Pros and Cons of IT Outsourcing in Eastern Europe

IT Outsourcing in Eastern Europe
Written by Albert Finch

IT outsourcing in Eastern Europe is becoming a popular option for start-ups across the world, and the merits are often up for debate. If you are thinking of hiring an IT software outsourcing company in Eastern Europe, you need to consider the pros and cons carefully.

Which Countries Are the Most Popular Destinations for IT Outsourcing in Eastern Europe?

Ukraine, Poland, and Romania are the most popular, followed by Serbia, Macedonia, Bulgaria, and Hungary. Ukraine is the most popular and the largest and has been named the top outsourcing destination for IT companies by Gartner. Kyiv, Lviv, and Kharkiv are the largest hubs.

Pros of Eastern Europe Software Outsourcing

Technical Skills

Eastern European governments are aggressively investing in the IT industry. In Ukraine, alone IT companies have generated $630 million in investments in the last five years. Universities are releasing more than 15,000 graduates each year, and developers are among the most skilled in the world.

Eastern European software Development Companies offer years of experience in different programming languages and industry niches, whether you are interested in the mobile app or web development. Outsourcing companies don’t just provide developers, though. You will find Q&A engineers, designers, business analysts, and project and product managers for hire too.

Language Proficiency

If you outsource development in Eastern Europe, you need to engage with developers with a good grasp of your native language. In most countries, English proficiency is a mandatory requirement for the IT industry. Most Ukrainian developers are highly or moderately skilled in English, Polish developers are adept at German, and there are a lot of French-speaking Romanian developers on the market.

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Education in Eastern Europe is a lot more specialized than in other parts of the world, which makes Eastern Europe software development outsourcing highly desirable for niche projects. Developers from Ukraine, Poland, Romania, and Moldova are widely regarded for their skills in custom software development and web development. Poland, Ukraine, and Romania rank highly on Hackerrank and TopCode for their programming skills as well.

Development Rates

Offshore development rates for Eastern Europe are very low – often 2-3 times lower than the US. Poland is the most expensive at $50-$99 per hour, although that is considerably lower than the US average of $100-$150 per hour. Moldova is the cheapest at $20 per hour while Ukraine and Romania average at $25-$49 per hour for developers.

Cultural Fit

While many Eastern European countries have a troubled past, most of the developers are young with an open, progressive mindset. They are used to working in multicultural environments and with global companies and can fit in easily with your corporate culture. If you are hiring a large team through an offshore agency, it’s even more seamless. Most of the developers are likely to know one another and have worked on similar projects as a team before, which makes it easy for them to adapt and hit the ground running.


There are hundreds of thousands of highly skilled developers for hire, which means that you can easily scale your projects. Because many of these countries are located in close proximity, companies may even outsource between countries to find the best possible mix of developers. Romania is known for fintech, Poland for R&D, Ukraine for cutting-edge new technologies, and Moldova for more niche mid-sized projects.

Cons of IT Outsourcing to Eastern Europe

The Size of the Market

The size of the IT market is both a pro and a con. In Ukraine alone, there are more than 1,000 software development companies and 160,000 IT professionals to choose from. This can make it difficult to choose the right vendor for your business.

Political Stability and Infrastructure

Political stability in Eastern Europe is fairly consistent but can vary between countries, and some (like Moldova and Romania) have pretty poor infrastructure compared to Ukraine.

Timezone Differences

While the time zones are favorable for many areas, the West Coast of the United States may not find the time zone difference with Europe favorable.

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IT Outsourcing in Eastern Europe is an affordable, fast way to gain access to some of the best developers in the world. Make sure you spend some time looking for the best company to partner with, and you won’t be disappointed.

About the author

Albert Finch

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