Best Countries for Offshore Software Development Services in 2022: A Quick Overview

“Software is easy to make, except when you want it to do something new. And then, of course, there is a corollary: The only software that’s worth making is software that does something new.”- Scott Rosenberg

Software development services continue to be one of the hottest topics in the IT industry. More and more clients are looking towards the best countries for offshore software development services to help them outsource this work. 

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No. of software developers - Best countries for offshore software development services

When I was searching for the best countries for offshore software development services, I had to make a decision quickly. It seemed like everywhere offered something different! Some nations have the cheapest rates, but my friend told me they were always at capacity or never responsive to their deadlines. 

Other countries are pricier, but according to my research, they have some of the best customer services and deliver projects on time more often than any other country on the list. Some have just as competitive prices, but there’s not much online information about customer service.

Everything seems to be between two different destinations: either go for a cheaper nation and be worried about responsiveness or pay more money for better quality. Finally, I have compiled the list of the best countries to outsource software development.



Table of Contents

Best Countries for Offshore Software Development Services

  • India
  • Ukraine
  • Hungary
  • Philippines

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India

India

Why Choose India for Offshore Software Development Services?

Hiring the right software development company in India can be difficult, as there are many options to choose from. But with these 5 reasons to choose an offshore software development company in India, choosing one will be easy! Read on to learn why your business should outsource development services to a company in India today and why it is one of the best countries for offshore software development services!

1) Cost-Effectiveness

India’s labor cost is significantly less than that of Western nations, making it an ideal place to outsource software development. While Western companies might pay $75/hour for software development, you can hire someone at $10-$15/hour in India. This not only gives you much more flexibility in your budget but also allows you to stretch your dollar far further.

2) Speed of Delivery

Software development projects take between one to nine months. On average, a custom software development project is expected to take about 4.5 months.

When it comes to software development, there’s nothing more valuable than speed. Companies that choose an offshoring model and find a reliable software development company in India typically get precisely that: rapid turnaround and delivery of high-quality products on time and within budget.

3) In-Depth Industry Knowledge

Companies that choose India for offshore software development services find that Indian companies have a great deal of in-depth knowledge about their industry. In fact, many companies come to us with industry-specific needs, and we’re able to help them implement workable solutions quickly. Our experience includes software development services from hotels and restaurants, healthcare and pharmaceutics, e-commerce and retail, and much more.

4) Technology Expertise

Indian software development companies have several advantages when it comes to IT talent. For one, programmers in India tend to be more qualified than their counterparts in other countries because of numerous specialized institutions and well-known universities. 

Additionally, while there is a shortage of software developers in North America and Europe, that’s not at all true in India—Indian firms typically have a larger pool of potential employees from which they can select.

5) Effortless Communication for Better Understanding

When you hire software development companies in India,  communication becomes a breeze. The common language spoken between a Western business and a software development company in India is English. You won’t have any problem communicating your vision or getting help with questions. If they don’t understand something, they can ask someone else who speaks English to understand it thoroughly. 

Top 3 Software Development Companies in India 

PixelCrayons 

PixelCrayons is a top Software development Company in India that offers offshore software development, IT consulting, and Digital Marketing services to achieve growth. We have a team of 400+ IT developers & digital marketers who have rich industry experience and expertise in designing robust solutions specific to client requirements. 

  • < $25/hr
  • 250 – 999
  • 2004
  • India

IndiaNIC

Their main specialty is custom web development, mobile app development, eCommerce, and enterprise solutions with design-driven engineering practices. 

  • $25 – $49/hr
  • 250 – 999
  • Ahmedabad, India

Unified Infotech

Unified Infotech is a result-driven technology company operating with worldwide SMEs, Enterprises, SMEs, and forward-thinking Start-Ups as their end-to-end solution partners for custom-tailored software, web, and mobile apps. 

  • $25 – $49/hr
  • 50 – 249
  • Kolkata, India

Ukraine

Ukraine

Why Choose Ukraine for Offshore Software Development Services?

1) Low Cost

There is a considerable cost advantage of outsourcing software development and other IT services from Ukraine. The average hourly rate in Ukraine is about $25 compared to $100-120 or more in Western Europe and the US, respectively. You may save as much as 60% on your offshore software development budget by hiring Ukrainian developers. Even high-quality junior developers can be hired for as little as $8 per hour!

2) Great Quality

The rates at which Ukrainian programmers produce code may shock you. According to a study, if a company was looking to hire an American programmer at $40/hour, a Russian programmer at $30/hour, and a Ukrainian programmer at $20/hour, it would take an American 100 hours to complete a project; 66 hours for a Russian and only 33 hours for a Ukrainian. 

3) Multilingualism

Ukrainian IT professionals are ideally suited for an offshore software development project because of their ability to function in multiple languages. The top five most-spoken languages in Ukraine are Russian, Ukrainian, English, Polish, and German. 

Regardless of your company’s preferred language or software being used, having people that can translate between them makes an offshore project much easier. Not only does it save you time, but it also allows you access to a variety of different perspectives.

4) Flexibility

Ukrainian developers are easy to work with. Need your project done ASAP? Need some changes made within a few hours? No problem! Ukrainian IT professionals have flexible schedules and can work any time of day or night. Since our primary goal is client satisfaction, we’ll do whatever it takes to meet your deadlines while maintaining high-quality standards in project management.

5) Trust

It may be simpler said than done, but trust is perhaps one of the most important reasons why it’s best to choose an offshore software development company that offers its services from within your target region. 

When there are language and cultural barriers, having a local resource who understands you, your business, and your goals can not only ensure success but also serve as a guide along your journey. That’s where an offshoring partner based in Ukraine can help you build trust by sharing knowledge through proven solutions.

Top 3 Software Development Companies in Ukraine 

Skelia

Skelia is a worldwide leader in developing cross-border IT and engineering companies and affiliate organizations in Eastern Europe. They have given staff augmentation solutions to several customers, from startups to Fortune 500 companies, for several years.

  • Ukraine
  • 250 – 499
  • $35/hr
  • $1,000 – $10,000

Geomotiv

Geomotiv is a US-based IT staff augmentation and software development company that was introduced in 2010. With the focus on software services for eCommerce, EdTech, OTT TV, AdTech, Martech, and Linear, they are ready to assist with any requirement of our customers and build close relations with them. 

  • Ukraine
  • 100 – 249
  • $35/hr
  • $25,000 – $50,000

MobiDev

MobiDev assists visionaries in building innovative software products with efficiency and delight. So clients can pay attention to what actually matters – their business, know-how, and clients.

  • Ukraine
  • 250 – 499
  • $45/hr
  • $25,000 – $50,000

Read Also: 13 Questions To Ask Before You Hire a Software Development Team


Hungary

Hungary - best countries to outsource software development

Why Choose Hungary for Offshore Software Development Services?

1) Reliable Workforce

Hungary is the best country for software development to find reliable, high-quality developers because of its geographical location, talent pool, and history of successful outsourcing relationships. Moreover, because most Hungarians speak fluent English—and your development team will likely include some native English speakers—communication will be more efficient. 

2) Convenient Business Environment

Hungary has a large pool of well-educated developers and engineers. It is an affordable location to set up shop, with costs around 20% lower than Western Europe. Budapest is developing into a significant startup hub, and it’s ranked as one of Europe’s most livable cities by Mercer Consulting. No wonder US companies like Amazon and Twitter have recently set up shop here!

3) Excellent Infrastructure

Poland’s renowned software development industry makes it an ideal location to outsource IT services. The country’s exceptional internet connectivity, coupled with its well-developed transportation infrastructure, puts you in a prime position to get your applications up and running fast, making it one of Europe’s leading hubs for software development.

4) Productive Work Environment

The cost of living in Hungary is much lower than that of other countries in Western Europe, which makes outsourcing to Hungarian companies more affordable. Furthermore, you can take advantage of tax incentives and rebates to further reduce your costs, making it an even better option when compared to countries like Ireland and China. 

5) Attractive Cost Structure

In Hungary, the cost of living is much lower than in other popular offshore countries such as India and China. Combined with its European lifestyle, modern infrastructure, communications networks, and highly skilled workforce, it’s easy to see why software development in low-cost Hungary is becoming more and more popular.

Top 3 Software Development Companies in Hungary

Web Peppers

Web Peppers is a worldwide offshore software development company offering peerless technical experience in web app development and IoT solutions. They offer service to several businesses and companies of all sizes at reasonable prices. 

  • $25 – $49/hr
  • 10 – 49
  • God, Hungary

Pulilab

Pulilab is an innovative global software and digital media firm that provides creative services crafted by skilled programmers and designers. They are inspired by their mission to create and innovate robust products. 

  • $50 – $99/hr
  • 10 – 49
  • Budapest, Hungary

Drukka Digitals

Drukka Digitals is a reliable app development firm. The company offers end-to-end solutions, which implies that it helps you from the beginning to the end. They build digital solutions based on the broad market and UX research to aid founders in transforming the world with their ideas.

  • $50 – $99/hr
  • 10 – 49
  • Budapest, Hungary

Philippines

Philippines - best countries to outsource software development

Why Choose Philippines for Offshore Software Development Services?

1) Qualified Talent at One-third of the Cost

An excellent pool of skilled, English-speaking professionals—including a growing contingent of developers with a solid understanding of cutting-edge mobile and web technologies—makes Philippines one of the best countries to outsource software development. 

Given that wages are significantly lower in the country than in India or China (especially when you consider their proximity to Europe), it’s hardly surprising that so many Western companies choose Philippine IT outsourcing partners as their go-to centers for engineering and R&D.

2) Low Operational Costs Compared to Western Countries

The labor costs in the Philippines are much lower compared to countries like the US, Canada, Australia, and the UK. This means that a company can save a lot on overhead while still getting quality programmers. Also, this makes the Philippines one of the most popular countries for offshore software development services. The pay scale varies depending on a company’s type and size. 

Still, it’s widespread to see junior-level programmers earning around 1$ per hour while senior-level managers make over 10$ per hour. Paying these salaries would be impossible in Western countries where taxes are higher, and rents are much higher.

3) English is Mainly Spoken Language

With a population of around 76 million people, English is an official language. Most citizens speak it as a first or second language and can communicate with international clients and workers. This also makes travel easier as most signs are in English as well. And if you’re worried about your ability to communicate, don’t be—Filipinos are known for their friendly nature and eagerness to help those they meet.

4) Reliable Internet Connection

The Philippines has one of the fastest and most reliable internet connections in Asia. Because of its strategic location, many local businesses have adopted cloud technology to enable their company operations even when they’re in remote areas. 

So it comes as no surprise that Philippine workers are digitally savvy. They can adapt well to an online work environment, making them perfect candidates for offshoring projects requiring design or programming skills.

5) No Barriers to International Business

While it’s still best to know another language, English is spoken by most employees. That means those who aren’t proficient in a second language don’t have to worry about learning one and can focus on getting work done. It also means that even if some employees speak another language, they’ll be able to converse with you and understand any special requests or directions you may have.

Top 3 Software Development Companies in the Philippines 

FLATWORLD SOLUTIONS

Flatworld Solutions is an outsourcing company headquartered in Princeton, N.J. Founded in 2006, they have a team of over 750 employees. The firm’s international offices are based across India, the U.K., and the Philippines and have experience in nonvoice/ back office, transcription, and call center services. Their Clients primarily work in the manufacturing, education, and healthcare industries. 

  • $1,000+
  • 1,000 – 9,999 Employees
  • Davao City Philippines

Arcanys 

Arcanys is a software development firm that specializes in providing web and mobile application solutions to its clients. They have over 100 developers split into offshore and nearshore divisions stationed in the Philippines and India.

  • $100,000+
  • 50 – 249 Employees
  • Cebu City Philippines

LANEXUS 

Lanexus Technologies has been a reputed offshore software development provider for over a decade. They have 4 development centers in the Philippines, and their clients are mainly from the U.S. & Canada, who work in industries such as media, telecom, banking, retail, etc. Their clients include organizations like Zappos, HP, and Wells Fargo Bank.

  • $25,000+
  • 50 – 249 Employees
  • Cebu City Philippines

Also Read: How To Outsource Software Development Effectively


Conclusion

Software development services are getting high in demand. However, choosing the best offshore development companies is not a cakewalk. Considering the difficulties in finding a suitable, quality, and cost-effective offshore development company, I have come up with an in-depth list of the best countries for offshore software development services. 

Besides, I have also mentioned some popular companies you can opt for for your next project. Still, have doubts? Mention them in the comment section below.


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Frequently Asked Questions 

1. What is the best country to outsource software development to why?

India is one of the best countries for offshore software development services. The cost of labor in India is significantly less than that of Western nations, making it an ideal country to outsource software development.

2. How can you find an offshore software development company?

There are many factors to consider while selecting an offshore development company. These include, but are not limited to, project management tools, workforce size and quality, project scope, pricing strategy for software products, etc.

3. What kind of projects can you outsource?

Software outsourcing companies handle a wide range of projects. However, certain types of projects are usually outsourced to offshore development firms. These include custom software development, mobile app development, web application development, game development, etc.

4. Which is the best time for outsourcing?

There’s never a bad time to outsource! Many business owners wait till the end of the year when their finances are better off. But if your business does have a lean season, then go ahead and outsource some of the work during that period.

5. Why do companies go for offshore software development services?

Offshore software development has emerged as a very lucrative option for businesses to reduce overhead costs and get a quality product developed, that too on time. There is no need to have an in-house development team when an offshore firm can arrange everything your project needs at economical prices.

6. How can you find an offshore software development company?

There are many factors to consider while selecting an offshore development company. These include, but are not limited to, project management tools, workforce size, quality, project scope, pricing strategy for software products, etc.

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