8 Best Countries for Software Development Outsourcing in 2022

When outsourcing software development, it is essential to consider a range of factors to ensure the best outcome. These include cost reduction, access to the local IT market and educational infrastructure, time zone differences, cultural barriers and communication skills. Taking these into account will enable companies to make informed decisions when selecting the right country for their development needs.

After defining your business requirements for outsourcing software development, it’s time to explore the best destinations to find skilled developers worldwide. Discover the top eight countries featured in this article for outsourcing your software development.

The ideal destination for outsourcing software development

  1. India

    Renowned as a leading provider for Information Technology (IT) staff, India is second only to China. Favored by software engineers for its competitive salaries and exceptional talent pool, there are around 500,000 Indian developers working on assignments for corporations in Europe and the United States. This highlights India’s IT expertise and experience.

    India offers businesses an attractive range of advantages, including cost-effective labour, favourable governmental policies for investments from overseas, excellence in cutting-edge technology, expansion of infrastructure, and a highly skilled workforce – making it an ideal destination for outsourcing operations to significantly improve a company’s profitability.
    • Developer population: Over 3 million
    • Proficiency in English: 14.18% of the population
    • Time Zone Differences: 10 hours and 30 minutes ahead of the United States
  2. Ukraine

    The Ukrainian government has placed significant emphasis on software education, resulting in a thriving IT sector in the country. Additionally, Ukraine boasts the world’s largest concentration of C++ programmers.
    Although English isn’t the most commonly spoken language in the world, the Information Technology (IT) industry overwhelmingly adopts it, with over 80% of the community employing it for communication. As a result, communicating between teams in Ukraine and international partners isn’t challenging.
    Outsourcing software development to Ukraine is beneficial due to the partly aligned time zone with the United States that enables efficient collaboration and communication. Coupled with Ukraine’s work culture of promoting innovation and competition, it makes for an excellent destination for high-quality software development.
    • Developer population: Over 200,000
    • Proficiency in English: 63% of the population
    • Time Zone Differences: 7 hours ahead of the United States
  3. Mexico

    As per Intra-Americas Information Network Inc., the second-largest US export to Mexico is computers, following computer parts and accessories. With significant knowledge and expertise in specialised software testing, Mexico is a popular destination for outsourcing software development.
    Moreover, outsourcing to Mexico is a preferred choice for many large companies due to the high return on their investments and the relatively low cost of production. This is because compared to other countries in the region, Mexico offers relatively inexpensive labour.
    • Developer population: Over 100,000
    • Proficiency in English: 12.9% of the population
    • Time Zone Differences: 1 hour behind the United States
  4. Malaysia

    Malaysia is fast becoming a notable hub for outsourcing software development in Asia, thanks to its strong emphasis on technological and digital capabilities. It has resulted in the country having a large pool of entry-level developers capable of offering support to businesses in basic coding and prototyping.
    • Developer population: Over 100,000
    • Proficiency in English: 62.57% of the population
    • Time Zone Differences: 13 hours ahead of the United States
  5. Philippines

    Despite being a developing country with a poverty rate of 20%, the average income in the Philippines is comparable to that of other countries in the region, such as India, Nepal, Vietnam, and China. Additionally, the ability of Filipinos to communicate fluently in English is a significant advantage.
    Approximately 95% of developers in the Philippines have native-level proficiency in the English language, making it easier for companies to collaborate with Filipino developers. Even if one does not have prior experience in outsourcing software development in Southeast Asia, the Philippines presents itself as an ideal option.
    • Developer population: Over 190,000
    • Proficiency in English: 58.2% of the population
    • Time Zone Differences: 13 hours ahead of the United States
  6. Vietnam

    Vietnam is fast becoming a favoured choice for outsourcing software development due to its cost-effectiveness, abundance of freelance developers, and software development firms. Furthermore, recent advancements in cloud computing and videoconferencing technology have enabled increased capacity for remote work support, making it even more appealing to companies. Cost is the primary consideration, as Vietnam has lower labour costs compared to other countries. Additionally, the Vietnamese workforce is well-equipped to provide remote work support, making it increasingly attractive to companies looking to outsource software development.
    • Developer population: Over 50,000
    • Proficiency in English: 53.81% of the population
    • Time Zone Differences: 12 hours ahead of the United States
  7. Romania

    Thanks to its cost-effective living costs and close proximity to Western Europe, Romania has become an attractive option for many Western European countries, including the United Kingdom, Germany, and France, looking to outsource software development services. The Romanian workforce is more manageable than those of other Central and Eastern European countries, making it ideal for outsourcing software development due to its simple and efficient process.
    • Developer population: Over 100,000
    • Proficiency in English: 31% of the population
    • Time Zone Differences: 7 hours ahead of the United States
  8. Argentina

    Argentina’s membership in Mercosur provides it with access to neighbouring South American countries, including Brazil, Uruguay, Paraguay, and Venezuela, and their developed markets. As part of this Latin American economic integration group, Argentina can take advantage of the benefits of free trade, making it easier to do business with its neighbours and improving its economic prospects.
    Furthermore, Argentina boasts a vast pool of highly skilled yet cost-effective labour compared to other popular outsourcing destinations such as China, making it an attractive option for outsourcing software development.
    • Developer population: Over 100,000
    • Proficiency in English: 6.52% of the population
    • Time Zone Differences: 2 hours ahead of the United States

Final Thoughts

When devising an effective outsourcing plan for software development, it is crucial to consider factors such as time zone differences, education, government regulations, taxation, and recruitment costs. Initially, it is essential to identify requirements, set objectives, and narrow the search to the most suitable countries. By doing so, organisations can ensure the success of their outsourcing strategy.

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