Central Europe vs Eastern Europe vs Asia: Specifics of IT Outsourcing in 2022
In 2021 the global IT outsourcing sector was valued at $526.6 billion and is expected to reach $682.3 billion by 2027. These figures indicate that there is a strong demand for such services. However, with the majority of IT outsourcing destinations, picking the right outsourcing partner can be a challenge for business owners.
What are the best IT outsourcing destinations? In this article, the Dinarys experts give a brief overview of this question.
Top IT Outsourcing Destinations in 2022
Why do more and more companies worldwide opt for outsourcing? First of all, the outsourcing approach can help non-technical companies lower project development costs. Secondly, due to outsourcing, companies are able to hire niche specialists and pay only for what they receive.
Below you can find three top-demanded outsourcing hubs with different, to varying degrees, economic, historic, and cultural backgrounds — Central Europe, Eastern Europe, and India — and learn more about the specifics of cooperation with each of these destinations.
Central Europe is one of the most progressive outsourcing hubs in the world. Significant investment in education is what makes this region a leading service provider for remote project development needs. Let’s refer to Poland as one of the fast-growing tech hotspots in Central Europe.
The Polish software development market represents approximately 8% of the country’s GDP, and the number of international tech companies ready to invest in the development of the Polish IT industry is constantly growing.
The principal features of the Polish IT ecosystem are
- Over 400,000 IT professionals available on the market.
- A shared legislative and regulatory framework (EU membership).
- The lowest level of corruption in business among European countries.
- Start-up friendliness with the main focus on such industries as fintech, food tech, data analytics, AI and RPA, and SaaS platforms.
Besides, due to the highly professional IT talent pool and economic stability of the country, the rates charged by Polish experts remain high correspondingly. According to NoFluff Jobs, nearly half of IT specialists in Poland get paid at least $2,000 per month. Meanwhile, 40% of IT specialists in Ukraine only get about $1,000 per month.
Ukraine, as a representative of Eastern Europe outsourcing hub, is another attractive destination for international organizations that seek tech assistance.
So what are the main aspects of the Ukrainian IT sector you should know before considering this outsourcing haven?
- Diverse tech skillset covering various technologies and languages.
- Well-educated IT specialists. Ukraine has one of the largest share of computer science and STEM graduates in Europe, approximately 10%.
- Innovation hub and home to numerous currently prominent IT products. Grammarly, GitLab, and Ahrefs are Ukrainian unicorns.
- Visa-free entry for the majority of countries.
The definitive advantage of a partnership with Ukrainian tech specialists is savings. Considering that Ukrainian programmers consistently occupy top 10 positions in global rankings of tech skills (alongside Polish developers), the cost-effectiveness of projects delegated to Ukrainian IT companies can be obvious.
India is one more profitable outsourcing hub, which attracts the attention of hundreds of companies worldwide. The country has a low cost of living compared to other countries that also provide outsourcing services, which, thus, translates to a low cost of cooperation.
What are other specifics of outsourcing to India?
- Diverse outsourcing industry coverage. The most popular outsourced areas in India are manufacturing, healthcare, retail, media, and telecommunications.
- Freedom in budget management for clients. Many Indian outsourcing IT companies offer flexible pricing options: by the hour, by the week, per month, or project.
- Extensive talent pool. Up to 3.1 million fresh graduates join the Indian workforce each year.
- Good outsourcing infrastructure. Recently, India has seen tremendous growth in telecom, broadband, power, and other infrastructure.
Apart from these privileges, choosing India as an outsourcing partner entails certain drawbacks, such as time zone differences and cultural and social miscommunications.
Time zones can become an obstacle to urgent communication, while cultural differences can be problematic in achieving desirable results for both parties involved: service providers and clients.
The scopes and ambitions of each project vary, but for every demand there is a supply.
Countries of Central Europe clearly compete on spotless work ethic, infrastructure reliability, and ease of communication. However, the good quality of provided services implies high development rates.
Attractive development rates along with top-notch technical skills continue to be the Ukrainian strongest outsourcing assets. This is the reason why clients worldwide opt for outsourcing to Ukraine rather than hiring in-house developers is that for the cost of each in-house developer they 2 to 4 outsourced software developers from Ukraine on their team.
India is an optimal choice for companies that pursue the goal of cost-efficiency of their projects as well as fast time-to-market, but if they put high stakes on a coherent workflow with qualitative outcomes rather than quantitative, it’s better to shift focus to Central and Eastern Europe.
If you are looking for an excellent quality-to-price ratio, contact us at Dinarys. We are a Ukrainian outsourcing e-commerce development company, a team that provides in-depth e-commerce consulting services along with high-grade digital commerce solutions: from idea to realization.