Eastern Europe has a lot going for it, including amazing scenery, rich history, and delectable cuisines. But add one more item to the list of its top qualities: highly skilled software developers.
The primary driver of rising demand for software development in Eastern Europe is a significant shortage of available talent worldwide combined with a corporate shift toward digital transformation. Almost every company requires software of some sort, but the vast majority do not want or need to employ an in-house software development team. As a result, companies frequently relocate software development functions to areas with an abundant pool of talent like Eastern Europe.
Another reason Eastern Europe is a software development darling is the region’s high levels of English proficiency, especially when compared to other traditional offshoring regions. Having so many more developers who can communicate fluently in English makes it much easier to provide technical training.
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So we’ve established that software development in Eastern Europe is all the rage. But now let’s dig a bit more into the “why” behind that, as well as which countries are ideal for recruiting the best software developers.
How can we truly gauge Eastern Europe’s role as a hub for finding and employing top software engineers? Here are the key stats!
The presence of a host of technical universities famous for computer programming is a significant contributor to the region’s talent boom. For example, there is Ukraine’s National Technical University “KPI,” Poland’s AGH University of Science and Technology, and Romania’s University POLITEHNICA. And behind these big three are a wide range of other universities that may be less well known but provide the same high level of engineering education.
Eastern Europe prides itself on being the region with the most highly skilled software developers. Indeed, the universities mentioned above produce many developers each year. For instance, over 17,500 software developers in Ukraine are churned out into the labor force yearly. This number is expected to increase every year. (Congrats, grads!)
The increasingly attractive nature of software development in Eastern Europe is further bolstered by the Government’s massive investment in the sector and its policies.
The governments of Eastern European countries are doling out incentives to tech companies and startups to attract tech employers to their countries.
For example, Ukraine has established a dynamic atmosphere to attract employees and enterprises, and Poland is marketing tax breaks to entice software firms to relocate to their countries.
The result of these deliberate policies is that global giants such as Google, Oracle, IBM, Deloitte, and others have chosen Eastern Europe as their primary destination for outsourcing software development.
In high numbers, other smaller companies have also chosen Eastern Europe as their go-to destination for all things tech. This underscores the fact that the Eastern Europe market is becoming more attractive for hiring qualified developers.
The significant popularity of the Eastern European tech market is due to a plethora of factors:
When you outsource your development project to Eastern European developers, you gain access to an outstanding talent pool and collaborative teams that have perfected various computer languages. According to research, Eastern Europe has around 6.1 million skilled developers. This demonstrates the availability of specialists with a wide range of qualifications.
Moreover, the skilled pool of software engineers in Eastern Europe is constantly expanding. You can now easily employ a team that works with cutting-edge technologies – such as Big Data, artificial intelligence, machine learning, IoT, and cloud-based applications–or works on online or mobile applications.
Eastern European programmers are routine champions in coding competitions due to investments in technology education and master classes. Programmers in Eastern Europe rely on many programs, such as Lviv IT School and tech hubs, to upgrade their skills after earning a university degree. As a result, coders from Ukraine, Poland, Romania, and Moldova frequently outperform others with regard to coding.
Also, Eastern European programmers have the highest web development and custom software development ranking on platforms like Hackerrank and TopCoder.
Coordination of time zones is a priority with distributed teams. Designing a fluid workflow that incorporates synchronous and asynchronous jobs is difficult when time zones are too far apart. Working hours in Eastern Europe are generally a handy time zone for remote collaboration. For example, if your company is in Western Europe, the divergence is almost non-existent (1 to 3 hours). If you’re in the United States, time zones on the West Coast are around a nine-hour difference compared to about 6 on the East Coast.
Indeed, location and time zones are both convenient, even if you’re on the West Coast—the benefit is you have a team that works while you sleep. It’s also easy to travel to the region, and it’s easy to communicate given the high English fluency.
Due to a lower cost of living and reduced tax burdens, salaries for software developers in Eastern Europe are significantly less than in America or Western Europe. This means companies can more easily scale their team in Eastern Europe because budgets go farther.
Because of the region’s western influence, Eastern European business etiquette is similar to that of North America and Western Europe. This makes it easier for clients to engage and work more seamlessly due to cultural similarities, making company operations and transactions more efficient.
Furthermore, Eastern European software developers are often familiar with Western legislation and regulations. As a result, there are fewer compliance difficulties.
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Eastern Europe is leading the race for offshore software development. However, not all countries of that region are equally ranked in software development expertise; knowing which country to pick will help set you up for success. Let’s have a peek at the nations leading the pack:
The Romanian economy is one of the fastest growing amongst top EU countries, with the tech sector being one of the top contributors. It is anticipated that Romania’s tech sector will grow to 12% of GDP in 2025, up from 6% currently.
As an EU member, Romania is one of Europe’s largest outsourcing markets, primarily focused on outsourcing services to the United States and Europe. A.T. Kearney ranked it 28th in the 2019 Global Services Location Index, and its foreign partners refer to it as an “outsourcing valley.”
Romania offers offshore software development services to big technology businesses such as Gameloft, HP, and Oracle.
Key facts about Romania’s tech market that makes outsourcing software development to the country a wise decision:
Poland’s software development market is one of the fastest expanding in Eastern Europe. With eight developers per 1,000 residents, this country boasts a large talent pool of software development expertise. Every year, some 30,000 tech graduates enter the labor market.
Poland is a significant provider of software development, HR, finance, and accounting outsourcing services to firms such as Microsoft, Apple, and Google. The country’s greatest technological revenue comes from software development services, software distribution, and equipment sales. Poland’s tech market is predicted to reach $13 billion by 2023, with annual growth of 50 to 10%.
Poland’s services are quite popular in Western European companies since its developers are frequently fluent in English, German, French, and Spanish – in addition to Polish.
Key facts about Poland’s tech market that make it highly attractive for software development outsourcing:
Ukraine frequently ranks among the top worldwide destinations for offshore software development.
Between 2020 and 2021, the Ukrainian software development business exported $6.8 billion in software development services, accounting for nearly 4% of the country’s GDP.
Here are the reasons why Ukraine is a perfect offshore development destination:
The Czech Republic is another EU member with a strong technological capacity. High technology is one of the Czech Republic’s main businesses, with tech exports totaling $1.78 billion.
Important facts about Czech Republic’s outsourcing viability:
Outsourced software development accounted for 6.6% of Bulgaria’s GDP, or $3.8 billion, in 2020. Not surprisingly, it is one of the most important Eastern European countries for tech outsourcing.
Here’s why outsourcing to Bulgaria is worth considering:
The software development sector accounts for around 6% of the Hungarian economy and employs approximately 80,100 people.
Other facts that make Hungary a perfect destination for software development outsourcing:
Slovakia has a large number of development specialists focusing on digital business transformation, startup launch and growing, and cybersecurity.
Facts that underscore the viability of Slovakia as a software development outsourcing destination include:
Want to hire developers from Eastern Europe but don’t know how to choose the right country to get started? Here’s a quick checklist to use:
Each Eastern European country has its unique technical capabilities in terms of native software engineers.
For example, according to HackerRank, Ukrainian developers rank first in security and fifth in mathematics and distributed systems, while Polish engineers are first in Java and among the top five in the following domains: algorithms, tutorials, Python, and Shell.
Therefore, it’s important that you decide on what tech stack you will use since this will make sure you are focusing in the right direction.
The hourly rates of developers in different Eastern European nations vary a bit due to the cost of living. However, this has no effect on quality. Examine the different software development rates by nation and select the one that best matches your budget, particularly when you think about it within the context of a fully scaled team.
When it comes to top software businesses in Europe, no matter which country you decide to outsource software development to, ensure you have extensively examined and pre-vetted your offshore partners. Not all companies are created equal, and many different models exist. Find a partner – like TurnKey!– that has deep experience in Eastern Europe and custom builds your team from scratch to make sure you have a perfect from the start.
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Although there are many software developers in Eastern Europe, they can be hard to find and recruit. Some typical strategies include:
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Eastern European countries are renowned for their strong technical education and deep talent pool. Moreover, due to a lower cost of living and more flexible tax regimes, developers in Eastern Europe are also surprisingly affordable compared to developers in other regions in the world (especially America and Western Europe).
Ukraine, Romania, Poland, and Bulgaria are among the best Eastern European countries for software development outsourcing. All of these countries have a high literacy level, strong English proficiency, and large populations of highly skilled developers.
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