Michael
Michael is a software engineer and startup growth expert with 10+ years of software engineering and machine learning experience.
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Eastern Europe is among the world’s most attractive locations for I.T. outsourcing. It is now home to numerous major tech firms, including Apple, Google, IBM, and Microsoft, which all have software development centers.
Smaller software firms have turned their attention to developers in Central and Eastern Europe. Even though Poland, Ukraine, Belarus, the Czech Republic, and other countries charge more for custom software development than India or the Philippines, the cost is still affordable for the U.S. or the U.K.
Programmers from Eastern Europe can provide I.T. services of the highest caliber, with a favorable time zone difference and fewer cultural differences. Outsourcing software development to Eastern Europe is an excellent alternative because of all of that and the ideal cost-to-quality ratio. Today, premier Eastern European software development companies are becoming increasingly popular with brands.
Regarding software development outsourcing in Eastern Europe, Ukraine, Poland, and Romania are the most well-liked locations, with Serbia, Macedonia, Bulgaria, Hungary, and Georgia coming in second.
Here are some data showing these countries’ I.T. industries.
The country’s new government began supporting foreign investment in 2014—this increased investment in Ukrainian I.T. firms, which reached $630 million in the last five years. The largest Ukrainian I.T. hubs are in Kyiv, Lviv, and Kharkiv.
Over 1,000 software development companies now serve the Ukrainian I.T. market, employing 160,000 IT professionals. Moreover, this number will grow exponentially because the country’s universities produce 15,000 tech graduates yearly.
As an EU member with the fastest growing economy, Poland provides favorable conditions for companies considering outsourcing software development.
With over 400 software companies employing over 140,000 skilled professionals and a 5-10% annual growth rate in the I.T. market, the country remains the top offshore destination in Eastern Europe.
Because the Romanian government once provided favorable tax conditions for companies providing software development services, the industry has overgrown and attracted global technology companies such as Microsoft, Ericsson, HP, and Huawei.
With an annual increase of 7,000 tech graduates, the country now has nearly 100,000 IT professionals working in almost 20,000 companies.
Eastern Europe has become a popular software development outsourcing location in recent years, owing to its attractive cost-to-quality ratio, though not simply low rates like those found in India or the Philippines.
According to Tholons and A.T., Eastern European countries such as Poland, Ukraine, and Romania are among the top outsourcing countries. Kearney is one of the world’s largest consulting firms.
Geographically, these countries are close to each other and Western Europe. Moldova and Romania have the inadequate infrastructure, whereas Ukraine is constantly improving its transportation and road infrastructure. Eastern European countries political situations vary, but they are generally stable.
Eastern European software developers are fluent in English and possess strong technical and soft skills.
The technical abilities of Eastern European developers are highly regarded. All the countries mentioned above were heavily influenced by or were Former Republics of the Soviet Union, which left a legacy of relatively high-quality Technical Education in its wake (if not a little too specialized for contemporary tastes). In response to the former market expanding and the latter contracting, the emphasis on education in Eastern Europe has shifted from hardware to software.
Eastern European development teams have years of experience in various programming languages and industries, including healthcare, e-commerce, blockchain, artificial intelligence, IoT, and others. Furthermore, Eastern European software engineers are skilled in mobile app and web development.
The English proficiency of software developers is critical for successful collaboration. Overall, developers in all reviewed countries have a strong command of English, a requirement in the I.T. industry.
Eastern European developers typically work for multinational corporations, where a high or at least moderate command of the English language is required. German is the second most popular foreign language among developers in Poland, while French is almost as famous in Romania.
To stay current on new technologies, developers must continue to self-educate and attend additional training and courses. As a result, opportunities for further education are becoming more widespread and are being administered privately by highly experienced practitioners in the I.T. industry, such as the Lviv I.T. School.
Ukrainian, Polish, Romanian, and Moldovan developers excel at web and custom software development. Eastern European developers’ programming skills can be measured using data from reputable I.T. industry sources such as Hackerrank and TopCoder.
When comparing offshore software development rates by Eastern European countries, their developers offer relatively low prices compared to their Western counterparts. Software development in Eastern Europe is typically two to three times less expensive than in the United States. Among the reviewed countries, Poland has the highest rates for all types of developers — $50-$99/hour, which is still lower than in Western Europe.
Moldova has the most affordable software development outsourcing rates, ranging from $20 to $24 per hour. Ukraine and Romania provide intermediate rates ranging from $25 to $49 per hour.
Despite all of these countries’ communist pasts, the culture of developers can be described as western and progressive. The majority of the developer community consists of young people with more open minds. Regarding mentality and personality, Romanians and Moldavians are more risk-averse, leading to a lack of innovative thinking.
In turn, Ukrainian and Polish developers have more extensive experience working with global technology companies and top software development firms in Europe and other countries.
When choosing an Eastern European outsourcing location for software development, the size of the talent pool is critical. Unfortunately, it is often difficult to estimate the exact number of software developers, but local agencies tend to provide reports on their countries’ statistics every few years.
The number of employees in I.T. and Communications is generally displayed in official statistics. Q&A engineers, designers, business analysts, project and product managers, and other professionals work in the I.T. sector.
According to reported figures, the ICT industry employs 244 000 people in Poland, 110 000 in Romania, 160 000 in Ukraine, and 12 500 in Moldova. Approximately half of these individuals are software developers. Several Ukrainian software developers, for example, have chosen to work in Poland, and Romanian software development firms frequently hire Moldovan developers.
Each country studied has something unique to offer in terms of software development expertise. For example, Romania is well-known for its involvement in fin-tech, Poland is ideal for global technology companies’ R&D departments, Ukrainian developers are well-prepared to work with cutting-edge technologies, and Moldova is a good choice for mid-sized projects.
If you are considering hiring Eastern European developers for your project, consider the following:
Here are some hints to help you decide which country to choose for your project:
According to experts, Poland, Romania, and Ukraine are the three top locations for I.T. outsourcing in the Eastern European region. Because Poland and Romania are European Union members, the European Union’s data protection and intellectual property standards apply to each software development company in these countries. On the other hand, Ukraine is not a member of the E.U. but is known for its highly skilled I.T. specialists and low costs.
Unlike traditional remote collaboration tools like Slack and Zoom, distributed development teams require a plethora of additional software. As a result, code management tools, such as GitLab and Bitbucket, are critical to the success of any product.
The best way to optimize this hiring process is to create a checklist that will keep you from overlooking critical points.
Typically, decisions regarding software development outsourcing to offshore locations (including Eastern Europe software outsourcing) are based on recommendations or showcases.