Best regions to Outsource Software Development

A Global Perspective to Software Outsourcing

Outsourcing software development can be a great way to develop high-quality products in a cost-efficient way. However, finding the right IT provider can be a bit complicated for many businesses—especially since outsourcing became a worldwide-phenomenon, and some are just starting to dive-in into the field.

Thankfully, there are several ways to tap into the global outsourcing market. For starters, knowing more about the most popular regions to outsource development will help to narrow searches down to a few technologically-prospering regions. South America Software Outsourcing, for example, has taken some massive leaps in the past year, and it’s looking very promising for 2020.

WHY SO MANY BUSINESSES ARE OUTSOURCING SOFTWARE DEVELOPMENT

Although cost-efficiency is what made Software Outsourcing a popular solution at the beginning, today the field is recognized for providing benefits that go far beyond this. Here are some of the highlights.

THE CRITERIA FOR COMPARING SOFTWARE OUTSOURCING REGIONS

Tech Education

This is, perhaps, the stepping stone for everything IT-related. The software development education of the region will determine not just the quality of their developers, but also the quality of the local companies.

Communication

No project will ever be successful without effective communication. Language fluency, cultural similarities, time zone differences, and general accessibility are a few factors in the mix.

IT Market Development

It is crucial to identify which regions tend to make the smartest investments in their technology sectors. An international approach to the industry is a clear sign of a healthy IT market.

Average Rate

The average hourly rate of developers varies vastly across regions. However, the real value lies in cost-efficiency, rather than on which region has the lowest prices.

BEST REGIONS TO OUTSOURCE SOFTWARE DEVELOPMENT

1. LATIN AMERICA

Latin America has the fastest projected IT industry growth of any region, with a projected revenue growth rate of 5.3% for the 2020s, 2 points above the 3.3% global average. Currently, software development in South America is leading the region’s industry, mainly thanks to countries like Argentina and Brazil.

2. SOUTH-EAST ASIA

South-East Asian countries like Taiwan, Thailand, and The Philippines are home to one of the largest English-speaking software developer population in the world. The region offers a growing IT services market with a young and energetic labor force. Since investments reached US$ 11 billion in 2018, the region has not stopped growing.

Moreover, many South-East Asian countries have begun to implement STEM education systems in their high schools and universities to nurture their booming tech and science industry.

3. EASTERN EUROPE

4. MIDDLE EAST

The Middle East is characterized by its tech-native and savvy population, as more than 50% of the demographic is under 24 years old. This region is a rich breeding ground for software outsourcing, with almost a dozen startup IT companies valued at over US$ 100 million each in 2017.

Most notable, software outsourcing companies in the Middle East are known for being very affordable. Developer salaries are a fraction of what’s paid in other regions, which allows for cheap outsource development solutions.

5. CHINA

China produces an amazing 4.7 million IT graduates every year, and Chinese developers are often recognized as some of the best in the world, as confirmed by HackerRank. The local IT market is as competitive as it gets, with 35,000 IT firms and 6 million people associated with them in 2017.

However, less than 10% of its population is fluent in English, which is a major drag in their international approach. Despite this, reputable providers put a lot of effort in building high-performance teams with great language skills.