Top 6 Best Countries for Software Development Outsourcing in Eastern Europe

Eastern and Central European countries might not be the most affordable choice to outsource to. But one word perfectly describes why software development outsourcing in Eastern Europe has grown so much in the past decade: Value. 

The region has an ever-growing pool of world-renowned tech geniuses. On top of that, their location is optimal, whether your company is based in the US or Western Europe, as the timezone difference still allows for some overlap during working hours.

That said, before we rank the best Eastern European countries for IT outsourcing, let’s go over two main questions: why are companies outsourcing their software development, and why is Central and Eastern Europe (CEE) the new outsourcing hotspot?

Why Are IT Companies Outsourcing Software Development

Eastern Europe has become a hub of software development and IT outsourcing in the past decade. The region solidified itself in white-collar outsourcing as early as the late-2000s because of its workforce’s low costs and overall expertise, sometimes surpassing that of its US counterpart. So, let’s see some of the main reasons why that’s the case.

To Save Time

A common problem with in-house hiring is that it takes time. You might need to spend 3-6 months onboarding and training new hires, which will change your projections for when your new software will be ready to ship.

That’s where outsourcing excels. Software development outsourcing companies have niche experts ready to start within days. All you need to do is give them the get-go, and you should expect to have a team of experts working on your product within a week.

To Save Money

While saving time is significant, most Western companies outsource to Eastern Europe to save money. In-house teams are employees, after all. So, that’d set you back quite a bit, considering that you’d need to pay them a high US wage, benefits, insurance, etc.

The best thing about outsourcing is that you don’t have to account for all that. You only have to pay the company you’ll be working with, whether they are in Poland, Ukraine, or any other Eastern European country. And their rate is usually less than what your in-house team would need! Learn more about the software development hourly rates by country. 

To Grow and Innovate

Now, growth and innovation are significant for the Eastern European talent pool. They are all about utilizing new technologies. Poland, Hungary, and Czechia are topping the scoreboards in coding competitions like HackerRank.

Besides that, the Eastern European market is growing fast. We’ll delve into more details below, but generally, the revenue from IT outsourcing is projected to increase by almost 10% yearly until 2028.

With all this said, let’s cover the Eastern European IT scene. And that immediately brings us to one big question: why has the Eastern European software development market grown so much and become so lucrative in the past few years?

What’s So Lucrative About The Eastern European Software Development Market

The Eastern European software development market wasn’t that big before the 2010s. With Ukraine’s IT growth booming in 2015-2016, the rest of the region followed suit, with Poland becoming one of Europe’s strongest IT outsourcing hubs.

And there are a few big reasons for that. 

The Geographic Location

Eastern Europe is at a near-perfect location. Unlike outsourcing to the East, where time zone overlap is minimal or non-existent, this issue is largely resolved in Eastern Europe. 

For one, the time difference between Central and Eastern Europe (CEE) and the US ranges from 7-10 hours. In turn, morning meetings for your company based in NYC would overlap with the Eastern European’s office afternoon hours. 

The Culture

Eastern European countries share many cultural similarities with the West, especially in the workplace. This cultural compatibility makes the region a practical choice for international business. Poland for example, recently attracted a massive $4.6 billion investment by Intel, thanks to their straightforward culture.

Intel CEO Pat Gelsinger told Reuters Technology: As you are picking a location, imagine you are going on a date. You have a sense, oh, they really want this to work, Gelsinger said. We definitely came away with a strong belief that the local government wants to make this work.

The Workforce

The workforce deserves a section of its own. The technology professionals in this region are distinguished by their persistence and commitment to excellence, ensuring that every task is executed with precision and quality. On top of that, almost two-thirds of the workforce are academically inclined, and most have a Master’s in their field.

What to Look For in an Eastern European Software Development Outsourcing Company:

You’ve got a grasp of what the Eastern European tech pool can do for your company. You’ll still need to know what to look for in these companies to ensure optimal value efficiency. 

The quality these IT companies produce can often even surpasses that of domestic US firms, increasing the overall value of your investment.

An Eastern European software development outsourcing company should boast a few qualities to be considered great. Here are some of the most significant ones.

• Technical Skills and Experience: Find an outsourcing company with a solid technical foundation and relevant experience. Ensure their portfolio showcases various projects, especially those aligned with your product and needs. Take a look at our success stories!
• Cost, Quality, and IP Security: Balancing cost-effectiveness with high security is essential. Assess pricing structures and security protocols. Hungary and Bulgaria offer competitive pricing, while the Czech Republic is known for providing high-quality services at reasonable costs with a strong emphasis on data security. Poland, being part of the EU is leading in rankings for both quality and security in challenging projects. Polish software development companies are accustomed to following the highest IP and security standards.
• Language Skills and Communication: Effective communication is vital in outsourcing. It’s important to make sure that the company employs proficient English speakers and clear communicators. At Euvic US, we’re providing you with local US-based leadership. This way, you get both – a local point of contact and Eastern European talent.

The 6 Best Countries for Software Development in Eastern Europe

And here we are. It’s time to rank the 6 best countries for software development outsourcing in Eastern Europe! Unless stated otherwise, all the statistics below are based on the Future of IT 2023 report. The software development skills and English proficiency rankings are based on HackerRank and the EF EPI 2023 edition, respectively.

#6. Bulgaria

The Bulgarian IT sector stands out in Eastern Europe with a technology proficiency score of 76%, placing it among the top 20 European countries for IT expertise. The industry employs over 108,000 people and annually welcomes more than 2,500 graduates, a third of whom hold a Master’s or Doctorate. Bulgarian developers are exceptionally skilled in data science, cybersecurity, and machine learning.

Bulgaria offers a highly skilled and multilingual talent pool, competitive labor and operational costs, a favorable macroeconomic environment, and a strong internet and telecommunications infrastructure. This makes it an attractive and cost-effective IT outsourcing destination​​.

Software Development Skills: 12th place

English Proficiency: 16th place

#5. Romania

Romania’s IT sector is one of the largest in the CEE region, home to over 200,000 IT specialists, with tech hubs in Bucharest, Timișoara, and Brașov. It’s recognized for its robust technical education system, with almost 10,000 ICT graduates annually. Romanian developers are skilled in diverse technologies, including AI innovation and cybersecurity, with a strong emphasis on web programming​​​​​​.

Romania combines affordability with quality, offering a large, skilled IT workforce. Its cultural and geographic proximity to Western Europe enhances its appeal as an outsourcing destination, particularly for software development outsourcing​​.

Software Development Skills: 20th place

English Proficiency: 15th place

#4. Czech Republic

The Czech Republic has seen a significant increase in the ICT sector, reaching over 220,000 employees, with rapid growth in cybersecurity, IT support, and data analytics. This growth reflects the sector’s innovative drive and capability in software engineering​​.

The country is acknowledged for its high-quality services, stable environment, and strong IP rights protection. However, Czechia’s strategic location near Western Europe may result in slightly higher outsourcing costs than its Eastern European neighbors.

Software Development Skills: 9th place

English Proficiency: 26th place

#3. Hungary

Hungary’s IT talent pool is diverse and high-quality, spanning various IT domains such as software development, systems integration, data analysis, and cybersecurity. The 180,000+ Hungarian professionals are proficient in emerging tech fields like artificial intelligence, machine learning, and blockchain technologies​​

Offering a favorable cost structure with lower hourly rates than other outsourcing hubs, Hungary is an attractive destination for companies seeking to maximize their IT budget without compromising quality. This blend of affordability and technical excellence makes it a preferred choice for IT outsourcing.

Software Development Skills: 5th place

English Proficiency: 17th place

#2. Ukraine

Ukraine’s IT sector is resilient, hosting over 100 R&D centers of multinational tech giants and renowned startups. Over 22,000 tech specialists annually graduate, expanding the nearly 300,000-employee talent pool. Ukrainian developers are skilled in languages like JavaScript, Java, Python, C#, TypeScript, and PHP, and about 85% have at least intermediate English proficiency​​.

Despite challenges, the Ukrainian IT industry exhibits consistency and growth, with a 13% increase in IT services in 2022. Ukrainian developers are known for their dedication, resilience, and work culture, making them highly sought after in the global IT outsourcing market​​.

Software Development Skills: 11th place

English Proficiency: 45th place

#1. Poland (Winner)

Poland boasts the largest IT candidate pool in the CEE region, with over 520,000 professionals; annually, more than 14,000 tech graduates contribute to this pool. Significant investments by companies like Microsoft and Google drive growth in the Polish IT industry​​.

Poland’s high number of domestic IT companies, educational system, and dynamic growth solidifies its status as the “IT center of Europe.” The presence of potential tech unicorns like Brainly and Booksy and the country’s reputation for having the highest-skilled programmers in the entire region reinforces Poland’s position as the top outsourcing destination for high-quality software development in Eastern Europe.

Software Development Skills: 3rd place

English Proficiency: 13th place

Conclusion: Eastern Europe Is a Goldmine of Tech Knowledge

Each country we’ve looked at offers unique strengths. 

The talent pool is highly educated and holds advanced technological skills. Their English proficiency is top-notch, making communication much easier on both sides. Furthermore, Poland’s high expertise makes it the go-to destination for complex and challenging projects, ensuring that even the most intricate technological endeavors are handled with unmatched skill and precision.

Learn more about the rankings and stats that make Poland stand out as one of the best destinations for software engineers worldwide. Euvic has been able to expand to a team of 6000+ engineers, consultants, and other tech experts thanks to Poland’s exceptional talent pool. 

Euvic US bridges the gap, providing you access to over 100 managed teams that specialize in various technologies and industries while also offering a local point of contact in the US.

At Euvic, we take a “Dream Team” approach to application development, which allows us to reduce the learning curve, lower the risk, improve communication and control, and deliver the final product at a substantially reduced cost, all while dramatically reducing time-to-market. 

What sets us apart is that our teams have been in your shoes. Thanks in part to our US leadership, we understand the challenges you face and know how to solve the problems so you can achieve the results you need and gain the competitive advantages you want. 

Get your free initial audit, consultation, or estimate. We’re looking forward to meeting you!