There is a real shortage of skilled developers in countries in the US and the UK. The few skilled senior-level developers on the market are spoiled for choice when it comes to finding a new job, and companies have to offer increasingly competitive compensation packages to attract new talent. As a result, IT outsourcing in Eastern Europe has become a viable and attractive staffing option for many businesses.
If you are looking into software development Eastern Europe is a great option for a number of reasons, but there are cons too. In this article, we’ll examine the benefits and the disadvantages of Eastern Europe software outsourcing.
The Best Destinations for IT Outsourcing in Eastern Europe
Before we dive into outsourcing companies in Eastern Europe, let’s look at what outsourcing and offshoring are. Outsourcing involves delegating any of your business activities to a third party. The staff working on your project aren’t directly employed by your company, but through your outsourcing partner. Offshoring is outsourcing to a third party in a different country. The developing world has vast, highly skilled but inexpensive labor pools that you can use to your advantage, which is why so many companies are outsourcing software development to Eastern Europe.
Eastern Europe is famous for its technical skills, particularly in the IT industry, and the average outsourcing rate is very low (at about $25-$50 per hour). Countries like Belarus, Ukraine, Russia, and Poland are popular Eastern Europe software development outsourcing destinations.
The Advantages of Outsourcing Software Development To Eastern Europe
The biggest reason companies choose to outsource is because they struggle to access qualified staff and need to fill slots within their existing teams or because they would like to save on development staffing costs. Here are a few of the advantages you will enjoy if you outsource your development to Eastern Europe:
Access to Real Expertise in Their Fields
Many Eastern European countries have prioritized STEM technology and software development. As a result, many developers in Ukraine, Poland, and other countries have advanced programming skills in rare programming languages. Many offshore companies have also really honed in on specific skills, like React.js development, Vue development, Flutter app development, and others. Most Ukrainian developers hold excellent university degrees and speak English fluently.
Ability to Communicate
Some offshoring destinations, like China and Brazil, have lower hourly development rates than Eastern European countries. However, the time zone and the language barrier make it difficult for US-and UK-based companies to communicate with them. Conversely, Eastern Europe is a more favorable time zone, and most developers speak English at an Upper-Intermediate or High Level. Languages like French and German are also spoken in some countries, making Eastern Europe a viable offshoring destination for many Western European nations.
Comprehensive Software Solutions
Many outsourcing companies are entirely turnkey. You can hire a few developers or a fully-fledged team that includes project managers, business analysts, front- and back-end developers, UI designers, and more.
Save on Costs
We’ve already mentioned that the hourly rates of developers are much lower in Eastern Europe, but there are other cost savings that you will enjoy. The outsourcing company will supply everything developers need to get the job done, including software, hardware, screens, and workspaces. They also handle payroll, sourcing, interviewing, and vetting, which saves a lot of money in the short-term and long term.
The Disadvantages of Outsourcing to Eastern Europe
While the advantages are clear, there are a few disadvantages and pitfalls to look out for.
Less Control Over the Relationship With Developers
As the client, you aren’t directly hiring your developers. This may mean that you have very little influence over retention or job satisfaction, and sometimes there can be a conflict between your interests and the outsourcing company. Make sure that the outsourcing company gives you freedom to run the team as your own to avoid this pitfall.
Less Control Over the Development Process
Some unscrupulous outsourcing companies keep control of the entire development process (and some even retain the code!) Ensure that the outsourcing company gives you the freedom to run the team as your own to avoid this pitfall.
It’s clear that IT outsourcing in Eastern Europe can save money and provide access to highly skilled developers. Make sure that you research all of your options carefully before entering into any hasty agreements.