Outsourcing has always been an effective way to get things done. It started long back before the IT industry was even born. Food, textiles, art, and many other things used to be outsourced on a need basis. Then came the need for IT project outsourcing. Read this insight to find the best countries to outsource software development projects to in 2024. Besides, for new entrepreneurs & enthusiasts, we also talk about how outsourcing has impacted the overall IT and startup universe. As a spoiler, here is a sneak peek into the list of top countries for software development outsourcing–
- Czech Republic
Today, a lot of software development projects are outsourced to countries like India, China, Ukraine, Poland, Vietnam, Pakistan, Argentina, and others.
Earlier, only large enterprises were able to outsource software development projects, as the project budget used to be huge.
Two major developments in the IT space changed this scenario-
- With Android and iOS applications democratizing the internet business, even individuals with significant savings or funds started building their digital platforms and products. The bar to entry for aspiring entrepreneurs was lowered by modern development technologies.
- With cloud computing entering the mainstream business, the cost of orchestrating, running, and managing a software application was exponentially reduced.
This evolution of the digital world gave new wings to large enterprises, and individual innovators, including those without technical skills.
With development simplified and costs reduced, anyone could start a startup and launch their own digital business.
A big enabler of all this new love for entrepreneurship rooted in the “outsourcing of software development.”
The ability to outsource software development to countries with good computer programmers has helped a lot of people with no technical education to start a business in the last 2-3 decades.
Without outsourcing, it would have been tough.
Today, not just simple Android/iOS app development projects get outsourced to different countries, but even complex AR/XR software development is being outsourced in 2024. So is Blockchain development, AI development, etcetera.
On a different note, I know Blockchain and AR/XR have taken a backseat since ChatGPT came in roaring and thumping its chest, stealing the limelight from AR/XR and Blockchain … but they are pretty much alive, and growing under the deafening AI buzz.
With all sorts of speculations surrounding these emerging technologies, entrepreneurs wonder “Will AI solve the problem of software development forever?“
I mean, seriously, AI has taken over the market. No second thoughts about that. There is fear of missing out among entrepreneurs, and so almost everyone is parroting “AI” today. From Google’s I/O 2023 (annual gathering of Google) to Apple’s “Wonderlust,” every tech summit across the world is uttering the same acronym, repetitively- AI, AI, AI, AI, AI.
Whilst AI makes things easier for almost everyone, innovators still need tech talent, aka software developers to build digital products and innovate. AI is assisting, but it is still not there. No matter how good chatGPT or any other generative AI solution might be right now, they are yet to beat human intelligence. So, if you were thinking that using AI you could build the next Airbnb, Uber, or Instagram without spending a penny on outsourcing software development to other countries, unfortunately, I’ve to break the news to you- “We are so not there. Not yet.“
Innovators will continue to outsource software development to countries with good programmers
In the “Silicon Valleys” of the world, there are a few barriers to innovation.
- It is becoming costlier to develop software in developed nations. This is because engineers native to the developed countries, and other project stakeholders like product managers, and marketers are demanding and commanding higher salaries. It’s costly to launch a startup with a beefed-up team. But among many tips for aspiring startup founders by startup gurus, you’ll always find a common one i.e., to stay lean and cut costs.
- Sometimes scarce resources are a big barrier i.e., dev talent unavailability.
Under such circumstances, entrepreneurs and innovators with lean budgets are forced to go for cheaper software development alternatives, aka outsourcing software development to countries with low development costs.
Okay! With that, now let’s get to the list of the best countries for software development outsourcing in 2024.
Best Countries To Outsource Software Development
Our list of top countries for outsourcing your next software development is based on internet research and my understanding of this business. Possibly, you want to outsource your project for two reasons-
- The cost of development is high in your native country, but your budget is low.
- It’s tough to gather a pool of talent required to bring your idea to life.
- You lack the technical know-how and want an affordable but long-term offshore partner.
- You do not want to hire full-time employees in your country and would rather want an IT services provider company to be the MVP for your product and only after testing in the market do you want to plan for setting up a local team or offshore development team.
Well, the reason could be any of the above, or maybe you would want to share in the “blog comments” below a new reason. So, I believe the best country for you to outsource software development projects would be the one that can yield great overall results for you.
What I mean is just because a country is charging less doesn’t always mean it is the best country for outsourcing software projects. There are other aspects you need to look at. Compatibility is a major factor.
Language compatibility, timezone compatibility, geopolitical situation, country commerce interrelations, and a plethora of other factors would help you better niche down on the best country to outsource your software development projects to in 2024 among the ones I’ve listed.
1. India – the software outsourcing hub of the world
11.7 Mn+ software developers are in India. From freshers to multi-decade-old experienced talent, you’ll find what you seek in this nation.
India is the best country for outsourcing software development work if-
- You’re from an English-speaking nation like USA, UK, etc. Most software development companies have software developers, project managers, and customer-facing representatives who speak the English language. You will also find local translators who converse in German, French, Spanish, and other major languages, but India is a preferred location for English speakers. If you’re French, German, or Russian who is fluent in English, then you too can prefer India.
- You need quality work to be done on a tight budget.
- Your project needs regular meetings, brainstorming, and project update calls. Basically, if your project is a collaboration-heavy project, India is the right country to outsource your software development work.
Besides, India has had a very stable government in the last decade. Which means there won’t be abrupt policy changes. This is key as sometimes small tax rate changes in the IT landscape, and export/import law policy modifications can have a huge impact on large-budget projects, esp the ones that are strategic partnerships, and go on for a couple of years.
The cost of software development in India is quite low
- IT services companies in India work from anywhere between $10/hour to $50/hour. At times, the price may go high depending on the complexity of the project.
- You’re most likely to get quality work and save yourself from unnecessary headaches if you choose software development organizations with good reviews and a good track record of happy clients. Normally, such dependable and trustworthy organizations price themselves between $25/hour to $60/hour.
Due diligence while choosing your software development outsourcing partner
Irrespective of what’s your budget, due diligence is quintessesntial. You don’t want any surprises after signing the contract and paying the token money (first installment, advance money, first invoice, etc.).
By surprises, I don’t mean technical challenges.
Technical challenges are fine, but sometimes humans too can be the pain point.
When you’re outsourcing software development work, that’s the last thing you want i.e., a team that is tough to work with.
Hence, I recommend having a local guy on your team.
- An important help you want from the native guy is to do the due diligence and benchmark the services provider, verify & validate their authenticity etcetera.
- A native resident always makes things easier. They speak their language, understand the culture, know the nuances of communication, DOs and DONTs, the tricks, and everything. They make your work easier.
- You need these guys as consultants on your team. Someone who observes your calls from day one. And if the need arises, they step in and be the mediator to help carry the hard conversations/negotiations/communication etcetera.
- They must be on every call you make with the software development outsourcing services provider. Because unless they have the context they are useless.
- The best part, they don’t even charge a premium. Mostly, you’ll get one at $2000/project for a 3-month project.
- If you have them on your team from the beginning they can even save you a few thousand bucks if they turn out to be a good negotiator. You know how export works, no matter which country it is, we all tend to charge a premium from foreigners. In France, they would charge Indians a premium. In India, they charge the French a premium. That’s how it works. But having a native can help you better negotiate the deal. Save 2% to 7% of the project budget. If that happens, come and thank me for this tip.
When you’re looking for such consultants, prefer a guy who understands technical aspects as well. Not a pro, but a guy who is well acquainted with the course of technical projects. It helps.
A costly alternative to this is having a
- Local project manager consultant who works with your internal team.
An even costlier alternative is having a
- Tech consultant who foresees the entire project for you. They may even pay a couple of visits to the IT services provider outsourcing team, to sit and gauge the progress made on the project.
If you’re outsourcing your software development project from India, and you need help with shortlisting the right IT services provider for your project requirements, I shall be happy to assist you in that, and even be on call to help you better negotiate the deal. Reach out to me on Linkedin or via Email to discuss this further.
2. Ukraine – the best country to outsource software development projects in the European region
My pick for the second spot is Ukraine.
- It is the second-largest European country, only next to Russia.
- A good segment of the population speaks Russian, about 40%. I know the two countries are at war. But there are people on both sides who have families on the other side, businesses cross-border, and so on. Therefore, cross-border IT outsourcing is not an alien thing.
- 230,000 Ukrainians are software developers. That’s about 0.6% of the population. India has 1.1% of the population as software developers.
- Ukraine is a continuously evolving hub for software development outsourcing in the European region. Going forward, it will continue to thrive as a good chunk of the population there speaks English, German, French, Italian, and Spanish as well.
- So, that makes Ukraine a good country to which you can outsource your software development projects.
- Ukraine may not beat India in terms of talent, or project costs, but sometimes, it’s more about the compatibility and less about the costs. So, if you prefer outsourcing to a European country, Ukraine could be your best choice.
- The cost of development in Ukraine would be in the range of $25/hour – $100/hour. If you want to hire good developers, or if the requirements are complex, stick in the range of $40/hour – $70/hour.
- It’s GMT +2, So, of course, the time zone would be awesome for European countries who want to outsource software development projects, but also it works for the United States. However, for the United States, be it India or Ukraine, the benefits of time zones aren’t much. Both countries, India and Ukraine have almost zero working hours overlapping between 9-6. So, I feel, the USA would prefer India given the price factor. And if price is not a factor for European countries, then they may prefer Ukraine.
The only thing that should deter you from choosing Ukraine is the fact that the country is at war. But if you’re okay with the associated risks, Ukraine is a good choice.
Other top countries to outsource software development projects in 2024
India and Ukraine are my top choices for outsourcing software development work. But there are some other amazing countries to which you can outsource your software development projects in 2024. Here’s an extended list.
14. Czech Republic