are experienced and have good track records.
According to PayScale research, the average annual salary for software developers in India is around ?501,874.
With less than one year of experience, an entry-level application software developer can earn about $345,016 annually.
Ukraine
Ukraine is the largest IT service supplier in Europe and has a high-skilled workforce with solid technical knowledge, making it an ideal place for software outsourcing.
The Ukrainian government is more focused on education, which has nurtured a tech-based economy. According to HackerRank stats, the average Ukrainian developer achieved an 88.7% performance score on HackerRank challenges.?
Additionally, Ukraine has the most significant number of C++ programmers worldwide.
In Ukraine, approximately 80% of the IT community speaks English, so there is no communication barrier.
Another benefit includes a similar working culture and time zone that partially overlaps with the UK and US.
As per the research on PayScale, the average annual salary of a Ukrainian developer may range from $11,936 to $46,787.
China
China has an abundance of experienced programmers and engineers, which helps shorten project timelines.
Almost 4.7 million tech graduates are produced every year in China. China ranked first on HackerRank's programming Olympics.
However, there are a few drawbacks to outsourcing here, including:
- Many international employers face a significant communication barrier, as only 10 million out of 1.3 billion residents speak English.
- Intellectual Property (IP) laws in China are not strictly enforced. To overcome this, hire a reputable outsourcing agency and establish clear rules before you begin working together.
In China, software developer salaries typically range from $27,695.96 to $52,314.59 annually.
Poland
Poland has a large pool of skilled and talented professionals fluent in English, making it a perfect fit for Western companies with global ambitions.?
The country's higher level of education and lower costs make it an excellent choice for businesses looking to outsource their software development needs.
According to HackerRank's stats, Poland is ranked third in the world for highly skilled programmers.
Software developers of Poland ranked first in Java assessments. They also ranked in the top five for Python, Shell, and Ruby. According to Tholons Globalization Index analysis, Warsaw and Krakow, two of Poland's largest cities, were ranked among the top 50 cities.
North American companies must make time zone adjustments to conduct live meetings.
As PayScale reports, the average salary of a software developer is $22,273.88.
Philippines
The Philippines is a great place to outsource software development due to its strong English language skills and workforce. Some software outsourcing companies are outsourcing their customer service departments because of the country's friendly and helpful people.?
The Philippines might be the best choice if you're looking for a cost-effective way of outsourcing your software development!
They have recently implemented major educational reforms, including the STEM high school system.
According to Tholons Globalization Index, Manila, the country's capital, is rated as the second-best city for outsourcing services.
Reforms still need to close the gap between Philippines software developers and developers from other nations. It means you cannot consider this country for outsourcing complex software projects.
An average software developer in the Philippines earns around $10,563.40.
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Romania
Regarding outsourcing software development, Romania is the other country you can consider.?
Romania provides tuition-free, egalitarian education to its citizens, resulting in one of Europe's most diversified tech scenes. Across all HackerRank programming tests, Romanian coders rated 20th globally.
The country has highly invested in its IT infrastructure over the past several years. As a result, they hold the 18th rank on the A.T. Kearney Global Services Location Index globally.?
Romania offers certain advantages for businesses in North America and Western Europe. This region overlaps with a lot of US and Western European time zones. More than 90% of Romania's developer population speaks English. They also speak other foreign languages like Russian and German.
According to recent research in Romania, developer salaries range from 12,000 to 35,000 Euros.
Brazil
The Brazilian workforce has a reputation for being highly skilled, reliable, and hardworking.?
In Brazil, approximately 6.18 million people speak English fluently, and the government continuously works to improve the IT infrastructure.
Due to 38.18% of the young workforce, Brazil is becoming an up-and-coming destination for outsourcing software services.
However, the Brazilian IT community is still relatively young. Since the IT community in the country is relatively young and less experienced, they scored 71.3% in HackerRank assessments.
For this reason, you can look for other top countries to outsource more advanced projects.
The salaries of Brazilian developers vary from R24,000 ($6,009.26) to R132,000($33,054.78) based on their experience level and location.
Taiwan
Taiwan is a well-developed country ranked as one of the best places for software development outsourcing. The main reason for this is their highly trained workforce and excellent infrastructure.
According to HackerRank, Taiwan is home to some of the most skilled developers in the world, with solid proficiencies in areas like functional programming and data structures.
The country has strong developer proficiency in functional programming and data structures. According to HackerRank, its developers are ranked as the seventh most skilled developers globally.
The governmental bodies also invest a lot to improve the country's IT infrastructure and STEM education and become Asia's Silicon Valley.
However, Taiwan might not be the best place for you to outsource. As per the English Proficiency Index rating, Taiwan ranks at 40th position out of 80 non-English speaking countries. It will raise a considerable communication barrier if you outsource your IT project to this country.
To overcome this issue, Taiwan is considering making English an official language.
An average software developer in Taiwan earns around $23,427 annually.
Egypt
Egypt is a North African country famous for its pyramids and the Nile. It's also a great place to outsource software development.?
Egypt was ranked 42nd out of 50 in HackerRank's list of the top software development countries. However, they are dedicated to enhancing their pool of IT workers.
The number of STEM-focused high schools in Egypt has grown in recent years.
Nearly all Egyptian schools teach English so that communication won't be an issue with Egyptians.
What sets Egypt apart on this list is its affordability - outsourcing your project to Egypt will cost you less than outsourcing elsewhere.
In Egypt, the average salary of a senior software developer is $6,041.22.?
Canada
Canada has several factors that make it a good place for outsourcing software development. Canada ranks 6th on the UN's Human Development Index, which measures the quality of life and standard of living.
Canada has an excellent education infrastructure specializing in IT - around 18.6% of Canada's graduates hold STEM degrees every year.
HackerRank ranked Canadian programmers 21st in terms of actual skill level. Toronto, Halifax, and Calgary are the three Canadian cities ranked among the top 50 on the Tholons Globalization Index.
One advantage of outsourcing to Canada is its proximity to the United States. Less cultural and time zone differences allow effective communication with US-based customers. With this advantage, more complex projects can be tackled effectively.
According to PayScale, Canada is the most expensive place to outsource, with the average software developer earning $64,266 CAD.?
To Conclude
If you're looking for a country to outsource software development and need help figuring out where to start, this list is the perfect place.?
While many factors should be considered when deciding on the best country for software development outsourcing, we ranked these ten based on cost, availability of talent, the quality of life in each country, and other relevant factors.
You can also look for outsourcing software development companies that adopt suitable business approaches to build high-performance solutions for you.