5 Best Countries for Outsourcing Software Development

With the ever-growing demand for software development across the globe, it's no wonder that a lot of companies of different sizes are looking for ways to outsource their IT needs and software development projects. When done in-house, it can require significant resources - including time, money, and manpower. For some companies, outsourcing this work to a third party is the most efficient and cost-effective option. And when it comes to outsourcing, certain countries reign supreme. In this blog post, we'll take a look at five of the best countries for outsourcing software development. So, if you need some help in finding out and selecting the best country to outsource your project to.

 

What is software development outsourcing?

 

In the simplest term, software development outsourcing is the process of hiring a third-party service company to take care of the software development for your business. This can include anything from enterprise resource planning (ERP) systems and customer relationship management (CRM) platforms to mobile apps and web-based solutions. There are many software development outsourcing types, including nearshoring, offshoring, and onshore outsourcing. Based on your specific needs, you can choose the type of outsourcing that best suits your business as well as the right location to outsource to.

 

Why is outsourcing software development becoming more and more popular?

 

The software outsourcing model is rising as business organizations are willing to spend less on their in-house software development projects and get them done by third-party service providers. This is one of the major reasons that outsourcing has become so popular over the years. There is a bundle of benefits of outsourcing software development, which are also the reasons for making the trend of outsourcing more and more popular.

 

1. Cost savings: 

 

One of the most common reasons businesses turn to outsource software development is to save money. When you outsource software development, you only pay for the services you need when you need them. This can be significant cost savings compared to hiring in-house staff or contractors.

 

2. Increased efficiency and productivity:  

 

Outsourcing software development can also lead to increased efficiency and productivity. When you outsource software development, you free up your in-house staff to focus on other core business functions. This can result in increased efficiencies and productivity gains.

 

3. Access to world-class talent:   

 

By outsourcing software development, you have access to a large worldwide pool of tech talent. This can be a significant advantage compared to hiring in-house staff or contractors. 

 

4. Flexibility and agility: 

 

Outsourcing software development can also provide your business with the flexibility and agility it needs to respond quickly to market changes. When you outsource software development, you can scale up or down as needed without the need to make a long-term commitment.

 

5. Improved focus on core business activities: 

 

When you outsource software development, you can improve your focus on core business activities. This is because you free up your in-house staff to focus on other core business functions.

 

6. Risk mitigation: 

 

Reducing risks is another important benefit of outsourcing software development. You can transfer the risks associated with the project to the third-party provider. This can help to mitigate risks for your business.

 

7. Mitigating the impact of staff turnover: 

 

Staff turnover can have a negative impact on businesses, especially when it comes to key personnel. When you outsource software development, you can mitigate the impact of staff turnover by using a third-party provider.

 

8. Dealing with skills shortages:

 

Skilled IT expert shortages can also impact businesses, especially when it comes to specific skill sets. When you outsource software development, you can access the skills and expertise you need without the need to hire and train in-house staff.

 

9. Compliance with industry regulations: 

 

In many industries, there are strict regulations that businesses must comply with. You can ensure compliance with industry regulations by using a third-party provider who already has a deep understanding of the local regulations.

 

10. Saving time on the recruitment process: 

 

The recruitment process can be time-consuming and expensive. When using a third-party provider, you can save time on the recruitment process.

 

Top 5 countries for outsourcing software development projects

 

In the IT industry nowadays, Asia is the new promising IT powerhouse in the world. Here are some of the typical countries you should put into consideration if you seek to outsource your software development projects to Asia.

 

India: 

 

Landed at the first position, India has been becoming one of the most popular destinations for outsourcing software development for many years now due to the large pool of 120,000 talented and skilled developers, which makes it easy to find the right resources for your project. India is also very cost-competitive in doing business, which makes it an attractive option for businesses looking to save on development costs. For your information, the rate of Indian developers is around $10 - $15 per hour. Moreover, India is the second-largest English-speaking nation worldwide, making the language barrier no big deal when outsourcing to this country.

 

China: 

 

Right after India, China has been the next big destination for IT outsourcing in recent years. With many similarities, the country has a vast pool of 30,000 talented developers and offers very competitive rates of between $20-$50 per hour. Additionally, many Chinese developers are fluent in English and adaptive to the international working culture, which makes communication easier and the workflow smoother.

 

Vietnam:

 

Vietnam is a newer destination for outsourcing software development but is quickly gaining popularity. The country has a large pool of talented developers as well, and it offers very competitive rates of $15-$40 per hour. Additionally, a majority of Vietnamese developers are able to communicate in English well, have high discipline, and have a high commitment to deadlines. This makes Vietnam become the new IT outsourcing alternative hotspot for businesses around the world. Last but not least, there are currently a lot of software outsourcing companies in Vietnam that are doing great work. If you're looking for a reliable IT partner for your project, Vietnam is definitely worth considering.

 

Ukraine: 

 

Speaking of top IT outsourcing nations, Ukraine makes a great option too. No need to repeat the advantages that any IT outsourcing country owns unless it is not on this list, such as a large pool of tech experts, cutting-edge technology implementation, English proficiency, etc. The average rate offered by Ukraine developers is around $25 - $40 per hour. Moreover, the nation has a renewable source of IT talent, with more than 20,000 students graduating in IT and IT-related fields each year. This makes Ukraine a long-term destination for IT outsourcing services.

 

Russia: 

 

Located next to a big country - China, Russia is often overlooked as an outsourcing destination. However, the country has a lot to offer when it comes to software development. With a large pool of talented developers and competitive rates just like the others, Russia is definitely a country businesses should consider for their next software development project. Currently, Russia has over 400,000 software developers with an hourly rate of $17 to $56.