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As businesses across the world become more reliant on technology, IT outsourcing has become a trendy trend for many firms aiming to save costs and enhance productivity. IT outsourcing is the process of contracting out IT tasks like software development, network administration, and data storage to a third-party source. (Read more about Outsourcing and Inhousing)

And if you are a vendor seeking potential nations to outsource your software product to, please read on. In this article, we’ll take a closer look at some of the top countries for IT outsourcing and why they are attractive destinations for companies seeking IT services.

India

India is now regarded as one of the top locations in the world for outsourcing software development. India’s population is 17.7% of the total global population. It’s no surprise that it’s one of the most important outsourcing software development destinations for many businesses. According to recent studies, India’s software sector is developing at a rate of 60% each year.

Over the previous three decades, India’s software development market has increased by more than 30%. It is now exporting software services to over 100 nations. According to the Software Sector Analysis Report, developers from India are highly qualified technical graduates. India’s software market is five times cheaper than North American countries.

Prices: $19 – $40 per hour

Popular programming languages: Java, C++, Python

Top Tech Cities: Bangalore, Chennai, Mumbai, Kolkata

China

China is home to a number of the fastest growing IT firms and annually generates up to 4.7 million IT graduates. In a hypothetical examination of nations fit to compete in a “programming Olympics” by HackerRank, China rated #1. So that, in the future, the country is still a potential market for technology vendors.

However, there are a handful of possible downsides here. For starters, barely 10 million of China’s 1.3 billion citizens understand English, posing a significant communication challenge for many overseas companies.

Second, China has a reputation for slack enforcement of intellectual property (IP) rules. This may be avoided by picking a trustworthy outsourcing firm and establishing clear guidelines before you begin working together.

Prices: $19–$38 per hour.

Popular programming languages: Python, Algorithm, and Functional Development

Top Tech Cities: Beijing, Shanghai, Shenzhen

Vietnam

In recent years, Vietnam has been labeled the “Silicon Valley” of Southeast Asia. Microsoft, Intel, and IBM have all made investments in software development in this rapidly emerging IT outsourcing country. For several years, Vietnam’s software sector has risen at a pace of 10% each year.

According to Statista, Vietnam is most well-known for its “golden age” generation, with 75% of the population under the age of 35, and it ranks among the top ten nations in the world in terms of graduate engineers (100,390). The combination of their technologically advanced programming skills and cost-competitiveness compared to other countries has made Vietnam a highly sought-after destination for IT outsourcing. Additionally, the Vietnamese people are open to new ideas and are known for their creativity, and English is widely spoken, further contributing to the country’s appeal

Price: $15-$25 per hour

Popular programming languages: Node.js, Python, Java, React, PHP

Top Tech Cities: Hanoi, Ho Chi Minh city

Poland 

Poland is one of the top 5 countries that attract vendors around the world. Their programmers were placed first in Java evaluations and in the top five for other popular programming languages such as Python, Shell, and Ruby. Warsaw and Krakow, two of Poland’s major cities, were also listed among the top 50 cities on the Tholons Globalization Index.

Western developers will also be relieved to learn that English is spoken as a second language by 30% of the Polish population, making communication straightforward. If North American organizations wish to hold live meetings, they must make some time zone adjustments, but there is enough overlap to allow functional cooperation.

Price: $25-$50 per hour

Popular programming languages: Java, Python, Shell, Ruby

Top Tech Cities: Warsaw, Kraków, Wroclaw, Lodz

Brazil

Brazil has around 6.18 million English speakers and a government that is working hard to improve technical education infrastructure. Brazil is an up-and-coming country for outsourcing software development due to its exceptionally young workforce (38.18% of the population is under 24 years old).

However, the Brazilian IT community is still in its youth. Brazilian coders averaged just 71.3% on HackerRank evaluations. Brazil is a wonderful area to locate young developers, but for more advanced projects, you should seek elsewhere on our list.

Prices: $25$-50 per hour

Popular programming languages: Java, Python, SQL

Cities: Rio de Janeiro, Porto Alegre, Curitiba, Blumenau and Londrina

Philippines

Over 92% of Philippines speak English, making the Philippines one of the world’s most English-speaking countries. They also have a dedicated STEM high school system and have made significant educational reforms in recent years.

The Philippines is fantastic due to its low costs, market competitiveness, and strong software foundation. Software development in the Philippines has become one of the more established sub-sectors of the country’s information technology industry, according to the Philippines IT Market study.

Prices: $25-$49 per hour.

Popular programming languages: PHP, ASP.NET, Ruby on Rails, ASP.NET Core

Top Tech Cities: Manila

Canada

Canada has a robust educational infrastructure with a significant emphasis on technology: 18.6% of yearly graduates in Canada have STEM degrees. HackerRank ranks Canadian programmers 21st in terms of real skill level. 

Outsourcing to Canada has various potential advantages, particularly for US-based organizations. There are few cultural differences to be concerned about, and the time zones facilitate contact with US clients. This enables businesses to establish real collaboration on increasingly complicated projects.

Prices: $25-$60 per hour

Popular programming languages: Java, Python, SQL, R

Top Tech Cities: Toronto, Calgary, and Halifax.

Romania

In 2023, Romania became a desirable outsourcing location. Romania has a 14.3% active growth rate in the information technology industry, which is predicted to quadruple by 2025. A well-coordinated education system helps foster this quality growth with 7500 developers graduating this year. 

Romania is home to the first high-tech software unicorn, UiPath, as well as other operations of worldwide software giants like Microsoft, IBM, HP, Oracle, Intel, Luxoft, and Amazon. Romanian coders placed 20th overall in all HackerRank programming exams.

Prices: $25-$49 per hour

Popular programming languages: JavaScript, NodeJS, .NET, C#, ReactJS, PHP

Top Tech Cities: Cluj-Napoca, Iasi, Bucharest, Sibiu

Ukraine

For the past few years, Ukraine has been the dominant IT outsourcing country in Eastern Europe. Several international technology-related ratings have corroborated this.

Ukraine has more than 200 thousand IT professionals, with 84.8% of them fluent in English. In 2021, the industry is expected to rise by 20%. Over 30,000 students are enrolled in IT-related programs/courses in Ukraine. Ukraine has a blend of Western and indigenous characteristics, making it simple to work with foreign clients.

Prices: $25-$45 per hour

Popular programming languages: Java, JavaScript, C#, PHP, Python, C++

Top Tech Cities: Kyiv, Kharkiv, Odessa, Dnipro.

Taiwan

Taiwan is another potential country for software outsourcing. Over 130,000 IT professionals work in the country. Taiwan has a highly skilled workforce, with a literacy rate of over 96% and a large number of graduates from universities and technical colleges. This means that businesses can access a highly skilled and capable software development workforce in the country. Aside from strong technical knowledge and an open culture, Taiwan has a well-developed infrastructure with high-speed internet and sophisticated communication technologies, making it easier for any firm anywhere in the globe to collaborate.

Prices: $25-$49 per hour

Popular programming languages: Java, PHP, Ruby on Rails, ASP.NET Core

Top Tech Cities: Taipei

Conclusion

Whether you are looking to reduce costs, improve efficiency, or tap into new markets, outsourcing IT services to these top destinations can help you achieve your business goals. It can be a little tricky to find the best IT outsourcing country for your business development and requirements. Let’s contact SETA International’s experts for free consultation via contact@setacinq.vn.

SETA International has 14 years of experience in AI, IoT, mobile, web and Cloud and is one of the leading software solution providers in Vietnam providing one-stop software development services with high quality, efficiency and competitive cost.