LATAM vs. Eastern Europe: Which Region Offers Better Outsourcing for IT & Software Development

Outsourcing software development has become a strategic necessity for businesses aiming to scale efficiently, reduce costs, and access specialized expertise.

Latin America (LATAM) and Eastern Europe are two of the most prominent outsourcing destinations, but while both regions offer skilled talent, their differences in cost, retention, security, and efficiency can have a major impact on long-term success.

Eastern Europe’s IT outsourcing market is projected to reach $5.31 billion by 2025 with developers known for their expertise in AI, cybersecurity, and fintech.

While there is often an expectation that LATAM outsourcing will be more cost-effective, the final pricing does not always align with those expectations. Large agency markups, recruitment delays, and security risks can significantly increase the overall cost of outsourcing in the region.

This article will break down how these factors impact outsourcing success and why many businesses ultimately choose Eastern Europe for its technical depth, long-term workforce stability, and predictable operational costs.

LATAM vs. Eastern Europe: Which Region Offers Better Outsourcing for IT & Software Development

Outsourcing software development has become a strategic necessity for businesses aiming to scale efficiently while accessing specialized expertise. Latin America (LATAM) and Eastern Europe both offer skilled technical talent, but critical differences in operational stability, communication, and legal safeguards make Eastern Europe the preferred choice for enterprises prioritizing long-term success.

Choosing an outsourcing partner can make a significant difference in how well a project runs. Euvic helps businesses scale with experienced Eastern European developers, stable pricing, and strong security measures. With 6,000+ engineers across Poland, Ukraine, and Romania, we provide solutions that match business goals.

The Cost Factor: Budget vs. Profitability

When comparing LATAM and Eastern Europe for software development outsourcing, cost is often the first factor businesses evaluate. While Latin America presents lower upfront rates, the financial landscape requires a closer look to assess the true cost of outsourcing.

Eastern European developers typically charge between $35-$60 per hour, with rates that remain steady over time. Poland, a key outsourcing hub, offers developers at $35-$60 per hour, while Ukraine and Romania present competitive pricing within a similar range. These rates reflect strong technical expertise, with engineers trained in AI, cybersecurity, and fintech.

While agencies in Latin America advertise developer rates between $10-$30 per hour, the actual cost to businesses is often higher due to agency markups and inefficiencies in the hiring process.

These rates often appear more affordable, but are skewed due to the economic volatility in the region often leads to wage fluctuations, making long-term cost predictability more challenging. Argentina, for example, has seen frequent currency instability, affecting payment structures and talent retention.

Beyond base salaries, hidden costs in LATAM include recruitment agency markups, longer hiring cycles, and security concerns. Eastern European outsourcing countries, by comparison, offer a more stable environment with established outsourcing firms that streamline the hiring process and reduce additional overhead.

Talent Pool and Technical Specialization

The size and expertise of a region’s talent pool directly impact the quality and speed of development. Eastern Europe boasts 1.3 million software engineers, many of whom specialize in AI, data science, and advanced programming. Countries like Poland, Ukraine, and Romania consistently rank among the top in global programming competitions, reinforcing the region’s reputation for producing highly skilled developers.

Latin America’s developer population is approximately 1 million, with Brazil leading at 500,000 engineers, followed by Mexico (225,000) and Argentina (115,000). While the region has strengths in web technologies like .Net, Ruby, and React, it lags behind Eastern Europe in specialized fields such as cybersecurity and machine learning.

Education also plays a critical role. Poland alone has 607,000 IT professionals and produces 20,000 ICT graduates annually from 400 higher education institutions. Ukraine adds approximately 30,000 junior specialists each year, supported by a strong technical education system. By contrast, Latin America’s IT workforce is growing but faces inconsistencies in technical training, with fewer universities ranking among the top global institutions.

With over 6,000 engineers in Poland, Ukraine, and Romania, we specialize in AI, cybersecurity, fintech, and enterprise software development. Our rigorous selection process ensures that every developer aligns with business objectives, delivering consistent, high-quality results. Learn more about our IT outsourcing in Poland and why it’s a global leader in software development.

Retention and Workforce Stability

High turnover rates can disrupt projects, increase recruitment costs, and lead to inconsistencies in software development. Latin America experiences more frequent job-hopping, with top developers often moving between companies for higher pay or international opportunities.

Eastern Europe, by contrast, offers more stability. Poland and Ukraine have well-established outsourcing firms with structured career paths, reducing turnover risk. Companies in this region also tend to build long-term relationships with international clients, contributing to project continuity and knowledge retention. Established Eastern European software companies are able to retain top talent at a much higher rate than LATAM. Euvic ensures that the best talent stays on projects with a 92% employee retention rate—which maintains development quality consistency.

Legal Safeguards and Security

Intellectual property protection is a major concern when outsourcing software development. Eastern Europe provides stronger legal frameworks, with Poland, Romania, and Ukraine adhering to GDPR standards and international security certifications such as ISO 27001. Many outsourcing firms in the region also hold certifications from Microsoft, AWS, and Google Cloud, ensuring compliance with global security protocols.

Latin America, while improving, presents challenges in this area. Countries like Mexico and Brazil have less stringent background verification processes, and IP protection laws are not always enforced uniformly. Businesses dealing with sensitive data or proprietary software may find Eastern Europe a more secure outsourcing option.

Time Zone Considerations and Communication

Latin America’s proximity to the U.S. is one of its strongest advantages. With a time zone difference of 0-3 hours from most U.S. locations, companies can collaborate in real-time without significant scheduling conflicts. This makes LATAM a viable option for teams that require frequent communication and agile development cycles.

Eastern Europe, on the other hand, operates 6-10 hours ahead of the U.S., which can be advantageous for continuous development cycles. Many companies adopt a “follow-the-sun” model, where teams in Eastern Europe complete work that U.S. teams can review the next morning, leading to faster project turnaround times.

Language proficiency also plays a role in communication efficiency. Eastern Europe scores high on the EF English Proficiency Index, with 48% of Ukrainian developers speaking advanced English. Poland, Romania, and the Czech Republic also rank among the top European nations for English fluency. In Latin America, Argentina and Chile have strong English proficiency, but countries like Brazil and Mexico often require additional language training for seamless communication.

Why Choose Euvic For Polish And Eastern European IT Outsourcing

Outsourcing is about more than just finding skilled developers—it requires a team that delivers consistent results, long-term stability, and cost efficiency.

While LATAM outsourcing may seem attractive due to lower upfront costs, businesses often face challenges like high turnover, fluctuating wages, and security risks. Eastern Europe provides a more reliable option, offering a highly skilled workforce, strong legal protections, and cost predictability.

At Euvic, we go beyond traditional outsourcing by offering a full-service approach with 100+ specialized teams ready to support businesses in AI, cybersecurity, fintech, and enterprise software development.

Our 6,000+ engineers, based in Eastern Europe, consistently rank among the top developers globally. We combine technical expertise with U.S.-based leadership, ensuring clear communication and smooth collaboration.

We have delivered 1,000+ successful projects, helping clients scale efficiently without the common setbacks of offshore outsourcing.

With ISO 27001 certification and GDPR compliance, we provide enterprise-level security for businesses that prioritize data protection.

Get in touch to learn how our teams, expertise, and proven results can help you achieve long-term growth with outsourcing that works.