Outsourcing has become a synonym for rapid growth, innovation, and flexibility for the past few years. It gives businesses opportunities such as cost reduction, more transparency, and managing team work remotely.
Outsourcing enhances service quality and increases the effectiveness of business transformation. These benefits have made it a valuable strategy in the business world.
In this article we will tackle all the reasons why the Eastern Europe software outsourcing landscape is the right niche to dedicate time and resources.
The outsourcing landscape in Eastern Europe: facts and stats
Eastern Europe has become a major outsourcing destination especially in the last 10 years. A well-developed structure, highly qualified developers, and reasonable prices are just a few advantages the area has to offer. It successfully draws in both new start-ups and tech companies as well as large organizations.
How did Eastern Europe become such an attractive region for outsourcing? During the COVID-19 pandemic, Eastern European software development companies showcased resilience and swiftly adapted to remote work and digital transformation. This attracted increased collaboration from Western tech firms.
Their strategic location, growing economies, and rising number of unicorn startups have solidified the region’s reputation as a leading nearshoring hub for high-value software development projects. (1)
In 2025, Eastern Europe’s software development sector thrived in a dynamic ICT landscape with strong education systems, cost advantages, and strategic location to become global tech leaders. (2)
Despite challenges like geopolitical tensions, the region remains a top outsourcing destination, with emerging hubs in Serbia and Slovakia and established centers in Bulgaria and Romania.
The region continues to expand its market presence, with projections indicating a growth to a market volume of $1.25 billion by 2029. (2)
Why choose Eastern European developers?
Eastern Europe offers highly skilled developers at competitive rates and combines strong technical expertise with cost efficiency. The region’s cultural compatibility, English proficiency, and convenient time zones enable effective collaboration with Western businesses.
Eastern European software engineers excel in complex problem-solving, often contributing to global tech advancements in AI, machine learning, and blockchain technologies. The region’s commitment to continuous learning and participation in global coding competitions ensures they stay at the forefront of IT industry trends.
Additionally, Eastern Europe offers a reliable infrastructure and a growing network of innovation hubs, creating an environment conducive to high-quality web development.
Its thriving tech ecosystem and focus on innovation ensure access to advanced solutions, while adherence to international IP and data protection standards guarantees security. These factors, along with scalability and a growing global reputation, make Eastern Europe a top choice for software development outsourcing.
Why should you choose outsourcing to a software development company in Eastern Europe? Below are some of the reasons.
Cost-effectiveness
Outsourcing to Eastern Europe is highly cost-effective compared to Western Europe or the USA due to significantly lower service prices. The region’s lower cost of living allows software developers to offer competitive hourly rates and reduce expenses for clients. Favorable tax policies, particularly for the IT sector, further help leading software development companies keep operational costs low.
Additionally, strong government support through initiatives like tech parks and business centers fosters industry growth while maintaining competitive pricing. These factors make Eastern Europe an attractive destination for high-quality yet affordable software development services.
High-quality talent pool
Eastern Europe’s IT sector stands out with a skilled talent pool and impressive numbers, including 300,000 ICT professionals in Ukraine, 200,000 in Romania, and 520,000 developers in Poland. (3)
Specialists are not only recognized for their number, but also for the quality of service they offer on the global market. For example, Polish developers are globally recognized, ranking 3rd on HackerRank for their exceptional coding skills and software development expertise. (3)
Strong technical expertise
Software developers from Eastern Europe already have an established good reputation, known for their tech expertise and adaptability. Outsourcing companies in the region are proficient in contemporary IT trends and a wide range of programming languages.
For example, Poland leads with specialists in JavaScript, Java, Python, and TypeScript, while Romania stands out for its proficiency in PHP, C#, Java, and C++.
The Czech Republic and Hungary offer strong talent pools skilled in JavaScript, Java, Python, and HTML/CSS.
Slovakia complements the region’s diversity with expertise in Python, Java, JavaScript, and PHP, showcasing a broad spectrum of technical capabilities across Eastern Europe. (4)
English language proficiency
Eastern Europe is known to have a highly educated population with a strong emphasis on foreign language learning. English is well-spoken by IT professionals in the region, which makes for a smooth communication and effective project execution. Many software development outsourcing companies also possess proficiency in other languages commonly used in international business which is another advantage.
Speaking in numbers, Poland ranks impressively at 13th globally with a score of 600 in language proficiency, followed by Slovakia at 15th with 597. Romania and Hungary also shine, ranking 17th and 18th with scores of 595 and 590. (4)
Bulgaria and the Czech Republic take 21st and 23rd positions, scoring 581 and 575, while Latvia secures 25th with 571 points.
Ukraine, though slightly lower, still performs well at 35th place with a score of 539, reflecting the region’s overall strong English language capabilities. (4)
A high level of English proficiency, good education and a high level of professional skills make developers from Eastern Europe the perfect choice.
Innovative solutions
Eastern Europe software development outsourcing has led to innovative solutions in areas like custom software development, where companies deliver highly specialized tools tailored to specific industries.
For instance, Polish developers have created cutting-edge AI-driven platforms for predictive analytics in manufacturing, helping businesses optimize operations and reduce costs.
Similarly, Romania has gained recognition for its fintech expertise, producing secure blockchain-based payment systems that enhance transaction transparency and speed for global clients. These innovations showcase the region’s ability to deliver advanced, niche solutions.
Another example is the development of healthcare technology, where Eastern European teams have introduced solutions like telemedicine platforms designed to improve patient access and care. Ukrainian developers, for example, have played a pivotal role in building secure telehealth applications that comply with international standards like GDPR and HIPAA.
Additionally, the Czech Republic excels in smart city solutions, implementing IoT-based systems for energy management and urban planning. These projects illustrate how outsourcing to Eastern Europe fosters groundbreaking technological advancements across diverse sectors.
Favorable legal and security environment
The region’s compliance with comparable regulatory requirements, especially with regard to data security and privacy, is a major benefit of IT outsourcing in Eastern Europe.
Strong data protection safeguards are ensured by Eastern European nations’ adherence to international copyright rules and regulations, such as the General Data Protection Regulation (GDPR). These standards give businesses confidence in the region’s capacity to meet their legal responsibilities because they closely correlate with privacy and security rules in the US and Europe.
Local outsourcing services providers have also strengthened their operational resilience through lessons learned during the pandemic and geopolitical challenges. This experience has equipped them to maintain uninterrupted, efficient remote work even under external pressures.
Software companies in Eastern Europe prioritize safeguarding sensitive information by employing secure authentication, VPNs, data encryption, and privacy-focused hardware. These proactive measures mitigate potential risks and protect client data.
As a result, Eastern Europe offers a secure, reliable, and compliant outsourcing environment for businesses worldwide. (5)
Eastern Europe vs. Asia for software development outsourcing
Many companies struggle whether to choose Asia or Eastern Europe as one of their outsourcing destinations. Some of the latest Qubit Labs research shows that global tech companies hire Eastern European developers – 77.4% of businesses choose to outsource software development to Eastern European countries. (6)
When making a decision, businesses choose based upon the benefits those regions offer. The inexpensive labor is the main advantage for countries like India, the Philippines, Turkey, and China.
Meanwhile, Eastern Europe, including Bulgaria, Poland, Georgia, and Romania, stands out regarding higher quality, reliability, and data protection. Both regions offer their own unique advantages and maintain their global position in the software development outsourcing industry.
Foreign companies currently prefer Asia for its affordable salaries and vast talent pool. Besides, European culture is more similar to Western culture, so finding common ground with the local developers is easier.
You can count on them and be reassured about their inability to introduce changes to the project or miscommunications. The region offers an excellent price-to-quality ratio and attracts foreign companies with its rapidly advancing IT infrastructure and readiness to complete projects of any complexity.
As a conclusion the choice for an outsourcing destination is based upon the overall budget, preferences and requirements. Eastern Europe is increasing in popularity each year, attracting foreign software development companies and making them compete to attract high-skilled developers.
If you’re on the look for a proven custom software development company, BGO Software team is here to help with the expertise, experience, technical skills, and processes your in-house team currently needs to thrive.
Sources
- https://thedatascientist.com/pros-and-cons-of-it-outsourcing-software-development-to-eastern-europe/ (4)
BGO Software is a renowned IT company specializing in healthcare technology solutions. With over 15 years of industry experience, we offer comprehensive technology consulting, software development, and IT infrastructure services. Our focus on healthcare technology enables businesses to mitigate technological risks and accelerate growth, ultimately delivering enhanced value to patients.
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