IT Outsourcing has been offering many benefits to scale a business and earn a competitive edge in the public. With the idea to implement IT Outsourcing, the outcome of your project relies greatly on where you want to hire. Below is the list of the Top IT outsourcing countries based on cost, technology, labor, and other needed conditions to facilitate an effective IT outsourcing service.
Table of Contents
- 1. India – The world-leading IT outsourcing country
- 2. Vietnam – The next “Silicon Valley” in Southeast Asia
- 3. Ukraine – Fast-growing IT outsourcing country
- 4. Poland – High-quality IT outsourcing destination
- 5. The Philippines – Budget-friendly IT outsourcing country
- 6. The US – The world-leading technology IT outsourcing destination
- 7. Argentina – Preferred destination to outsource software developers
- 8. Belarus – Popular IT outsourcing destination
- Looking for Top IT Outsourcing Countries?
1. India – The world-leading IT outsourcing country
The outsourcing industry in India is one of the most sought after by the world’s biggest brands. Thanks to many beneficial features, India is leading the IT Outsourcing market with the highest number in revenue and growth in the past few years. These features include:
- Large talent pool with high competency: The country has a population of over 1.2 billion people and around 3.1 million graduates are added to the workforce each year. Besides the well-trained workforce, India also has a large population that can speak English fluently, making communication in IT Outsourcing much easier.
- Reasonable price: According to PayScale, the average annual salary for a software developer in India is 523,785 INR (around $6,835), which is much lower than that of the US or the UK. With such a price, businesses can get IT services with equivalent or even higher quality.
- Infrastructure and technology: India can offer state-of-the-art telecom, ISP, and cellular network. Plus, IT outsourcing companies in India can also do customized solutions for various applications.
- Supportive government: India has a stable pro-IT government whose policies on the economy, GDP growth, tax-related and other benefits have been helpful in attracting businesses to outsource their IT functions in India.
2. Vietnam – The next “Silicon Valley” in Southeast Asia
Since the rise of IT outsourcing services about 15 years ago, Vietnam software outsourcing has always been a hidden gem for businesses to apply technology. In fact, in recent years, Vietnam has proven its capabilities as Japan’s second-largest partner in terms of software development and service outsourcing from 2014 to the present.
The labor costs in Vietnam are 90% less than in the U.S., hence more funds for development and less budget spent on hiring ICT companies. For example, the price to hire an offshore software developer in Vietnam ranges from $10-$25/hour, while in China it is $18-$50/hour (for junior level). Other countries in Southeast Asia have a higher salary base, with Thailand’s average salary ranging from $13-$40/hour, Philippines’ is $17.5-$42.5/hour.
According to MarketsInsider, Vietnam is ranked 5th in the “Best countries to outsource to in the World in 2019” list. Moreover, Overall, companies in Vietnam have an IT-related turnover rate of less than 5%, whereas, in many other countries, such as India, this turnover rate can be 10% or even higher.
Also read: Top IT outsourcing companies in Vietnam 2021
3. Ukraine – Fast-growing IT outsourcing country
Ukraine is a fastly progressive and promising niche that guarantees success to IT outsourcing businesses. The Ukrainian IT industry has increased by 27% within 4 years and has more than 185,000 tech-savvy experts, the number of which is forecasted to double by 2025. These figures speak for themselves, and it means that Ukrainian specialists have high development skills (more details are below).
Also, tech education in Ukraine The majority of IT specialists in Ukraine have technical degrees in science, technology, math, and engineering areas. There are more than 400 universities in the country, and over 40,000 tech students graduate every year. Moreover, there are also IT specialists who work as developers, but they don’t have a specialized degree since they got IT skills with the help of self-education.
The average hourly rate for software development is within the $25–50 range, with the average software developer salary being between $1,400 and $3,300 per month (excluding taxes and social contributions).
4. Poland – High-quality IT outsourcing destination
Located right next to Ukraine is Poland – another popular destination for businesses that are looking for the IT Outsourcing services. This country has many similarities with Ukraine in terms of cultural traits, the average salary for IT workers.
What makes Poland stand out as a favored country for IT outsourcing is the high quality of its services and highly-competent technical staff. With nearly 430,000 IT specialists on the market, Poland has the largest IT expert pool in the Central and Eastern Europe region. With that quantity comes high quality. Poland consistently ranks as one of the top three countries with the world’s best programmers.
Another plus point of Poland is that Polish IT services providers must comply with the strict cybersecurity and data protection measures mandated by the country’s EU membership. According to the Global Cybersecurity Exposure Index, Poland is a low-exposure risk country. It ranks 16th in Europe and 22nd in the world — better than China, Israel or Mexico.
5. The Philippines – Budget-friendly IT outsourcing country
Manila – the capital city of The Philippines is the only non-Indian city to make the top 7 of the Tholons International Top 100 Outsourcing destinations. This shows great potentials for any business that is looking for an It Outsourcing destination in Vietnam.
The number one reason for businesses to choose the Philippines is the competitive costs. Besides the advantage of a low-cost labor force, The Philippines can also offer favorable governmental policies for foreign investors and ICT services in general. To be more specific, BPO services are highlighted as one of the 10 high-potential and priority development areas of The Philippines.
The Philippines’ government also offers tax and non-tax incentives which can help you save from 8 – 10% of the cost. Moreover, The Philippines has created regional ICT councils and a National ICT road map for the whole country to follow. When entering the market, you will be assisted and supported by the official authorities.
6. The US – The world-leading technology IT outsourcing destination
Even though the USA is not the major player in the global map of IT Outsourcing in terms of cost, the country is famous for top-notch quality for many kinds of services.
For many years, the U.S. has always been one of the leading places for the most ground-breaking technologies. The application of the latest technologies in the U.S. is the most advanced. Unconsciously, the work quality in the U.S is the standard for every other country to follow as this country has a high level of professionalism.
Also, the US is the home to many famous IT Outsourcing companies in the world, namely Bottle Rocket, Accenture, KitelyTech, etc. These companies have already made their names in the global IT outsourcing market, and are trusted destinations for business from all around the world.
7. Argentina – Preferred destination to outsource software developers
In Coursera’s Global Skills Index Report 2020, Argentina ranked 22nd in global data science skills rating that included such technologies as Python, SQL, R, TensorFlow, Cloud APIs, NLP, and others. But among Latin American countries it was the first. In 2020, Argentina got a remarkable first place in global ranking in technology.
As Argentina is in the same continent as the US and Canada, Argentina becomes a preferred destination to outsource software developers from, in comparison to India and other Asian countries, the time zones of which may differ from the US by about 12 hours.
Because of the one-hour time difference between Argentina and the US, the response time becomes shorter, any queries or errors can be resolved swiftly and projects can be completed faster. Thus, the time zone is a definite advantage that is attractive for US-based companies to hire remote development teams from Argentina.
8. Belarus – Popular IT outsourcing destination
Belarus is another popular choice that can be reliable for businesses. Belarus’ software development industry might not be impressive as other neighboring countries like Ukraine and Poland. Yet, the nation has proved itself a beneficial outsourcing destination in which it can provide a great pool of tech talents, competitive development wages, and mature infrastructure.
The number of IT specialists in Belarus is over 56,000 specialists. It is a modest number compared to neighboring countries. However, with the modern education system combined with its top-tier tech universities, Belarus is generating over 5000 graduates every year. It is the reason for growing not only the quantity but also the quality of the software developers. Besides the technical expertise, excellent language communication skills can be a plus for software engineers in this country.
With the above list of the best IT Outsourcing countries, Lotus QA hopes you can find a suitable destination to hire a professional technical team.
Looking for Top IT Outsourcing Countries?
Lotus QA has the expertise and experience with IT services in many domains such as retail, food and beverage, healthcare, etc., making us one trustworthy and professional service provider for businesses wanting to implement IT outsourcing. When working with us, you will get access to:
- High Security: LQA not only follows stringent procedures of ISO 27000:01 for optimal security and international standardized process but also flexibly adapts to clients’ requirements
- Quality Human Resource: we ensure staff competency through strict rounds of interviews, on-job orientations, continuous learning & development for the most suitable QA staff.
- Flexibility: We provide different working models to allow clients to choose or change the plan at any time.
Contact us for more support with:
- Website: https://www.lotus-qa.com/
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