Eastern Europe software development outsourcing has become a popular solution for hundreds of companies around the world during the last several decades. There are multiple reasons for that like a broad choice of talents, reasonable rates, and high final product quality.
However, this fact also complicates the process of outsourcing software development to Eastern Europe as dozens of new technology providers emerge daily providing similar or even the same services, technical background, and rates.
For these reasons, we want to share our look-through of the outsourcing IT Eastern Europe market providing insights into:
Outsourcing in Europe: 2021 market outlook
Benefits of Eastern Europe software development outsourcing
The top & biggest software companies in Europe
IT services market statistics and Europe outsourcing trends.
Let’s get started with the market overview of outsourcing in Europe.
Outsourcing in Europe: Market Overview 2021
According to Statista, the European IT services outsourcing market size is steadily growing exceeding $103,9 bln in 2021 compared to $93,1 bln in 2016.
These numbers demonstrate that Europe is becoming a top-tier software development outsourcing location for diverse industry-based companies around the world.
Our post is dedicated to Eastern Europe software development outsourcing, so let’s now discuss the key market players, their hourly rates, cultural peculiarities, and key numbers to help you make a data-driven decision on what country to choose for IT outsourcing in Europe.
Ukraine has become one of the leading Eastern Europe software development outsourcing locations for the last decade providing top-tier software solutions for the US (>50% of clients of Ukrainian IT outsourcing companies are from the United States), Great Britain (>30% of clients), and many Western European countries including Netherlands, Luxembourg, Switzerland, Austria, Belgium, Norway, Sweden, Denmark, and others.
This fact demonstrates that Ukraine is constantly investing more and more funds into building a strong and competitive IT services market ecosystem.
This way, Eastern Europe software development outsourcing to Ukraine means you will surely find a highly proficient team of software engineers with the relevant technical background needed to transform your project requirements into a first-class software product.
Below you can look through the key statistics on the Ukrainian IT market.
Key Statistics on the Ukrainian IT Market | Ascendix Tech
Besides, Ukraine provides a high price-quality relationship through reasonable rates and a large number of tech specialists.
For example, the average Ukraine outsourcing rates are $25-$50 while American companies charge $55-$150 offering the same technical expertise and background.
According to PayScale, the average software developer salary in Ukraine is about $2,250 while US-based tech specialists get paid $4,500 per month in average.
In terms of the payroll rate by seniority level, check the below graph demonstrating how much are Ukrainian tech specialists paid based on their background in US dollars.
Median IT salary by seniority level in Ukraine
Besides, Ukraine has become a solid R&D location for top-tier world-known corporations and companies that have established their offices in the top Ukrainian IT hubs like Kyiv, Kharkiv, Odesa, Lviv, Dnepr, and others.
Specifically, Gameloft, Huawei, Siemens, Samsung, eBay, Upwork, Grammarly, and Plarium are among the world-class companies outsourcing software development to Eastern Europe and Ukraine.
Global Famous Companies with R&D-Offices in Ukraine | Ascendix Tech
Ultimately, Ukraine has become an investment-intensive tech location for many startups and product-first companies.
GitLab, Grammarly, People.ai, Reface, and Restream are the leading tech startups from Ukraine with the biggest amount of accumulated raised funds during the last several years.
Top Ukraine-Based Successful Tech Startups | Ascendix Tech
Considering the average hourly developer rates, Romanian tech companies mostly charge $25-$49/h along with top vendors charging over $50/h.
Romanian IT Market Overlook | Ascendix Tech
The IT Outsourcing Review provides the following data on Romanian median IT salary based on seniority level:
Junior: approx. $1045/month
Middle: approx. $1815/month
Senior: approx. $2750/month.
Despite the fact that the Romanian IT market is still unable to compete with Ukraine and Poland, Eastern Europe software development outsourcing to Romania provides such benefits as a multilingual nature.
Specifically, 17% of IT specialists have an upper-intermediate proficiency level of English, over 10% speak Hungarian and French fluently, approximately 5% have strong skills in Italian, and about 3% know German.
Among other benefits of Eastern Europe software outsourcing to Romania, we should mention reasonable legal restrictions including:
No profit tax for reinvested profit in new technological equipment
No income tax for employees working as software developers and hired in R&D labs
No income tax for R&D companies during the first 10 years.
According to the startup ecosystem, Romania is ranked #45 in the Global Startup Rankings.
The country has the following numbers in the innovation & startup sectors:
>1,500 startups, VCs, and business angels
>100 accelerators and incubators
>100 active investors network.
Let’s now briefly discuss the top Romania-based tech startups and their funding:
FintechOS: founded in 2017, sustained $16 mln in 2020, currently expanding to the US, European, and Asian markets
Elrond: founded in 2017, accumulated $1.9 mln funding.
UiPath: Romanian first unicorn, founded in 2005, acquired mind-boggling $1.2 bln from 25 investors, currently valued at $10 billion.
Top Romania-Based Successful Tech Startups | Ascendix Tech
This way, software development outsourcing Romania may become a great option if you want to leverage the benefits of solid technical background but achieve a smaller talent pool compared to Ukraine and Poland.
Belarus is a long-held Eastern Europe software development outsourcing location providing over 55,000 tech specialists within >300 IT companies across the country.
According to State of European Tech 2019, Belarussian IT services export was valued at $3.1 bln in 2019 compared to $4.5 bln in Ukraine.
It’s worth mentioning, that the political situation in 2020 forced over 2,000 software developers and over 50 IT companies to relocate to Ukraine and continue their operating activities due to the Internet connection restrictions and an unattractive investment environment.
Top Eastern Europe Software Outsourcing Companies
Now we want to share the list of software companies in Europe that provide software development services so that you can compare each of them, view their case studies, and choose the most suitable partner for your project.
Before we start, it’s worth mentioning that the below data and rankings are based on the Top Software Developers in Eastern Europe 2021 report by Clutch.co.
Ultimately, the software development company decided to give Ukraine a try and they were surprised to the upside. This way, Ascendix decided to establish their new office in Ukraine and start their own software outsourcing company Eastern Europe providing custom software development services for multiple niches.
Ascendix has already helped dozens of clients transform Eastern Europe software development outsourcing into reality by developing advanced software products tailored to their needs and expectations.
For example, Ascendix has helped Flibco.com – one of the leading bus ticket booking systems in Europe with a passenger turnover of 1.9 million/year.
Specifically, Flibco.com asked Ascendix to help them build a powerful bus ticket reservation software providing the following services:
Shuttle bus ticket software management
Advanced analytics tools
Cloud migration to an enhanced bus seat booking system software
Google Maps and TomTom integration
And many others.
Here is what Alex Tregubov, Product Owner at Flibco.com, said about Eastern Europe development outsourcing with Ascendix:
“ In early 2019 we were looking for outsourcing companies in Eastern Europe to help us build a mobile application. We were blessed to find Ascendix! A number of other initiatives followed after the mobile app delivery, including a unique system to manage our Door2Gate product and a complete overall revival of our IT infrastructure. Our partners at Ascendix have been phenomenal all the way, showing an exceptional level of efficiency, transparency, expertise, and quality. It’s no doubt that all of our future initiatives are with Ascendix Technologies. ”
- Alex Tregubov, Product Owner at Flibco.com
Also, Ascendix Tech has helped Colliers International Indiana – one of the biggest and leading world-class real estate services providers – build a custom listing platform.
For 13 years, Ascendix had been facilitating the implementation and customization of their Dynamics 365 platform before Colliers has contacted the outsourcing IT Eastern Europe company again for the purpose of a real estate listing platform development.
Among the core features and solutions, Ascendix has delivered the following ones:
Multi-channel real estate system
Powerful search and filtering tools
Automatic sync with a CRM
The intuitive report generation tool
Safe and conversion-boosting deal and collaboration rooms
Here is what Saimir Qalliu, Chief Financial Officer and Managing Director, said about Eastern Europe software outsourcing with Ascendix:
“ We wanted to make better use of our data and present it in a format that our professionals and clients would find attractive and easy to access. This required a new digital solution, hence the engagement with Ascendix on this latest project. The idea of presenting data in an easily accessible and pleasing way to the consumer was not new. We just wanted to have our ability to execute it within our space, with our own data, for our professionals and clients. ”
- Saimir Qalliu, Chief Financial Officer and Managing Director
Andersen Lab is a software development outsourcing IT Eastern Europe company with over 14 years of experience in Eastern Europe software development outsourcing based in Ukraine with offices in Kyiv, Kharkiv, Odesa, and other locations.
The agency is trusted by such giants as Samsung, TUI, MediaMarkt, Tinkoff, KICKICO, Mercedes Benz, and others.
You can find a wide range of services that Andersen Lan provides like mobile, app, web development, UI/UX design, and other options within Eastern Europe software development outsourcing.
AgileEngine is among the leading IT outsourcing companies in Europe with over 11 years of experience in Eastern Europe software outsourcing having 400+ in-house tech specialists based in Ukraine, DC, and Argentina.
Groupon, Bloomberg, Estee Lauder, Delivery Hero, and Funny or Die are among the biggest companies outsourcing software development to Easter Europe with AgileEngine.
One of the leading IT outsourcing companies in Europe is featured by Inc. 500, ISTQB, Clutch.co, Forbes, Financial Times, and Facebook.
KitRum is a software outsourcing company Eastern Europe based in Ukraine, Poland, Israel, Florida, and Guadalajara having solid experience in Eastern Europe software development outsourcing.
Having 250+ tech specialists on board, the agency helps financial, healthcare, automotive, gaming, real estate, and education companies build advanced technology solutions.
Airbnb, Fiverr, Pick Watch, Citrix, and Online Rewards are the top-tier companies that benefited from outsourcing software development to Eastern Europe with KitRum.
Glassdoor, DesignRush, Wadline, Clutch, GoodFirms, ITFirms, and other sources recognize the outsourcing IT Eastern Europe company as a competitive Eastern Europe software outsourcing market player with solid tech expertise in React, Vue.js, Angular, Ruby, PHP, Java, and other technologies.
JustCoded is one of the IT outsourcing companies in Europe focused on FinTech and InvestTech technology solutions established in 2007 and based in Kharkiv, Ukraine.
Forus, Charm Impact, Luxury Shares, GSMA, and Invest My Community are the most well-known startups and companies that trusted JustCoded to help them with outsourcing software development to Eastern Europe.
Eastern Europe software development outsourcing is gaining more and more steam at a mind-boggling pace.
Such benefits as reasonable rates, high education and English proficiency level, solid technical background, and a wide talent pool stimulate more world-class companies from the US, Great Britain, and other countries to invest in software development outsourcing to the biggest software companies in Europe.
We hope our outsourcing in Europe market overview will help you find the perfect conditions for your business and our list of top software companies will help you choose the right software outsourcing company Eastern Europe.
If you want to leverage the benefits of outsourcing software development to Eastern Europe, Ascendix Tech is ready to discuss your project idea and transform it into a jaw-dropping technology solution that meets market demands and your specific requirements.