Because of the significant talent shortage in the US and Western Europe, many companies are considering Eastern Europe as their primary destination for IT outsourcing. Many world famous organizations like Google and Apple have already opened software development offices in the region.
According to the State of European Tech report, there are around 6.1 million tech experts located in Eastern Europe, meaning that companies can choose from a variety of technologies for their business development. Ukraine, Poland and Romania alone account for 600,000 tech experts with a strong educational background and expertise in a broad range of technologies.
In this article, you’ll read about the most trusted organizations providing outsourcing services in Eastern Europe, as well as learn about the benefits of choosing the region as your primary software development destination.
Software Outsourcing Business in Eastern Europe
There are a number of reasons the region has recently become so popular, among which are its wealth of talent, cost-t0-quality balance, convenient geographical location and time zones, and scalability.
According to Skillvalue, Eastern Europe has the best developers in the world. Ukraine ranks fifth in the list of countries with the best programmers globally, and fourths among the best developers’ hubs in Europe.
The region’s potential is tangible partly due to the strong technical background so many developers possess. A great number of tech Universities prepare students for future careers in IT, while the region’s literacy rate constitutes 98,99%. Moreover, companies offer trainee rolls to students while they’re still studying in universities, meaning that young tech talent graduates already with job experience.
Eastern European Startups With Massive Success
According to dealroom.co, companies founded in CEE now have a combined enterprise value of over €186 billion, up 19x since 2010. Startups like AWG, Skype, Bolt, Wise, Rohlik, Vinted, UiPath, GitLab and Pipedrive got international recognition and illustrate the tech talent of the region.
Top 5 Most Trusted Outsourcing Companies in Eastern Europe
The IT Market Value in Eastern Europe
Daxx is a company in Eastern Europe that helps businesses build dedicated development teams in Ukraine. Initially starting out as an IT outsourcing company, we soon switched to staff augmentation as our primary focus. One of our core benefits is transparency — while helping you hire the most experienced tech talent, we still let you manage the process.
The list of our core services include:
- Dedicated team;
- Process consulting;
- Security testing;
- IT relocation;
- Launch workshop;
- Quality control;
- DevOps services.
Based on Clutch’s findings, Daxx is the leading Ukrainian software development provider for 2021.
Daxx's core services and locations
Itransition is a global software development organization with a broad list of services. They have been operating for more than 20 years, and handle software projects of any scale and complexity. Located in Kyiv, Ukraine, Itransition provides its customers with many services, including custom software development, software product development, dedicated development centers and much more.
Itransition's core services and locations
Future Processing is a company located in Glivice, Poland, with more than 20 years of experience in software development outsourcing. Their core services include building dedicated teams, software product design, software development and support and maintenance. Headquartered in Poland, the organization already has 800+ employees. They organize events like Quality Excites, FDD, WUD Silesia and DPTO.
Future Processing's core services and locations
ScienceSoft is among the most professional software development organizations headquartered in the US and operating internationally, providing its services to software product companies and non-IT enterprises.They have 700+ IT professionals and a partnership network of more than technology professionals located internationally.
ScienceSoft's core services and locations
Having built their first mobile application in 2001, MentorMate went on to become one of the the most experienced outsourcing companies in Eastern Europe. It was a Palm Pilot app called MentorMate that helped students learn foreign languages. Since then, they’ve been involved in providing various web development and staff augmentation services, ensuring smooth integration of innovative ideas.
MentorMate's core services and locations
Top Outsourcing Providers in Eastern Europe
Years of Experience
Location in Eastern Europe
Number of Tech Experts
Daxx by Grid Dynamics
500+ on board
Outsourcing in Eastern Europe, Latin America and Asia: What’s the Difference?
Because of the vast talent pool and optimal rates, many Western European and US-based businesses are looking for a trusted partner in the region. Therefore, it is much cheaper to hire a dedicated team in the CEE region than doing so in the US.
Read more about the benefits of hiring engineers outside Silicon Valley.
Eastern European countries have become Asia’s competitor when it comes to software development outsourcing. Countries like China, India, and the Philippines are popular because of the low rates they offer. For example, the average junior software developer in Asia makes around $20-$30 an hour, while for a senior expert the rates are between $30-$50. The CEE region is becoming more popular because of the high quality of the delivered services, while prices are either slightly higher, or in some cases, the same. A median developer’s hourly can range between $30 to $60.
Latin America is among the primary destinations for organizations in North America because of the close geographic proximity and minimal time difference. The average hourly rate in the region is between $35 to $70. If a tech company chooses to hire the same dedicated software developer through an outstaffing vendor, they would cut those rates by up to 20%.
Key Steps to Take When Choosing a Software Provider
- Conduct a Google search
Before choosing your software development provider, you should definitely look for the information online. Search for the most experienced providers with positive reviews on platforms like Clutch. Learn about the company’s corporate culture, tech technology availability as well as the core services they provide.
- Check out the company’s Linkedin profile
It will help you learn about their locations, projects, employees, and management team, so that you are able to understand if the company suits your requirements.
- Visit the company’s website
Once you do that, you’ll be able to access the company’s pricing policy, learn more about the industries they are working in, and choose the cooperation model that best fits your expectations. There you can also reach out to the contact employee to receive a consultation about available services and have your questions answered.
Ukraine has a vast talent pool of more than 200,000 software development professionals, and together with Hungary, Poland and other countries, has become one of the most popular IT hubs for international organizations. Considering the significant talent shortage in the US, businesses from the West have started working with CEE software outsourcing providers to accelerate digital transformation and build high-end solutions to attract more customers.