Quick Summary: If you are looking for the best countries to outsource software development, this blog is your best guide. We have explained why a particular country can be the best destination for outsourcing web or app development. 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 2023.

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 / IT staff augmentation services with a proven track record from all factors. So, here we go;

List of 12 Best Offshore Software Development Countries in the World

Best Offshore Software Development Countries in the World

When it comes to selecting a country, the experience of a team or agency is not it. Tech skills, ratings, command in English, ease of doing business, data privacy, total software development cost, etc., are also crucial factors to investigate. Therefore, 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;

  • #1: India

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.

Wondering ‘where to outsource software development’? 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. The development cost on an hourly basis is around $12 to $40. So, if you are considering outsourcing software development services to India, you make the right decision.

  • #2: Romania

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. In our opinion, the per hour development cost is $50 to $100. High proficiency in English adds another advantage to the country as the best choice for outsourcing software projects.

  • #3: Argentina

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 for development. 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. The rates of development are approximately $30 to $100/hr.

  • #4: Brazil

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. Precisely, it can cost you around $40 to $150/hr.

  • #5: Russia

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 roughly between $51 to $120 per hour for a project may be a costly affair for low-gadget startups.

  • #6: England

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. The development charges per hour can anywhere be between $51 and $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.

  • #7: France

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 the development charges are concerned, you might have to pay between $80 and $150 per hour. However, you can consider some other countries from the list to outsource if you cannot afford this range.

  • #8: USA

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 $250/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.

  • #9: Canada

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, that is $100 to $250 per hour.

  • #10: Mexico

The country of Mexico is known for its top educational sector. The country’s tech geeks boast their technical know-how and skills. Well, it’s not for nothing. There are 7,00,000+ developers located in this hotbed of technology. The larger the pool of programmers, the better it is. This is because more the choices, the better can be the screening process.

Apart from the fact that there are many options to choose from, the rates are lesser as compared to the other parts of the USA. The hourly development rates are $70-$100.

They are famous for their agile collaboration in projects. Adding more to this, there are few time or language differences, so there is no derail in project development procedures.

  • #11: Egypt

Egypt is the most populous country among the Arabian ones. Egypt is popular not only for the pyramids but also for the pyramids of tech-stack knowledge they possess.

With quality testers, software development is always complete. Note that Egypt has many quality analysts also. Hence, you may outsource both the development and testing of your project to the teams in Egypt.

According to the Egyptian Pound currency, developers’ hourly rates are round about E£60 to E£90.

  • #12: Czech Republic

The person who starts the project must also be the one who deploys it. This is because, in this way, they will know the project in and out.

The employee turnover ratio is low. Specifically speaking, it is around 18% only. This implies that the team who started working on your project is most likely to remain the same.

Also, since communication is critical while outsourcing projects – you’re on the beneficial side if you choose Czechia. It is the 27th European country when it comes to English proficiency.

The hourly digital development rates there are CZK 60 to CZK 90 approximately.

The first and foremost reason we have given these as the best outsourcing countries is that they offer quality work by reducing the app development cost. 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 project deliveries 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 ensure to deliver 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
  • Hire Specific Talents

Complete Project Outsourcing: One option may be to hand off the whole project to an outsourcing partner with complete control or oversight. You can get help for software development consulting also and in fact 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 Right Countries to Outsource Software Development

Let’s explore some of the main criteria to choose the right offshore country for your projects.

  • Scope Of Knowledge, Skills And Expertise Level
  • Law Regarding Privacy and Data Protection
  • Agility and Cost-Effectiveness
  • Location, Time Zone Differences

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 should use trending technologies, like blockchain, IoT, AR/VR, etc., you need to find a country proficient in these tech stacks. You may ruin your project by outsourcing 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, you can mitigate this issue with the help of your software development partner company by implementing 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 with reviews, efficiencies, and data protection laws. The rates are on the basis of quality of 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 2022. That means it’s not just about its competitive development cost for outsourcing services; rather it ensures data protection (NDA document), timely completion, quality services, and end-to-end 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 including the app maintenance costs.

Location, Time Zone Differences

If you are outsourcing your project to a country with a completely different timezone, one of the biggest issues 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. That’s because they provide flexible working hours. But, it is advisable to inquire about the timing and set the right time for a meeting and discussion. You must do this before you outsource programming services to the selected region.

Final Thoughts

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.


India is the best country for software development. There are a couple of reasons why we believe so. Like India has the most skilled developers within the budget. Also, communication is less of a problem, and efficient developers always manage timings.

59% of startups worldwide prefer to outsource their software development projects.

The essential criteria to choose a country for outsourcing software development are:

  • cost-saving
  • readiness to sign an NDA
  • literacy rate
  • language proficiency
  • time zones, etc.
Mahil Jasani

Article By

Mahil Jasani

Mahil Jasani began his career as a developer and progressed to become the COO of Excellent Webworld. He uses his technical experience to tackle any challenge that arises in any department, be it development, management, operations, or finance.