Considering outsourcing? Immerse yourself in the best global regions known for top talent, economics and technological innovation.
Outsourcing software development can be a great way to develop high-quality, cost-effective products. However, finding the right IT provider can be a bit tricky for many companies, especially as outsourcing has become a worldwide phenomenon and some are just starting to delve into this area.
Fortunately, there are several ways to enter the global outsourcing market. For starters, learning about the most popular regions to outsource development will help narrow your searches to a few technologically prosperous regions. Software outsourcing in South America, for example, made huge leaps last year.
Why are so many companies outsourcing software development
Although the cost-benefit ratio was what made software outsourcing a popular solution in the beginning, today the area is recognized for offering benefits that go far beyond that. Here are some of the highlights.
- Access to the best technology talent
- Rapid implementation and scalability
- Guaranteed performance and reliability
- Reduced focus on IT management
- Faster troubleshooting and minimal downtime
- Saving money and time on labor costs
The criteria for comparing software outsourcing regions
Technological education
This is, perhaps, the springboard for everything related to IT. The region's software development education will determine not only the quality of its developers, but also the quality of local companies.
Communication
No project will be successful without effective communication. Language fluency, cultural similarities, time zone differences, and general accessibility are some factors in the mix.
IT market development
It is crucial to identify which regions tend to make the smartest investments in their technology sectors. An international approach to the industry is a clear sign of a healthy IT market.
Average rate
The average hourly rate for developers varies greatly between regions. However, the real value lies in cost efficiency, not the region that has the lowest prices.
Best regions to outsource software development
No. 1 in Latin America
Latin America has the fastest projected IT industry growth of any region , with a projected revenue growth rate of 5.3% for the 2020s, 2 points above the global average of 3.3%. Currently, software development in South America leads the region's industry, mainly thanks to countries like Argentina and Brazil.
#2 Southeast Asia
Southeast Asian countries like Taiwan, Thailand and the Philippines are home to one of the largest populations of English-speaking software developers in the world. The region offers a growing market for IT services with a young and energetic workforce. Since investments reached US$11 billion in 2018, the region has not stopped growing.
Additionally, many Southeast Asian countries have begun implementing STEM education systems in their high schools and universities to nurture their growing technology and science industries.
#3 Eastern Europe
Southeast Asian countries like Taiwan, Thailand and the Philippines are home to one of the largest populations of English-speaking software developers in the world. The region offers a growing market for IT services with a young and energetic workforce. Since investments reached US$11 billion in 2018, the region has not stopped growing.
Additionally, many Southeast Asian countries have begun implementing STEM education systems in their high schools and universities to nurture their growing technology and science industries.
#4 Middle East
The Middle East is characterized by its tech-native and savvy population, as more than 50% of the population is under the age of 24. This region is a rich breeding ground for software outsourcing, with nearly a dozen IT startups valued at more than $100 million each in 2017.
Most notably, software outsourcing companies in the Middle East are known for being very affordable. Developer salaries are a fraction of what is paid in other regions, which allows for cheap outsourced development solutions.
#5 China
China produces an incredible 4.7 million IT graduates every year, and Chinese developers are often recognized as some of the best in the world, as confirmed by HackerRank. The local IT market is as competitive as it gets, with 35,000 IT companies and 6 million people associated with them in 2017.
However, less than 10% of its population is fluent in English, which constitutes a major obstacle to its international approach. Despite this, reputable providers put a lot of effort into building high-performing teams with great language skills.
