The COVID pandemic made it harder for business owners to grow and release new projects. Company managers are cautious about large-scale investments since it’s not clear how the economic landscape will change over the years.
The good news is, there are ways to bypass the economic standstill and release projects without paying a dime for tech talent. For the last 20 years, regardless of outsourcing jobs pros and cons, hiring talent abroad has been a popular way for tech project managers to cut operating costs.
In this post, we will take a look at top outsourcing destinations and find out how skilled and easy to work with local developers are.
What to Consider When Choosing an Outsourcing Market?
Given the growing popularity of outsourcing, it’s no surprise that the number of markets for business owners to explore grows steadily. Out of all available outsourcing hubs, choosing the one that fits your project’s needs is not easy.
To make informed, data-backed decisions, we recommend relying on the following criteria for choosing a market for offshore jobs:
- Cost reduction — business owners should look for markets that help cut development costs without compromising the project’s quality.
- Reliable vendor pool — it’s better to choose outsourcing markets with a stellar reputation and a wide range of experienced vendors.
- Ease of collaboration — make sure the chosen market is not too far from the main team’s location — otherwise, the time zone difference will introduce new collaboration hurdles.
- English proficiency. It’s best to consider offshore development vendors skilled at written and oral communication. If the team you hire is not well-spoken in English, daily discussions and project brainstorming will be stressful and inefficient.
- Cultural differences. Make sure the vendor hub you are choosing matches the location of the main team by cultural values. When there’s a mentality mismatch, business owners might have a hard time establishing a human-level connection with the outsourcing team.
Top 5 Best Outsourcing Markets
After putting together a list of criteria, it’s time to get to know the dominant markets in different regions — Latin America, Eastern Europe, Asia, and others. Based on research and personal experience, we put together a list of leading countries for software outsourcing.
State of outsourcing
The Argentinian outsourcing market is a mix of tradition and rapid growth. While first vendors in the market were established over 30 years ago, new outsourcing companies keep emerging at an impressive pace — the local IT sector grows at an 11.4% rate. Thus, regardless of whether you want to work with an accomplished vendor or a smaller ambitious team, Argentina is a good fit.
Tech is one of the most sought-after specialties in the country — that’s why local tech schools are highly competitive. Recent rankings put 7 universities from Argentina among the top 50 tech schools in Latin America.
The statement released by The Foreign Relations Ministry reads: “The country has an excellent reputation in STEM sciences and Research”.
Bilingual upbringing is a priority for local education professionals. There are thousands of two-language schools in the country which contribute to educating generations of the workforce, proficient in English.
According to the English Proficiency Index 2020, Argentina ranks 26th and enters the range of countries with high English proficiency.
Ease of collaboration
Argentina is only one hour apart from the West Coast — such a convenient location facilitates collaboration. A wide network of direct flights connects the country with the US — once the ban is lifted, traveling across the border will not take a lot of time.
Although there are a lot of Argentinian immigrants in the United States, there’s a degree of tension between the two countries. In an essay “Being Argentinian in America”, an immigrant points out that genuine immigrant communities in America are rare to come by. Different views on the reasons for the economic crash create communication issues among Argentinians — however, these are not unsolvable.
The good news is, due to close proximity, local developers are familiar with the best programming practices and development tools used in the US.
State of outsourcing
Mexico is recognized as one of the top destinations for outsourcing jobs by the AT Kearney Index — the country ranked 11th on the list. Although the country’s main focus is still manufacturing outsourcing, the number of tech vendors is growing at a steady pace.
At the moment, there are over 150,000 skilled developers and three robust tech hubs — Mexico City, Guadalajara, and Monterrey. Mexico hosts R&Ds for many big names in tech — Apple, Intel, and others.
Did you know that there’s a local Silicon Valley in Mexico? It’s Guadalajara — the country’s booming tech hub. There are dozens of public and private tech schools in the city offering modern curriculums and pumping over 85,000 tech graduates per year. Overall, Mexico ranks 8th by the number of STEM program students.
On the flip side, when it comes to English fluency, Mexico is far from the leaders. The country placed 82nd on the English Proficiency Index — a rank considered by research studies an indicator of “very low” proficiency. Research puts the blame on overcrowded schools and low teacher wages — however, experts point out that, in the last few decades, the government put a lot of effort into ensuring high education accessibility for Mexicans — hopefully, there will be a rising trend in English proficiency in the future.
Ease of collaboration
Mexico and the US are only two hours apart — business owners don’t have to worry about the inconveniences of scheduling meetings. Outside of the pandemic, over 300 flights circulate between two countries, improving the flexibility of business trips. Other than that, local vendors get a lot of praise for a hard-working attitude, high motivation, and commitment levels.
Given the high number of Mexican immigrants in the US, two mentalities have by now blended seamlessly. Thus, Mexican and American developers should not have a hard time communicating ideas and discussing projects. On the other hand, by hiring local outsource staffing vendors, business owners get access to a different perspective on the project, making the idea more flexible to the demands of international, non-English-speaking users.
Poland is one of the most steadily growing European countries — its GDP doubled over the last 10 years. As an outsourcing destination, the market ranked 24th in the 2019 A.T. Kearney Global Index. Other than that, Poland is a member of the EU and is easy to collaborate with for Western European business owners.
Poland is fourth in Europe by the number of higher-ed students. According to the OECD, the country’s contribution to producing “some of Europe’s brightest talent in the technology field” is undeniable.
As for the most notable tech programs, Warsaw University of Technology and Wroclaw University of Science and Technology lead the ranks. They supply Poland with thousands of skilled engineers each year.
Poland is among high-ranking countries on the English Proficiency Index. In 2020, it ranked 16th — such an impressive placement is proof of widespread English fluency. For business owners, the high English proficiency of Polish developers means easy and hurdle-free collaboration with developers.
Ease of collaboration
Poland has a strategic location on the brink between Eastern and Western Europe. Also, it is in the same time zone as most EU countries, ensuring hurdle-free collaboration.
Similarly, since the country is a member of the EU, company managers located in Western Europe will have no shortage of affordable flights to Poland and no issues in choosing a payment system both business owners and vendors are comfortable with.
Although there are still remnants of the post-Soviet value system in Polish mentality, the views, and values of locals are in line with other EU residents. Thus, European business owners will easily match the wavelength with Polish offshore outsourcing vendors.
Over the last 5-7 years, the country’s presence as reliable outsourcing services providers strengthened notably. Ukraine currently ranks 20th in the AT Kearney Index. 13 local vendors made it to the Global Outsourcing 100 List that features top outsourcing companies worldwide.
Ukraine boasts a robust network of tech schools and programs. Research shows that over 20,000 University students graduate in tech fields each year. To keep up with the changes in technology trends and be mindful of best software development practices, Universities closely collaborate with top IT companies and tech clusters.
In total, over 200,000 IT professionals are located in Ukraine.
The skill of Ukrainian software engineers has a lot of recognition abroad. In the SkillValue Index, Ukrainian tech professionals got a score of 91.26%.
All in all, locals are not fluent in English — Ukraine ranks 44th on English Proficiency Index. However, there’s a positive trend compared to past years, when the country ranked 49th or lower.
It’s worth noting that most Ukrainian engineers don’t struggle when working in English. According to statistics published by DOU.ua (the biggest local IT community), 70% of programmers have a high proficiency level.
Ease of collaboration
Ukraine is seven hours ahead of the US — though, at the first glance, it’s uncomfortable, there’s a silver lining. By the time the main team gets to work, the outsourcing vendor will help make progress on the project. Thus, your product will move at an around-the-clock pace.
Ukraine allows European and American cities to stay in the country with no visa for 90 days. Thus, once the pandemic is no longer a hurdle, business owners can plan a spontaneous business any day.
Ukraine is one of the most promising outsourcing markets due to its diversity. Local developers are familiar both with Eastern European and American development practices. Thus, business owners will not struggle when brainstorming with vendors — on the other hand, the team will constantly share unpredictable insights and innovative practices that aren’t widely implemented in the West.
India is a renowned provider of affordable tech talent and has a wide pool of outsourcing vendors. On average, there are over 4 million IT professionals. The country is one of the most impactful research and development markets — big technology names like Cisco, Adobe, Microsoft have R&D headquarters in India.
Recently, technical education in India is losing its power and impact. Locals believe the pandemic is to blame and hope that the country will bounce back as a first-rate provider of tech courses.
Even under challenges, the impact of local tech schools is still non-negotiable, the country still sources over 800,000 graduates to the tech field each year.
In 2020, India ranked 50th among 100 countries in English proficiency. It’s a sharp decline from 2019 when the country came in 29th.
Such a development is a warning sign for education professionals and the government and a considerable hurdle for business owners. Statistically, only 2.9% of surveyed developers understand the language well enough to communicate with colleagues using English only.
Ease of collaboration
Thanks to economic reforms run by the government, India is quickly moving up the list of countries by the ease of doing business. Right now, it ranks 63th on the World Bank’s Index. Thus, when it comes to ease of taxation and vendor payroll, business owners won’t face problems. A hurdle one might run into is a 12-hour time zone difference compared to the US — a collaboration with a local vendor will take time and effort.
Although local developers are known to be direct and headstrong (which might be at first off-putting), they are just as passionate and committed to the project. Business owners won’t have a hard time nudging developers to complete assignments — however, finding a common ground during brainstorming sessions will, most likely, be a challenge.
The Bottom Line
Depending on the location of the main team, it makes sense for business owners to find vendors in close-by regions. The good news is, no matter where you are, there is a reliable outsourcing market to choose.
It’s worth mentioning that outsourcing is not a perfect model for running long-term projects. To that end, hiring an employee of record makes more sense — you’ll work with a full-time team committed only to your project.
Find out which steps you should take to connect with web developers for hire in affordable markets like Argentina, Mexico, or Ukraine. Our consultants, for one, provide around-the-clock recruitment and team management assistance, along with a digital platform for managing your team.
To scale your projects even under the tribulations of the pandemic by hiring a skilled and affordable team — get in touch with our team!