10 Best Countries to Outsource Software Development
Your company has decided to take the plunge and outsource. Yet, as soon as you decide, a new challenge arises: where exactly should you outsource? This adds another layer to your existing hurdles and can lead to frustrating delays, jeopardizing your business goals.
But don't worry, we've got your back. In this article, we'll guide you through the decision-making process and give your project the push it needs. We’ll showcase the top outsourcing solutions and countries to consider.
So, what are you waiting for? Dive into this article and make your choice!
What is Outsourcing?
You might have heard of outsourcing, especially in the business world. It’s a business strategy where you can delegate tasks, processes, or functions to external parties rather than handling them internally. In simpler terms, it's like hiring someone else to do specific work for your company.
But what are these tasks, you may wonder?
Well, they can be pretty much anything. Many businesses outsource customer service, manufacturing products, designing websites, or handling finances. Instead of doing all of these things in-house, a company can hire someone else to do them. That someone else is called an outsourcing partner.
In the context of software development, outsourcing involves hiring developers, engineers, or teams from other countries like the Philippines to work on software projects remotely. Not only do you get to tap their expertise, but you also get to save as much as 80% on labor costs.
Types of outsourcing
While there are many services you can outsource, including software development, there are also types of outsourcing you can explore.
Onshore outsourcing
Also called domestic outsourcing, onshore is when you hire professionals within the same country. Popular services to outsource for this type are customer support, legal services, and payroll management.
Nearshore outsourcing
When you hire services in a nearby country, it is called nearshore outsourcing. This type is often done because they can get the job done at a lower cost without the hassles of a long-distance partnership.
Offshore outsourcing
Another type is offshore outsourcing. This approach is when you hire someone from a different country, often on the other side of the world. It can be cost-effective but comes with challenges like dealing with different time zones and cultural differences.
Remote staffing
Remote staffing is a type of outsourcing where you hire individuals or teams to work remotely from various locations. It's like having a virtual team of professionals who contribute to your projects without being physically present in your office.
For instance, you can partner with remote staffing companies such as MultiplyMii, which can tap remote skilled Filipino professionals for you and help you lessen expenses on hiring and onboarding.
Remote staffing has gained popularity. 20% of job seekers in the US are looking only for remote work. This has been made possible due to technological advancements and the ability to collaborate effectively over the Internet.
Types of Software Development Services To Outsource
Outsourcing is a smart move for businesses looking to save time and resources while getting high-quality software. Explore some of the areas where outsourcing can make a big difference.
Here, we’ll discuss the different types of software development that you can outsource to experts.
Web development
Web development is the process of building websites and web applications. When outsourcing web development, you hire experts who can design, develop, and maintain your online presence.
For example, you can work with MultiplyMii and hire a remote web developer (and save 73% on labor costs) to create an eCommerce website.
Mobile application development
Here’s a little insight into how booming mobile application development is: by 2024, consumer app spending may hit $115.4 billion in the App Store and $55.5 billion in Google Play.
Mobile application development is about creating smartphone and tablet apps. Do you have a unique app idea but lack the technical expertise to build it yourself? Outsourcing this type of development can be a great choice.
Security software development
Around 30,000 websites are hacked every day. Security software development focuses on creating software that protects your digital assets from threats like viruses, malware, and cyberattacks.
Companies often outsource the development of their security software to ensure it can counter new threats and vulnerabilities.
Software tools development
Software tools development involves creating programs that help businesses and individuals work more efficiently.
Imagine you're looking to improve project management within your team. Outsourcing the development of a tool like Asana or Trello can be highly beneficial. These project management tools can help your business organize tasks, collaborate with team members, and track project progress.
Embedded systems development
Embedded systems development is centered around creating software that runs inside various devices. These can be smart home appliances, medical equipment, or automotive systems.
Data science and reporting software development
If your business relies heavily on data analysis, you can outsource the development of data analysis tools like Tableau or Power BI. These tools can help you explore and interpret data, create insightful reports, and gain valuable insights into your operations.
Application programming interface (API) development
API development is creating interfaces that allow different software programs to communicate and share data.
For instance, social media platforms like Twitter provide APIs that allow other apps to access their data, such as displaying tweets in a mobile app.
Outsourcing API development can help you expand the functionality of your software by connecting it to other services and platforms.
Operating systems development
Operating systems development focuses on creating the core software that manages and controls the hardware of devices like computers and smartphones. Outsourcing this service can help with the stability and performance of essential platforms.
Many successful businesses, large and small, leverage outsourcing to bring their software ideas to life and stay competitive in today's technology-driven world.
10 Best Countries To Outsource Software Development
Certain countries excel in software development, establishing themselves as popular outsourcing destinations. So, we’ve compiled a list of the ten best countries to outsource software development in the list below:
Asian countries
The Philippines
The Philippines has a thriving business process outsourcing (BPO) industry that extends to software-related services. The Philippine BPO industry contributes nearly $30 billion to its economy each year. The country is known for its skilled, English-speaking workforce, making it an attractive destination for outsourcing.
India
India is another powerhouse in the software development outsourcing industry. It's known for its large talent pool, cost-effective solutions, and a robust IT infrastructure. Many multinational corporations trust Indian expertise for their software needs.
China
China's service outsourcing industry has been rapidly growing and gaining international recognition. They have companies like Huawei and Alibaba, which have become global giants in the technology sector. These offer comprehensive software solutions along with their hardware products. It showcases China's potential as a destination for outsourcing software development, especially if you need innovative tech solutions.
Taiwan
Taiwan is renowned for its hardware manufacturing, and companies like Asus and Acer are household names in the tech world. They rely on software development teams to create user-friendly interfaces and optimize their products' performance. Taiwan is a reliable choice if your software project is closely tied to hardware.
Eastern European countries
Poland
Poland has rapidly emerged as a software development hotspot in Eastern Europe. Its workforce is known for its strong technical skills and proficiency in English, making communication with international clients smooth.
Ukraine
Ukraine boasts a vast pool of talented software developers. Their expertise is sought after globally due to their strong technical knowledge and cost-effectiveness.
An illustrative example is GitLab, a popular platform for software development and collaboration. GitLab has outsourced part of its development work to Ukraine, leveraging its skilled workforce.
Czech Republic
The Czech Republic provides a stable and innovation-friendly environment for software development. Its lower wages compared to other European countries have attracted Western companies.
Companies like Avast, known for their antivirus software, have their roots in the Czech Republic. They have flourished by focusing on cutting-edge technology and cybersecurity solutions.
Romania
Romania offers a combination of affordability and skilled talent.
Bitdefender, a renowned cybersecurity company, is a testament to Romania's software development prowess. Bitdefender's success demonstrates that Romania is an attractive destination for businesses seeking high-quality software solutions.
Latin America
Argentina
Argentina boasts a workforce with a strong focus on software development.
Globant is a standout company providing software solutions for clients worldwide. Their success highlights Argentina's capability to deliver high-quality software and innovative solutions globally.
Brazil
Brazil has a vibrant tech scene, with companies like CI&T making significant strides in software development. CI&T is recognized for its digital solutions and consulting services, emphasizing Brazil's potential as a destination for software outsourcing.
Choosing the best country for outsourcing software development should align with your project's specific needs, budget, and objectives. These countries listed above offer diverse options. Conduct thorough research and consider your project's unique requirements before deciding.
How To Choose a Country To Outsource?
Selecting the right country to outsource to is crucial for the success of your business. Check out these key factors to make the best choice.
1. Know what you are looking for
Have a clear understanding of your objectives. Are you primarily seeking to reduce costs, tap into specialized skills, or both?
If your primary goal is cost savings, look to countries with lower labor costs, like India. Countries with a robust IT sector, like Ukraine or Poland, might be a better fit if you need specific technical skills. And if you’re looking to save costs and hire top-quality talent, consider the Philippines or Czech Republic.
2. Draw attention to time zones
Time zone differences can facilitate or hinder effective communication. If your projects require real-time collaboration, choosing a country with a time zone that allows for overlapping working hours is crucial.
For instance, if your company is based in the United States, countries in Latin America, such as Mexico or Brazil, may provide more convenient time zone alignments than Asian countries.
3. Consider cultural differences
Cultural alignment can significantly impact the success of an outsourcing partnership. Different cultures have varying work styles, communication preferences, and attitudes toward authority.
To avoid misunderstandings and ensure smooth collaboration, seek countries with cultural values that align with your organization's culture.
4. Determine English proficiency
Effective communication is crucial in outsourcing relationships, especially if English is your primary language of communication. Assess the English proficiency of potential outsourcing destinations. A high level of English proficiency, like that found in the Philippines, India, or South Africa, can facilitate clear and efficient communication.
5. Find similar business values
Building strong, ethical partnerships often hinges on shared values and principles. Research the business practices and regulatory environment in the country you're considering. Make sure they align with your organization's standards and ethics.
6. Evaluate costs
While cost-effectiveness is a significant driver for outsourcing, it's essential to look beyond labor costs. Consider infrastructure, taxes, legal regulations, and hidden expenses that may impact your overall cost savings.
For instance, while countries like the Philippines offer competitive labor costs, you should also factor in the costs of setting up and maintaining operations.
7. Check popular programming languages
If your outsourcing needs pertain to software development or IT services, it's crucial to assess the popularity of programming languages in the potential outsourcing destination.
A strong talent pool with expertise in the required programming languages can streamline your project development. For example, Ukraine is renowned for its proficient IT workforce skilled in Python, Java, and C++.
Choosing the right country for outsourcing is a complex decision requiring a thorough evaluation of your needs and preferences.
Unlock Savings and Supercharge Your Software Development with Remote Filipino Professionals
Getting top-notch talent is essential to ensure successful software development projects.
Lucky for you, connecting with the best Filipino remote professionals is what we excel at here at MultiplyMii.
We specialize in finding the top 5% of talent, and our remote staffing solutions have a track record of successful hires.
Moreover, by working with us, you boost your software projects while minimizing costs.
So, don't miss out on the opportunity to elevate your software development—join the ranks of satisfied clients who have harnessed the power of MultiplyMii's expertise.
