TMCnet Feature
April 09, 2019

What is the best region to Outsource Software Development?

reports that the annual global revenue from IT outsourcing is between 60 and 70 billion U.S. dollars. Software outsourcing services help companies develop products efficiently. Highly skilled developers bring a fresh perspective to projects and have robust workflows in place to ensure that products are launched on time.

Nowadays, outsourcing software development to another continent is common practice. Companies are starting to see offshore outsourcing companies as invested business partners.

As well as mitigating risk and improving security, outsourcing development to another region frees up company resources to focus on the day-to-day running of the business. An experienced development company will create a high-quality product that will help grow your business and your reputation in the industry.

What Criteria Should be Considered?

When it comes to outsourcing software development to another region, there are a few factors to consider. To ensure you find a partner that can deliver the results you need, we’ve provided an overview of what criteria you should evaluate:

Education – It’s important to consider the general software development education of the region. Some continents are focused on digital skills more than others, and you’ll want to ensure that the company you choose has the skills to deliver the product you need.

Infrastructure – Does the region have a strong technology sector? Do they have business links to your country? Having an overview of the region’s software development market can help you make an informed decision.

English language skills – What percentage of the region speaks English? Although language barriers may not be too much of an issue in software development, you’ll still need to communicate on a high level with your chosen outsourcing team. As with any outsourcing project, communication is key to efficiency.

Time zones - How compatible is the region’s time zones with that of your country? Although nowadays, digital communication breaks down time zone barriers, companies still need to consider how accessible their developers will be in emergency situations.

Based on these three elements, we’ve taken our pick of the top regions to consider when outsourcing software development:

Latin America

Latin America is one of the fastest-growing regions for software development outsourcing with countries like Argentina, Colombia, Mexico, Brazil and Peru leading the way.

Colleges and universities in Latin America have a strong focus on digital skills. The region produces many graduates in Information Technology and Computer Science, easily fulfilling the need for software outsourcing development.

Latin America has strong links to the United States and many U.S. companies outsource their software development to Latin American partners. The region’s time zone compatibility with the U.S. and travel distance makes Latin American software outsourcing companies the first choice for many of these businesses.

The region generally has good English language skills with an English Proficiency Index (EPI) average of 50.33. Countries with the highest EPI include Argentina, Costa Rica and Dominican Republic.

Eastern Europe

Universities in the Eastern European region have a strong focus on STEM subjects and as a result, the region has a large number of highly-skilled software developers. Poland, in particular, has several engineering universities. Ukraine also has a high percentage of workers with STEM degrees.

Eastern Europe may be second to Western Europe for technological innovation, but when it comes to software outsourcing, countries like Poland, Bulgaria, Hungary and Romania lead the way.

Europe as a continent has an EPI average of 56.64 with Sweden, Netherlands and Norway having the highest proficiency.


The Asian continent is known for its focus on education and places at top universities are highly sought-after. China, in particular, produces a high number of engineering graduates, which in turn, has created a highly-skilled tech workforce.

The region is a major provider of software outsourcing services and software development significantly contributes to the continent’s economy. Historically, low development costs have started to rise in recent years due to outsourcing competition from other regions.

India and China are particularly well-established outsourcing providers with top-level talent. The Philippines, Vietnam and Sri Lanka also have an equally talented software development workforce.

Asia has an English Proficiency Index average of 53.49 with Singapore, Philippines and Malaysia being the most proficient countries in the English language.

Middle East

Although the Middle East isn’t known for technology, the region is starting to see more of a focus on STEM education. Israel in particular is trying to encourage more of its citizens to study STEM subjects at university.

In comparison to the other regions on our list, the Middle East isn’t necessarily known for producing top tech talent. However, the region has seen the emergence of more software development companies over the past few years in the United Arab Emirates, Dubai and Qatar. Of all Middle Eastern countries, Israel is arguably the most technologically advanced with a track record of attracting technology startups.

The Middle East has an EPI average of 46.02, making English less common than in other software outsourcing regions. The countries with the highest levels of English language proficiency are Lebanon, Iran and the United Arab Emirates.

About the Author

Damian Scalerandi

BairesDev´s VP of Operations is responsible for the entire customer relations life-cycle. He organizes and oversees the daily operations and ensures that business is well-coordinated and productive.

» More TMCnet Feature Articles


» More TMCnet Feature Articles