Outsourcing stays relevant for those companies that have in-house IT teams too. The technologies and the market requirements develop so fast that businesses need to keep up with innovations and therefore seek professional support from outsourcing IT services. The year 2020 and the pandemic added to the demand. Companies switch to remote operations and building an app or a software becomes a necessity to stay relevant to your customers.
The lack of IT workforce effected salaries in the IT field and made outsourcing IT professionals a worthwhile and cost-effective solution for many companies.
IT outsourcing went beyond local service provision. Hiring international teams of IT professionals became a common practice globally. The locations to choose from really impresses – from Eastern Europe to Middle East.
Let us have a closer look at the best IT outsourcing destinations.
Eastern Europe has a lot to offer in this respect. This destination offers IT specialists with professional background, skills in technology innovations and good command of English language. The benefit of outsourcing IT teams from this area is minor difference with Western Europe and similar mentality. That being said, many companies from the US and Canada prefer to outsource from Eastern Europe by virtue of great reputation of their IT experts. The fees range from $20 to $60/hour but overall it is good value for money considering the high standards of the service quality they provide.
In the past few years, Ukraine gained reputation of one of the best IT services providers. The IT sector develops so fast that Ukraine may be proud of holding the leading position in providing outsource IT services. Developers from Ukraine possess strong professional background and are comfortable with applying the newest technologies and business approaches in their services. IT experts from Ukraine are frequent guest speakers at global IT events and conferences. The hourly rate varies from $20 to $45 for excellent quality of work.
With over 118 thousand IT professionals, Poland offers good choice of outsource and hardware design specialists.
Being inside the EEA economic zone, Poland became one of the key IT workforce providers coming mainly from Warsaw and Krakow. This is undoubtedly convenient for customers from Western Europe, however, comes at a cost making Poland the most expensive IT services to outsource.
Belarus manifested itself as a serious IT services provider. Half of their IT professionals focus on delivering outsource services in particular. The government of Belarus sees great potential in the local IT industry and encourages its development through tax benefits. Belarus has to offer skilled IT professionals with relevant background at competitive hourly rate between $20 and $40. The major disadvantage of outsourcing from this destination is the smaller number (30 000) of IT staff available.
Bulgaria has been increasingly demonstrating its potential as an outsource IT services provider and is seen as a serious contender among other Eastern European countries. Having Sofia as their main IT hub, Bulgaria works on developing new service strategies. The IT industry is represented by over 40 000 professionals with average hourly rate between $30 and $60.
Asia and the Middle East
Asia and the Middle East is one of the pioneers in IT outsourcing. This destination can offer sufficient number of IT professionals at reasonable cost of $10 to $25 per hour. However, lack of stability in political and economic life as well as a considerable time difference is a serious deterrent for many businesses to outsource from this area. Different mentality as well as English language skills may also affect the decision of outsourcing from this destination.
In 2020, India has made it to the top IT outsourcing countries. Their history of providing IT services is 25 years long. India in particular offers outsourcing services in programming and expands traditional IT services. The price range is probably the lowest of all destinations, but the cultural peculiarities and business processes may become an issue. Therefore hiring the best-established players in the market may affect the customers’ allocated budget for IT services.
Along with other sectors of economy, the IT industry in China has recently seen huge developments. With the development, the pricing also continues to grow making China the most costly IT outsourcing countries. Unlike other destinations, apart from offering their services to America and Europe, China also focuses on fulfilling the demand for IT professionals on the local market.
Despite its limited IT outsourcing human resource, Malaysia made it to the top list of high quality IT services providers in 2020. Malaysia can satisfy the need for IT professionals for mid-scale businesses and due to lower risks and service rates can be considered as direct competitor to China and India.
Indonesia is probably the most recent development in providing outsource IT services among other countries of this region. Having one of the largest populations and the biggest GDP in the area, Indonesia brag of being the source for skilled IT developers. Outsourcing in Indonesia is a growing trend, making Indonesia one of the top IT outsourcing countries in 2020.
Latin America is a relatively new player in providing IT outsource services. It has become the primary choice for businesses in Northern America by virtue of its vicinity and time zone. As the industry is still developing, it offers lower prices compared to the European providers varying between $20 and $50 per hour, however the risks are higher due to relative immaturity and lack of technical skills.
Mexico’s programming outsourcing is a great part of their national economy.
Educated IT professionals and services that come at a lower cost than some of the Eastern European countries is definitely a benefit. The geographical vicinity is another advantage for businesses outsourcing from the Northern America. However, as a relatively new industry there is a room for improvements in terms of programming services as well as approaches to managing business.
Argentina undergoes constant economic development and continues to improve as an outsource IT service provider. Argentina put many efforts into educating their specialists to standards. This country’s strive for innovations along with the Europe influenced mind-set makes Argentina a very attractive supplier of IT outsourcing.
Columbia offers a growing number of IT professionals through university education programs. This attracts foreign investments and encourages the local economy to develop. The geographical vicinity to the Northern America makes Argentina a convenient destination to outsource IT services.
Peru is another developing country that turned it focus towards outsource IT services. With its dynamics, Peru is seen as a good investment opportunity. The economic growth attracts foreign investments and opens horizons for outsourcing developers, specialising in web and mobile applications in particular.
The global IT industry has become much closer to a customer these days. With the choice of IT outsource services, it is great to be able to find the provider that fits your business needs. Here at Magnise we are proud to have been providing excellent quality outsource and outstaff IT services. With our proven track record of successfully implemented projects of all scales, we have gained recognition from our customers in the US, Canada, Germany, Israel and the United Kingdom. You will benefit from our dedicated team of IT professionals who apply individual approach to every project we implement. Contact us to discuss how we can transform your ideas into successfully working IT projects.