Top 5 countries for offshore software development

Outsourcing has been there for decades and it has become bigger and better over the years. The practical approach, skills workforce, enhanced efficiency, and felicity are what makes outsourcing a hit among businesses. 

While focusing on core competencies, companies like to outsource other services which ultimately proves to be a good idea. Although there are a lot of examples of collaborations in different countries.

Here are the top 5 countries for offshore software development:

1. India

India is the second-largest English speaking country in the world and this makes it an ideal choice for outsourcing. Outsourcing to India accounts for about 40% of the services.  

Here is why India should be your first choice when it comes to offshore software development:

  1. Government favours outsourcing: The Government of India has IT sector development in its priority list and is implemented in the “National IT Task Force” 108 point action plan. This has led to promote the growth of Information and Technology. In addition to this, India has cyber law in order to control criminal activities and offer hassle-free services. To promote software development, the Indian government has permitted 100% foreign equity. 
  2. Flexible pricing options: India offers a range of budget-friendly options making it one of the top outsourcing providers for global resources. The client can choose from per hour, per-lead or fixed monthly prices. Indian software developers help in saving more than 65% of operational expenses while enhancing the companies’ profits. 
  3. Quickest-time to market: Due to the time-zone difference, Indian offshore development companies are able to provide the quickest time to market. Customer support and helpdesk services are available 24*7.
  4. High-quality services: The consistently high-quality services provided by remote teams of India helps them stand out. When India is chosen as the outsourcing destination by the client, there is a significant amount of cost-saving.
  5. Adaptability and open-mindedness: The experts quickly adapt the unique way the in-house team is already working and recommend what is beneficial for the clients. 

Stats to consider:

  • Fifteen Indian companies have attained the SEI-CMM Level 5 certificate.
  • The National Association of Software Services Companies has depicted that India will have the highest number of ISO-9000 software companies very shortly. 

2. Ukraine

Ukraine has managed to maintain the 24th place in the Top 25 of the Global Services Location Index (GSLI). And this is since 2004 by the company A. T. Kearney. 

Ukraine stands tall in the IT industry and here’s the proof:

  • Global Sourcing Association declared Ukraine as the “Outsourcing Destination of the Year in 2017.
  • Ukraine has the most talented developers and this was proved when SkillValue 2018 rated the nation in eighth place. The average Index score of a Ukrainian engineer is 91.26%. 
  • A big tech community: 7000+ people visit the largest conference to learn from International speakers from different enterprises like Microsoft, HP, Skype, IBM, and Intel. 
  • Best Price/Quality ratio: Having a talented tech pool, Ukraine offers fewer rates than other neighbors like Poland. Moreover, the quality standards are very high. 


  1. Solid education vase and plenty of certified professionals.
  2. Competitive prices and comprehensive services: Besides the low-price, it offers comprehensive services to the clients as it is located in a very convenient time zone for collaborating. 
  3. Expertise oriented professionals: It is among the top 10 countries having the largest number of certified IT minds available. Young IT individuals undertake additional software development courses and also professional training making their minds even more competent. 
  4. Impressive IT growth: IT outsourcing is the booming and well-developed sector of the economy. 
  5. Ideal work ethics: The country’s mentality and cultural background play an important factor when it comes to choosing the best company. 

3. Philippines

The Philippines boasts a steady growth in revenue having 9% annually covering 20-25% outsourcing market share. More than 92% of Filipinos speak English fluently, making it one of the largest English speaking populations across the globe. 

And this was proved in 2015 by UNESCO Institute for Statistics (UIS). The country has been ranked as the second-best outsourcing place in the world by Tholons Globalization Index.   

Here are the reasons why the Philippines should be considered for outsourcing:

  1. Economic growth: According to the 2017 KPMC Philippine Consumer Market Report, there is a long list of foreign investors who stand to benefit from the business provided by the remote teams. The Philippines are the “growth leaders in Asia” and 7th in the overall index which is expected to move to upper-middle-income status in the upcoming years.
  2. Readily available workforce: The remote teams are always eager to start working on the client project and utilize the knowledge and the experience that they own. 
  3. Good track record: In 2016 AT. Kearney Services Location Index ranked the country second to India in terms of global outsourcing activity. The World Bank and the Asian Development Bank have reported continuous economic growth. 
  4. Cultural compatibility: The country formerly colonized by Spanish, Americans and, Japanese, it still depicts the remnants of the past. Professionals are adaptable to foreign cultures and respect it. Filipino offshore company is easy to work with. 
  5. Growing tech community: The nation is always geared to supply the global demands of IT. The continuous effort from the offshore software development companies to deliver quality solutions helps in growing the community of experts. 

4. Poland

Do you know that Poland is the home for third-most skilled programmers in the world? Yes, they were ranked 3rd in the HackerRank competition-“Programming Olympic”. 

As per Statista the turnover in the outsourcing service market is expected to reach 2,311.7 million dollars in the upcoming 2021. Moreover, Poland is the best outsourcing destination in Europe as per the A.T. Kearney Global Services Location Index. 

Why consider Poland for outsourcing?

  1. Knowledge and expertise: Poland is among the countries that have attracted the biggest funding rounds. They are known for their proficiency in technical knowledge as they have the highest ranks in international programming contests like Microsoft Imagine Cup, Google Code Jam, TopCoder or Central European Programming. They occupy the 5th position in the TopCoder’s global ranking.
  2. Cultural proximity: There is a very small gap between the Polish and Western mindset. The software developers hired by remote companies are efficient in handling projects of a diverse range. 
  3. Stable economy: When the developers are hired from this country, there is nothing to be worried about. The nation maintains stable growth which seems to be not affected by the economic crisis. 
  4. Data protection law compliance: As a part of the European Union, companies in Poland stay updated regarding the trends and abide by the strict guidelines regarding data privacy and processing. 

5. Romania

According to AT Kearney’s Global Services Location Index, the country is ranked within the top 20 countries in the world.  And the top 5 in Europe for different reasons. Romania is one of the fastest-growing outsourcing IT destinations, software development to be specific in the world. 

What makes Romania one of the best IT outsourcing destinations?

  1. The logistic upper hand: Romania’s position in the Western business hubs makes it an interesting option than Asian counterparts. Romania is two hours ahead of England and seven away from the US East Coast.
  2. Multi-lingual: Romanians speak different languages like English, French, German and Italian proficient. The professionals can handle various projects from various industries. 
  3. Competency: Romania is 5th in the Brainbench study list having the highest number of certified IT professionals. The education system is supported by the government. Because Romania is a member of the European Union since 2007, making it easy for companies to work with the country’s professionals and feeling safe. 

The global knowledge that is passed down by the outsourcing companies helps in competing in the marketplace. While the outsourcing reasons may vary from company to company but the final results are visible. 

There is a reason why outsourcing has become popular so if you are a business owner, utilize this opportunity to compete in the market and boost your revenue by collaborating with the right outsourcing partner.

Nishant Sharma
Nishant Sharma
I am working as a Digital Marketing Specialist for Signity Software Solutions. With 4 years of experience working for different business verticals, I am apt in creating marketing strategies that work well for B2B as well as B2C businesses. Besides working, I love traveling, interacting with new people and watching videos that add value to my life.
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