Over the last few years, Eastern Europe has become one of the top destinations for offshoring. It all started when the giants like Apple, Google, Microsoft and IBM opened their branches in Eastern European countries. They inspired other tech companies to outsource the development to Central and Eastern Europe seeing the benefits of it.
According to Clutch there are over 2000 offshore software development companies based in this region.
To this day, many companies prefer to outsource software development as it provides many advantages like working around the clock, cost savings and ease of scalability.
As the world is facing the Covid-19 pandemic, distances and borders mean even less. This opens up new horizons for the technology sector. Companies recognize that remote workers can be as efficient as the on-site ones so they turn to offshoring with more ease.
Are you wondering what are the top outsourcing destinations in Europe? Or why to choose developers from Poland to create your product? Keep on reading.
Top offshoring destinations - a quick overview
Among the advantages of software development outsourcing to Serbia is an attractive climate for international cooperations like foreign investments and tax-saving provisions for IT companies). Additionally, there is a minimal time zone difference with Western European countries and high level of professionalism - great knowledge of the English language, high programming skills and similar working culture.
Romania belongs to the top 5 European countries with the fastest growing economy. Outsourcing the development here means relatively low costs (nearly 75% lower). Apart from that worth mentioning is little time zone difference, EU membership and broad tech expertise with a wide scope of technologies.
An Eastern European country with a reputation of high working and high-quality software engineers. Belarus is constantly growing its IT potential and is showing up to 5x faster progress. Nearly 60% of Belarusian software developers are working in outsourcing. They are ahead of, for example, Ukraine when it comes to English proficiency.
Ukraine is the world’s third country by the number of certified programming professionals. The rates are affordable, starting at $20 per hour. They are known for rather high standards and therefore are quite a favourable place to build an offshore development team.
One of the most popular offshoring destinations with 5,2 million software developers. This can be an advantage because of the large talent pool but also a disadvantage thanks to the challenges connected to finding the right engineers. The Indian offshore development market is diverse with numerous platforms for hiring programmers. Outsourcing to India means low costs but can also mean low quality.
With competitive rates, a stable economy, similar culture and business etiquette standards, favourable tax conditions Polish IT market is quickly evolving. Poland was ranked 11th among the top 50 digital nations in Tholons Globalization Index 2018. What is more global IT giants such as Microsoft, Google, Oracle, Cisco, and Intel have their research and development centres (R&Ds) in Poland.
Why choose Poland
If you are on the verge of deciding which country to choose to locate the development of your product in, let’s discuss some advantages of picking Poland.
Poland is one of the destinations known for programming talent with a perfect price to quality ratio.
25% of the entire developer community in Central and Eastern Europe is located in Poland. That means over 250 000 specialists. In Poland, 1.4 persons per 100 are software developers.
Polish development teams are widely recognized as the best programmers in the world. This is why more and more overseas companies choose to outsource IT services to Poland. They recognize the benefits of working with our engineers like:
1. Strong educational background
Nearly 40% of Polish people aged 25-34 have a university degree. This puts Poland in the second place in the category among three dozen countries listed. It makes up around 10% of ICT specialists of all university graduates in the EU. Thanks to the strong emphasis on STEM (science, technology, engineering and mathematics) education, the market of software developers is growing fast. Therefore, it is quite easy to find skilled engineers in Poland.
2. Stable economy
In 2018, Poland experienced a 5,1% growth in GDP. This trend continues as the Gross Domestic Product is constantly rising. Poland experienced an uninterrupted growth for the last 27 years, averaging 4.2% GDP yearly growth between 1992 and 2019.
Also, during the Covid-19 pandemic, Polish economy remained quite stable, in comparison to other European countries.
3. English proficiency
Polish developers speak English very well and it is much appreciated by companies wanting to outsource their development to Poland. Poland ranks 11th out of 100 countries in the English Proficiency Index with a very high proficiency mark.
Many Polish software developers spend their whole careers working on foreign clients projects, which means daily exposition to the language.
4. Cutting-edge technologies
Although the history of software engineering in Poland is relatively new we use the latest tools and technologies, work with modern practices and care about code quality. Staying up-to-date with the recent technological trends we constantly learn and improve our skills. This is reflected not only in the self-development aspect but also positively impacts the products we create.
5. Variety of outsourcing services in different outsourcing models
Polish developers are specialized in different areas and can support you with various challenges at any stage of the product development process. We are able to provide you with UX design, MVP development and maintenance of fully functional service.
With the wide choice of companies available you can choose to work in different outsourcing models depending on your needs and requirements like: build a new team or team augmentation.
6. Smart and effective work
Developers in Poland are familiar with the best project management practices. We work with agile and scrum on a daily basis and closely align with clients’ teams to achieve the best productivity.
We always stay focused on the quality, performance, design and user experience while ensuring client satisfaction.
7. No cultural gap
Contrary to countries like India or China, in Poland there are no big cultural differences. Successful communication contributes to the success of development and product.
8. Acceptable time difference
Offshoring is always a bit challenging due to time differences. How to deal with time zone differences in software development offshoring? Choose an offshoring partner in a time zone closer to you or turn the difference into an advantage.
There is a maximum 9-hour difference between the USA and Poland, so it is possible to schedule a video conference at a time that suits both sides. With the right approach, the time difference is not a problem and can be easily turned into an advantage as developers can work around the clock.
Pro tip: to ensure no surprises, save a list of local holidays of your remote team in order to play ahead and avoid delays.
9. High-security standards
As a member of the European Union, Poland is bound by international security standards and regulations like GDPR. Data protection and secure data management are of high importance, especially in outsourcing, therefore companies choose countries within the EU.
10. Low pricing
Although you might say that India or China have lower hourly rates, European countries usually provide higher skills level and better product quality. The apps are delivered faster and are more efficient and performant. They are easily scalable and the code quality makes it easy for another team to take over the project if you decide to grow your own in-house team.
Types of software development outsourcing
As mentioned earlier, Polish developers can provide you with a variety of outsourcing services in different outsourcing models. But what are the types of outsourcing? Let me explain.
Outsourcing models can be classified by how they align across three attributes:
- onsite, onshore, nearshore, offshore
- staff augmentation, managed team, project-based
- time & materials, fixed price
Software development outsourcing: by location
This type of outsourcing model is defined by distance:
A situation where a service provider sends skilled professionals to work in your office for a fixed period of time. It is outsourcing implemented onsite.
This means outsourcing services to a provider within the same country, but outside of your company.
Nearshoring is defined as outsourcing services to a provider in a neighbouring or nearby country (in the same time zone).
Outsourcing of services to a provider in a more distant country.
There is also a possibility called multisourcing or multisource outsourcing which means you simultaneously make use of various location-based outsourcing engagements from multiple providers.
Software development outsourcing: by relationship
Relationship-based outsourcing models describe the balance of ownership and responsibility held by the client and the service provider.
Staff augmentation model
The majority of responsibility is on the client. In this model, you are leasing workers from the outsourcing provider to assist in your projects. You still own the product from start to finish.
Managed team model
In this model the client and outsourcing provider share responsibility for and ownership of developed projects agreeing on which responsibilities belong to whom.
The majority of the responsibility is on the outsourcing provider. The development partner completes the project based on your requirements owning the project from start to finish.
Software development outsourcing: by contracts
This model of outsourcing is determined by the type of contract.
Time & materials contract
The project has an agreed-upon rate based on the resources and time spent by developers.
This allows a great deal of flexibility and scalability, however, the price you will pay is not always clear ahead of time.
The project is billed at a flat rate regardless of the time spent or resources used.
The main benefit here is that you know exactly what amount you will be paying, however, often there are changes that have to be made in order to fit into the fixed budget.
Looking at all of the numbers there is no surprise that clients from the USA and the UK are choosing European companies as outsourcing partners. Countries like Poland are recognized as being reliable, reasonably priced and having skilled software engineers. What is more, they are able to work within various outsourcing models like staff augmentation or offshoring.
If you want to read more about outsourcing trends in 2020, go to our post. If you are interested in staff augmentation read the article What Is Staff Augmentation? A Model To Extend Your Team as it will provide you with more information about this outsourcing model.
If you are searching for a reliable outsourcing partner from Poland, contact Selleo. With over 150 software projects and 12 years in business, we are able to build you a cutting-edge solution fitted to your needs. Review our portfolio and blog for even more insights into our work.