Top 10 Countries for Outsourcing Software Development in 2025
- Created: May 17, 2024
- 13 min
CEO
Outsourcing has become a vital strategy for businesses around the globe.
This practice helps companies helping them reduce development costs, access specialized skills, and improve efficiency.
Deloitte’s Global Outsourcing Survey points out that over 50% of businesses use outsourcing to cut costs, and 57% use it to focus on core functions.
In fact, the global outsourcing market was valued at $92.5 billion in 2019 and continues to grow steadily. Grand View Research highlights that the IT outsourcing segment alone is expected to reach $410.2 billion by 2027 (see what is IT outsourcing and how does it work).
Are you thinking about outsourcing? Then, this guide is your go-to destination. Here, we explore what countries offer the best outsourcing services. We will focus on the skills and benefits they deliver as well as on the pricing and quality of their offerings.
Let’s dive into the best countries for outsourcing software development.
10 Best Outsourcing Countries Worldwide
If you haven’t used outsourcing services before, the first step is choosing the country you will
outsource from.
There are multiple options that offer skilled IT professionals, low costs, great communication levels, and much more.
To help you narrow down your choice, we have selected 10 best countries to outsource software development.
These countries are popular outsourcing destinations due to their unique strengths. They are attractive for various business functions like IT services, customer support, and more.
| Rank | Country | Key Strengths |
| 1 | Ukraine | Large talent pool, cost efficiency, English proficiency Strong tech talent, growing IT sector, English close mentality, comfortable time zone |
| 2 | Poland | Highly skilled workforce, strong IT sector, EU regulations |
| 3 | Czech Republic | Skilled workforce, strategic location, strong IT sector |
| 4 | Romania | Skilled workforce, cost efficiency, EU regulations |
| 5 | India | Large talent pool, cost efficiency |
| 6 | Taiwan | Technological expertise, skilled workforce, infrastructure |
| 7 | Philippines | Skilled workforce, cultural compatibility, cost efficiency |
| 8 | Argentina | Growing tech sector, cultural compatibility, cost efficiency |
| 9 | Brazil | Large talent pool, cost efficiency, growing tech sector |
| 10 | Mexico | Proximity to the US, bilingual talent, cost efficiency |
These destinations usually have good technology infrastructure, meaning your projects run smoothly.
Learn about the key factors that influence app development costs and how to budget effectively for your project.
Now, let’s explore these countries in more detail.
Best Offshore Software Development Countries in Eastern and Central Europe
Eastern and Central Europe has become one of the top offshore outsourcing destinations. Here are a few reasons why.
- Highly Skilled Workforce
Eastern European countries put a big emphasis on education, especially in STEM (Science, Technology, Engineering, and Mathematics) fields.
Ukraine, Poland, Czech Republic and Romania produce a lot of IT graduates every year.
There is a culture of continuous learning and professional development in IT, many professionals have certifications and advanced degrees.
- Cost
IT services in Eastern Europe are much cheaper than in Western Europe and North America.
So you can outsource without compromising on quality.
- Quality
Eastern European IT professionals are known for their technical skills and ability to handle complex projects.
The region is good fit for any kind of IT project with its innovative approach and creative problem solving.
- Cultural Fit
Work ethic and professionalism in Eastern Europe is very close to Western standards, so collaboration is smoother.
English proficiency of IT professionals ensures good communication with international clients.
- Solid IT Infrastructure
Eastern Europe has modern IT infrastructure, high speed internet and technology parks.
Many governments in the region support IT sector through incentives, grants and tech hubs.
So if you are thinking to hire a dedicated development team from Eastern Europe, here are the options to choose from: Ukraine, Poland, Czech Republic and Romania.
Ukraine
Ukraine is a great destination for software development outsourcing due to several key factors.
The country has a strong talent pool, with over 363,000 IT professionals, and it ranks high in global skill assessments.
Ukrainian developers are skilled in many programming languages, such as Java, Python, and JavaScript, and the country consistently ranks among the top in international coding competitions like Google Code Jam and TopCoder.
One of the main attractions of outsourcing to Ukraine is a huge talent pool, great work ethic, fast and frictionless recruiting process, and cost efficiency.
The average hourly rate for software developers in Ukraine varies based on their level of experience. The rate ranges from $20 to $50 per hour.
Despite the lower cost, the quality of work is high, as Ukrainian developers adhere to international standards and best practices. For example, many Ukrainian IT outsourcing companies have achieved ISO and CMMI certification benchmarks for quality and process improvement.
The Ukrainian software industry has a proven track record of success in a range of industries. For example, Grammarly, a widely used writing assistant tool, was developed by Ukrainian engineers.
Viewdle was a Ukrainian company that developed facial recognition and computer vision technology. Founded in 2006, it specialized in software for mobile devices that could recognize faces and objects, useful for apps in gaming, social networking, and augmented reality.
In 2012, Google bought Viewdle through its Motorola Mobility unit to boost Android’s augmented reality and facial recognition features.
Viewdle’s technology has significantly influenced mobile devices’ visual search and recognition. This technology is at the core of the YouTube search mechanism.
Ring Labs, which specializes in video surveillance systems, was acquired by Amazon to enhance its home security products.
Another success story is GitLab, a leading DevOps platform, which was initially co-founded by a Ukrainian developer.
In fact, many successful tech companies employ talented Ukrainian engineers. They are highly valued for their skills and professionalism.
If you want to learn more about DevOps specialists, check out our DevOps glossary that covers key terms to help you stay on top of DevOps practices and tools.
Poland
Poland is another top outsourcing destination in Europe.
Poland boasts over 400,000, IT professionals, with a large number of graduates from prestigious universities each year.
The country has a well-developed infrastructure and numerous tech parks, especially in cities like Warsaw, Kraków, and Wrocław.
The average hourly rate for IT services in Poland ranges from $50 to $99 per hour, depending on the industry and the complexity of the services provided.
Popular outsourced services include software development, business process outsourcing (BPO), IT support, and fintech solutions.
One of the biggest issues to be aware of when considering Poland as an outsourcing provider is higher costs compared to other Eastern European countries. You can hire even more skilled specialist at a lower price is you choose to outsource from Ukraine, for example.
Czech Republic
The Czech Republic is renowned for its stable economy, high-quality technical education, and advanced IT services.
There are over 150,000 IT professionals, with a steady influx of graduates from technical universities.
Its central European location makes it an ideal hub for serving European clients.
IT services from Czech Repulic cost between $35 and $60 per hour.
Western companies can benefit from their software development, R&D, quality assurance, and IT consulting services.
Despite that, there is a smaller talent pool and higher costs compared to other Eastern European countries. So, finding a developer with the required expertise can take a lot of time and effort.
Romania
Romania has a large talent pool with strong skills in software development, engineering and digital marketing.
There are around 120,000 IT professionals in Romania and many new graduates entering the market every year.
The hourly rate for IT services in Romania is between $30 and $55.
Bucharest, Cluj-Napoca and Iași are the main IT hubs.
They offer software development, mobile app development, digital marketing and engineering services.
And Romania is part of the European Union so regulatory alignment with Western Europe and a sense of trust and security for the clients.
However, there might be communication barriers due to varying levels of English proficiency and potential risks for higher cultural differences.
Best Countries for Offshore Software Development in Asia
The Global Services Location Index (GSLI) ranks countries’ performance in outsourcing business services. It considers costs, skills, business conditions, and digital readiness. In 2021, India ranked the highest.
Seven of the top ten countries were in Asia-Pacific: India, China, Malaysia, Indonesia, Vietnam, the Philippines, and Thailand.
So, let’s explore what services these countries offer and how you can benefit from them.
India
India is particularly known for its IT services and software development.
Many global companies, such as Microsoft and IBM, have significant operations in India.
The country graduates many engineers every year, providing a steady supply of skilled workers.
Additionally, the cost of labor in India is much lower than in Western countries, which helps businesses save money while maintaining high quality.
India has over 4 million IT professionals, with thousands of new graduates entering the workforce annually.
The average hourly rate for IT services in India ranges from $15 to $45, making it highly cost-effective.
Popular outsourced services: software development, IT support, business process outsourcing (BPO), and customer service.
However, there are some drawbacks to outsourcing to India.
One potential issue is communication barriers. While many Indian professionals speak English, differences in accents, cultural nuances, and communication styles can sometimes lead to misunderstandings.
Another challenge is time zone differences, which, while beneficial for continuous work, can also make real-time collaboration and meetings more difficult.
Quality control can also be a concern; the level of expertise and quality of work can vary widely between providers, requiring careful selection and management of outsourced teams.
Taiwan
Taiwan is also a strong destination for outsourcing, especially in technology, manufacturing, and semiconductor production.
The country has a highly skilled workforce with a strong emphasis on education, especially in engineering and technology. This makes Taiwan a hub for high-tech industries and advanced manufacturing.
The average hourly rate for IT services in Taiwan in 2025 ranges between $25 to $40.
The country’s developers are known for their technical skills and innovative approaches. Taiwan also benefits from strong intellectual property laws and a stable business environment, which are crucial for companies looking to protect their innovations and investments.
It’s strategic location in East Asia also provides easy access to other major markets in the region, including China, Japan, and South Korea.
Companies like Apple and Nvidia have significant operations in Taiwan, taking advantage of the country’s advanced technological capabilities and skilled workforce.
However, you may face issues like limited availability of developers with specific niche skills and potentially higher costs compared to other Asian countries.
Philippines
The Philippines IT Outsourcing market will reach US$715.50 million by 2024.
This will continue to grow at a rate of 12.39% CAGR 2024-2029 and reach US$1,283.00 million by 2029.
The Philippines is good at customer support and back office.
Filipinos are good in English and friendly so good for customer service.
The Philippines is a strategic destination for IT outsourcing, talent, cost and cultural fit.
The average hourly rate for IT services in the Philippines in 2025 is $25-$40.
Big companies like American Express and JPMorgan Chase outsource their customer support to the Philippines because of good service at a lower cost.
Despite the obvious benefits, there are hidden risks in working with developers in the Philippines.
These are time zone differences that can hinder real-time collaboration and quality variation in work due to different education and training standards.
Latin America
There are over 2000 software development companies in the region, according to Clutch.
Most of them specialize in mobile and web development, as well as consulting and management services.
Countries like Argentina, Brazil, and Mexico are also excellent choices for outsourcing.
They offer skilled workforces, cost advantages, and cultural compatibility with North America and Europe.
Let’s dive in.
Argentina
Argentina is known for its strong tech talent and innovative approach to software development.
The country has a growing number of IT professionals who are well-versed in modern programming languages and technologies.
Argentina has a growing number of IT professionals with strong technical skills.
The average hourly rate for IT services in Argentina ranges from $25 to $50.
Argentina also benefits from a time zone that is close to North America’s, making real-time collaboration easier.
Companies like Globant and MercadoLibre are examples of successful tech companies that have their roots in Argentina.
However, businesses should be aware of currency fluctuations and economic instability that can affect the cost and reliability of long-term projects.
Brazil
Brazil is one of the biggest economies in Latin America and has a growing IT industry.
Brazil has a large pool of IT professionals with various technical skills.
Hourly rate for IT services in Brazil is between $25 to $55.
Outsourced services include software development, IT support, digital marketing and business process outsourcing.
Portuguese is the main language but many IT professionals speak English.
Keep in mind time zone differences and potential political and economic instability.
Mexico
The country has a growing IT industry with many developers and engineers.
Mexico is a big tech market in Latin America, focused on software development, fintech and e-commerce. It’s 12th in the world and 3rd in Latin America and the Caribbean for innovation.
Hourly rate for IT services in Mexico 2025 is between $25 to $50. This rate may vary depending on the type of IT service and level of expertise.
The country has government programs, tech parks and startup investments to support its tech industry. From 2020 to 2021 Mexico had over 700,000 developers and 3 million STEM professionals, big pool of tech talent.
Also, the culture and business practices in Mexico are very similar to US, so integration is easier. Labor cost is also lower, so economic benefits.
Softtek and Kio Networks are examples of Mexico’s IT services and solutions.
Even though it might be tempting to hire developers from Mexico, be aware of potential security concerns and legal issues regarding intellectual property protection.
Learn about the most impactful cybersecurity trends to safeguard sensitive data and prevent breaches.
How To Choose a Country to Outsource?
Now that we’ve covered some of the best countries for offshore software development, let’s see how to choose the best one.
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Understand Your Needs
First, identify what tasks or projects you want to outsource.
Different countries excel in different areas.
For example, if you need to build a SaaS solution, countries like Ukraine or Taiwan might be ideal due to their strong tech talent.
For customer service, the Philippines is a popular choice.
Not sure which software model is right for you? Explore the ASP model vs SaaS model breakdown.
-
Check Time Zones
Consider the time difference between your country and the potential outsourcing destination.
Closer time zones allow for better real-time communication and collaboration.
For instance, if you’re in North America, outsourcing to Latin America might be beneficial because of the minimal time difference.
But if you want your business to work round the clock or you are targeting new markets, collaboration with specialists in different time zones is a great choice.
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Consider Сultural Differences
Cultural compatibility can impact how smoothly your project runs.
Look for countries that have similar work ethics and business practices.
For example, Western businesses often find cultural similarities with Eastern European countries like Poland and Ukraine, which can ease collaboration.
-
Ensure English Level
Effective communication is crucial for outsourcing success.
You want to make sure that the professionals in the country you choose have a good command of English.
Countries like Ukraine and Poland have high English proficiency. Working with specialists from these countries can reduce misunderstandings and improve project outcomes.
-
Review Similar Business Values
Look for countries that share similar business values and standards.
This includes work quality, punctuality, and professionalism.
Countries with a strong emphasis on education and innovation, such as Taiwan, Argentina, or Ukraine, can align well with businesses prioritizing high-quality output.
Check out our recent article
Outsourcing Risks and How to Mitigate Them
Outsourcing can offer many benefits, such as cost savings, access to specialized skills, and increased efficiency. Explore more of IT outsourcing benefits and pitfalls in our recent blog.
However, it also comes with several risks that need to be managed.
Upcity’s 2022 poll of 600 small businesses in the US and Canada found that 23% see high costs as the biggest challenge when working with outsourced teams.
Other problems include communication difficulties (21%), missed deadlines (14%), and teams not following instructions (12%).
Here are some common risks and how to mitigate them.
Risk: Work quality won’t meet the mark.
Mitigation:
- Set clear quality standards.
- Create Service Level Agreements (SLAs).
- Have regular performance reviews and audits.
- Choose vendors with a history of quality.
Risk: Data and IP exposure.
Mitigation:
- Have robust security protocols and data encryption.
- Do background checks on vendors.
- Use non-disclosure agreements (NDAs).
- Review and update security policies regularly.
Risk: Miscommunication leads to misunderstandings and project delays.
Mitigation:
- Set up clear communication channels and protocols.
- Track progress and updates with project management tools. Here are the best project management software options available today.
- Schedule regular meetings and status updates.
- Ensure cultural and language alignment where possible.
Risk: Unexpected costs will wipe out financial benefits.
Mitigation:
- Create a detailed contract with all costs outlined.
- Include clauses for extra work and scope changes.
- Monitor the project budget.
- Have a contingency fund for unexpected expenses.
Risk: Business culture and practices will clash.
Mitigation:
- Provide cultural training for in-house and vendor teams.
- Choose vendors with similar cultural and business values where possible.
Risk: Non-compliance with local and international laws will get you into legal trouble.
Mitigation:
- Verify the vendor is compliant with relevant regulations.
- Include compliance requirements in the contract.
- Review and update compliance policies regularly.
- Get legal advice to understand and mitigate legal risks.
Risk: Vendor actions will reflect on your company.
Mitigation:
- Choose reputable vendors with strong ethics.
- Monitor vendor activity and public perception.
- Include reputational risk clauses in contracts.
- Be open with stakeholders about outsourcing.
By being aware of these risks and implementing strategies to mitigate them, companies can maximize the benefits of outsourcing while minimizing potential downsides.
Looking for a Reliable Tech Partner?
Outsourcing has become essential for businesses worldwide, helping them reduce costs, access specialized skills, and improve efficiency.
This guide explores the best countries for outsourcing software development in 2025, focusing on their unique strengths, such as skilled talent, cost efficiency, and strong infrastructure.
Key destinations include Ukraine, Poland, the Czech Republic, Romania, India, Taiwan, the Philippines, Argentina, Brazil, and Mexico.
In Eastern and Central Europe, countries like Ukraine and Poland offer highly skilled workforces, cost-efficient services, and high-quality work. For example, with its large pool of IT professionals, Ukraine is known for cost-efficient and high-quality software development.
In Asia, India leads in IT services with a vast number of engineering graduates, ensuring a steady supply of skilled workers at lower costs. The Philippines excels in customer support and back-office services, with strong English proficiency and a cost-effective labor market.
Latin America also presents viable options, with countries like Argentina and Mexico offering skilled tech professionals, cultural compatibility, and cost benefits.
Choosing the best country to outsource software development can be intimidating.
But don’t worry, we’ve got you covered! At SpdLoad, we specialize in software development outsourcing.
Our clients appreciate the expertise, quality, and transparency of our services. Feel free to check out our reviews on Clutch.
Contact us today to explore how we can drive your tech projects forward!
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