Top 10 IT outsourcing destinations worldwide

Top 10 IT outsourcing destinations worldwide

Outsourcing software development is now a common phenomenon across the world, as most companies find it a great way to keep their projects cost-efficient and of exceptional quality. If you want to do it right, first figure out what your company’s specific outsourcing needs are. Then, to find the right IT destinations worldwide, consider factors such as a thriving IT industry, top educational facilities, and language proficiency.

India, China, and Central and Eastern Europe (including Poland, the Czech Republic, and Romania) are the most sought-after outsourcing destinations. In this article, you can take a good look at the list of them in detail based on the time zone difference, the popular programming languages in the countries, etc., so that you can make an informed decision.

India

India is always at the top of the list of outsourcing destinations for many good reasons, such as the great IT workforce with excellent English-speaking skills, a sound education system, considerable growth rates in the IT industry, lower costs and many others. Indian outsourcers have a reputation for having a good track record of delivering quality work.

• It has attracted many foreign businesses to the country, allowing them to outsource many development projects.
• Being the second-largest English-speaking country in the world, it is an ideal choice for US or UK employers interested in outsourcing.
• When it comes to cost-effectiveness, it is said that outsourcing software development to India is about 20% cheaper than in North America.

India has a large pool of IT professionals, making it easy to outsource software development there and acquire the necessary services. India is a desirable outsourcing location due to the abundance of reasonably priced tech services.

Ukraine

Ukraine has a rapidly expanding IT sector, and many foreign companies have already recognised the advantages of using Ukrainian outsourcers. The country has a vast pool of talented computer professionals you can hire from IT outsourcing services or independent freelancers to get your job done.

• They have high-level programming skills and proficiency in many programming languages, like JavaScript, Java, C#, Python, C++, TypeScript, React, and others.
• They are regarded as elite specialists around the world. In Ukraine, most IT professionals are at least intermediate English speakers. 
• By 2024, it is anticipated that the industry will witness 2x growth in the number of tech specialists in the country.

China

China is one of the world’s leaders in the growth rate of its software development industry and tech achievements. It has made them one of the top outsourced countries. Of course, China is among the world’s leading outsourcing countries, partially because of the number of specialists. The talented developers from the country are specialised in programming languages such as Python, Java, and JavaScript.

• Low labour costs are one of the advantages of outsourcing to China.
• Another benefit is that you can get quick access to technologies, as the world’s renowned research and development centres are located in China, as are companies leading in innovation.
• To get first access to cutting-edge technological solutions, companies outsource software engineering to China.
• Also, the Chinese government has established significant supportive policies to encourage foreign organisations to outsource software development services.

Poland

Many businesses worldwide prefer Poland as their outsourcing destination because of the lower cost and no compromise in the quality of the service offered. As a longstanding member of the European Union, the nation is governed by a number of unique laws that safeguard your intellectual property and the data you provide.

The tech industry in the country accounts for about 8% of the overall Polish GDP. Regarding proficiency in English, they have a 13th rank in the English Proficiency Index. Due to Poland’s strong software development capabilities, businesses can outsource programmers to Poland.

The Philippines

It makes sense that the Philippines would be ranked among the top Asian nations to outsource IT services. Numerous multinational corporations, such as Google, Facebook, Apple, and others, choose to hire programmers from the archipelago because of their benefits and skills. Roughly 11% of the nation’s GDP comprises outsourcing solutions, including software development and business process outsourcing.

• The Philippine government implemented several laws to guarantee the smooth operation of the outsourcing and IT sectors.
• English is widely spoken nationwide and recognised as an official language alongside Filipino.
• The Philippines adopted various Western cultures and learned business ethics due to their past.

Romania

Romania is among the top nations for outsourcing as well. In 2021, the country was recognised for its IT infrastructure development, as evidenced by its inclusion in the Kearny Global Services Location Index’s list of the top 35 locations for software outsourcing. Current statistics indicate a growing market, despite some companies hesitating to outsource programming expertise to Romania due to outdated myths and false assumptions.

• After Poland and Ukraine, Romania is thought to have the third-largest talent pool in Eastern Europe.
• Romania’s IT ecosystem supports R&D centres and startups.
• There is no language barrier because this outsourcing location is ranked 15th in the EF EPI.
• Romania’s reasonable time zone differences make it a desirable place to be a outsourcer.

Brazil

With a large candidate pool of more than 500K professionals and an extensive talent hub, Brazil is another nation regarded as one of the best places to outsource. Active US investment initiatives benefit the country by achieving great IT outsourcing rates, growth in tech professionals and an expanding infrastructure. As far as time zones are concerned, the country is among the most convenient outsourcing locations for the US.

Approximately 6.18 million people speak English fluently there, and the IT community is still relatively new. This country is a rising star for software development outsourcing, with about 38.18% of the population under 24 years old. Thus, on HackerRank evaluations, their average score was only 71.3%. Brazil is a great place to find junior developers because of this, but if you are looking for more advanced projects, you should consider other countries on this list.

Czech Republic

The following nation on the list is the Czech Republic. It was ranked sixth among the nations with the greatest software developers worldwide in 2019. The programmers in the country are known to have remarkable skills and expertise in Python, C#, SQL, JavaScript, CSS, and HTML. Notably, this nation in Central Europe offers a financial preference programme, grants for talented students, and an encouraging tech education system.

• There are currently over 150,000 tech specialists employed there, and that number is rising annually.
• Czech programmers are in high demand because of their country’s superior software development skills.
• Because the tax rate is only roughly 19%, multinational firms can invest in the information technology sector with confidence. 
• Comparing Czech outsourcing software companies to those in the US, South and East Asia, they have lower attrition rates.
• The Czech Republic is among the best outsourcing nations in the EU, with stringent data protection regulations and open taxation.
• Situated in Central Europe, Czechia is a leading outsourcing destination that adheres to Western business management standards.

Egypt

Predictions state that Egypt will develop into a major hub for the outsourcing of information and communication technology and business processes. The country is referred to as an “African IT centre.” Despite their low ranking 42 on HackerRank’s list of the top 50 nations for software development, they are committed to growing their tech labour pool. The investments made in the development of STEM-focused high schools will help.

• Roughly 250,000 IT and language graduates seek employment in an international company after completing their education in the country in the present scenario.
• English is taught in most Egyptian schools, so there should not be many difficulties communicating with Egyptian employees.
• Egypt is in a time zone that is good for outsourcing. Egypt is located at GMT+2.
• But what sets Egypt apart on this list is how affordable it is. Compared to all other countries on the list, outsourcing to Egypt will be less expensive.

Argentina

The software development industry in Argentina has witnessed progressive growth over the years. Numerous businesses are drawn to the country’s experts for outsourcing projects because of the strong demand for their services. More people are becoming aware of their services as the talent pool in the country grows.

• To ensure that Argentina’s IT and outsourcing industries run smoothly, the Argentine government passed several laws.
• In 2021, Argentina ranked highest among Latin American countries on the English Proficiency Index, with a rate of 55.6.
• Argentina is one of the most sensible outsourcing destinations for the US regarding time zones.

For your convenience, a table listing the aforementioned nations is provided.

Nowadays, organisations can hire experts from any region of the globe, thanks to globalisation. Strictly focusing on the top nations for software development outsourcing is just the first step towards a fruitful outsourcing collaboration. So, here is the list that can be useful for you.

Interesting Links:

Some of the Best IT Outsourcing Countries In 2023

The Top Nations in 2023 for Software Development Outsourcing

Pictures: Canva

The author: Sascha Thattil works at Software-Developer-India.com which is a part of the YUHIRO Group. YUHIRO is a German-Indian enterprise which provides programmers to IT companies, agencies and IT departments.