The Benefits of Outsourcing Software Development to Eastern Europe
November 4th, 2018
Opportunities offered by the latest cloud technologies, various tools for team management plus fierce competition for the top talents sideline questions like “whether we should outsource software development or not.” You plan your project, choose a contractor that has the requisite qualifications and move towards your goals.
Illustration from the famous Deloitte survey
US companies that aim at cost-cutting are usually choosing between companies located in Asia or Eastern Europe. As far as time resources are limited, you want to make sure that you’re searching for your ideal contractor in the region, which is right for your specific organization.
We’ve decided to share our thoughts and observations based on our experience in providing IT outstaffing services on the Eastern Europe market.
The countries of Eastern Europe
This region could be roughly divided into two branches by the cost of living, which, in turn, impacts the average hourly rates of software developers and other IT specialists:
- Poland, Bulgaria, Hungary, Romania and the Balkan countries (with higher average hourly rates)
- Ukraine, Belarus, and Russia (with lower average hourly rates)
However, the price may vary also depending on the city, set of hard skills of a specific IT professional and the like. It should be noted here that the quality of technical education, available to Eastern Europe dwellers allow them to obtain the skills that open the door to participation in the most cutting-edge projects, which is definitely a significant advantage for IT startups looking for top specialists.
After checking many resources, we can predict that 1 hour of IT professional from Eastern Europe may cost from $25 to $40 on average.
The art of attracting top engineers along with fitting the budget
When you’re a startup, attracting the best specialists is crucial. Regrettably, a rare startup can boast the level of financing that allows staffing the whole crew with top US-based engineers. Outsourcing to Eastern Europe, especially to countries like Ukraine and Belarus, can help you to achieve this goal without running out of a budget.
Why do we think this region is a good choice for a US-based company?
- Excellent quality of work. Programming is an intellectual work, which quality depends both on education and personal traits. When you offer competitive pay rates by the standards of the local market, you can expect that you’ll have a wide choice to find your ideal candidates or dedicated teams.
- English language proficiency. You can hire a genius, but if you can’t clearly communicate with each other, your beginnings are likely to fail. Most IT professionals from Eastern Europe have good English skills, so the risks connected to communication breakdowns are next to zero.
- Acceptable time difference. Let’s say, the lag between NY and Kyiv is +7 hours, between NY and Warsaw +6 hours. In addition to this, top outsourcing cities in Eastern Europe have a convenient location and can be reached by plane within 8-10 hours.
- Cultural proximity. The more cultural traits people have in common, the more successful their communication will be. Dwellers of Eastern Europe have that proactive attitude towards their work, which is essential in today’s world. If you hate micromanaging, countries of this region are definitely the best place to outsource from.
- Adequate protection of intellectual property and committed approach to doing business.
However, if you’re new to outsourcing, you can’t be immune to various surprises, when you select contractors on your own. Partnering experienced US-based outstaffing company can help you to avoid numerous pitfalls and get the most out of your outsourced project.