Best Countries to Hire Offshore Development Team for Your Startup: Guide
- Why You Should Consider a Dedicated Offshore Team
- Offshore Dedicated Team: How to Scale Your IT Capacity in 5 Steps
- A Compelling Guide on Hiring an Offshore Dedicated Team
- Regions Where You Can Set Up Offshore Development Teams: A Review
- What are the Best Countries to Outsource Software Development in the Central and Eastern Europe Region?
- Where to Locate a Dedicated Offshore Development Team in the Latin American Region?
- How to Set Up Offshore Development Team in Asia Region
- What are the Most Expensive Destinations for Setting Up Offshore Development Teams?
- Consider Qubit Labs as your Offshore Software Development Partner
Setting up an offshore development team isn’t something earth-shattering anymore. It’s a time-proven cost-optimization strategy that gives companies access to expansive talent pools and advanced skills.
Outsourcing software development is a go-to solution for most startups because it enables flexibility, time-savings, and expertise alongside competitive advantage and the opportunity to cooperate with vetted specialists.
Plenty of reasons make companies outsource work, but mainly, it comes down to leveraging an array of new opportunities without spending a fortune.
However, deciding on the best countries to outsource software development is tricky, especially considering the current situation in the world when traveling isn’t that easy. That’s why Qubit Labs has decided to review some of the most attractive outsourcing locations based on several criteria (e.g., location, talent pool, education, salaries, and others).
So, let’s get to the top-notch destinations for offshore development teams to see which one fits your requirements best.
Why You Should Consider a Dedicated Offshore Team
Knowing exactly why you want to outsource your software development will facilitate the collaboration with the offshore vendor. If your partners clearly understand your ideas and requirements — the chances are higher that you’ll get skilled specialists to your team.
Most often, companies set up offshore development teams to gain access to advanced resources. This includes not only the equipment and facilities but also human resources.
Usually, the best countries to outsource software development offer reinforcing the team with advanced specialists at the cost of hiring junior-level programmers within your location. So, how can offshoring help your startup grow?
These are some of the top IT outsourcing benefits:
1. Cost Optimization
Outsourcing development teams helps companies to lower labor and operation costs. Usually, remote development teams focus on completing projects within the budget. Besides, the employees are located in regions with lower costs of living, which implies lower salaries yet the same quality of services.
So, if software development isn’t your company’s primary service, setting up an offshore development team is more effective. In this way, you’ll focus on core business goals, cut costs, and cooperate with top-level developers without paying a fortune for their services.
You won’t have to spend too much time on sourcing, recruitment, and onboarding if you have an offshore development vendor. The remote specialists will handle all the management tasks and ensure smooth cooperation between new and existing team members. You could also hire a project manager who will take care of the project development and manage the human resources in a way to unlock employees’ full potential.
3. Access to a Wide Talent Pool
If you need advanced skills for your project, but they are beyond means, it’s time to leverage outsourcing development teams. A broader choice of candidates means lower competition, which implies more affordable costs.
Besides, if you can’t find skilled professionals in your location, the offshore software development vendor will certainly have the required candidates.
Also, offshoring is a great way to handpick software engineers from a global talent pool and transfer hiring and retention activities to the vendor.
4. High Scalability
The project needs have increased, and now you need more specialists? No problems. Just inform your software development partner about the changes, and it will address them. In this way, you can execute your tasks faster and get a competitive advantage.
Offshore Dedicated Team: How to Scale Your IT Capacity in 5 Steps
Building the best offshore development team might seem mission impossible. But it’s until you consider the hiring process step-by-step. Let’s go over the critical points:
Step 1. Set Clear Goals and Determine Project Scope
Before you start looking for an offshore development team, you need to understand what tasks you want the remote specialists to handle. In this way, you would make a more well-informed choice that will help you reap more benefits in the long run.
Also, understanding the project scope and the goals you want to achieve will make the sourcing and hiring processes more effective. You’ll choose the specialists with the required experience and knowledge instead of spending hours looking through unsuitable CVs.
Step 2. Choose the Destination to Set Up Offshore Development Team
Before opting for a certain location, look at the best countries to outsource software development and choose the one that fits your preferences and requirements best. For example, consider the following factors:
- Time zone differences
- Travel time and cost
- The process of obtaining a visa
- English level
- The country’s economic stability
- Business culture
- Cultural fit
These are some critical aspects that will help you set up the best offshore development team without a sweat.
Step 3. Choose a Reliable Outsourcing Development Team Provider
The quality of your offshore development team significantly depends on the outsourcing vendor. So, do research ahead of deciding on a specific company, read other clients’ reviews, and ask the selected vendors about their services.
Choosing a reliable offshore software development center will provide you access to skilled developers, ensure transparent communication, and facilitate the development processes.
Step 4. Decide on The Way of Collaboration With the Offshore Development Team
How do you want to manage an offshore development team?
When working with offshore development teams, the companies usually choose between managing the software engineers on their own or hiring a remote project manager.
Most vendors, such as Qubit Labs, hire experienced project managers who know the specificities of collaborating with their local developers. If you aren’t sure which option will be the best fit for you — you can always schedule a consultation.
Step 5. Select the Members of Your Outsourced Development Team
After discussing your goals and requirements, the vendor starts assembling your dedicated offshore development team. Usually, the providers have candidate databases with vetted developers and look through the resumes to add top-level specialists to your team. The recruiters handle screenings and interviews, and you make the final decision.
A Compelling Guide on Hiring an Offshore Dedicated Team
While around 37% of startups fail because they lack finances, you’re unlikely to face such an issue if you hire offshore developers.
You won’t have to deal with overhead costs, recruitment fees, and mind-blowing salaries of experienced developers. And choosing a reliable offshore development company will significantly increase your chances of becoming the next unicorn company.
These are the criteria you should focus on when deciding on an offshore partner:
Key Criteria 1. Experience and Maturity
If your offshore software development partner is mature enough and has relevant experience, it will be much easier to cooperate with them. You can also consult with the vendor on the development process and introduce improvements whenever needed.
This also makes outsourcing development teams easier because you can learn a lot from the company’s experience and avoid dealing with issues on your own.
Key Criteria 2. Success in Working with the Similar Projects
The synergy between your in-house developers and remote specialists is critical because it ensures smooth processes and fruitful cooperation. Also, if the vendor has already worked on similar projects, it might enrich your development process with novel practices and approaches. In this way, your offshore development team will have more chances to deliver high-quality results and achieve project goals.
Key Criteria 3. Relevant Certifications and Awards
When looking for offshore development team vendors, pay attention to the tech certifications and partnerships of the companies. In this way, you can be sure that your software development partner is mature enough to handle your project requirements and tasks, delivering top-notch results.
Key Criteria 4. Proper Understanding of the Requirements
The vendor can help you set up an offshore development team that will match your expectations only if it understands your requirements correctly. The supplier can help you know what specialists will reinforce your team and ensure effective development processes.
If the vendor is fully aware of your requirements and expectations, it will be more likely to find skilled specialists for the team and facilitate the work based on its extensive experience.
Key Criteria 5. Suitable Candidates and Aligning Corporate Values
Outsourcing development team is effective only if the employees match project needs and requirements. The vendor will help you find vetted candidates based on your team’s size, must-have technical qualifications, education, skill sets, and experience.
Also, if you and the vendor have similar corporate values, it will be much easier and more comfortable for all the team members to cooperate and establish outcome-driven processes.
An excellent illustration of this criteria is choosing the software outsourcing vendor in Eastern Europe vs Asia. These regions have contrasting approaches to work, which considerably affect the final results. So, it’s critical to opt for a location with a higher cultural match.
Regions Where You Can Set Up Offshore Development Teams: A Review
We’ve selected top-rated offshore software development countries and regions based on their technical skills, expertise, and cost-to-quality ratio.
In this article, we focus on Central and Eastern Europe, Latin America, and Southeast Asia.
Also, we compare the salaries of developers experienced in the most popular programming languages to make the article more comprehensive.
What are the Best Countries to Outsource Software Development in the Central and Eastern Europe Region?
Eastern Europe boasts an extensive talent pool, including over 1,3 million developers. The region is home to more than 4,500 IT outsourcing companies and is considered one of the most vibrant and rapidly-advancing software outsourcing destinations.
Almost all countries within the region have 3–4 hours of business time overlap, and most Eastern European developers have moderate to high English proficiency levels.
As mentioned by Statista, the software development outsourcing market size in Eastern Europe exceeded $103,9 bln in 2021, proving that this is a top-tier location for startups.
Local developers are experienced in both popular technologies and niches, such as Big Data Architecture, AI, Blockchain, and Cloud Migration. Software developers in Eastern Europe charge around $28–$150 per hour.
IT outsourcing in Ukraine has become one of the top choices among startups, SMBs, and enterprises. This is a leading Eastern European offshore software development location that cooperates with companies from the US, Great Britain, and a bunch of Western European countries (including the Netherlands, Belgium, Sweden, Denmark, and others).
The Ukrainian IT outsourcing market is expected to grow by $6 billion in 2022 and by $8.4 billion in 2025. A Coursera Global Skills report suggests that Ukrainian developers rank 7th in the level of technical knowledge globally. Another research mentions that 85% of Ukrainian programmers have at least an Intermediate level of English.
When choosing between India or Ukraine, startups often favor Ukraine because it’s home to globally-recognized startups, including Grammarly, People.ai, and GitLab.
As for the Ukrainian developer salaries, these are the average wages for most popular technologies:
|Front-end (React, Angular)||$800–$1,300||$2,000–$2,500||$3,020–$3,500|
Software outsourcing to Poland is gaining momentum because the country boasts over 430,000 tech specialists. The local IT market was valued at around $12.4 bln in 2021, and there are about 63,000 tech graduates each year.
Poland is a sought-after IT outsourcing location because such companies as Lenovo, Microsoft, Intel, Apple, Google, and Cisco have their offices in the country. Also, Poland has around 90 outsourcing companies.
Recently Amazon opened 2 new Fulfillment Centers in Poland due to the growing customer demand across Europe. Notably, world-known tech startups and product companies such as DocPlanner, Brainly, and Booksy have been established in Poland.
A new Harvard Business Review noted that Poland ranked 5th among the most tech-skilled labor markets in the world.
|Front-end (React, Angular)||$1,400–$2,500||$2,800–$3,500||$4,100–$5,000|
Belarus is considered to be one of the top-30 outsourcing destinations in the world. It has over 40,000 tech specialists and more than 1,000 enterprises. The share of the Belarusian IT sector in the country’s GDP is expected to grow by 7.5% by 2025.
More than half of local developers, namely 60.5%, work in offshore software development and design outsourcing. Yearly, the country graduates over 7,000 students.
Some of the globally-recognized products that were developed in Belarus are Viber and World of Tanks.
|Front-end (React, Angular)||$800–$1,000||$1,500–$2,600||$2,700–$3,600|
IT outsourcing to Romania offers to choose from a large pool of vetted developers at affordable software development rates. It has around 120,000 IT specialists that work with global companies or organizations from DACH and other Nordic and Western countries.
Almost 90% of Romanian software developers have an advanced English level, and most of them speak another foreign language as well (for example, Dutch, German, or Spanish).
Local developers are skilled in working with modern technologies, such as Blockchain, AI, Big Data, and DevOps.
Additionally, any Romanian outsourcing company has governmental support because the country is an EU member. On average, Romanian developers charge around $28–$55 per hour.
|Front-end (React, Angular)||$1,500–$2,000||$2,100–$2,500||$2,600–$3,300|
The Bulgarian IT market boasts around 66,000 developers, and around 2,000 tech graduates enter the local software development industry each year.
Some of the most notable companies with R&D offices in Bulgaria are HP, Oracle, and Cisco. The Bulgarian tech sector grows by 2% annually, and the country was considered the Offshoring Destination of the year in 2015.
Bulgarian developers charge around $25 and $150 per hour.
|Front-end (React, Angular)||$800–$1,400||$1,700–$2,700||$3,800–$4,800|
Where to Locate a Dedicated Offshore Development Team in the Latin American Region?
An array of North American companies establish their offshore development teams in Latin America because of the negligible time zone difference. It helps to stay in touch with the remote developers during most business hours and synchronize work.
Also, Latin American programmers boast high English proficiency, and their rates are several times lower compared to their US-based colleagues’ wages.
Some of the most sought-after software outsourcing destinations in Latin America are Mexico, Argentina, Costa Rica, and Brazil. Yet, we’ll mainly focus on Argentina’s software development in this article.
Argentina has around 115,000 tech specialists and takes 34th place among the best counties for education. HackerRank considered Argentina to be in 39th place among the countries with the best developers and in 6th place among the countries that are less likely to give up. Also, over 50% of the IT services exported by Argentina are to the US.
Argentina is home to several world-known startups, including OLX, Duolingo, MercadoLibre, and Globant. Such companies like Google, Amazon, and Microsoft have their offices in the country.
When outsourcing software development to Argentina, you get superb quality and competitive products while paying several times less money than in the US.
|Front-end (React, Angular)||$800+||$1,200+||$2,300+|
How to Set Up Offshore Development Team in Asia Region
Asia keeps its position as one of the fastest-developing IT markets in the world. It has the largest talent pool of vetted developers that includes over 10 million specialists.
Yet, we’ll emphasize other notable offshore development destinations in Asia.
Georgia offers hiring skilled developers who have experience working with Western companies at an affordable rate. The country focuses on advancing its tech industry, so the businesses won’t have to handle too much paperwork if they want to open their office or hire developers in the country.
The companies that cooperate with local software development engineers don’t have to pay taxes, and the country signed an agreement on the double taxation elimination with over 50 countries.
|Front-end (React, Angular)||$8,600|
Armenia‘s talent pool boasts over 29,000 software developers. It occupies leading positions in the region in the IT field in terms of the increasing number of companies, technologies’ share in its GDP, and overall turnover. The country has minimal cultural and national differences between local and Western developers.
Notably, many local tech specialists worked at Silicon Valley startups, and now they returned home, which is great news for the companies aiming to cooperate with experienced specialists without spending a fortune on their services.
|Front-end (React, Angular)||$13,932|
The country shifted its focus on the IT sphere, and it’s trying to produce more tech graduates capable of delivering top-notch software development solutions. In the country, there are many programmers specializing in popular technologies, namely Java, Python, and PHP. Most local developers are motivated and eager to learn, so it’s easy to work with them and reap the benefits of such cooperation.
Azerbaijan offers access to an untapped potential of local developers who deliver top-rated results at an affordable cost.
|Front-end (React, Angular)||$33,600|
In Kazakhstan, various initiatives aim to advance the local IT industry. The government emphasizes creating opportunities for local tech companies to attract foreign clients and become one of the leading players in the region’s IT market. Many students and graduates embark on software development because it’s one of the most promising industries that offers excellent opportunities for career development and professional growth.
The country is known for having skilled web developers and mobile app developers.
|Front-end (React, Angular)||$25,200|
Malaysia is constantly growing its digital potential and proficiency by introducing various business educational programs. The country has a skilled talent pool that is expected to grow at least by 45% by 2030. Malaysia has been enjoying a steady GDP growth for the past 5 years.
Notably, HackerRank placed Malaysia 47th on the top 50 list of best developers. The country has a high English proficiency level and is expanding into a high-value tech outsourcing destination.
|Front-end (React, Angular)||$1,300||$2,200||$3,500|
Indonesia is a large and stable IT outsourcing hub with one of Asia’s lowest monthly minimum wages. The local cloud service industry is expected to deliver $1.2 billion in profits by 2022. The Indonesian government is constantly introducing initiatives to attract foreign investment and support software outsourcing activities.
Also, HackerRank placed it in the 40th position on its list of the “Top 50 countries with the best software developers.”
|Front-end (React, Angular)||$500||$900||$1,100|
IT outsourcing to the Philippines has become one of the region’s signatures because recently, the country made it to the top 50 digital nations.
What are the Most Expensive Destinations for Setting Up Offshore Development Teams?
Western Europe, North America, and Australia are known for having some of the highest software developers rates. So, we’ve selected three destinations and compared local rates to see the difference between software engineers’ salaries there and in the regions above.
Software Development Rates in Germany by Experience Level
|Front-end (React, Angular)||$2,640–$3,000||$3,200–$6,100||$6,200–$7,360|
As you can see, software developer salaries in Germany are several times higher than in Eastern Europe. For example, a mid-level Unity developer for hire in Ukraine earns $2,000–$2,500 per month, while a German specialist is paid $4,200–$5,800.
Software Developer Salaries in Portugal by Experience Level
|Front-end (React, Angular)||$1,600–$2,300||$2,515–$3,700||$3,800–$4,200|
Although software development rates in Portugal are slightly lower than in Germany, they’re still higher than in the mentioned regions. For example, an average Java developer in Argentina earns $950–$1,300 per month, while the average Java software engineer salary in Portugal is around $2,360–$3,300.
Now, as we’ve considered the average software developers rates in Western Europe, let’s take a look at developer salaries in the US:
Software Development Rates in the US by Experience Level
|Front-end (React, Angular)||$5,671||$8370||$9,094|
Software developers salaries in the US are several times higher than in all the mentioned locations. For example, a mid-level Python developer salary in the US is $8,104 per month, while an equal developer in Ukraine earns around $1,500–$2,900. Meanwhile, the same specialist from Bulgaria is paid $3,300–$3,900 and from Malaysia — over $2,600.
Consider Qubit Labs as your Offshore Software Development Partner
Now that you know the trending offshore software development locations, you can choose the one that offers the highest price-to-quality ratio and meets your requirements.
Opt for a country that will boost your startup, cut the expenses, and bring valuable technical expertise.
Qubit Labs aims to help its clients grow their business by leveraging remote talent. Reach out to us to schedule a free consultation call to discuss what you want to outsource.