Best European Countries for Outsourcing and Outstaffing in 2023

By Kyrylo Osadchuk
Published: August 22, 2023

12 min read

Modern companies are seeking the best professionals with unique skills who are ready to implement innovative technologies. However, finding such talented individuals has become increasingly challenging, leading to a growing demand for outsourcing and staffing services in recent times.

Our years of experience working with diverse companies enable us to better understand the needs of most clients actively seeking reliable expert providers for their projects. For this reason, we are pleased to offer our support in selecting the best countries for outsourcing.

Best countries to hiring specialists

Time zone	Top outstaffing countries	Number of IT specialists	Average Cost Rates by Hour	Popular programming languages
Ukraine	GMT+2	228,000+	$30-55	JavaScript, Java, C#, Python, C++, TypeScript, React, others
Poland	GMT+1	410,000+	$50-100	JavaScript, Java, C++, SQL, PHP
Romania	GMT+2	143,000+	$25-49	PHP, Microsoft ASP.NET, Python
Czech Republic	GMT+1	150,000+	$25-55	JavaScript, PHP, Java, SQL, Python

Source: Upwork, IT Work, Clutch, Glassdoor

Despite the period of war, the Ukrainian IT sector continues to demonstrate positive growth in both quantitative and qualitative aspects. Interestingly, statistical data on the state of outsourcing and outstaffing in Ukraine indicate significant progress. Particularly notable is the surge in demand for services in Ukraine during 2022-2023, which can be attributed to the increasing interest from foreign corporations in collaborating with Ukrainian IT companies and recognizing the advantages of such partnerships.

It is expected that by the year 2024, the number of technical specialists in Ukraine will double, reaching 450,000 individuals. This illustrates the country's growing potential in the field of information technology and indicates the confidence of international clients in its high capabilities. Such an impressive increase in the number of professionals demonstrates Ukraine's ability to attract and educate talented personnel, ensuring a balanced and sustainable development of the IT industry in the country.

According to the data from the State Statistics Service of Ukraine, in 2022, the volume of IT services exports from Ukraine increased by 23%. This figure serves as a positive signal and indicates successful results of international cooperation among Ukrainian IT companies. It reflects the growing demand for high-quality IT services provided by companies from Ukraine and the trust of foreign clients in the professionalism and technical expertise of Ukrainian specialists.

Pros	Cons
A huge pool of professionals In 2022, one of the largest job search sites in Ukraine, Djinni, successfully registered more than 56,000 qualified IT specialists. With a wide selection of talented experts, they are ready to provide you with a variety of IT outsourcing services or quickly connect you with independent freelancers to complete your projects with high efficiency and quality.	Time zone preference Ukraine is recognized as the best country for outsourcing and recruitment services among European countries due to the minimal difference in time zones. This factor contributes to effective cooperation and convenient interaction between companies. It is worth noting that for American countries, setting up work processes may require some effort, since Ukraine is 7 hours behind their time zone. However, the high level of technical knowledge and talented workforce in Ukraine deserves attention and effort, as the benefits of cooperation can outweigh the limitations of time zones.
High-level programming skills Ukrainian programmers really have an excellent reputation in the global IT industry. They are known for their high qualifications and programming experience. They are often considered elite specialists with a deep understanding of technology and the ability to effectively solve complex tasks. In addition, Ukrainian programmers usually know a wide range of programming languages. Their flexibility in this regard allows them to easily adapt to different technical projects and use the most suitable languages for solving specific tasks. This level of technical knowledge and versatility helps Ukrainian companies to attract customers from all over the world and provide high-quality software development services. Bring in high-quality outstaff professionals at OSKI Solutions.	Changing Composition of the Outsourcing Team Changes in teams due to active mobilization and migration can pose challenges for businesses. However, with the assistance of experienced outsourcing companies, such as OSKI Solutions, it is possible to quickly find qualified experts who will ensure the continuity of task execution.
The English Language Proficiency of Outsourcing Developers The majority of IT professionals in Ukraine have a proficiency in the English language at an intermediate level or higher.
Business Ethics Ukrainian businesses exhibit a typical European character. Similarity in corporate ethics, communication styles, and work practices facilitates effective communication between business partners.

Pros

Cons

A huge pool of professionals

In 2022, one of the largest job search sites in Ukraine, Djinni, successfully registered more than 56,000 qualified IT specialists. With a wide selection of talented experts, they are ready to provide you with a variety of IT outsourcing services or quickly connect you with independent freelancers to complete your projects with high efficiency and quality.

Time zone preference

Ukraine is recognized as the best country for outsourcing and recruitment services among European countries due to the minimal difference in time zones. This factor contributes to effective cooperation and convenient interaction between companies. It is worth noting that for American countries, setting up work processes may require some effort, since Ukraine is 7 hours behind their time zone. However, the high level of technical knowledge and talented workforce in Ukraine deserves attention and effort, as the benefits of cooperation can outweigh the limitations of time zones.

High-level programming skills

Ukrainian programmers really have an excellent reputation in the global IT industry. They are known for their high qualifications and programming experience. They are often considered elite specialists with a deep understanding of technology and the ability to effectively solve complex tasks.

In addition, Ukrainian programmers usually know a wide range of programming languages. Their flexibility in this regard allows them to easily adapt to different technical projects and use the most suitable languages for solving specific tasks.

This level of technical knowledge and versatility helps Ukrainian companies to attract customers from all over the world and provide high-quality software development services.

Bring in high-quality outstaff professionals at OSKI Solutions.

Changing Composition of the Outsourcing Team

Changes in teams due to active mobilization and migration can pose challenges for businesses. However, with the assistance of experienced outsourcing companies, such as OSKI Solutions, it is possible to quickly find qualified experts who will ensure the continuity of task execution.

The English Language Proficiency of Outsourcing Developers

The majority of IT professionals in Ukraine have a proficiency in the English language at an intermediate level or higher.

Business Ethics

Ukrainian businesses exhibit a typical European character. Similarity in corporate ethics, communication styles, and work practices facilitates effective communication between business partners.

Poland is one of the most attractive locations for software development outsourcing in Europe. Many companies from around the world choose Polish IT firms due to their ability to provide high-quality services at a reduced cost. Poland is renowned for its European quality and innovative approach to software development. An important advantage is its membership in the European Union, which ensures special regulations for data security and intellectual property protection. Additionally, compared to other outsourcing destinations in Europe and North America, Poland's tax rates are known to be more favorable for businesses, promoting efficient and cost-effective project execution.

Pros	Cons
The Size of the IT Sector Market The technology sector holds a significant share in the Polish economic landscape, accounting for 8% of Poland's total GDP. This substantial share indicates high growth rates and strong demand for innovative technologies and services. Poland has become an attractive location for investors and entrepreneurs looking to leverage the country's powerful potential and advantages in the technology industry. The technology industry continues to increase its impact on Poland's economy, making a significant contribution to the country's stability and competitiveness on a global scale.	Hidden Costs During the execution of a project, there may be additional expenses, as well as commissions for payment transactions.
Expanding Talent Pool Until the previous year, Poland had over 400,000 IT specialists, confirming its popularity among countries for outsourcing. In 2022, approximately 20,000 Ukrainian technical specialists joined the workforce, having relocated due to the military conflict, and this number does not account for more than 15,000 graduates who also entered the IT sector. This increase demonstrates the growing interest in Poland as a place for career development in the technology field.	Reasonable Salary Expectations Polish specialists indeed possess high skills in software development and maintain a high level of professionalism. This influences their expected compensation for the services they provide, and they may expect higher rates compared to other leading outsourcing countries, except for China. The elevated level of skills and quality of their services justify the cost of labor in Poland, making it not the most cost-effective option for finding the cheapest workforce. However, investing in Polish specialists can ensure high-quality and efficient solutions for software projects
Data Security As a full member of the European Union, Poland adheres to high standards of data security and intellectual property rights protection. This creates favorable conditions for businesses and technology investments, ensuring a high level of trust and information protection for companies collaborating with Polish partners. The appropriate legal frameworks and regulations foster a stable and secure development of the technology sector in Poland, attracting more foreign investments and providing effective protection of intellectual property rights for all market participants.	Time Zone Poland is a leading country in outsourcing for Western Europe, but adjusting time zones for America can be challenging. However, technologies and flexible collaboration schedules help mitigate this impact.
Skills Companies engage programmers from Poland due to their high competence in software development.
English Proficiency Poland ranks 13th in the EF English Proficiency Index, indicating a good level of English proficiency in the country.

Pros

Cons

The Size of the IT Sector Market

The technology sector holds a significant share in the Polish economic landscape, accounting for 8% of Poland's total GDP. This substantial share indicates high growth rates and strong demand for innovative technologies and services. Poland has become an attractive location for investors and entrepreneurs looking to leverage the country's powerful potential and advantages in the technology industry. The technology industry continues to increase its impact on Poland's economy, making a significant contribution to the country's stability and competitiveness on a global scale.

Hidden Costs

During the execution of a project, there may be additional expenses, as well as commissions for payment transactions.

Expanding Talent Pool

Until the previous year, Poland had over 400,000 IT specialists, confirming its popularity among countries for outsourcing. In 2022, approximately 20,000 Ukrainian technical specialists joined the workforce, having relocated due to the military conflict, and this number does not account for more than 15,000 graduates who also entered the IT sector. This increase demonstrates the growing interest in Poland as a place for career development in the technology field.

Reasonable Salary Expectations

Polish specialists indeed possess high skills in software development and maintain a high level of professionalism. This influences their expected compensation for the services they provide, and they may expect higher rates compared to other leading outsourcing countries, except for China. The elevated level of skills and quality of their services justify the cost of labor in Poland, making it not the most cost-effective option for finding the cheapest workforce. However, investing in Polish specialists can ensure high-quality and efficient solutions for software projects

Data Security

As a full member of the European Union, Poland adheres to high standards of data security and intellectual property rights protection. This creates favorable conditions for businesses and technology investments, ensuring a high level of trust and information protection for companies collaborating with Polish partners. The appropriate legal frameworks and regulations foster a stable and secure development of the technology sector in Poland, attracting more foreign investments and providing effective protection of intellectual property rights for all market participants.

Time Zone

Poland is a leading country in outsourcing for Western Europe, but adjusting time zones for America can be challenging. However, technologies and flexible collaboration schedules help mitigate this impact.

Skills

Companies engage programmers from Poland due to their high competence in software development.

English Proficiency

Poland ranks 13th in the EF English Proficiency Index, indicating a good level of English proficiency in the country.

Romania is one of the best countries for outsourcing in the CEE region. With the development of its IT infrastructure, Romania made it to the top 35 locations for software outsourcing according to the Kearny Global Services Location Index in 2021, and has received other recognitions. Despite some cautiousness among companies due to old myths, modern statistics indicate a growing outsourcing market in Romania.

Pros	Cons
The Number of Specialists Romania has the third-largest talent pool in Eastern Europe, placing it after Poland and Ukraine in terms of size.	Technical Skills Compared to other countries in Eastern Europe, Romanian developers may have a lower level of programming skills. According to the SkillValue rating, Ukraine and Poland rank in the top 5, while Romania is positioned at 23rd place.
Favorable Business Environment The IT ecosystem in Romania is favorable for startups and research centers.	Bureaucracy and Legal Issues Due to bureaucracy, certain processes in Romania may take longer compared to other top countries for outsourcing.
English Language Proficiency In the EF EPI ranking, this outsourcing direction holds the 15th position, indicating that there is no language barrier.	Absence of IT Centers Romania has only 3 IT centers, while other countries in Central and Eastern Europe have 5 or more for managed infrastructure outsourcing.
Favorable Location Romania's geographical location is considered advantageous, as the time zone difference both in the west and east is acceptable.

Pros

Cons

The Number of Specialists

Romania has the third-largest talent pool in Eastern Europe, placing it after Poland and Ukraine in terms of size.

Technical Skills

Compared to other countries in Eastern Europe, Romanian developers may have a lower level of programming skills. According to the SkillValue rating, Ukraine and Poland rank in the top 5, while Romania is positioned at 23rd place.

Favorable Business Environment

The IT ecosystem in Romania is favorable for startups and research centers.

Bureaucracy and Legal Issues

Due to bureaucracy, certain processes in Romania may take longer compared to other top countries for outsourcing.

English Language Proficiency

In the EF EPI ranking, this outsourcing direction holds the 15th position, indicating that there is no language barrier.

Absence of IT Centers

Romania has only 3 IT centers, while other countries in Central and Eastern Europe have 5 or more for managed infrastructure outsourcing.

Favorable Location

Romania's geographical location is considered advantageous, as the time zone difference both in the west and east is acceptable.

In 2023, the Czech Republic is expected to be one of the major outsourcing countries. With low taxes at around 19%, multinational corporations find it easier to invest in information technology. The country also attracts many students, thanks to numerous programs and higher education institutions that help them find employment after graduation. Currently, over 150,000 technical specialists are working in the Czech Republic, and their numbers continue to grow each year.

Pros	Cons
Low Employee Turnover Czech outsourcing software development companies have experienced lower turnover rates compared to companies in the USA, South, and East Asia.	Fewer Outsourcing Service Providers Compared to neighboring countries with significant outsourcing volume, the Czech Republic has fewer IT companies, specifically just over 90, according to Clutch data.
Skills Thanks to its excellent competence in software development, the Czech Republic is attractive to enterprises that hire programmers from this country.	Additional Costs As the project progresses, there may be additional expenses and transaction fees.
Legal Regulations As a member of the European Union, the Czech Republic is considered one of the best countries for outsourcing, with strict data protection regulations and transparent taxation.	Reasonable Salary Expectations Czech experts expect higher remuneration for their services compared to other top outsourcing countries, as they are known as some of the best software developers in the world (excluding China). Therefore, the cheapest workforce cannot be found there.
Western Business Management Model Czech Republic is one of the best countries in Central Europe for outsourcing, which makes it fully compatible with the business management methods used in Western countries.

Pros

Cons

Low Employee Turnover

Czech outsourcing software development companies have experienced lower turnover rates compared to companies in the USA, South, and East Asia.

Fewer Outsourcing Service Providers

Compared to neighboring countries with significant outsourcing volume, the Czech Republic has fewer IT companies, specifically just over 90, according to Clutch data.

Skills

Thanks to its excellent competence in software development, the Czech Republic is attractive to enterprises that hire programmers from this country.

Additional Costs

As the project progresses, there may be additional expenses and transaction fees.

Legal Regulations

As a member of the European Union, the Czech Republic is considered one of the best countries for outsourcing, with strict data protection regulations and transparent taxation.

Reasonable Salary Expectations

Czech experts expect higher remuneration for their services compared to other top outsourcing countries, as they are known as some of the best software developers in the world (excluding China). Therefore, the cheapest workforce cannot be found there.

Western Business Management Model

Czech Republic is one of the best countries in Central Europe for outsourcing, which makes it fully compatible with the business management methods used in Western countries.

What to consider when choosing a country for outsourcing and outstaffing?

Knowledge of the technologies and experience you need will help narrow down your search.

Check the job ratings for a specific niche on platforms like Clutch. Also, a company's profile on Upwork can help you find companies with specific experience in your chosen region.

Keep in mind that different countries may specialize in different software technologies.

OSKI Solutions has 10 years of experience working on projects of varying complexity. During this time, their team has garnered numerous positive reviews on highly reputable platforms, including Upwork (https://www.upwork.com/ag/oski/) and Clutch (https://clutch.co/profile/oski-solutions), which you can explore through the provided links.

Time Zones

When considering outsourcing options, take into account the time zones. If the time difference is significant, it is better to choose countries that are closer, with a time difference of no more than 1-3 hours.

If the time difference is not critical, and the company has experience managing offshore teams, you can consider any geographical options.

Currently, most IT companies focus on experience rather than working time zones. Modern management systems allow minimizing potential inconveniences in work.

Cultural Differences

Indeed, there is no universal "right" mentality for offshore software development. Cultural differences can impact communication, decision-making, and problem perception.

Therefore, for successful outsourcing, it is important to find a partner whose cultural alignment fosters effective collaboration. Taking these differences into account can ensure successful cooperation and improve project quality.

The OSKI Solutions team exhibits a typical European character. Similarity in corporate ethics, communication styles, and work practices contributes to effective communication.

English Language Proficiency

It is important to assess the level of English language proficiency when selecting an outsourcing partner for software development. Communication is a key element of successful collaboration, and English language proficiency is essential.

Companies must ensure continuous and productive team communication, so it is vital to pay attention to the English language skills of outsourcing service providers. Language proficiency ensures effective communication, prevents misunderstandings, and contributes to a positive project outcome.

Business Values

The similarity of business values is an important aspect when choosing an outstaffing and outsourcing partner. Business values define the fundamental principles of interaction and success.

When selecting an outsourcing team, attention should be given to the alignment of values between the client and the service provider. This ensures harmonious collaboration, increases the chances of project success, and fosters a positive experience for both parties. Even a minor difference in values can have significant implications for long-term cooperation.

Team Expertise

Team expertise is a crucial factor when choosing a partner. OSKI Solutions is ready to assist your company with outstaffing, providing highly skilled Full Stack developers with expertise in ASP.NET, C# .NET, React, Vue.js, Umbraco, and Node.js. Our focus on effective communication and reliable project execution ensures successful growth for your business.

Conclusion

In today's globalized world, businesses have the opportunity to find skilled specialists in any corner of the globe.

One of the important factors in effective hiring is choosing the right location for software development. Eastern Europe ranks among the best countries for outsourcing, thanks to its favorable metrics of developers and the ability to provide experienced engineers with a high level of English language proficiency.

Start your collaboration with OSKI Solutions with a free 15-minute consultation, where you can explore the list of available specialists for outstaffing.

Tags: Outstaffing Ukraine Countries

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