Software development outsourcing plays a vital role in many companies’ business success, and choosing the right partner is critical. Today’s IT market is generally divided between India, China and Eastern European countries, with the overwhelming majority of software created by experts from these regions. Why should companies decide on IT outsourcing in Eastern Europe and what are the advantages of doing so? Read on to find out.
IT Outsourcing in Eastern Europe at a Glance
According to outsourcing advisory firm Accelerance, Asian countries provide the cheapest IT outsourcing services, with average hourly rates ranging from $20 to $50 (as a comparison, the figure is $22–$67 in Eastern Europe). It’s not only the low cost, however, that is important for clients: they are more likely to focus on quality, a business-friendly environment, reliability and proximity.
For this reason, Eastern Europe has become an increasingly attractive outsourcing region. Bulgaria, Romania, Hungary, Ukraine and Belarus are always listed as the best countries to outsource software development to, and developers from Eastern Europe are at the heart of the most successful teams around the world. And although outsourcing companies in Eastern Europe can’t offer rates that are as low as those from the Asian region, they are still reasonable.
The benefits are significant, but software development in Eastern Europe also comes with certain drawbacks. These are as follows:
- Higher costs than in the Asian region (but these are compensated by other benefits)
- Different cultural mindset (but it has been westernizing in recent years)
- Fewer providers (but the market is continually growing)
In our opinion, the benefits, described below, by far outweigh the disadvantages. We consider these to be the best assets of IT outsourcing in Eastern Europe. Let’s check out two different outsourcing models — offshoring and nearshoring to Eastern Europe.
Benefits of IT Offshoring to Eastern Europe
|Offshoring — outsourcing to companies that are located in remote countries||Cheap labor|
Greater risks, language barriers, cultural differences, different time zones
|The US, Canada, Australia|
Eastern European countries are well known for their high-quality educational systems, especially regarding IT training. As software engineering is a highly attractive profession, special focus is given to math, science, technology and engineering disciplines.
In addition to possessing excellent educational qualifications, Eastern European IT experts are reputed to be skilled, motivated, talented and knowledgeable. They provide high-quality services and can address complex technical problems.
The average salary of programmers in Eastern Europe is significantly lower than that of programmers from Western Europe or North America. Customers can substantially trim their budgets without compromising quality.
In Eastern Europe, outsourcing companies abide by strict data protection legislation, such as General Data Protection Regulation (GDPR) and others. This ensures enhanced confidentiality and protection of clients’ sensitive information.
Outsourcing to India or China, on the contrary, may bring many problems with data security, since laws in those countries differ tremendously. There’s always the risk of confidential data leakage, which is why you need to take appropriate administrative and legal measures and discuss these with your outsourcing partner.
Quite often, the language barrier is a significant obstacle to a solid partnership in other regions. The majority of Eastern European engineers are highly proficient in English and other European languages (for example, SaM Solutions’ specialists are fluent in German as well). This crucial benefit helps mitigate many issues.
Benefits of IT Nearshoring to Eastern Europe
|Nearshoring — outsourcing to companies located in nearby countries||Fewer risks, higher quality, reasonable prices, convenient business environment, geographical proximity|
A well-balanced cooperation model
|Western, Central and Northern Europe|
Neighboring countries share similar cultural traditions, business values and personal qualities that allow vendors and their clients to work in an atmosphere of mutual understanding. On the other hand, when teams belong to entirely different cultures, they may face ambiguity and misunderstandings that are disastrous when it comes to working as an integral unit.
There’s either no time difference or, at most, a three-hour difference between European countries. This saves time and allows companies to arrange real-time meetings, which leads to more effective collaboration with nearshoring companies. Traveling to your partners for personal meetings is also not difficult or time consuming.
Meet Your Reliable IT Outsourcing Partner: SaM Solutions
Whether your company needs to build software but is not in the IT industry, or you’re a software provider lacking specific expertise, SaM Solutions is at your service. We are a long-standing provider of software development services in IT, and have been outsourcing for more than 27 years.
During this time, we have gained substantial experience in various technologies, IT verticals and business domains — custom software engineering, e-Commerce and CX, IoT, embedded and mobile software development, and others. We’ve also earned the trust of Siemens, Fujitsu, Kaspersky, the Instant Group, European Patent Office, and many other SMEs and multinational corporations. Our company is a Gold Microsoft Partner, SAP Silver Partner and a trusted partner of Oracle, Toradex, Coveo and FPX.
SaM Solutions has offices in various European countries and the US to enhance communication with our partners and fix any short-notice issues. We create reliable, efficient and secure solutions. With our software development services, our clients reduce costs while focusing on their competencies and keeping their working processes intact.
To learn more about SaM Solutions, our services and outsourcing rates, contact us today.