Top 10 Countries for Outsourcing Software Development in 2022

Top 10 Countries for Outsourcing Software Development in 2022

Outsourcing software development is a cost-effective option for companies that lack the capacity to develop software internally. It is an effective way to reduce expenses and increase the productivity of the organization. This article will highlight the top 10 countries for outsourcing.

Software development is one of the most lucrative businesses in the world. The industry is expected to grow by 4.4% by 2022, which will make it worth $2 trillion.

It’s difficult to find a country with enough qualified developers and software engineers for outsourcing purposes. But some countries have proven to be good destinations for outsourcing software development in the past few years. In this article, we will talk about the best countries for outsourcing software development.

Reasons why companies outsource software development

Outsourcing software development is a popular way for companies to reduce costs and increase efficiency. But why do they outsource software development in the first place?

The involvement of qualified experts provides Higher Work Quality

Some companies might also outsource software development because they need a specific skill that is not available in-house. For example, if you have an idea for an app but lack the technical skills, you can hire an outsourcer with these skills to build your app for you.

Cost-effective Hourly Rate of Developers Reducing Development

Outsourcing software development is a cost-effective solution for many businesses. With the help of an outsourcing company, the business can save money and time by not having to hire in-house developers.

Many companies are turning to outsource software development as a more cost-effective way to get their work done. This is because it doesn’t require them to hire in-house developers and also because they can get access to experts from all over the world.

Country’s Stability Eliminating Project Stagnation Risk

Outsourcing can ensure that a project goes to completion even when a country is not stable politically. This is because the project or part of it can be outsourced to experts in other more stable countries. 

Compatible Culture ensuring Greater Collaboration

For a team to work effectively and efficiently, the members need to have a similar work culture. That is why companies place importance on culture when hiring candidates. However, it is often difficult for businesses to find candidates that match their culture while concentrating on other core issues. This is where outsourcing comes into play. Outsourcing companies have the time and resources to look for the best candidates that match your company culture. 

Top 10 Outsourcing Countries for Software Development according to HackerRank

We will now look at the top 10 outsourcing countries for software development:


Poland is a country in Central Europe with a population of 38 million people. It has been the home of outsourcing software development for many years, and it has been the destination for many companies that have outsourced their software development to other countries.


Poland has a well-developed IT sector, and it is ranked as one of the top countries in Europe when it comes to tech talent. The country also has its local startup ecosystem, which consists of start-ups that are mostly focused on eCommerce.

The cost of living in Poland is lower than in many other European countries, which means that outsourcing there can be more cost-effective.


Ukraine is one of the most attractive destinations for outsourcing software development. The country has a well-educated workforce, competitive labor rates, and a favorable tax regime. Some of the companies that have outsourced their software development to Ukraine in recent years include IBM, Microsoft, Amazon, and Oracle.


The Ukrainian IT outsourcing industry is one of the largest in Europe. There are more than 2000 IT companies that provide services in this sector. The outsourcing industry has been growing steadily since the early 1990s.

The Ukrainian IT outsourcing industry is a thriving market, with the majority of its revenue coming from Western Europe and North America, while Eastern Europe and Russia account for a smaller percentage of total revenue. The country’s proximity to these markets is one of its key advantages, as well as its highly-skilled workforce.


China’s economy is growing at a rapid rate, and it has become an important market for outsourcing software development.


The most important thing to know about China’s market is that it is not homogenous. There are many different provinces with different cultures, languages, and economic statuses. It’s important to consider which province you want to target before deciding which of the three major cities in China: Beijing, Shanghai, or Shenzhen will be your best location for outsourcing software development.


India has been at the forefront of outsourcing software development for many years.

India’s IT-BPO industry is one of the largest in the world, with an annual turnover of $110 billion and about 350,000 companies. India’s share in global IT-BPO revenues is around 40%.


India provides a low-cost but skilled labor force, which can be trained to handle business processes and software development at a much lower cost than similar work done in North America or Europe.


The Philippines has been a popular destination for outsourcing software development for decades. In fact, it has been the top destination for offshore software development since the late 1990s. The Philippines is an ideal place to outsource software development because of its proximity to North America and Europe, as well as its workforce that speaks English.


The country’s large English-speaking population is also a major factor in determining why it is such a popular destination for outsourcing software development. Many of the programmers in the Philippines are fluent in both Tagalog and English, which makes them well-suited to work on projects that require both languages.


Brazil is the largest country in both South America and the Latin America region. It is also the world’s fifth-largest country by both area and population. Brazil has a multicultural society, with Portuguese, Spanish, African, indigenous, and other ancestries.


The outsourcing software development industry in Brazil is growing every year. Due to its strategic location in South America and its large labor force, Brazil is an ideal destination for many companies looking to outsource software development work.

Brazilian outsourcing services are highly skilled and offer competitive rates that are significantly lower than those found in other parts of North America or Europe.


Taiwan has a lot of resources to offer as an outsourcing destination. The government is pro-business and the people are hard-working.


Taiwan is known for its high education standards, which are among the best in Asia. The Taiwanese work ethic is also world-renowned for being diligent and attentive to detail. These factors combine to make Taiwan a great country for outsourcing software development projects.

Czech Republic

The Czech Republic is a country in Central Europe. It is bordered by Germany to the west, Austria to the south, Slovakia to the east, and Poland to the north.

Czech Republic

It has a well-developed economy with a GDP per capita of $28,000 and ranks as one of the world’s most prosperous countries. Also, The Czech Republic has a high standard of living and quality of life with low unemployment rates and minimal corruption. The Czech Republic offers tax incentives for foreign investors and startups.

There are many outsourcing software development companies in the Czech Republic that offer offshore development services at affordable prices.


Canada is the second largest country in the world, with a population of over 35 million people. However, Canada is a federation of 10 provinces and 3 territories. The capital city is Ottawa, while Toronto is the largest city in Canada.


Canada has been a popular destination for outsourcing software development projects for decades because of its favorable business environment and skilled workforce. There are many reasons why companies choose to outsource their software development projects to Canada.

Wrapping it Up: What makes a country good for outsourcing?

Many factors make a country good for outsourcing. One of the most important factors is the cost of labor and living expenses, which are comparatively low in countries such as China, Bangladesh, India, and Pakistan. Other factors include geographical proximity, availability of skilled labor, quality of education and training systems, and tax incentives offered by governments.

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