The search for a reliable long-term partner is always a challenge. When it comes to software development, the situation is even more complicated. The cost of a mistake is so high that enterprises have to consider various factors, such as pricing, time difference, cultural peculiarities, expertise, and more. You can either follow the path of numerous Western companies that suffer from the pros and cons of outsourcing to India or choose an alternative way. During the last decade, Eastern Europe has become a new software development destination both for startups and Fortune 500 companies. Why outsourcing to Eastern Europe?
This region is a transition zone between the Western and Eastern markets with a developed IT sphere, quality education, and high-security level. Besides, relocating software development to Eastern Europe, you can significantly cut expenditures thanks to lower hourly rates and taxes. For instance, Ukraine has one of the lowest taxes for the IT industry while taking 11th place in the world’s rating of the best developers. Hence, any outsourcer can hire a local qualified outsourcing team with a more advantageous price-quality ratio than in the West. In addition, due to the increasing demand, the talent pool is also continuously growing as well as the level of their expertise. Focused on software outsourcing services, Eastern European companies know the subtleties of remote cooperation and have the qualities necessary to achieve success.
Software Development Outsourcing Overview
We know that many companies still hesitate over using software outsourcing services. Although globalization trends are unstoppable, it may not be so easy to transfer a part of your business processes to a third-party. Nevertheless, you have to take into account that while you are thinking, your competitors have already started to benefit from software development outsourcing. You can look through the statistics overview to understand the current market conditions and make an informed decision. For instance, large organizations spend 8.7% of their IT budget on outsourcing, whereas midsize companies allocate 6.5%. In 2019, their expenditures on IT outsourcing increased by around 25%.
There is a common misconception that software outsourcing services are something tailored for large enterprises with considerable budgets. Yet many business giants do outsource, SMEs can also accelerate their growth through outsourcing. Actually, more than 30% of small businesses outsource some of their processes and 52% are going to start outsourcing in 2019. Most of these businesses outsource accounting (37%), IT (37%), and digital marketing (34%). This helps them avoid the long recruitment process, save on facilities, and, most importantly, get immediate access to professional assistance.
What To Look For In An Offshore Software Development Company?
Before starting the cooperation with any third-party provider, make sure to research IT outsourcing companies and collect as much information as possible. Define your expectations and budget to have a productive dialog from the very beginning. This will allow you to find common ground much faster and understand whether you want to hire a specific offshore software development company. Besides, remember to form a list of specific questions and consider the following factors.
IT Outsourcing Market
Once you have decided to start software development outsourcing to one of the Eastern European companies, you need to choose the most lucrative location. Poland, Romania, Belarus, and Ukraine are among the most popular destinations with the fast-developing IT sector. In Ukraine, outsourcing companies hire over 170,000 IT specialists generating 2.07 billion dollar revenue. Besides, the Ukrainian market is rapidly growing thanks to 150 colleges and universities educating students in STEM disciplines. The Polish labor market boasts 255,000 IT specialists engaged in over 90 companies with 50+ employees. They generate 1.38 billion dollar revenue and can receive education in 31 institutions across the country. Although in Belarus and Romania software development outsourcing is also growing, its volume is comparatively smaller. Note that choosing an outsourcing destination, you should also consider infrastructure and office rental prices.
If you need to outsource software development, it’s better to find a company that has completed projects with the corresponding technology stack. This way you can both ensure a better result and save time otherwise spent on recruiting the required developers. Browse websites of outsourcing teams to check out their portfolio and case studies. Pay special attention to core technologies, industries, and solutions. Ask about the experience of their developers and interview your future subcontractors. Ideally, you should also have the basic technical knowledge or engage a project manager from your side. This will help to establish smooth cooperation and achieve the expected result with joint efforts.
Moreover, the readiness to adapt and find a happy medium is critical if your subcontractor is located in a different time zone. Cooperation with Eastern European countries is more convenient than outsourcing to India or other Asian countries. Yet any time difference still matters and needs to be taken into account.
The software development process is often regulated by tight deadlines and frequent changes. To release in time and coordinate the cooperation, most leading software development providers apply Agile methodologies, including SCRUM, Kanban, and XP Programming. Such approaches allow them to create a productive working environment and continuously provide builds if necessary. That’s why looking for a reliable offshore software development company, make sure to inquire about its working approaches. Discuss all the software development stages as well as engagement models. Top outsourcing providers can offer you a dedicated team, time & material cooperation, or fixed price. Everything will depend on your budget and the scope of the project.
Remember that finding the right company doesn’t always mean hiring a rating leader. A large pool of qualified developers is one of the primary advantages of IT outsourcing to Eastern Europe. You can find a subcontractor with proven quality and affordable pricing. To speed up the search, start with considering the average hourly rate of developers in different destinations. In addition to qualifications and skills, labor cost also depends on the local economy and market. Don’t hesitate to interview small software development teams. They are often more dedicated to work and can offer you the optimum price-quality ratio.
If you want to hire a third-party software development provider, it may well be that your tech expertise is limited. Therefore, you should look for a company that offers maximum transparency. An outsourcing team should be ready to provide detailed documentation and constantly stay in touch. You may also want to conduct stand-up meetings to communicate with the whole team of developers. This helps to build mutual trust and promptly introduce the required changes when necessary.
Reviews On Third-Party Websites
There are numerous websites, including Clutch.com, where you can see what other companies think about their cooperation with your potential partner. The resources that specialize in reviews thoroughly check the credibility of the provided information before publishing it. Select several companies that meet your expectations and compare their reputation. As an alternative, you can directly request feedback from the customers of software development agencies to understand the pros and cons of outsourcing.
Founded in 2014, Binariks is a software development and consulting agency located in Lviv, Western Ukraine. The company engages leading experts in iOS, Java, .NET, Android, Angular and continuously expands its technological stack. It has considerable experience in outsourcing projects for various industries and offers flexible engagement models based on your needs. Binariks is committed to software quality and security while offering the optimum price-quality ratio for every specific project. Contact us to discuss your project and start benefiting from IT outsourcing right now.