Top 5 Countries for Outsourcing Software Development in 2022

Outsourcing software development is a cost-effective option for companies that lack the ability to develop software internally. It is an effective way to reduce costs and increase the productivity of the organization. This article will highlight the top 10 countries for outsourcing.

Software development is one of the most profitable businesses in the world. The industry is expected to grow by 4.4 percent by 2022, making it worth $2 trillion.

Finding a country with enough qualified developers and software engineers for outsourcing purposes is difficult. But some countries have proven to be good destinations for outsourcing software development over the past few years. In this article, we will discuss the best countries for outsourcing software development.

Reasons why agencies outsource software program development

Outsourcing is a popular way for software development companies to reduce costs and increase efficiency. But why do they outsource software development in the first place?

The involvement of qualified experts ensures high quality of work.

Some companies may even outsource software development because they need a specific skill that is not available in-house. For example, if you have an idea for an app but no technical skills, you can hire an outsourcer with those skills to build your app for you.

Cost-effective hourly rates for developers reducing development

Outsourcing software development is a cost-effective solution for many businesses. With the help of an outsourcing company, a business can save money and time without having to hire in-house developers.

Many companies are turning to outsourced software development as a more cost-effective way to get their work done. This is because they don’t need to hire in-house developers and also have access to experts from around the world.

A country stabilization project eliminates the risk of stagnation.

Outsourcing can ensure that a project is completed even when a country is not politically stable. This is because the project or part of it can be outsourced to experts from other more stable countries.

A cohesive culture ensures greater collaboration.

For a team to work effectively and efficiently, members need a similar work culture. This is why companies value culture when hiring candidates. However, businesses often find it difficult to find candidates who fit their culture while focusing on other core issues. This is where outsourcing comes into play. Outsourcing companies have the time and resources to find the best candidates that match your company culture.

Top 5 Outsourcing Countries for Software Development According to HackerRank

Now we will look at the top 5 outsourcing countries for software development.


Poland is a country in Central Europe with a population of 38 million. It has been the home of outsourcing software development for many years and has been the destination of many companies that have outsourced their software development to other countries.

Poland has a well-developed IT sector and ranks among the top countries in Europe when it comes to tech talent. The country also has its own local startup ecosystem, consisting of startups mostly focused on e-commerce.

The cost of living in Poland is lower than in many other European countries, which means that outsourcing there can be more cost-effective.


Ukraine is one of the most attractive destinations for outsourcing software development. The country has a well-educated workforce, competitive labor rates, and a favorable tax system. Some of the companies that have outsourced their software development to Ukraine in recent years include IBM, Microsoft, Amazon, and Oracle.

The Ukrainian IT outsourcing industry is one of the largest in Europe. There are more than 2000 IT companies that provide services in this sector. The outsourcing industry has been growing steadily since the early 1990s.

The Ukrainian IT outsourcing industry is a thriving market, with the majority of revenue coming from Western Europe and North America, while Eastern Europe and Russia account for a smaller share of total revenue. The country’s proximity to these markets is one of its key advantages, along with its highly skilled workforce.


China’s economy is growing rapidly, and it has become an important market for software development outsourcing.

The most important thing to know about the China market is that it is not uniform. There are many different provinces with different cultures, languages, and economic statuses. Which of the three major cities in China: Beijing, Shanghai, or Shenzhen will be your best location for outsourcing software development is important to consider depending on which province you want to target.

The Philippines

The Philippines has been a popular location for outsourcing software development for decades. In fact, it has been the premier destination for offshore software development since the late 1990s. The Philippines is an ideal place to outsource software development because of its proximity to North America and Europe, as well as its English-speaking workforce.

The country’s large English-speaking population is also a major factor in determining why it is such a popular location for software development outsourcing. Many programmers in the Philippines are fluent in both Tagalog and English, making them well-suited to work on projects that require both languages.


Canada is the second largest country in the world with a population of over 35 million. However, Canada is a federation of 10 provinces and 3 territories. The capital is Ottawa while Toronto is the largest city in Canada.

Canada has been a popular location for outsourcing software development projects for decades due to its favorable business environment and skilled workforce. There are many reasons why companies choose to outsource their software development projects to Canada.

Wrapping it up: What makes a country good for outsourcing?

Many factors make a country good for outsourcing. One of the most important factors is the cost of labor and living expenses, which are relatively low in countries like China, Bangladesh, India, and Pakistan. Other factors include geographic proximity, availability of skilled labor, quality of education and training systems, and tax incentives offered by governments.

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