The realm of software development is progressively globalizing, with an increasing number of enterprises opting for offshore development to access economical and high-quality software solutions.
However, with numerous locations to choose from, it can be daunting to determine where to commence.
This is precisely why we have curated a list of the top 10 offshore development destinations you should explore.
From Eastern Europe to South Asia and beyond, these destinations present a plethora of skilled professionals and budget-friendly services that can enable businesses of all magnitudes to realize their software development objectives.
Therefore, whether you are a fledgling enterprise aiming to construct an MVP or a well-established corporation seeking to widen your software capabilities, keep perusing to ascertain the premium offshore development locations that warrant your attention.
Offshore development: A brief insight
Offshore development denotes a commercial practice that encompasses the delegation of software development services to a squad or enterprise situated in a different nation.
It is an economical approach that empowers enterprises to access a worldwide reservoir of highly adept professionals sans the necessity for significant in-house resources.
Remote offshore software development squads toil to supply an extensive spectrum of software development services, spanning custom software development, mobile application development, web development, and software testing.
These teams are composed of specialists who possess the requisite skills and expertise to furnish top-notch solutions that cater to the exclusive demands of each client.
Offshore development is a valuable instrument for enterprises eyeing to amplify their software development competencies while minimizing expenses.
It provides access to a universal talent pool and permits businesses to access a vast array of services without the prerequisite for extensive in-house resources.
Benefits of offshore software development
An offshore development center can offer a multitude of benefits to a company.
Here are the top 10 ways:
1. Cost reduction
By outsourcing in-house work to an offshore development center, companies can cut down on direct and indirect costs, such as supervision, software and hardware licensing, remuneration, medical facilities, electricity supply, enrollment, and more.
2. Market expansion
Offshore development centers can help companies tap into new markets of customers and increase their reputation and sales volume.
By having a physical presence in the target market, especially within a sizable local business, logistical expenses can be reduced, and a better understanding of customer requirements can be fostered.
3. Easy scalability
An offshore development center located in another country allows companies to scale up or down their team size as per their needs and budget based on deadlines and technical advancements.
4. Superior quality of service
By outsourcing IT projects or development work to offshore businesses, companies can avail themselves of the best development services.
Offshore development centers have a higher chance of hiring experts and professionals, leading to a better quality of service.
5. Increased capital funds
Outsourcing non-primary company activities can reduce the need for resources to be invested in them.
This frees up capital funds that can be allocated to core business operations, leading to increased profits and growth.
Top 10 offshore development locations to check out!
India has been leading the offshore software development industry for years, attracting around 250 top global companies to partner with local IT companies.
The primary reason for this is the cost-effectiveness of outsourcing software projects to India.
The average hourly software developer rates in India range from $18-$40, which is significantly cheaper than in other countries.
However, while cost-effectiveness is a major advantage of offshoring to India, it is not the only factor that you should consider.
One of the most significant advantages of outsourcing software development to India is the abundance of tech talent available.
India's STEM education system produces up to 2.6 million software developers every year with skills and qualifications that meet industry standards.
These developers are well-trained and experienced, which makes them valuable assets for businesses looking to scale up their operations.
In addition to the vast pool of experienced talent, India also has 5 million IT professionals readily available for hire.
Every year, around 200,000 IT graduates join the market, further contributing to the abundance of software engineers in the country.
With such a large number of IT professionals, India can help businesses overcome the challenge of IT staff shortages, a significant issue many companies face worldwide.
While the cost-effectiveness and abundance of tech talent are significant advantages of outsourcing software development to India, it's essential to research before partnering with an offshore development team.
You must consider factors such as quality control and communication before deciding.
Outsourcing software development to India can be an excellent way to optimize costs while leveraging the country's vast pool of experienced talent.
China has emerged as a leading destination for software development services due to its low labor costs and high developer productivity.
The hourly service costs in China range from $18 to $40, making it an affordable option for businesses worldwide.
While this cost is slightly higher than in other Asian countries, China's advanced economy, tech education, and expert specialists justify the investment.
Chinese software developers are proficient in functional programming, Python, Shell, and other languages.
These programming languages are the foundation for the development of Artificial Intelligence, Robotics, and Deep Learning in China, making the country an attractive market for foreign companies.
The Chinese government is keen on developing the IT sector and has implemented many plans, policies, and economic incentives to support it.
With over 50 science and technology industry parks located throughout the country, China has become a hub for tech innovation.
The government also emphasizes mathematics, science, and high tech in their schools and universities, generating a pool of over 5 million IT specialists yearly for the technology market.
If you're looking for affordable and high-quality software development services, China is definitely a viable option to consider.
With its strong focus on tech education and government support, it has the potential to become a top player in the global software development industry.
The Philippines has emerged as a strong player in the global IT market, with a growing number of companies outsourcing their software development projects to the country.
The favorable culture, strong government support, and proficiency in the English language make the Philippines an attractive destination for clients looking for high-quality IT services.
With over 95,000 technical specialists and 130,000 IT graduating students each year, the country has a rich pool of talented software developers with proficiency in programming languages like Java, PHP, and Ruby on Rails.
Additionally, the country has an elaborate IT infrastructure, making it an ideal location for outsourcing software development projects.
In recent years, the Philippines has seen significant growth in the development of projects related to robotics, cybersecurity, AI, and DevOps.
This development, coupled with the favorable government policies, suggests that the Philippines will continue to make strides in the IT industry.
With offshore development rates ranging from $18-$40, the Philippines offers cost-effective solutions for software development projects.
Its skilled workforce, favorable culture, and strong government support make it an ideal destination for outsourcing IT services.
When it comes to software development outsourcing, Vietnam has quickly made its name in the industry.
Despite being a relatively young player with only 20 years of experience, Vietnam's software outsourcing industry has managed to rank 9th in the world.
The Vietnamese government has significantly emphasized STEM education, ensuring a steady supply of highly skilled software developers to the labor workforce.
Vietnam boasts a pool of highly skilled developers with expertise in various programming languages such as Java, PHP, .NET, and others related to AI, machine learning, and e-commerce.
Clients who have worked with Vietnamese software developers have praised their highly adaptive approach to the latest technology and how they know how to apply it to projects.
This adaptability has made them a preferred option for clients seeking innovative and cutting-edge solutions.
Several prominent companies such as IBM, Microsoft, Nokia, and Intel have already invested in Vietnam, which has helped the country establish itself as the most attractive destination for software development outsourcing.
The technology industry's growth has presented many opportunities to local businesses, allowing them to venture into challenging areas such as fintech, blockchain, machine learning, e-commerce, and artificial intelligence.
The average offshore software development costs in Vietnam are very affordable, ranging between $18-32.
Despite the cost-effectiveness, clients can still access top-quality engineers, making Vietnam an ideal option for companies seeking budget-friendly outsourcing solutions.
Although Hungary may not be as well-known as other countries in terms of software development outsourcing, it is quickly gaining recognition as one of the best destinations for outsourcing.
The Hungarian government has prioritized the development of the IT industry and invested heavily in STEM education, creating a highly skilled pool of software developers in the country.
Many well-known tech companies, including IBM, Microsoft, Nokia, Ericsson, and HP, have established partnerships with local IT firms, with R&D centers being set up throughout the country.
This has contributed significantly to the economy, making Hungary an attractive location for software outsourcing.
Currently, Hungary has around 80,000 software developers, with 6,000 new IT graduates joining the market each year.
Popular programming languages Hungarian developers use include Java, JS, SQL, C++, Shell, and Python.
Hungarian IT software development companies are known for their reliability and expertise, making them a solid option for custom software development needs.
However, it is essential to note that the cost of software development in Hungary is still relatively high compared to other destinations, with rates ranging from $39 to $52 per hour.
Therefore, it may not be the best option for those looking for cost-effectiveness.
Nonetheless, the quality of the work provided by Hungarian developers is undeniable and well worth the investment for those with the budget.
Poland has been steadily climbing the ranks as a top destination for offshore software development, and for a good reason.
With a thriving IT industry and a solid pool of talented software developers, Poland is a great option for companies seeking reliable and high-quality software development services.
One of the advantages of outsourcing to Poland is the vast number of IT companies available to choose from.
With around 720 IT outsourcing companies, Poland offers various software development services, including IT operations and digital marketing.
This diversity of services allows clients to find the perfect match for their software development needs.
Although the cost of outsourcing to Poland can be higher compared to neighboring countries due to tech education and high living standards, Poland is still a cost-effective option compared to other Western European countries.
The average offshore software development rate in Poland will depend on the project, but it typically falls between $40 and $56 per hour.
Poland has a solid pool of talented software developers with around 295,300 software development specialists and 80,000 fresh graduates every year.
The most popular programming languages in Poland are Python, Shell, Ruby, Java, and PHP.
This makes Poland a great option for clients looking for developers with these skill sets.
Romania may not be as well-known as some other countries for software outsourcing, but it is quickly becoming an attractive destination for companies looking to outsource their software development needs.
With over 300 software outsourcing companies and over 125,000 software developers in the outsourcing sector, Romania boasts a large pool of experienced and knowledgeable IT specialists in Central and Eastern Europe.
In fact, Romania contributes almost 20% of the labor IT workforce in this market, making it a significant player in the region.
Many giant tech companies like Dell, IBM, Oracle, and Microsoft have already invested in Romania, opening offices and building partnerships with local IT companies.
The software outsourcing market in Romania may be smaller than in some other countries, but the offshore development rates are more attractive than those in Poland or the Czech Republic.
The average software development rates in Romania could range from $25 to $45 per hour, depending on the specific project requirements and the experience/expertise of the software engineer.
The most common software services in Romania include fintech, software development, and web application development.
If you are looking for a cost-effective outsourcing destination with a large pool of highly skilled IT professionals, Romania may be the right choice for your company.
Ukraine's rise as a top outsourcing destination has been impressive, with the country now known worldwide for its exceptional IT talent.
The country boasts a workforce of 200,000 tech specialists.
Its STEM education system produces more than 36,800 entry-level tech talents annually, ensuring a steady stream of fresh talent into the IT market.
Additionally, free training and specialized courses have made the labor market more abundant, making Ukraine a hub for technological start-ups with 4000 tech companies and 1600 software outsourcing companies.
With such a vast selection of service companies, you have the freedom to choose your preferred software development partners that match your skill-set requirements.
The most commonly used programming languages in Ukraine are C++, Java, Ruby, PHP, and Python, while the most popular fields for outsourcing projects are mobile development, big data, AI, blockchain, and cryptocurrency-related projects.
When it comes to offshore software development rates, Ukraine offers competitive prices, with an average rate of $25-46 per hour, depending on the city.
By choosing Ukraine as your outsourcing destination, you can access its talent pool and get a great deal on software development services.
With its thriving tech ecosystem and a deep pool of tech talent, Ukraine is undoubtedly an ideal destination for businesses looking to outsource software development.
If you are looking for a reliable offshore software development destination, Bulgaria can be a great choice.
While the country's software industry might not be as impressive as other neighboring countries, such as Ukraine or Poland, Bulgaria has proven itself to be a competitive outsourcing destination that offers a wide pool of tech talent, mature infrastructure, and competitive development wages.
With over 55,000 IT specialists in the country, Bulgaria might have a modest number compared to neighboring countries.
However, with its modern education system and top-tier tech universities, Bulgaria generates over 5,000 graduates every year.
This has led to a growing quantity and quality of software developers, with excellent language communication skills being an additional plus for software engineers in this country.
Bulgaria provides a qualified IT workforce that can help you scale up your business at an affordable price, with offshore software development rates coming in at around $35-50 per hour.
Thus, Bulgaria can be an excellent option for your offshore software development needs.
With a qualified IT workforce, competitive development rates, and a growing pool of tech talent, Bulgaria offers great value for your investment.
Argentina is a hidden gem in Latin America when it comes to software development outsourcing.
The country has a vast pool of talented developers with years of experience, making it a reliable and valuable destination for businesses seeking to expand their operations.
With over 134,000 software developers and more than 1000 companies offering software development services, Argentina's IT workforce is not only abundant but also highly skilled.
One of the reasons for the nation's impressive IT workforce is the free education in technology, which is unmatched in the region.
This has attracted more tech talents to join the local IT workforce, making it a fertile ground for businesses looking to tap into its vast resources.
The most common background of offshore software development companies in Argentina is web application development, software development, data migration, and DevOps.
Argentina is a growing economy that has been able to combine its familiar culture with western companies' highly trained developers, making it an excellent choice for software outsourcing demands.
While the average offshore development rate in Argentina may be slightly higher than that of Asian countries, it is still affordable compared to local outsourcing companies.
Businesses looking for quality software development services can expect to pay an average offshore development rate ranging from 30-60$, depending on the required programming skills.
Note: It's worth noting that the best location for offshore development depends on a company's specific needs and preferences, so it's important to carefully consider factors such as time zones, language barriers, and cultural differences when choosing a location for outsourcing.
In conclusion, offshore software development has become a popular method for businesses to access top-notch software development services while reducing costs.
Our blog has compiled the top 10 offshore development locations that offer businesses the chance to explore various options and identify the best fit for their specific needs.
Whether it's the adept developers of Eastern Europe, the tech-savvy professionals of South Asia, or the seasoned teams in Latin America, there are several offshore development locations that offer exceptional services at competitive prices.
If you're considering outsourcing your software development needs, consider choosing AppsRhino.
Our team of seasoned developers has an established track record of delivering high-quality software solutions for businesses of all sizes.
With our flexible engagement models and cost-effective services, we can help you realize your software development objectives while staying within your budget.
Contact us today to discover more about how we can assist you with your offshore development needs!