Research of IT Sector in each Country of the Region

Mar 01, 2019

If you are looking for a vendor to develop great and high-quality software, it is recommended to turn attention to Eastern Europe, as among all regions, it is one of the most perspective one for outsourcing. Here are some reasons why:
1. Vast technical talent pool
Education of the former Soviet Union (which included the majority of countries of the given region) focused on technical subjects. For that reason, Eastern Europe can boast deep knowledge of technology and skilled workforce.
2. Reasonable prices
Prices for software development services are lower in comparison with the rest of Europe, which makes outsourcing to Eastern Europe cost-efficient.
3. Convenient geographical position
If we look at the map, we will see that the Eastern European region is situated right in the center of the Eurasian continent. Such geographical position makes this region convenient for cooperation for both Western Europe and Asian countries – in terms of not only distance but also smaller time difference.
4. Similarities in culture, mindset, and style of communication
Countries of the Eastern European region share western values, which makes it easy for such countries as the UK or the USA to build understanding with them.
Eastern Europe region includes such countries as Belarus, Bulgaria, Czech Republic, Hungary, Moldova, Poland, Romania, and Ukraine. Now let’s discuss software outsourcing in each country from the list in detail.
Ukranian IT sector, being supported by the local government, is developing rapidly, and this country can boast of numerous high-quality projects developed there. It is ranked 5th among Top 25 IT services exporters. Ukraine is known for such products as WhatsApp, Petcube, a Kickstarter success story, S.T.A.L.K.E.R, and Metro 2033.
Thanks to a strong higher education system, Ukrainian universities train about 30,000 qualified IT-specialists annually. Ukraine has more than 1,000 outsourcing companies of different size, many of them specialize in such technologies as Blockchain, Big Data, data science, etc. Also, this country has a great experience of working with Western clients. For instance, Andersen, having offices in Belarus, Ukraine and some other locations, has worked with various companies from the USA, Canada, the UK, Spain, Germany, Switzerland, France, Denmark, Sweden, Finland, Lithuania, Estonia, Latvia, Austria, Israel, Belgium, Ireland, Italy, the Netherlands, Norway, etc. Moreover, Andersen has always had contracts with countries like the Russian Federation, Singapore, Australia, South Africa, South Korea, and Kazakhstan.
The weak point in the Ukrainian IT sphere is the lack of experience in enterprise software customization.
There are more than 100 R&D subsidiaries of international companies from a variety of industries in Ukraine. A number of R&D centers are opened by such companies as Apple, eBay, IBM, Siemens, Skype, Wargaming, etc.
IT market capacity: 105,000
English level: middle
Average cost: $34-64
Time zone: UTC+2:00
The development of IT sector in Romania started after its joining the European Union, and nowadays this country is considered to be a very promising location for outsourcing. Many companies around the world agree that Romanian engineers are experts in web development and FinTech. Some R&D operations are created thereby such companies as Alcatel, IBM, Oracle, etc. Still, Romanian IT services are not that much competitive on a world stage yet, and costs for those services are rather high compared with other Eastern Europe countries.
The distinctive feature of Romanian IT sphere is a high percentage of the population involved. About 16,000 specialists graduate annually from more than 200 higher educational establishments, and the total amount of specialists in Romania is around 125,000. Besides, the majority of them can speak not only English, but also French, German, and Italian fluently, which is their great advantage.
IT market capacity: 125,000
English level: high
Average cost: $56-88
Time zone: UTC+3:00
Poland is considered to be one of the largest IT pools in Eastern Europe and one of the best destinations for outsourcing. Nowadays IT sector is the largest sector in Poland: about 140,000 skilled specialists work in more than 450 companies, the vast majority of which is West-oriented. Poland is a home for a number of R&D centers created by ABB, Google, Siemens, Motorola, Intel, etc. Also, Poland is the motherland of Witcher, which is one of the most popular games in the world.
Technical education is very strong here: about 14,000 students with good knowledge of not only software development but also of the English language, graduate annually from local universities. Polish specialists are acknowledged as experts in web development, .NET, C++, Java, Python, iOS, PHP.
In 2016 Poland was ranked 9th in Top 100 Outsourcing Destinations.
IT market capacity: 140,000
English level: high
Average cost: $39-77
Time zone: UTC+1:00
Moldovan IT market is one of the smallest in Eastern Europe, but nevertheless, it’s on the rise. Being one of the most dynamic sectors, it is greatly supported by the government. About 21,000 specialists are involved in the IT-sphere, specializing in technologies like Ruby or Node.js. The IT pool is annually appended by 1,500 young specialists graduating from Moldovan technical universities.
IT market capacity: 21,000
English level: middle
Average cost: $20
Time zone: UTC+3:00
What is interesting about Hungary, is that it’s one of the first countries in Eastern Europe that started exporting software. Nowadays, Hungarian software companies are acknowledged experts in developing anti-viruses and security systems. Thanks to membership in EU, business-friendly legislation and vast talent pool, Hungary is rather attractive for IT enterprises. The country was ranked 24th in Tholons Top 100 Outsourcing Destinations 2016.
But despite the huge number of software engineers (150,000), demand for them exceeds supply: almost all of 6,000 annual graduates have a job before finishing their degree. Besides, unlike the majority of Eastern Europe countries, tech education in Hungary is more general. Therefore, in order to become a good specialist, one has to undergo some other related courses.
IT market capacity: 150,000
English level: middle
Average cost: $47-84
Time zone: UTC+2:00
Czech Republic
As recently as 10 years ago IT process maturity was low here due to little support by the government. But nowadays the Czech Republic is one of the top locations for software outsourcing. It is famous for Avast, AVG, and Socialbakers.
One of the reasons for such rapid development is geographical position: being located in the center of Europe, it is popular among other European countries, especially Germany. Czech Republic is chosen for outsourcing by Google, IBM, Microsoft, NetSuite, Oracle, RedHat, Skype, Tieto, and some other giants.
The total amount of Czech specialists is about 156,000 and each year technical universities graduate 9,000 new specialists.
IT market capacity: 156,000
English level: middle to high
Average cost: $78-117
Time zone: UTC+2:00
Bulgarian IT market is rather small: only 22,000 specialists are employed in 400 companies. Nevertheless, Bulgarian universities provide good tech education. More than 220 educational establishments graduate about 3,500 young specialists annually. Along with technical subjects, all students are expected to learn English, and therefore the English language is at the high level there. 53% of Bulgarian engineers are ICT certified.
What makes Bulgaria financially attractive and promotes the development of the IT sector, is the governmental policy for investment, like providing one of the lowest rates of personal income tax in the EU and some other incentives. Such policy has led to the increase of international companies in the country.
A large number of R&D offices of such companies as Atos, CISCO, HP, Johnson Controls, Oracle, ProSyst, SAP, and VMware are located in Bulgaria.
IT market capacity: 22,000
English level: high
Average cost: $51-91
Time zone: UTC+3:00
Belarus is one of the most technologically developed countries in Eastern Europe, with more than 1,000 IT companies providing top quality service on software development, data processing, consulting and support and many other directions. The country was included in Top 30 Outsourcing Destinations in the world. Highly developed Belarusian IT sector, as well as its further growth, is the result of the solid government support, which provides tax exemption to companies that joined Hi-Tech Park. Also, Belarus is the place where Viber, MSQRD, and one of the most famous games World of Tanks were created.
There are several large and well-established companies with a staff of about a thousand people, and such outsourcing vendors are mainly focusing on Western clients. An example would be Andersen, which hires more than 800 people and, as we mentioned above, has a great experience of working with foreign clients. As for small Belarusian vendors, they provide really good services too.
A number of technical universities, providing good tech education, meets the demand for skilled specialists: more than 4,000 engineers graduate annually.
IT market capacity: 35,000
English level: middle to high
Average cost: $41-71
Time zone: UTC+3:00
Which of the Eastern Europe countries is the best for outsourcing? The answer to this question probably doesn’t exists, as it depends on many factors. But we hope that our research will help you consider all advantages and disadvantages and find a perfect partner in this region.

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