Eight Best Countries for Outsourcing Software Development in 2024

India is second only to China in terms of IT workforce. It is frequently cited as one of the finest countries to hire software engineers. More than half a million Indian developers work on projects for American and European companies. India is a preferred outsourcing destination due to affordable rates,  flexible government policies, state-of-the-art technology, fast-developing infrastructure, and a talented workforce. 

• Developer population: 3 Million+
• English proficiency: 14.18 percent of the total population
• Time-zone differences: 10 hours & 30 minutes ahead of the U.S.

The Ukraine government places a great emphasis on software education. As a result, the country has a highly dynamic IT sector. Ukraine also has the highest concentration of C++ programmers in the world. 

Although English is not a preferred language among the general public, 80  percent of the IT community uses it. Therefore, there are negligible communication barriers  between the local and international development teams. 

Another advantage of outsourcing software development to Ukraine includes a time zone that partially aligns with the United States, and a work culture that values competition.

• Developer population: 200K+
• English proficiency: 63 percent of the total population
• Time-zone differences: 7 hours ahead of the U.S.

According to Intra-Americas Information Network Inc, computers are the second-largest U.S. export to Mexico, followed by computer parts and accessories. As a result, many software testing organizations and developers in Mexico have gained significant experience and made Mexico a preferred destination for outsourcing software development. 

Also, major companies prefer outsourcing to Mexico for a high return on investment and a low cost of production, as Mexico offers cheap labor compared to other neighboring countries. 

• Developer population: 100K+ Developers 
• English proficiency: 12.9 percent of the total population
• Time-zone differences: 1 hour behind the U.S.

Cited as Asia’s next outsourcing software development hub, Malaysia places a strong emphasis on technology and digital skills. As a result, Malaysia has many entry-level developers that can help companies with prototyping or basic coding needs.

• Developer population: 100K+ Developers
• English proficiency: 62.57 percent of the total population
• Time-zone differences: 13 hours ahead of the U.S.

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While the Philippines is a developing country with a poverty rate of 20 percent, its average income is at par with India, Nepal, Vietnam, and China. Filipinos are also fluent in English. 

Around 95 percent of developers can read, write, and speak fluent English. And so, companies don’t have any trouble collaborating with  Filipino developers. Even if you have no prior experience working in Southeast Asia, these factors make the Philippines a great outsourcing software development option.

• Developer population: 190K+ Developers
• English proficiency: 58.2 percent of the total population
• Time-zone differences: 13 hours ahead of the U.S.

Vietnam has become a major outsourcing software development location for a variety of reasons. For starters, companies are drawn to the country because of its low labor costs. Secondly, Vietnam offers a wide range of freelance developers and software development agencies. Lastly, thanks to technical advancements in cloud-based computing and videoconferencing in Vietnam, the Vietnamese workforce offers great remote work support.  

• Developer population: 50K+ Developers
• English proficiency: 53.81 percent of the total population
• Time-zone differences: 12 hours ahead of the U.S.

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Many Western European countries, such as Germany, France, and the United Kingdom, prefer outsourcing to Romania because of its low living costs and proximity to Western Europe. Romanian developers are easier to oversee than workers in other Central or Eastern European countries, making outsourcing software development easy and efficient. 

• Developer population: 100K+ developers
• English proficiency: 31 percent of the total population
• Time-zone differences: 7 hours ahead of the U.S.

Ideally positioned to supply outsourced services due to its closeness to developed markets in South America, Argentina also benefits from its membership in Mercosur, a Latin American economic integration group that facilitates trade with Brazil, Uruguay, Paraguay, and Venezuela.

In addition, competent labor is abundant in Argentina, and costs are far lower than in many other top outsourcing countries, such as China, making it suitable for outsourcing software development. 

• Developer population: 100K+ developers 
• English proficiency: 6.52 percent of the total population
• Time-zone differences: 2 hours ahead of the U.S.

Time zone differences, education, government norms, taxes, and cost of hiring are some of the most important factors to consider while outsourcing software development. Identifying your needs, setting goals, and limiting your search to the best countries are the initial steps toward building a successful outsourcing strategy. 

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