Offshore staff augmentation:
top outsourcing countries

(5)

Olga Demidenko
Author, Geomotiv
Published: Sep 2, 2021

Some decades ago, outsourcing development was something new and unusual as most companies used to have their software development department. Today the situation completely differs from what we have even at the beginning of this century. The outsourcing market has become relatively mature, and various forms of collaboration with software partners have come into the game: offshore staff augmentation, dedicated and managed teams.

But what are the best countries to outsource software development? Where should you look for when you want to hire the most talented experts for our project? This article will enumerate the top outsourcing countries globally and explain why they are ranked high on this list.

Why is Offshore Outsourcing Gaining Momentum?

First, just a quick reminder for you of the benefits that outsourcing in any of its forms has in comparison to in-house software development. Working with external developers, you can:

  • Cut off the development costs
  • Avoid hiring routine and numerous issues related to administrative processes
  • Get access to a significantly wider talent pool
  • Ensure flexibility of your business
  • Have more time and resources to focus on your core activities.

Given these new possibilities, nothing is surprising in the popularity of outsourcing. But why namely, the offshore type, not onshore or nearshore, preferable for many businesses of all sizes and types, including small ones, across the US and Europe?

Where Do Small Businesses Plan to Outsource?
Source: https://clutch.co/bpo/resources/benefits-of-outsourcing

The explanation is hidden behind numerous factors. However, excellent development skills in combination with reasonable rates are probably the key ones. As a result, companies can significantly reduce their expenses on salaries without losing the quality of the work done (or maybe even increasing it).

Furthermore, though the cultural differences can be obvious, good developers, who have experience in cooperation with clients from overseas, are usually very flexible and are ready to adapt to some issues related to this aspect. Moreover, the excellent command of English that many software experts have today helps to overcome any language barriers making the communication pleasant and straightforward.

As for the time differences, it can be somewhat tangible if, for example, you are based in the US. At the same time, your developers work from Belarus or Ukraine, or any Eastern European country. But at the same time, there is the possibility to ensure 24-hour productivity thanks to introducing day and night shifts.

Let’s try to summarize what we’ve just explained above.

Why do US and European companies often opt for offshore developers?

  • Reasonable rates
  • Excellent technical skills
  • Availability of experts working with different technologies and tools
  • High level of IT education
  • Experience in working with a rich tech stack
  • High quality of software solutions
  • Ability to work in cross-cultural teams
  • Soft skills
  • Good command of English.

If you want to read more about the peculiarities of onshore, nearshore, and offshore outsourcing, we offer to read one of our previously published blog posts where we took a closer look at these cooperation models.

What are the Top IT Outsourcing Countries Today?

At the current moment, the following regions are among the leaders.

Eastern EuropeTranscaucasiaAsiaLatin America
UkraineArmeniaIndiaArgentina
BelarusGeorgiaPhilippinesBrazil
Russia

Let’s look at the peculiarities of the IT labor market in these top software outsourcing countries. At Geomotiv, we closely work with nearly half of them, which allows us to provide you with more details based on our own experience.

Ukraine

The IT services market of the country entered 2021 with a market growth rate of 20%. Today the country has over 200,000 tech specialists working with different tools and technologies. The number of IT-related businesses is growing as well.

According to recent estimates, around 85% of software engineers speak English and intermediate proficiency. During the strict coronavirus lockdown implemented by the local authorities in 2020, over 90% of software development companies switched to remote work, which means that today Ukrainian IT specialists are accustomed to this work model. Despite the lack of strong governmental support of the IT sector, it is actively developing thanks to the talents and skills of its experts.

Belarus

Belarus is another country known for its high IT education and seasoned developers who are good at programming and English. In many IT companies in the country, the B1 English proficiency level is necessary for hiring an IT specialist. As well as in Ukraine, the time zone of Belarus lets developers be relatively flexible, primarily when they work with customers from Western Europe. But even when a customer or a management team is based in the US, it is possible to find a convenient time for both parties to conduct meetings.

Though the IT market in Belarus is significantly smaller than in Ukraine, let’s not forget about the countries’ sizes. Belarusian developers are known to be hard-working, well-disciplined, and open to new challenges.

Russia

Russia has also gained a reputation as a good place for looking for remote developers. Good command of English, excellent technical skills, readiness to work - all this makes Russian developers good candidates. Specialists here are very result-oriented, which helps them to cope even with the most challenging tasks. But there is one issue that you should consider seriously if your developers in Russia will be based in different regions. As the country is vast, it has 11 time zones. So, you should make sure that all your specialists will be able to communicate efficiently.

At the time of writing this article, Russia is at the 1st spot on the Top software outsourcing countries globally, according to the TopCoder data. Belarus and Ukraine take the 6th and 7th spots, respectively.

Armenia

Armenia may seem to be not a very obvious name for some people in the best countries in software development. But it is so. Good tech education combined with attention to detail and a sincere desire to constantly expand their knowledge - that’s how we can characterize Armenian developers.

Based on our own experience, we can say that the level of English proficiency that guys in Armenia have is the highest one among all other countries that we closely work with. The country is located in the UTC+4 (AMT) time zone, making it possible to find time for meetings even when customers are located in Europe. The rates, as well as in three previously mentioned countries, looked quite attractive for offshore clients.

Georgia

Georgia has a fast-growing IT market that foreign investors actively support. The country is known for its excellent developers, deep knowledge, and rich practical skills. The time zone may not be the most appropriate one for customers from abroad. However, it is still possible to organize successful cooperation with the guys from this country.

At Geomotiv, we are just starting our work with developers from Georgia, but we are pretty satisfied with this experience.

India and Pakistan

India is one of the most prominent destinations for outsourcing software development services in the world. The country has over 5 million programmers with different specializations. And every year, around 120,000 young programmers graduate from universities. The rates of developers in these two countries are higher than in Eastern Europe, but they are still significantly lower than what US developers expect to get. IT experts in India and Pakistan usually have a good command of English.

The main obstacle mentioned, especially for customers from Europe, is the difference in time zone. Sometimes cultural peculiarities are named among the issues in such cooperation. However, if all participants of the projects are, first, good professionals, it is possible to overcome the difficulties caused by cultural norms.

Brazil and Argentina

These two countries are leaders of the software development industry in South America. It’s interesting to note that they are sometimes called the India of the region as they also offer access to numerous talented tech experts and reliable companies providing outsourcing development services.

Over 400,000 and over 100,000 developers work in Brazil and Argentina, respectively. The rates in Brazil are higher than in Argentina (actually, Argentina offers the lowest rates in the region). Development teams from Argentina often become a preferable option for customers in the US as there are no significant time differences and language barriers. As for Brazil, there is a critical disadvantage of working with this country as most developers do not speak English.

All these countries deserve to be on the list of top IT outsourcing countries, but as it is logical, they all have pros and cons. And it is better to decide which region to choose after analyzing all the related factors, including your location, budget, and expectations.

Share the requirements of your project, and we can find the best developers for you with the most appropriate skills!

Top 3 Reasons Why Geomotiv Can Become Your Reliable Software Development Partner

  1. More than ten years of experience and knowledge accumulated to feel the industry and foresee its demands.
  2. We have access to 5000+ best developers. This vast talent pool allows us to find specialists even with the rarest combination of skills easily.
  3. We have solid expertise in various industries and business domains, including the most quickly developing ones, such as edtech, adtech, eCommerce, and others.

Our Experience in Offshore Staff Augmentation

We are a US-based company, but our talent pool includes the most talented developers from Eastern Europe and Transcaucasia. We work with developers from Ukraine, Belarus, Russia, Armenia, Georgia, and Moldova. Not only that, but we also have experience in working with seasoned developers from Kazakhstan and Kyrgyzstan. Though many talents have outstanding skills, these two countries have profound time differences from the United States. This factor can become a barrier to efficient communication between clients and developers. However, if it doesn't frighten you, we recommend considering specialists from these regions.

To ensure almost instant hiring, we have partners in the top software outsourcing countries we work with. Thanks to this, we can provide developers with the project practically in no time.

We never prioritize specialists based on their nationality or country of birth. We have the same criteria for all potential candidates. And this approach helps us find the best of the best. There are several points that we always focus on at the first stages of the hiring process. For us, they are tech skills and English proficiency.

How to Find the Best Countries to Outsource Software Development in Your Case

Here’s a quick checklist for you. Top 5 points to bear in mind:

  1. Focus on the value, not only on the costs. The principle “the cheaper - the better” is not the suitable one to follow. It is pretty standard in software development when meager prices should be viewed as an indicator of low quality. Nobody wants to overpay but try to find reasonable rates, not just very low.
  2. Pay attention to English proficiency. The primary key to a successful project is efficient communication with your team. Developers should clearly understand the requirements and the tasks that you have for them. That’s why it is crucial to find a team that will communicate with you without dictionaries and translators.
  3. Do not ignore cultural peculiarities. Despite the era of globalization that we humanity has already entered, people in different countries are still influenced by their cultures. Therefore, before establishing long-term cooperation with specialists from another country, it is recommended to ensure that the cultural differences won’t influence your work together and you quickly put up with them.
  4. Do not forget about time zones. Though it is quite natural that when you work with an offshore team, it is hardly possible that your working hours will fully coincide. But they should at least overlap. You need to have time for meetings and communication that will be comfortable for both sides.
  5. Try to find reliable information on the level of tech education in the country. Today on the internet, you can find a lot of reliable data. Make sure that the country under consideration has specialists with proper knowledge and education.

When the most appropriate country or region for the outsource is chosen, it’s time to seek a team to work on your project. In our blog, you can find a detailed article that provides tips on finding the best dedicated team. These recommendations work concerning searches for any remote team regardless of the chosen form of cooperation. Below you can find just a quick reminder of the aspects that you should focus on:

  • Previous experience of specialists, their knowledge, education and background
  • Tech stack that developers worked with on their previous projects
  • Abilities in communication with clients/other team members remotely
  • The reputation of a company that is ready to provide its developers, its business journey
  • Genuine reviews (you should know what the company's real clients think about their cooperation).

It’s worth mentioning one more thing about the success of offshore outsourcing. It can happen so that you find the best one of the top software outsourcing countries, then hire an excellent dedicated team, but your communication will turn out to be inefficient and not very successful. But what's the reason? Quite often, such a situation can be explained by a wrongly chosen project management methodology.

Today, Agile is the most widely used method for coordinating all work processes in an offshore software development team. It helps to achieve the highest productivity of a team and to get the best results possible. So, do not forget about this point to devalue all your previous efforts to look for the best team.

If you want to hire remote specialists on your own, we’d like to recommend searching for them in one of the best countries for outsourcing. But if you prefer to rely on a software development partner that will find the best experts for you, Geomotiv is always at your service. Over the years of work, we’ve managed to gain an excellent reputation on the market, and today we work hard in order not only to keep but also to strengthen our positions.

To learn more about the types of cooperation that we can offer in your particular case, please, fill in the form available on our website and we contact you as soon as possible.

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