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The best countries for Offshore Software Development

Uncertainty in the global economy is one of the main reasons why many tech companies are outsourcing their software development to countries all around the world. In fact, in the next four years, the global IT outsourcing market is set to reach $682.3 billion.

That’s why every country is trying to provide the best software outsourcing services and make a name for themselves.

In this article, we will look into the 10 best countries for outsourcing software development. We will cover the pros and cons, average outsourcing rates, and time zones of these countries.

Read on for details.

10 Best Offshore Software Development Countries

To make it more relevant, we have categorized the country according to regions and sorted them accordingly. 

Asia Region

Asia is well known for its offshore offerings, ranging from call centers to manufacturing services โ€” and the software development space is no exception. The region is particularly appealing for its wealth of available professionals at a relatively low cost.

In no particular order, hereโ€™s a list of popular outsourcing countries in the Asia region.

1. Nepal ๐Ÿ‡ณ๐Ÿ‡ต

Nepal has recently revitalized its education systems to focus on digital skills, making it a growing tech hub for outsourcing IT services.

Each year, over 5000 college graduates enter the technology and business process outsourcing industries.

Timezone: UTC +5:45

Pros: 

  • Low labor cost – making outsourced software development relatively inexpensive.
  • Experienced in IT outsourcing with 100+ IT outsourcing companies providing the services.
  • Thousands of IT graduates (5000+) join the industry every year. 

Rates: Hourly rates of < $25 โ€“ $40

Cons:

  • The country has a fairly basic data protection law, meaning customers have to identify outsourcing companies that abide by additional standards.
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2. India ๐Ÿ‡ฎ๐Ÿ‡ณ

India has one of the world’s largest populations and is a major provider of IT outsourcing services, which makes it possible to obtain high-quality services at a cost-effective rate.

Timezone: UTC +5:30

Pros: 

  • India has a large population and a vast pool of talent.
  • There is a highly skilled tech workforce with 2.6 million STEM graduates produced annually. 
  • A wide variety of services are available in software engineering, web, and app development.

Rates: Hourly rates of < $25 โ€“ $50 

Cons:

  • Data security can be an issue, it is recommended to find a provider with relevant ISO certification.
  • Fluctuating exchange rates may affect hiring costs.

3. China ๐Ÿ‡จ๐Ÿ‡ณ

China is considered a good option for outsourcing IT services for several reasons:

Timezone: UTC +8

Pros:

  • China has a large, highly educated, and skilled workforce, making it an ideal destination for outsourcing IT services.
  • A vibrant tech industry and home to some of the world’s fastest-growing IT companies.
  • China is a big market for software and technology products which gives companies an opportunity to tap into the local market and also test their products before exporting them
  • The country has a rapidly growing talent pool with over 4.7 million tech graduates every year.

Rates: Hourly rates of $50 โ€“ $80

Cons: 

4. The Philippines ๐Ÿ‡ต๐Ÿ‡ญ

Timezone: UTC +8

Pros: 

  • Communication is not a problem as a large population speaks English.
  • A renewed education system has resulted in many high-quality graduates in the last few years. 
  • Low costs due to the low global value of the Filipino peso.

Rates: Hourly rates of < $25 โ€“ $50

Cons: 

  • The time difference with major markets can be an issue.
  • The Phillipnes’ IT market is less mature compared to other countries, such as China.

5. Vietnam ๐Ÿ‡ป๐Ÿ‡ณ

Timezone: UTC +7

Pros: 

  • Vietnam has a strong outsourcing market, which is a major contributor to its economy. 
  • The economy of Vietnam is stable and has seen a growth of 2.9% during the COVID-19 pandemic, which helps to maintain steady hiring costs.
  • The country offers skilled tech talent at low costs.

Rates: Hourly rates of < $20 โ€“ $40 

Cons: 

  • Vietnam currently lacks a unified data protection law, which could put a company’s intellectual property at risk.
  • There is little to no time zone overlap with most major markets. 

The benefits of outsourcing from Vietnam and Nepal are alike but there are a few key areas that make Nepal the perfect for your offshore development needs โ€“ book a 15-min call to learn more.


South America

South America is an attractive destination for North American companies seeking outsourced talent due to the lower cost of staff, a high proportion of English-speaking professionals, and similar time zones.

However, Latin American outsourced software development companies tend to be more expensive than those in Asia and Eastern Europe.

6. Brazil ๐Ÿ‡ง๐Ÿ‡ท

Timezones: UTC -2, -3, -4, -5

Pros: 

  • A young workforce, with around 38.2% of the country’s population under 25.
  • The country is known for providing good junior developers, who can be brought in to fill a company’s team.
  • The country is making efforts to improve its STEM education.

Rates: Hourly rates of $30 โ€“ $55  

Cons: 

  • A shifting political environment makes it difficult for foreign investment. 

7. Argentina ๐Ÿ‡ฆ๐Ÿ‡ท

Timezone: UTC -3

Pros: 

  • Argentina is one of the most educated countries in Latin America, with a growing software engineering sector.
  • The country has a strong focus on innovation and has established tech parks to encourage tech development.
  • The time difference with much of Easter and the Central United States is minimal. 
  • Offshore software development companies in Argentina boast high retention.

Rates: Hourly rates of $30 โ€“ $55  

Cons: 

  • High inflation rates may lead to increasing costs.
  • Limited availability of developers specialized in niche technologies.

Eastern Europe

Eastern European countries have gained a reputation for having top-notch resources and strong educational programs. Additionally, they tend to have competitive prices and a high proficiency in spoken English.

This makes them an attractive option for Western European countries in similar time zones. 

8. Romania ๐Ÿ‡ท๐Ÿ‡ด

Timezone: UTC +2

Pros: 

  • Romania has a growing IT industry, producing thousands of new software developer graduates annually. 
  • The country has a successful high-tech unicorn, UiPath, which indicates a growing interest and demand for developers in the tech space.
  • It’s located in Central Europe allowing for significant time zone overlap with Western Europe and North America.

Rates: Hourly rates of $25 โ€“ $45

Cons: 

  • Many Romanians migrate to other countries for work, which can result in lower availability of talent. 
  • The costs for outsourcing IT services may be higher when compared to countries in Asia.

Outsourcing your development needs to a country based in a similar timezone may pose fewer perceived risks but may also decrease the benefits of a wider talent pool, decreased costs, and round-the-clock remote development โ€“ book a 15-min call to learn more.

9. Poland ๐Ÿ‡ต๐Ÿ‡ฑ

Timezone: UTC +1

Pros: 

  • Poland has a robust software development landscape, with over 100 companies dedicated to software development, compared to other countries in the region.
  • The country is a member of multiple organizations (including NATO, WTO, and EU), which ensure secure data sharing and storage.
  • 30% of the Polish population speaks English, reducing the language barrier.

Rates: Hourly rates of $35 โ€“ $55

Cons: 

  • The cost of outsourcing IT services tends to be higher than in other countries in the region.
  • High competition in the space can lead to a high rate of talent turnover.

10. Ukraine ๐Ÿ‡บ๐Ÿ‡ฆ

Timezones: UTC +2, +3

Pros: 

  • Ukraine has a large and growing pool of professionals, with an increase of 30,000 specialists per year in the past decade.
  • The country has a solid history of outsourcing software development.

Rates: Hourly rates of $30 โ€“ $55

Cons: 

  • The ongoing conflict with Russia poses safety concerns for individuals working within its borders.

Summary: Best countries for Offshore Software Development

CountryRatesTime zone
Nepal < $25 โ€“ $40 / hrUTC +5:45
India< $25 โ€“ $50 / hrUTC +5:30
China$50 โ€“ $80 / hrUTC +8
The Philippines< $25 โ€“ $50 / hrUTC +8
Vietnam< $20 โ€“ $40 / hrUTC +7
Brazil$30 โ€“ $55 / hrUTC -2,-3,-4,-5
Argentina$25 โ€“ $100 / hrUTC -3
Romania$25 โ€“ $45 / hrUTC +2
Poland$35 โ€“ $55 / hrUTC +1
Ukraine$30 โ€“ $55 / hrUTC +2,+3

What makes a country best for offshore software development?

When considering outsourcing software development, each country has its own advantages and disadvantages. The best country for your business will depend on your specific needs.

However, there are certain factors that make a country a good choice for offshore software development.

  • Lower cost of living which allows access to expertise at a more affordable rate.
  • Quality education that deepens the pool of talented developers.
  • High business standards that establishes trust in receiving what was agreed upon.
  • International standards laws for data and IP protection. 

Tips to choose the right country for outsourcing software development

By now, you should have a good understanding of what to consider when selecting a country for outsourcing your software development.

Here are some tips to keep in mind when making your choice:

  • Look for a country with specialized developers in the specific type of work you need.
  • Evaluate the country’s business environment to ensure it aligns with your company’s work style.
  • Ensure that the country has a high proportion of English-speaking professionals to facilitate communication.
  • Take into account the time zone. Will you have any overlap with the team so that you can have meetings and review their work in real-time? 
  • Compare the average rates. Are they lower than what you would pay for in-house development? 

The above points will help you weed out the countries that donโ€™t make sense for your business and allow you to choose a region that best fits your outsourcing needs.

Roshan & Babish
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