Quick Summary: If you are looking to outsource software development, then this blog is the best guide for you. We have explained why a particular country can be the best destination for outsourcing. The guides will help you make the right decision. Besides, we’ve also covered the nitty-gritty of outsourcing projects to an offshore country.
Offshore development is the proven way for people looking to bestow their businesses with perfect technology to maintain their potency and competitive edge in the market. From leveraging top talents and speeding up the development process to utilizing the latest technology stacks and minimizing the budget, outsourcing software development brings all these options for startups and enterprises in 2021.
Did you know 37% of SMEs reported to have outsourced their business processes in 2019?
When you want to outsource your project, the first question comes to mind: Which is the best outsourcing destination for your software development?
Frankly, we cannot impose on you to choose a particular country to outsource your project, but we can help you decide which one can be the best for your project. So, we will explore the list of best countries for outsourcing with a proven track record from all factors. So, here we go;
Top Outsource Software Development Countries with Reliable Reputation
When it comes to selecting a country, the experience of a team or agency is not the only thing you need to explore. Tech skills, ratings, command in English, ease of doing business, data privacy, etc., are also crucial factors to investigate. Besides, in our list, you will find a selected number of countries that offer quality services at competitive prices. Let’s explore the list of top outsourcing destinations;
Did you know India is among one of the top outsourced countries worldwide? When it comes to IT outsourcing, India is at the top of the list with 65% of total outsourced services. One of the largest benefits is you get the best IT infrastructure with skilled resources at the lowest possible price. Undoubtedly, India has a relatively low literacy rate, but 2.6 million STEM specialists (refers to Science, Technology, Engineering and Mathematics) graduate every year. Around 4 million employees work in the IT and outsourcing industry. That’s probably bigger than any other Asian country.
India could be the best outsourcing destination in the Asian continent for apps and products related to Microsoft technology and clone app solutions. It’s also the best for open source projects based on IoT, Blockchain, Machine Learning, Artificial Intelligence, AR/VR, and others —thanks to the largest 17,000 IT-BPM companies in the country. So, if you are considering outsourcing software development services to India, you make the right decision.
Even though Romania has only 116,000 IT professionals, it is one of the best destinations for software development outsourcing. If we are supposed to give you one best reason why the country is a favored outsourcing destination, then we must say, “its intersection of the time zone” with the United States and Western Europe. High proficiency in English adds another advantage to the country as the best choice for outsourcing software projects.
With advanced expertise in web and mobile app development, data migration to the cloud, and DevOps engineering, Argentina could be one of the best countries to outsource software development projects. The government in the region offers free education in computer science and technologies and the result is visible: 70% of students combine study with work. Choose the IT firm in the region smartly.
With a $19 billion worth of software development market, Brazil ranks 9th in the world as the best outsourcing region. However, the IT sector in the country is relatively young, even after a lot of effort is being put into the technology sector. As per the HackerRank assessments, the country scored an average of 71.3%, and that shows you need to consider before outsourcing advanced projects to the region.
The country is best known for providing software development services based on Java, Python, SQL programming languages. As far as development charges are concerned, it may be a costly affair for startups, though if you are financially equipped, it could be one of the suitable outsourcing software development services.
Russia is the best-known progressive IT solutions provider and can be a good choice for people looking for enterprise solutions. Even though many software development companies in Russia primarily focus on local clients, some others provide services to foreign clients.
The development charges per hour are relatively low (compared to the USA, UK, Canada, etc.), but you have plenty of options if you want further low cost on project development. Spending $51 – $120 /hr for a project may be a costly affair for low-gadget startups.
No doubt, England has some great technical skills that will benefit your project development. However, England is part of the UK, and hence the region is best known for outsourcing the project to some other countries for saving on the costs and workforce.
The cost to develop an application is also comparatively higher, and a startup with a low budget may not be able to afford it. A development charge per hour is anywhere between $51 – $150, while it may go up depending on the partner you have selected to work with and the project complexities. Besides, if you are outsourcing projects to this region, you must know how to outsource software development as the development companies in the UK lag in solving complex issues.
If language is not a barrier, France could be best fit for outsourcing software development services. Usually, France is preferred for French-speaking providers, though the skills of developers are often being questioned. If you want quality work, you may have to stay in the loop to keep a constant watch on the project’s progress.
As far as development charges are concerned, you might have to pay between $80 – $150 /hr. However, you can consider some other countries from the list to outsource if you look for cost-effective software development solutions.
The USA is known for being the world’s largest technology hub. No doubt, selecting to outsource your software development may let you enjoy the apparent advantages of the perfect cultural match (provided that you are from English-speaking regions). However, if you are a startup with a low budget, outsourcing your web or mobile application development project to the region may be expensive. You cannot expect less than $100/hr for your software project.
The rate may go from $100 to $150/hr for moderate software projects, depending on your software development partner in the selected region within the United States. Meanwhile, there is little room for negotiation as there is a huge shortage of skilled software developers and engineers.
Canada’s Ontario region is a growing IT hub, though they have most of their clients from the nearshore, such as the USA. However, Canada is known for its ”laid back” reputation, and that may be a concern for people looking to outsource their IT projects to the region. When it comes to outsourcing software development services, delivering the project on time is a big factor, apart from quality work.
As far as English proficiency and cultural competence are concerned, Canada and the USA are on the same page (a little change in a number can’t be ruled out). You may have to pay the same hourly rate you pay to the engineers from the USA.
Here’s a Quick Comparison to Best Outsourcing Software Development Countries
|Country||English Proficiency||Ease of Doing Business||Development Service Charges||Time Zone|
|Romania||61.36||73.3 (#55/190)||$50 – 100/hr||GMT+3|
|Argentina||58.38||59.0 (#126/190)||$30 – 100/hr||GMT+3|
|Brazil||53||59.1 (#124/190)||$40 – $150/hr||GMT-3|
|Russia||41 (in Europe)||78.2 (#28/190)||$51 – $120 /hr||GMT+3|
|England||92.3||83.5 (#8/190)||$51 – $150 /hr||GMT+1|
|France||28 (in Europe)||76.8 (#32/190)||$80 – $150 /hr||GMT+2|
|USA||79.2%||84.0 (#6/190)||$100 – $250 /hr||(GMT-4)|
|Canada||58.1||79.6 (#23/190)||$100 – $250 /hr||(GMT-4)|
The first and foremost reason we have given these as the best outsourcing countries is that they offer quality work at significantly reduced costs. These are the countries driving the outsourcing market to the top level, especially India, Brazil, and Russia. However, in terms of IT outsourcing, India has the edge over other countries with the most outsourced IT services and contracts.
Why is India the Top Outsourcing Destination Among All?
As we have already mentioned, India has more than 17,000 IT-BPM companies with more than 4 million employees dedicated to the outsourcing industry. Affordable development costs with quality services could be the prime reasons for outsourcing IT projects to the country. But along with these factors, getting projects finished faster matters the most. With a vast pool of low-cost software engineers and long-time experience in delivering diverse IT services has made India 12th top country with the most advanced programming skills.
Besides, IT firms in India are committed to delivering quality services, meeting international standards at the local price. For example, when you choose Excellent Webworld as your outsourcing partner, the company will provide all IT-related services and products, including mobile and web applications based on all traditional to trending technologies and clone solutions. So, when you outsource app development to India, you get some additional perks, like the lowest costs, quality work, skilled professionals, and easy-to-access tallents.
What Outsourcing Solutions Do You Need?
Now, as you have explored the list of outsourcing countries, the next thing you may encounter is ‘what to outsource.’ To sort this issue out, you need to evaluate your requirements. You can bifurcate the needs into two ways:
Complete Project Outsourcing: One option may be to hand off the whole project to an outsourcing partner with complete control or oversight. You can do the same if you are outsourcing for your partner company.
Hire Specific Talents: The second option is to hire specific talents remotely —from another country who will work full time under your supervision, guidelines, and time frame.
Understanding these outsourcing needs are paramount for making the right decision. For example, they come with different benefits, approaches, expectations, and management styles. However, both can work for your needs in a different situation, based on your project’s requirements. You can make the right decisions if you have a proper understanding of offshore, in-house teams and freelancers.
Things to Consider before Choosing a Right Outsourcing Countries
We have already discussed the right ways to select your offshore outsourcing partners in our previous blogs; you can refer to them for better understanding. What we are doing to discuss here is how to select the right outsourcing country. So, let’s explore some of the main criteria to choose the right offshore country for your projects.
Education Level and Tech Skills
When you explore the best countries for outsourcing, the first thing you need to do is find the list of top countries with phenomenal achievement in offering outsourcing services.
Now, check the secondary, higher and specialized education backgrounds of programmers. The skill of knowledge in the developers depends on their educational background, especially mathematics and computer science & technology. Eastern Europe and some Asian countries, like China, India, Thailand, to name a few, are the top destinations with skilled resources. But, you need to inquire into the matter before you choose a country formally.
Remember, the success of a project outsourcing lies in the competencies of the developers. You need to check if the competencies align with the requirements of your project. For example, if you have a project that needs to be developed on trending technologies, like blockchain, IoT, AR/VR, etc., you need to find a country proficient in these technologies. You may probably ruin your project by outsourcing such a project to a country that does not possess expertise in these technologies.
Data Privacy Law, Data Protection, Ratings and Reviews
Data protection has been a major concern for outsourcers. But, very few countries have implemented stricter data protection laws. However, this issue could be mitigated by your outsource partner company if they have implemented robust data protection law. Before you outsource your project, you can check through independent sites, like Clutch, Glassdoor, etc regarding the data privacy and policies regarding data protection.
These independent sites can also help you explore offshore software development rates by country, along with reviews, efficiencies, and data protection laws. The rates are given to the countries based on the maximum number of IT firms of particular countries offering quality work, competitive prices, projects finished within deadlines, data privacy/protection, etc.
Now, when you choose a country, inquire about the selected company, its ratings, popularities, client reviews, etc. You will get these ideas through the independent reviewing sites. For instance, Excellent Webworld has been named among the Top-Performing App Development Companies from India for 2021. That means it’s not just about its competitive development cost for outsourcing services; rather it offers reliable work, ensuring data protection (you will get signed NDA document), timely completion, quality services, and committed support, post-project development and deployment.
Agility and Cost-Effectiveness
The next step is to find an outsourcing country that offers cost-effective offshore software development without compromising quality. You can check through the average development charges by country. For example, charges for software development to Eastern Europe, India, China, Thailand and all other countries you want to outsource your project to. Choose the country that offers flexibility in project management and excellent pricing models.
Location, Time Zone Differences
If you are outsourcing your project to a country with a completely different timezone, one of the biggest issues you may face is collaborating with your team. However, nowadays, this is not a big issue when you outsource software development to India, China, or other Asian countries as they provide flexible working hours. But, it is advisable to inquire about the timing and set the right time for meeting and discussion before you outsource programming services to the selected region.
Outsourcing IT projects is a growing trend today. Most of the top business leaders outsource IT services to other companies and countries. That name includes Alibaba, Google, Skype, Slack, Groove and more.
So, why stay behind when it helps you beat the competition and improves productivity at the lowest cost? You can explore the best country to outsource and if you have any questions for us, let us know. We will help you shorten every issue related to offshore development services. Let’s connect.