Outsourcing Eastern Europe vs Asia: Companies, Rates, and More

Software outsourcing is one of the main trends in the current IT market. The global IT outsourcing market is expected to increase at a compound annual growth rate (CAGR) of 9.3% during the forecast period of 2024–2032 and reach USD 770.98 billion by 2032. However, many companies struggle with the same issue — whether to choose Asia vs Europe as their outsourcing destination. Precedence Research states that China is the most popular outsourcing destination. However, the latest Qubit Labs research shows that global tech companies hire Eastern European developers. To be more precise, 77.4% of businesses choose to outsource software development to Eastern European countries.

Both regions boast impressive numbers of developers and high competency, but there are many differences in terms of culture, mentality, and approach to doing business. Therefore, picking a destination for outsourcing software development is significant for companies because it affects their further development and ability to stand out among their competitors.

Qubit Labs developed a research-based analysis of Eastern Europe vs. Asia outsourcing to make choosing easier. It compares the main points, such as salaries, tech stack, and a favorable business environment.

Asia vs Europe: Comparing Top Outsourcing Destinations

Let’s start with a few words about IT outsourcing.

First, it allows companies of all sizes to facilitate their development processes, cut costs, focus on core business goals, and skyrocket their projects. Software development outsourcing is about improving service quality, accessing global talent, and increasing the chances of an efficient business transformation.

Since companies in the West and Western European countries are rapidly advancing and require more talent, software developers worldwide take this opportunity to become recognized as superb software outsourcing service providers. The most notable is Asia IT outsourcing and its main competitor — Eastern Europe.

When deciding between Eastern Europe and Asia, companies choose between the primary benefits these regions offer. The inexpensive labor is the main advantage for countries like India, the Philippines, Turkey, and China. Meanwhile, Eastern Europe, including Bulgaria, Poland, Georgia, and Romania, stands out regarding higher quality, reliability, and data protection. Let’s take a closer look at European IT outsourcing first.

Outsourcing in Europe: Main Things to Know

As mentioned, outsourcing Eastern Europe is one of Asia’s main competitors. Companies from the US, the UK, and Western Europe opt for developers from this region due to the affordable prices, convenient time zones, and vast talent pool.

Although outsourcing in Europe costs higher than in Asia, it’s still several times lower than in the US. Besides, you get access to vetted developers who cooperate with many global tech giants. Also, with Eastern European programmers, you can avoid downtime due to a few hours of overlap between the head office and the remote one.

As per Tholons Top 100 outsourcing cities, the highest number of cities included in the list are located in Eastern Europe.

When outsourcing Eastern Europe, you can choose from a handful of countries, but we’ll cover notable facts about the most rapidly advancing ones: Poland, Romania, and Bulgaria.

IT Outsourcing to Poland

IT industry overview

Poland boasts over 607,000 IT specialists, making it an attractive destination for many foreign organizations. Its fast-growing economy means the local tech market constantly grows by 5–10% yearly.

Polish developers are well-versed in various technologies and offer multiple IT services. The most popular programming languages in the country are JavaScript, Java, Ruby, PHP, C#, and Python.

Several tech giants, including Google, IBM, and Motorola, have established their R&D centers in the country. As for other tech organizations, Poland has over 60,000 IT companies, 3000+ startups, and 230+ VCs.

Developer salaries

When outsourcing in Europe, salaries matter because they show the market’s state. In Poland, a mid-level developer is paid around $54,500 per year. However, the salary depends on the technology stack. For instance, junior Python developers make $26,400 in Poland, and their C# colleagues earn $28,000.

Business environment

Poland is a business-friendly country, and its high positions in different rankings allow it to make data transfer easy and safe. The estimated worth of the local IT sector is €8.1 billion. Also, when outsourcing to Eastern Europe, namely to Poland, business owners often point out the number of local tech graduates — 20,000 yearly.

IT Outsourcing to Romania

IT industry overview

When outsourcing Eastern Europe, business owners often consider Romania a potential destination because it has a significant number of IT specialists—200,000+. The local IT sector’s annual export will be $9.3B by 2026.

Romania is on the upswing because more local cities are becoming flourishing IT hubs. The most popular programming languages in the country are JavaScript, Java, React, Angular, and PHP. Also, the country has 10,000 tech graduates per annum. Learn more about the peculiarities of hiring Romanian developers in our latest guide.

Developer salaries

The average salary for a programmer in Romania is $49,500 annually. Meanwhile, the average software development rate ranges between $25 and $49 per hour.

Business environment

Romania is known for its financial attractiveness, application of the General Data Protection Regulation (GDPR), and stable economic environment. The government is introducing policies to attract foreign businesses considering outsourcing in Europe. Around 70% of the Romanian market is controlled by foreign investors, which positively impacts industry growth.

IT Outsourcing to Bulgaria

IT industry overview

Bulgaria is known for its robust outsourcing sector, which employs over 110,000 specialists and ranks 12th globally for its top-tier professionals. Therefore, hiring software developers in Bulgaria is wise. The local tech industry is advancing by leaps and bounds, and the local IT outsourcing industry contributes 5.5% to the national GDP.

If you need developers specializing in popular technologies, such as JavaScript, Java, C#, Python, SQL, PHP, and .NET, you can find them in Bulgaria when outsourcing in Europe.

The country stays on the same page with the emerging tech trends, being one of the leading artificial intelligence providers in Eastern Europe with 96 recognized providers. Industry-specific clusters that foster cooperation, innovation, and competitiveness within their respective industries include the Automotive Cluster Bulgaria, the ICT Cluster, the AI Cluster, and the Bulgarian Furniture Cluster.

Since the software development industry is one of the fastest-growing in the country, there are 6,100 ICT graduates per annum. Young people want to enter the IT market and try to put their efforts into developing products to make a breakthrough in the industry. Most of them don’t stop learning after graduating, constantly improving their skills by visiting numerous tech events in the country.

Bulgaria’s startup ecosystem is booming and is home to over 800 startups.

Developer salaries

Bulgaria boasts favorable taxation, and the rates of local developers are several times lower compared to other outsourcing options in Europe. Business process outsourcing costs range between $25 and $99 per hour. Meanwhile, the average annual salary among Java software developers is $40,800. Also, offshore rates for software development are affordable.

Business environment

The Bulgarian government is working towards attracting foreign companies to the country and creating laws and regulations that can facilitate establishing a business there. Bulgaria is an attractive destination for outsourcing in Europe due to the large number of tech establishments. Ten thousand tech businesses, 800+ startups, and many international R&D centers (including HP, Oracle, and CISCO) exist.

Learn more about the Bulgarian IT landscape in our comprehensive guide, “Outsourcing to Latin America vs Eastern Europe.”

Here is a comparison table of the leading tech hubs for outsourcing in Europe:

You can also hire developers in other Eastern European countries, such as Georgia, Moldova, and Azerbaijan. Qubit Labs can build a dedicated development team based on your needs and requirements. As your outsourcing partner, we will follow all the key factors, such as a high-quality workforce, a strategic location, the adoption of emerging technologies, and rates.

Top 10 Outsourcing Companies in Eastern Europe

Qubit Labs has analyzed 4,502 custom software companies on Clutch in Eastern Europe and filtered them based on the following criteria:

• Vetted customer reviews on Clutch
• A total Clutch rating of 4.8 and higher
• No negative reviews
• Extensive and reliable portfolio
• A variety of industries
• A range of provided services

The software and service companies included in this guide were chosen based on these factors. Qubit Labs’ high-end specialists conducted an in-depth analysis of these software outsourcing companies Eastern Europe.

Qubit Labs — Poland

Clutch Rating: 4.9

Min Project Size: $10,000+

Average Hourly Rate: $25-$49 per hour

Qubit Labs is a prime outstaffing company with over 37 clients from over 18 locations. This IT company assembles top-tier dedicated teams for companies of any size, budget, and requirements in various industries, including blockchain, e-commerce, fintech, game development, healthcare, agro technology, automotive, education, logistics, and retail and distribution. Qubit Labs hires globally, with a primary focus on Eastern Europe.

This region is a booming hub of tech talent adept at leveraging the newest technologies. Also, Eastern European developers have excellent specialized education, are proficient in many popular and rare programming languages, demonstrate excellent English skills, effectively manage complex projects, and offer competitive rates.

Services

• Remote dedicated team
• IT staff augmentation
• ODC
• BPO services
• Turnkey R&D setup
• Headhunting
• Startup team consulting
• Talent mapping
• Talent acquisition
• Custom salary research service (free of charge)

Highlights:

• Complete HR support and practical training for new hires ensure smooth and effective onboarding.
• The recruitment process is swift.
• Qubit Labs fosters collaborative environments.
• This first-class company provides Silicon Valley-level candidates with impeccable technical skills who align perfectly with the company’s cultural values.
• Many clients note that Qubit Labs exceeds their expectations regarding service quality.
• This company has a flexible work approach and reasonable pricing.

Brainhub — Poland

Clutch Rating: 4.9

Min Project Size: $50,000+

Average Hourly Rate: $50-$99 per hour

This Polish company provides reliable IT services to businesses in the fintech, banking, accounting, and tax industries. Since 2015, it has helped over 80 rapidly expanding businesses across more than 20 sectors develop robust desktop, mobile, and web applications. The company’s top priorities are building solid relationships, being open, and providing the best digital products.

Services:

• Custom software development
• Web development
• Mobile app development
• UI/UX design
• Enterprise app modernization
• Generative AI development
• Cloud consulting & strategy

Highlights:

• Brainhub provides high-quality solutions that improve conversion rates and reduce churn.
• This software outsourcing company Eastern Europe excels in project management and effective communication.
• Brainhub’s team is known for its unique expertise, proactivity, flexibility, and teamwork.
• This software development agency resolves any issues quickly and effectively, ensuring project timelines and quality are not impacted.

10Clouds — Poland

Clutch Rating: 4.9

Min Project Size: $25,000+

Average Hourly Rate: $50-$99 per hour

This Poland-based software development company is known for pushing generative AI to its limits. While the company focuses on AI and blockchain, it also offers design and custom product development services. Since 2009, 10Clouds has transformed over 200 businesses.

Services:

• Web development
• Mobile development
• Design
• Testing
• DevOps
• Custom company GPT
• ChatGPT integration
• White label NFT marketplace
• Blockchain software development

Highlights:

• The company can boast great proactivity, flexibility, responsiveness, scalability, and attention to detail.
• 10Clouds ensures seamless communication with the client using practical tools, such as Google Hangouts and Slack.
• One of the company’s most considerable merits is its ability to transform research findings into innovative digital solutions.
• Many clients recognize the company’s exceptional expertise in UX/UX design.

The Software House — Poland

Clutch Rating: 4.8

Min Project Size: $10,000+

Average Hourly Rate: $50-$99 per hour

This software outsourcing company in Eastern Europe has over ten years of experience delivering high-end solutions to over 140 clients worldwide. It boasts over 200 delivered projects in its portfolio across diverse industries, including fintech and banking, IT, education, marketing, events, travel, and real estate.

Services:

• Digital product design
• Agile development teams
• Cloud engineering
• Web development
• Software architecture
• Data engineering
• Quality assurance
• Technology audit and consultancy

Highlights:

• This software development company quickly adapts to clients’ requirements.
• The Software House provides comprehensive support and responsiveness.
• High-quality services provide positive business outcomes, such as reduced operational costs, enhanced scalability, and boosted user satisfaction.
• The leading company’s merits are exceptional dedication, proactivity, and flexibility.

Geniusee — Poland

Clutch Rating: 5.0

Min Project Size: $25,000+

Average Hourly Rate: $25-$49 per hour

Geniusee has 200 top-level specialists who help startups become unicorns, midsize companies, and significant players gain a competitive edge and boost ROI. This company has completed over 180 noteworthy projects in fintech, tech, real estate, and retail.

Services:

• AI-powered app development
• Consulting
• Software engineering services
• Cybersecurity services
• Product design
• Outstaffing
• Technical support

Highlights:

• Geniusee is known for its unique expertise and excellent project management skills.
• Geniusee is very collaborative. Team members perfectly adapt to the client’s needs and requirements and always work closely with the client to achieve desirable results.
• The team consistently demonstrates a personal approach and the highest level of dedication.
• The company has the highest technical proficiency and effectively manages complex tasks.

Speednet — Poland

Clutch Rating: 5.0

Min Project Size: $10,000+

Average Hourly Rate: $50-$99 per hour

With over 24 years of expertise, Speednet is a reliable partner offering various software development services. This company has finished over 200 projects in banking, fintech, insurtech, education, logistics, energy, media, healthcare, and CSR.

Services:

• Web development
• Mobile development
• Product design
• Technical consultancy

Highlights:

• Seasoned professionals demonstrate a collaborative approach.
• All specialists seamlessly integrate with the client’s existing teams.
• Communication is clear and effective.
• Unique expertise, professionalism, and transparent collaboration are the company’s strengths.

Phenomenon Studio — Poland

Clutch Rating: 5.0

Min Project Size: $10,000+

Average Hourly Rate: $25-$49 per hour

Phenomenon Studio combines high-end technologies, professionalism, and aesthetics. This top-rated international agency delivers cutting-edge solutions in various industries, including fintech, education, medical, and real estate.

Services:

• Solutions (concept creation, UX audit, MVP building, product discovery, product redesign)
• Design (web app design, website design, mobile app design, branding, motion & illustrations)
• Development (web development, mobile development, no-code solutions, blockchain development)

Highlights:

• This company has perfect communication and project management skills.
• The team meets the highest industry standards and prioritizes commitment to quality and deadlines.
• Phenomenon Studio ensures a transparent process by providing detailed plans, regular reports, and comprehensive documentation.
• The company’s specialists demonstrate extensive expertise in various technologies, including React, AWS, and Firebase.

Vention — Poland

Clutch Rating: 4.9

Min Project Size: $25,000+

Average Hourly Rate: $50-$99 per hour

Vention has been a large software development firm for over 22 years. This enterprise employs over 3,000 people and has over 250 active projects. This company can effectively manage a wide range of projects.

Services:

• Software development
• IT services for startups
• Enterprise software development
• Mobile app development
• Web development

Highlights:

• Vention handles complex projects effortlessly, utilizing advanced technologies and effective methodologies.
• This IT software outsourcing company in Eastern Europe demonstrates the highest level of dedication that contributes to the client’s success and satisfaction.
• Vention demonstrates perfect remote team management skills; time zone differences and language barriers are not an issue when partnering with this software house.

IT Craft — Estonia

Clutch Rating: 4.9

Min Project Size: $10,000+

Average Hourly Rate: $50-$99 per hour

IT Craft helps businesses of any scale go digital. More than 330 engineers have the technical know-how to develop, manage, and grow software projects. This company has been operating for over 20 years and has completed over 2250 projects.

Services:

• Solutions (digital transformation, project rescue, app modernization, IT consulting, staff augmentation)
• Engineering (mobile app development, web development, UI/UX design, DevOps, custom software development)
• Services for startups (full-cycle development, discovery phase, MVP development, dedicated team)

Highlights:

• This reliable company consistently delivers on its promises.
• The team is highly devoted to the overall success.
• Top-tier professionals are well-versed in many technologies, including PHP, JavaScript, .NET, and diverse frameworks.
• The development process is flexible due to the use of agile methodologies.

Altkom Software — Poland

Clutch Rating: 4.8

Min Project Size: $25,000+

Average Hourly Rate: $50-$99 per hour

With over 20 years of expertise in custom software development, the company has completed over 500 banking, insurance, leasing, and TSL projects. Besides, Altkom Software collaborated with the five biggest European banks and insurance companies.

Services:

• Custom software development
• Strategy & digital product design
• Process automation
• Cloud services
• Data & analytics
• IT consulting

Highlights:

• Altkom Software has deep technical knowledge of various backend and frontend technologies.
• The company demonstrates a client-centric approach that boosts client satisfaction.
• Flexibility, proactivity, and excellent project management skills are one of the main highlights.
• Altkom Software enhanced the clients’ efficiency and performance and reduced costs by providing high-quality services.

The Characteristics of Asia IT Outsourcing

The best software development in Asia helps the country keep its position on the global scene. The region has the largest quantity of software developers and includes the highest number of popular outsourcing development countries.

Three destinations for IT outsourcing to Asia stand out due to their advanced infrastructure, impressive software development experience, and the availability of different-skilled talent: India, the Philippines, and China.

IT Outsourcing to India

IT industry overview

The country has attracted almost half of the Fortune 500 companies, and its IT industry will account for $193 billion in export revenue in 2024. It also stands out due to having the highest percentage of female developers and software engineers.

The country is experiencing constant digital transformation, which has increased the number of tech initiatives and offered more opportunities to local IT specialists. The government has launched several digital initiatives, namely Digital India and India Stack.

India also holds around 55% of the global IT outsourcing share and is considered Asia’s best software development country.

Developer salaries

The average rate of developers in India is around < $25–$49 per hour. Meanwhile, the average annual salary of a software developer is ~ $9,543. Such low rates, especially compared to US ones, make India one of the cheapest Asia IT outsourcing destinations.

Nevertheless, despite the affordable rates, India faces challenges with adopting digital technologies.

Business environment

India boasts a government-funded incubator for startups, Startup Warehouse, which aims to push India beyond the service sector and help it establish a local software development culture. More and more students opt for STEM degrees, resulting in 5-10 million graduates in this field each year.

Nevertheless, despite working for many years with Western customers and assimilating to the Western approach to work, Indian developers still have their own methodologies. This is often when foreign clients can’t find a common language with Indian software development teams. The latter rarely opt for direct negotiations, making it hard to introduce the required changes to the project.

IT Outsourcing to the Philippines

IT industry overview

In 2024, the Philippines’ IT sector recorded revenues of $35.9 billion. There are over 190,000 local software developers. The most popular technologies among local programmers are HTML/CSS, JavaScript, and SQL. Still, due to a steady pool of candidates, you can easily find a specialist in any programming language.

Global giants such as Amazon, Google, IBM, and Accenture have established offices in the country and are offering new jobs for local candidates. Most of the developers are fluent in English and understand the Western approach to doing business.

Developer salaries

The average Filipino developer earns around $25-$49 per hour. As for the annual developer salary in the Philippines, it is approximately $10,670.

Business environment

The Philippines has a vast pool of talents and enterprises, and local developers boast high work ethics and reliability. They uphold professionalism and have an excellent knowledge of Java, API development, and .NET, to name a few. You can also find programmers skilled in trending technologies, including Data Science, AR/VR, and Blockchain.

The main challenge of working with Filipino developers is that the large number of holidays impacts the speed of project development. Also, weather conditions might hinder finishing tasks before the deadline because tropical storms sometimes inconvenience local specialists.

IT Outsourcing to China

IT industry overview

There are around 7 million IT specialists in China, including software developers, data scientists, and AI trainers. The local software and IT service industry is currently booming, with revenue of $78.03 billion.

The local government introduces policy changes, striving to make it easier for both local and foreign companies to do business in the country. Due to the efforts put into advancing the Chinese IT sector, it boasts the best software development in Asia.

You can also easily find a developer specializing in any desired technology, from JavaScript to Python and Shell.

Developer salaries

A mid-level software developer in China is paid around $55,938 annually. Chinese programmers’ hourly rates vary between $25 and $49.

Business environment

Why do European nations outsource work to China? Regarding Asian IT outsourcing, Chinese developers boast high working ethics, and you can rely on challenging projects. Since there’s a significant focus on science and mathematics in local educational institutions, you can enjoy working with skilled IT professionals. Besides, the demand for local software developers is growing because you can quickly scale up your team due to the vastness of the Chinese talent pool.

Nevertheless, the main downside of Chinese IT outsourcing is the risk of IP leakage and data security threats. Many international companies treat this as a significant bottleneck for outsourcing to China but still give it a chance.

Here is a comparison table of the leading tech hubs in Asia IT outsourcing:

Europe vs Asia: What to Choose for Software Outsourcing?

Overall, when comparing Asia vs Europe, you can see that they maintain their global position, offering unique advantages to their clients.

Foreign companies currently prefer Asia for its affordable salaries and vast talent pool. Meanwhile, Eastern Europe has several destinations, such as Poland, Romania, and Bulgaria, that offer high service quality, reliable developers, and advanced skills.

Besides, European culture is more similar to Western culture, so finding common ground with the local developers is easier. You can count on them and be reassured about their inability to introduce changes to the project or miscommunications.

The region offers an excellent price-to-quality ratio and attracts foreign companies with its rapidly advancing IT infrastructure and readiness to complete projects of any complexity.

Take a look at our comparison table of Asia vs Europe in terms of significant factors for software outsourcing:

Why Choosing an IT Software Outsourcing Company in Eastern Europe Is Your Wise Move

We hope this well–rounded comparison of software outsourcing in Asia vs Europe will be helpful to you. As you can see, the choice of outsourcing providers comes down to your requirements, preferences, and budget. Based on Qubit Labs’ experience, Eastern Europe is the best destination for successful outsourcing. This region combines favorable tax conditions, competitive rates, and excellent remote team management skills.

Also, outsourcing Eastern Europe offers the best price-quality ratio and access to a large talent pool with highly skilled developers. This destination is increasing in popularity each year, attracting foreign software development companies and making them compete to attract vetted developers. The supply of IT talent and the demand for it is high.

If you have questions about outsourcing Eastern Europe, Qubit Labs can help you address them. Contact us to find skilled developers in the Eastern European region and skyrocket your business.