Call it the economic after-effects of the pandemic or the strict immigration laws; outsourcing software development is not an option. It is the way of the Western world! Eastern and central Europe have always been the cost-effective destinations for such offshore projects. However, the government has recently enhanced its support for such technical assistance.
In this article, we will give you the key reasons that make outsourcing to Eastern Europe the ultimate choice and how Poland has emerged as a leader in it all. We will also talk about the challenges faced and how European companies are bucking those up. Let us explore the specifics -
Why is Eastern Europe the ultimate outsourcing destination?
The key reasons that make outsourcing to Eastern Europe the norm of the times are -
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A talent pool of competent and skilled professionals
Eastern Europe (with parts of the Central Zone) is an IT hub. The biggest advantage that has been working for all these years in terms of outsourcing is - a plethora of competent and skilled technical professionals in the European zone. Whether it is the experience or the innovative outlook toward a project, software professionals have the required ‘set of skills’ to work on multifarious development processes.
Data showed how Ukraine (considered a prime location for technical and medical studies) has a talent pool of 200,000 software engineers working on ‘outsourced American/Western projects.’ Also, tabloid reporting states that despite the region's internal and external conflicts, the upcoming set of software professionals are seeking out offshore opportunities from the West. Rest assured, the clients will get the services they require.
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Offering the best cost/quality ratio
Another of the key reasons for Eastern and Central Europe becoming the hubs of outsourced software development processes is - their excellent cost: quality ratio. Compared to Western Europe, America, and other Australasian countries, the development rates are affordable. At the same time, thanks to the quality of technical education received, and the range of skilled workforce, the quality supplied back is high.
The countries like Moldova, Belarus, and Ukraine (despite the war) have been the ruling hubs of ‘premium-quality technical development’ suppliers. In recent times, Poland has joined the group and emerged as a leader.
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Strategic geographic location with reduced time gap
Strategically, Eastern and Central portions of Europe have a reduced time gap. In real-time, the US and Eastern/Central Europe have a rough 8-hour time gap. This enables them to converse in real-time, easing the work process.
However, we are all aware of the ever-escalating Ukraine-Russia war and how it has structurally affected the region’s workforce. Considering that, a new alternative has emerged regarding delegating software development work. We are talking about outsourcing Poland.
Let’s give you some hands-on data -
- The Polish IT market has been expanding at a rate of 5-10% annually.
- Poland currently accounts for 25% of the programmer skills in Eastern and Central Europe.
- Last checked, almost 15,000 students (maximum concentration in IT and communication tech) pass out of Polish universities yearly.
With these strong credentials at hand, it is only natural that Poland, located in Central Europe, has become a competitive option for those who are looking for an alternative.
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Strict security regulation
Amongst all the positives in tow, the strict security regulations provide an added advantage to Western outsourcing countries. From following copyright rules by the book to iron-clad NDAs, as well as implementing the rules of the General Data Protection Regulation, European countries take security and privacy measures strictly. Therefore, the breach responses and data governance are quicker enabling the ‘offshore project’ complete security.
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Higher adaptability to cultural differences
Lastly, the European countries have a wider adaptability capacity than the Western nations. Whether it is conversing in English, or accommodating each other’s cultural and festive preferences, the West and the European zones do it the best. In this way, streamlining the work process becomes easier and hence the collab efforts yield high-grade results.
How are European companies dealing with the challenges?
As someone looking to outsource your software development process to Eastern and Central Europe, you might have some queries. We have seen how, in recent times, wars have hindered the geopolitical and economic stability of that area. Also, this has spilt over by affecting the area’s infrastructure. So, are they as good as before? Well, surprisingly, the answer is a big YES!
Despite the challenges (economic, social, and political), the technical delegating standards of these countries have maintained the ‘credible’ level. What’s more interesting is - that the talent pool has increased, with most European countries opening up their doors to immigrants from the eastern side of the world (Eastern and South Eastern Asia have long been held as the ultimate talent picks regarding technical know-how).
Lastly, despite the disruptions, the technical exchange of ideas and services has been continuing throughout the world. From sending data via undersea cables to conference calls, services are provided from the European time zone to the Western one amidst the raging ‘red-marked’ zones!
As of now, we can say the European ‘third-party’ companies are doing an excellent job.
Parting words
Outsourcing software development to European ‘technical entities’ is a business strategy that has been in place for over a decade now. With the Western IT pool facing a slide to the European domain opening up its space - the cost-effective outsourcing process has reached the pinnacle of success. Though geopolitical tensions keep intervening, as of now, both parties are looking at a win-win situation. Also, the companies are working to ensure that the process is streamlined and the knots are reduced comparatively.
