fbpx

Eastern Europe Software Development Outsourcing 2021: Market Overlook

August 17, 2021
13 min

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.

How We Outsourced Software Development to 5 Countries

Check our story of software development outsourcing to India, China, Mexico, and Argentina before we found an ideal offshore development spot in Ukraine. We share the key challenges, benefits, and outcomes of outsourcing software development to each location.

Ukraine

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.

IT Ukraine Association Report 2021 states that the IT industry in Ukraine has exceeded $5 bln in 2020 compared to $4,1 bln in 2019.

Below you can look through the 5-year Ukrainian IT services market growth covering the number of tech specialists and market value.

 

Ukrainian IT Services Market Overview, 2016-2025 (estimated)
YearNumber of tech specialistsMarket value, in billions
2016153,000$1,98
2017172,000$2,49
2018184,000$3,2
2019192,000$4,17
2020205,000$5,03
2025 (estimated)242,000$8,4

 

Among the core benefits of IT outsourcing to Ukraine is the ever-growing number of technical specialists and tech graduates yearly providing a large talent pool.

Beetroot’s ‘Ukraine: The Home of Great Devs. 2021 Tech Market Report’ states that Ukraine has overpassed the level of 200,000 tech specialists and 36,000 tech graduates in 2021.

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

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

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

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

Top Ukraine-Based Successful Tech Startups | Ascendix Tech

Is It Worth Outsourcing Software Development Ukraine?

Learn the key 5 benefits of outsourcing development Ukraine where we share the market overlook in 2021 with statistics, numbers, developer rates, and other factors that make Ukraine a great offshore development location for your business.

Poland

Poland is one of the fastest-growing Eastern Europe software development outsourcing locations providing 430,000 tech specialists and over 30,000 tech graduates in 2021.

In 2019, the Polish IT services market size was valued at $4.65 bln and this number only tends to grow.

According to Statista, the Polish IT market is expected to reach $12.4 bln in 2021 including IT equipment, software, and IT services.

Surprisingly, only 34% of half a million IT experts work for Poland-based IT companies while the other 66% are employed by foreign agencies.

In terms of Polish software development rates, Pracuj.pl Survey states that the average senior software developer monthly salary is about $3,600.

However, according to the NoFluttJobs Research 2020, the median IT salary by seniority level in Poland is as follows:

  • Junior: $1,000-$1,800
  • Middle: $2,400-$3,700
  • Senior: $4,200-$5,300.

 

Polish IT Market Overlook | Ascendix Tech

Polish IT Market Overlook | Ascendix Tech

 

The most highly paid Polish IT segments are Business Intelligence, Big Data Analytics, and Data Science along with the lowest-paid specialists as support managers, and UX designers.

Eastern Europe software development outsourcing to Poland has become an ideal choice for such first-class world companies as:

  • Dell EMC
  • HP Inc
  • Lenovo
  • Microsoft
  • IBM Polska
  • Intel
  • Apple
  • Cisco
  • Oracle
  • Google.

 

Global Famous Companies with R&D Offices in Poland | Ascendix Tech

Global Famous Companies with R&D Offices in Poland | Ascendix Tech

 

Besides, many top-tier corporations have invested significant funds into the Polish IT market growth during the last several years:

 

Top-Tier Companies Investments into Polish IT Market | Ascendix Tech

Top-Tier Companies Investments into Polish IT Market | Ascendix Tech

 

Ultimately, top Poland-based product-first companies and tech startups include DocPlanner, Brainly, Booksy, Kontakt.io, SALESmanago, and Synerise.

Let’s briefly look through some of their market values, secured investment rounds, and current market values:

 

  • DocPlanner: founded in 2011, acquired $140 mln of raised funds through 7 investment rounds with a $300-$500 mln market company value in 2021.
  • Brainly: founded in 2009, secured over $80 mln in 2020, currently valued for $100-$200 mln with offices in >40 countries.
  • Booksy: founded in 2014, raised over $70M in 2021, processing over 3 million bookings per month, currently valued at $100-$200 mln.
  • Kontakt.io: founded in 2013, raised over $7.7 mln investment funds, currently valued at $20-$30 mln.

 

Top Poland-Based Successful Tech Startups | Ascendix Tech

Top Poland-Based Successful Tech Startups | Ascendix Tech

Romania

Romania is an emerging dark horse among the Eastern Europe software development outsourcing locations with 120,000 tech specialists in 2021.

The country has greatly flourished its IT market for the last several years through the high quality of education, strong communication skills, reasonable rates, and a fast-growing IT ecosystem.

According to Romania Insider, the IT services market reached the level of $7 bln in 2019 with a capital distribution of 27% to 73% on behalf of foreign investments.

According to OfficeRentInfo, Romania needs to provide 300,000 more tech specialists to meet the current IT market demand and fill in the vacancies. The shortage of qualified staff is provoked by massive migrations and an aging society that may lead to $8.5 mln losses across lots of Romanian economy sectors.

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

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:

 

  • 123FormBuilder: founded in 2008, secured over $1 mln investment funds, announced VC 212 to become a stakeholder
  • 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

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

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.

The IT Outsourcing Review provides the following average software developer salaries by seniority level:

  • Junior: $900
  • Middle: $1,700
  • Senior: $2,600
  • Team Lead: $3,600.

 

Belarussian IT Market Overlook | Ascendix Tech

Belarussian IT Market Overlook | Ascendix Tech

 

Apart from reasonable rates, Belarus has one of the world’s highest literacy levels with a 91% global average among the youngest generations by UNICEF.

This means that most software engineers and tech specialists from Belarus are highly educated having 2 HE universities included in the QS World University Rankings 2020.

Lots of world-class companies are outsourcing software development to Eastern Europe and Belarus by establishing R&D offices there.

Specifically, Viber, Fitbit, IHS, Playtika, Yandex, and WorkFusion are among the top-tier companies investing much funds in Belarus IT outsourcing.

 

Let’s now look through the Belarus-based product-first companies and tech startups:

  • Wargaming.net: founded in 1998, over 20 offices worldwide, raised approx. $250 mln, currently valuated at $1.5 bln.
  • FriendlyData: founded in 2016, raised over $500K over 4 rounds, acquired by ServiceNow in 2018.
  • HYPERVSN: founded in 2016, secured $11.5 mln after 3 rounds, initially named Kino-mo.
  • Banuba: founded in 2016, accumulated $100 mln after 2 rounds, currently valued at $250 mln.

 

Top Belarus-Based Successful Tech Startups | Ascendix Tech

Top Belarus-Based Successful Tech Startups | Ascendix Tech

 

Besides, many world-class companies have been actively investing in Belarus IT outsourcing by acquiring local Belarus-based startups:

 

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.

1. Ascendix Tech

 

Ascendix-one of the leading commercial real estate software companies

Ascendix head image

 

Ascendix Tech is a custom software development company with over 10 years of experience in building tailor-made technology solutions for multiple industries like insurance, financial, travel & transportation, and the Commercial Real Estate, and PropTech sectors.

The outsourcing IT Eastern Europe company has 3 offices in Kharkiv, Ukraine, Portu, Portugal, and Dallas, Texas.

Previously, the history of outsourcing software development to Eastern Europe, specifically, to Ukraine, emerged while Ascendix had been looking for a reliable technology provider to help them build their own software products for Commercial Real Estate companies.

Ascendix has tried software development outsourcing to India, China, Mexico, and Argentina, but all these locations had their specific nuances like cultural and time zone differences, resource retention issues, language barriers, and other challenges.

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
  • Multi-payment system
  • Advanced analytics tools
  • Cloud migration to an enhanced bus seat booking system software
  • Google Maps and TomTom integration
  • And many others.

Bus Ticket Reservation Software Development Case Study for Flibco

Download our case study on custom bus ticket booking application development for Flibco.com to see the detailed challenges, solutions, and business results achieved and know the way we can help build your bus ticket booking project.

Name
Email

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
  • Advanced map search and view solutions
  • Many others.

How We Helped Colliers International Build Custom Real Estate Listing Software

Check our case study to know the key challenges and solutions we have developed in custom CRM development and cloud migration project for Jones Lang LaSalle.

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

2. Intellias

 

intellias-home-page

Intellias

 

Intellias is a software outsourcing company Eastern Europe with over 19 years of experience in Eastern Europe software development outsourcing based in Ukraine, Poland, Germany, and Saudi Arabia.

The software development company has delivered solutions for such companies as Siemens, Here, Nokia, Roche, Brainstorm, and others.

The agency is featured by Forbes, Clutch, IAOP (The Association with Collaboration as Its Core), Dou, and Global Sourcing Association.

 

3. Yalantis

 

yalantis-homepage

Yalantis

 

Yalantis is one of the leading IT outsourcing companies in Europe with over 12 years of experience in building technology solutions for multiple industries.

The company is based in Kyiv and Dnepr, Ukraine, and many other locations providing more than 400 in-house software engineers and facilitating 70+ projects annually.

Yalantis has helped such world-class agencies as KPMG, Healthfully, Medical PACS, ConnectHome, Zillow, and others.

Ultimately, the outsourcing IT Eastern Europe company is certified by Amazon Web Services, IIBA, PMI, Scrum Alliance, The Open Group, and other sources.

 

4. Andersen Lab

 

andersenlab-eastern-europe-software-development-outsourcing-company

Andersen Lab

 

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.

 

5. Itransition

 

itransition-homepage

ITransition

 

Itransition is one of the top IT outsourcing companies in Europe with over 25 years of successful experience in Eastern Europe software development outsourcing.

The agency provides over 2,200 software engineers, 5 R&D labs, and has helped such world-class companies as eBay, BundleTech, Life, Philips, Expedia, and others.

Itransition has multiple awards and achievements being featured by Inc. 500, Gartner, Zinnov Zones, Forrester, and other sources.

 

6. AgileEngine

 

agileengine-homepage

AgileEngine

 

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.

 

7. KitRum

 

kitrum-homepage

KitRum

 

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.

 

8. JustCoded

 

justcoded-homepage

JustCoded

 

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.

Looking for a reliable software development company?

We have solid experience in outsourcing software development to 5 locations which allows knowing what exactly you need while offshoring project development. Just answer a few simple questions and get a ball-park estimate for your project.

Final Words

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.

So, check our case studies and contact us to get a ball-park estimate for your project and start building a software product that rocks.

Share:

Leave a comment

Your email address will not be published. Required fields are marked *

Comment
First name *
Email *