Top Locations for Hiring Offshore Software Development Team in 2021: Overview of Countries

The global outbreak of COVID-19 has brought the entire world to a standstill, leaving businesses struggling for survival. The pandemic has left a drastic impact on the business and economic landscape, compelling a sudden shift in the way people work.

This massive shift in the new work from home culture or “remote work” is born out of necessity, however, it’s been a long time in the era of digital transformation since the rising complexity of business solutions demanded a highly proficient workforce. No matter where the talent was located.

Against this backdrop, creating the right development team of developers, DevOps, software, and QA engineers is one of the major problems faced by all technology-powered companies.

The process of hiring has become extremely slow and prohibitively expensive which makes outsourcing an ideal option to choose over in-house team hiring.

This blog deep dives into the world of outsourcing and lists out the top countries for software development services. 

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Outsourcing = the new normal 

Outsourcing is a silver lining in the dark clouds of the corona pandemic. The massive shift to the new business model of remote work has pushed companies to dump the old rule book of hiring and switch to outsourcing. 

With offices shut and businesses affected, the popularity of outsourcing post the outbreak of novel coronavirus has skyrocketed. It is even predicted that the IT outsourcing market is anticipated to reach the $220 billion mark by 2021.

The days are brighter ahead for IT and Business Process Outsourcing that is loaded with benefits.

Benefits of outsourcing

Choosing a reliable outsourcing partner hold many immediate and long-term benefits. Listed below are some major reasons to choose a software development outsourcing company are: 

  1. Global Talent – In Western Europe and the US hiring the best developers comes with its own premium cost. Thus, many businesses nowadays prefer to outsource software development, i.e. hire a development team that is based in another country. When this country is in two, three, or even ten time zones away from the client we’re talking about offshore development. It’s when companies from California hire developers from Ukraine, or companies from the United Kingdom hire developers from India. Currently, in the world facing the COVID-19 pandemic, distances and borders mean even less, which opens new horizons for the technological sector and ubiquitous digital transformation. We see many companies understanding that remote workers can be efficient, and turning to hire offshore development teams with more ease.
  2. Cost Savings – One of the major benefits of outsourcing is cost saving. The cost of hiring specialists for building custom software in Western Europe and the U.S is very high, averaging a whopping $132/hour for any type of project, which may be as major as telecom custom software development or as minor as eCommerce website application development. An outsourced team from an inexpensive location, on the other hand, will ensure quality. meeting all your core business needs at a reasonable price. To give you an example, check profiles of Javascript developers for hireReact developers, and Node developers.
  3. Cutting-Edge Technology – One of the major competitive advantages of outsourcing is access to cost-efficient world-class technologies ensuring the digital transformation of your company. Offshoring to a product development team with the latest technologies,  agile methodologies, quality software, and project management system for a smooth development process and delivering the next-level end-user experience.
  4. Mitigate Risks – Developing new products always with no certainty of success is an inherent risk. It is wise for Startups or SME to outsource to a software development company instead of hiring full-time developers to mitigate the risk.

Difference between nearshore and offshore outsourcing

The beauty of outsourcing software development is that you can either opt for nearshore and offshore outsourcing countries to get high-quality work and save money. Let’s understand what Nearshore and Offshore outsourcing is and the advantages it offers.

Nearshore Outsourcing bridges the gap between offshore and onshore. The outsourcing partner in Nearshoring is located in a neighboring country or in close proximities. 

Nearshore company offers some significant benefits such as:

•    Reduced Time zone differences 

•    Low labor costs 

•    Minor but insignificant cultural differences and language barriers. 

•    More feasible visits for a transparent working relationship

Despite the advantages, even the top nearshore software development destinations hold some challenges. So be sure to choose the right one.

Offshore Outsourcing, on the other hand, means a country located far away from yours, maybe on the other side of the planet. Businesses who prefer quality over location opt for offshore locations where superior quality is delivered at an affordable cost.

Some powerful advantages offered by an offshore software development team are 

•    A global talent pool;

•    Highly-skilled experts available at lower costs;

•    Dedicated IT team to manage a comprehensive range of service;

•    High service quality within given timelines.

How to find the best offshore development team

When choosing a country to outsource software development, you should consider the following factors:

  • Value instead of cost. Beware of too low prices, as they may be followed with low quality of overseas developers as well. Read our research to get a better understanding of average offshore software development rates.
  • Reliability. Look for an offshore development team with a proven track record of effective, innovative work.
    Time zone. Make sure that the office hours of the offshore development team will overlap with the head office.
  • Culture. Take into account the cultural differences between your country and the offshore country. If you can accept those differences and are sure that they will not affect your collaboration, then go for it.
  • English proficiency. Without a doubt, It is going to be much more productive to cooperate with your remote team when the language barrier is no issue.

A list of offshore and nearshore software outsourcing destinations

These are locations that are the most comfortable for software development outsourcing:

Eastern Europe

Speaking about the best countries to outsource software development, many Eastern European countries like Ukraine, Belarus, Poland, etc. are globally recognized as the top destinations for offshore development. Eastern European offshore developers have broad commercial experience and are well-versed in various programming languages. For example, Ukrainian software engineers are known to be skilled at Java, JavaScript, and Python. In Poland, PHP is the most used programming language, followed by Java and .NET. There are nearly 1 million professional software developers in Eastern Europe. Hourly rates of offshore developers in Eastern Europe range between $25 and $40/hour, depending on the developer’s skills and experience as well as on the project complexity.

These rates may seem greater than in other regions, such as Asia, but they are still much lower than in North America and Western Europe, where software development services can cost you above $100/hour.

Outsourcing software development to Eastern Europe also looks attractive because of the minimal cultural differences between this region and Western Europe and the USA.

The top 10 countries where you can hire an offshore development team are:

  •         Ukraine
  •         Belarus
  •         Russia
  •         Poland
  •         Czech Republic
  •         Romania
  •         Hungary
  •         Estonia
  •         Slovakia
  •         Bulgaria

You might also be interested in reading our post about offshore developers in Eastern Europe “Software Developers from Eastern Europe in 2021: Which Country Suits Your Project?”. One more important blog to read if you want to hire offshore developers from this region is “Risks of Offshore Software Development in Eastern Europe”.

The overview of the region including risks, potential, and offshore software development rates by the country you can find in these dedicated posts about Ukraine, Poland, Moldova, Romania.

Find out which trends offer opportunities on the European outsourcing market.

Asia

In Asia, India seems to be a “paradise” for businesses looking to hire a web development team. It is also known as one of the most popular outsourcing destinations in the world. With more than 5 million software developers available, India offers quite low prices of $18-25/hour for custom offshore software development. The main benefit of hiring tech talent in India is low cost. However, there’s one big drawback – lower project quality. Besides, time zone disparity and cultural differences can also affect the working process. India is followed by China, but the rates of Chinese offshore developers are higher, and product development costs can reach $30-$40/hour.

Asia seems to be a paradise for businesses looking to hire a de team for outsourcing. However, the rates of Chinese developers are higher than average.

Other popular countries where it’s possible to hire a dedicated team of offshore developers are the Philippines, Vietnam, and Bangladesh. Overall, the number of developers in the Asia region reaches about 7 million. The key destinations for hiring offshore developers are:

  •         India
  •         China
  •         Philippines
  •         Vietnam
  •         Bangladesh
  •         Indonesia
  •         Malaysia
  •         Nepal
  •         Pakistan
  •         Sri Lanka

Latin America

Latin American countries now experience growth in the software development industry with top offshore development locations such as Argentina, Mexico, and Brazil. Latin American countries hold a strong impression as one of the most preferred offshoring destinations for US projects. Offshore developers’ hourly rates in these countries can vary from $30 to $50/hour, depending on the developer’s qualifications. Latin American countries are close to North American clients, with minimum time zone difference, so many businesses in the US prefer to be looking for the offshore development team in Latin America. Here are the top countries for offshore development in the region:

  •         Argentina
  •         Brazil
  •         Chile
  •         Colombia
  •         Costa Rica
  •         Mexico
  •         Panama
  •         Peru

Latin American countries now experience the growth of the software development industry with top locations such as Argentina, Mexico, and Brazil.

The Latin American region is represented by a variety of offshore software development companies that are focused on work with North American projects and are good at understanding their needs and requirements.

If you’re thinking of hiring offshore developers from Latin America here is our guide for you “Offshore Software Development in Latin America 2021”. And more about finding the right country with the best offshore developers in this region you can read in our series dedicated to Mexico, Brazil, Argentina, Chile, Colombia, and Uruguay.

Africa

Africa seems to be quite a cheap location to hire a development team for outsourcing. In Egypt, Morocco, and Kenya, offshore developers’ hourly rates are less than $20.

Yet, countries such as Nigeria and South Africa are more expensive — they can cost around $40–50, and it can be hard to find software developers with a decent price-quality ratio. Overall, there are about 20,000 software developers in the following African countries:

  •         Egypt
  •         Kenya
  •         Morocco
  •         Nigeria
  •         South Africa

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How to start offshore development

When you’ve made a decision about outsourcing your software development and have chosen a destination to hire overseas programmers the next question you should ask is how to find top offshore software development companies. Unfortunately, the high profits of offshore software development services make them attractive to different kinds of firms. That’s why you need to check on your future outsource development partner. Clients’ reviews, years of experience in the niche, number of software developers, their specialization, the reputation of the company, and many other aspects should be taken to consideration. It’s not always easy to find and analyze this data. In this case, a platform for hiring offshore dev teams, such as YouTeam, can be the best answer to all questions. Only vetted offshore software development companies can get access to the platform and submit their programmers. This means that all engineers available on our platform are hired with a trustful software outsourcing partner that meets all the criteria of a reliable offshore development company.

Hiring an offshore software development team: FAQ

How to find the best offshore development team?

When outsourcing product development to offshore destinations, you should take into consideration the following factors — the quality of services, reliability, reviews from past clients, culture and time zones differences, and, finally, English proficiency. Also, beware of too low prices, as they may indicate that the quality of such services is quite poor.

You will find over a million different types of software companies across the globe and choosing one among them is no cakewalk. To ease the process of finding the right outsourcing partner, you can refer to websites that furnish details about the available outsourcing companies and independent contractors or freelancers.

There are specialized websites that evaluate, research and review top companies in various sectors including software development outsourcing services such as Clutch or us, YouTeam. While Clutch allows us to dig deeper into some valuable information like a list of companies according to countries, ranking, hourly rate, case studies, core competencies, reviews and much more, we at YouTeam operate a unique database of software development agencies from Eastern Europe or Latin America and know which engineers are (1) amazing (we vet each and every engineer), (2) available to start a  new project soon. Basically, YouTeam allows hiring developers from outsourcing agencies directly, by talking to them. You skip all the sales talk and also have much lower risks than if you were to work with freelancers.

If you are on the hunt for freelancers, websites like TopTal, Fiverr, or UpWork can give you an enormous database of independent contractors who are ready to bid for your project at the lowest possible cost for high-quality work.

How to work effectively with offshore developers?

The effectiveness of the work of an offshore team depends on implementing the right offshore project management methodology, which will coordinate all work processes. Agile methodology is not new and already used worldwide as a convenient and effective framework for software development teams. For offshore teams, Agile practices can help achieve a similar level of productiveness as co-located teams have, or even higher. Read our how-to guide on the successful implementation of an Agile approach in your offshore development team here.

How to keep your offshore team engaged?

Engaging remote employees is a continuous process for every employer. One of the most effective ways to boost productivity and engagement is by focusing on communication. As a company, you can set standards for communication, do regular check-ins, and rely on various collaboration tools. If you have a team of remote software developers and engineers and want to know more tips, head over to our article about working methods for engaging remote employees.

The Bottom Line

Looking for an offshore development firm? We know it is a real headache to find the best offshore developers. But it’s possible and it worth the effort. If you are afraid to make a mistake that will cost you time and money, use our expertise in selecting an offshore software development team. We at YouTeam make it easy and safe to find a perfectly matching team of offshore developers from Eastern Europe and Latin America for any type of project. Easily hire a vetted dev team and get the work started in days!

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Written by
YouTeam Editorial Team

We love featuring verified solutions to outsourcing problems and coverage of remote work trends. We want our blog to be a source of inspiration for tech entrepreneurs and product people who are looking to build distributed development teams across continents.

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