Best Countries to Consider for Offshore Software Development in 2021!

It was in the year 1989 when outsourcing i.e. offshoring the projects started becoming a popular approach, and today, in 2021, it has become an integral part of global business operations. This trend is growing exponentially. So, let’s have a glance at a few statistics on offshore development.

· Before the Covid-19 pandemic, the market size for global offshoring services crossed $92.5 billion.

· In the USA, every year almost 3 lakh jobs get outsourced.

· During the pandemic too, outsourcing of IT services increased from 12.7% in the year 2019 to 13.6% in the year 2020.

· IT outsourcing market is estimated to rise to $98 billion, at a CAGR of 5%, from the year 2020 to 2024.

· About 46% of the firms who outsource the projects say that outsourcing gives them access to talented and skilled professionals who aren’t available in-house.

These estimations by, a well-known portal for news, reviews, and market analysis, give us a peek into the rising scope of offshore software development services and their demand.

So, this blog gives you a deep insight into the world of offshoring as we have enlisted the top locations across the globe for hiring software offshore development firms. We will also share some tips on how to begin with offshore development. So, if you are an entrepreneur or a start-up company willing to outsource your software project, then this post is for you. Let’s begin.

List of the Best Outsourcing Destinations for Software Development


Asia is like a paradise for global companies to hire world-class offshore software development services. In Asia, there are approximately 7 million developers and the average rate of these offshore software developers ranges from $20 to $40 per hour. Below is the list of popular Asian countries for outsourcing:

· India

· China

· Vietnam

· Indonesia

· Philippines

· Malaysia

· Nepal

· Sri Lanka

· Pakistan


Out of these, India is one of the most popular destinations across the globe for outsourcing, due to its budget-friendly prices, availability of talented developers, advanced infrastructure, favorable government policies, etc. Today, the technology and engineering graduates in India are about 2.6 million. Furthermore, India consists of almost 5 million experienced software developers and their charges are comparatively lower ranging from $20 to $30 per hour. Due to all such reasons, today, approximately half of the fortune 500 firms prefer India.

Eastern Europe

East European countries possess a huge talent for outsourcing software services. There are more than 40 tech universities in Romania alone, producing 5,000+ software professionals per year. In Bulgaria, this number is about 3,500 graduates.

Overall, there are almost 1 million software professionals in Eastern Europe and they possess the broad commercial experience required for delivering world-class services. They are also equipped with the latest programming languages like JavaScript, Java, Python, and more. Their hourly rate is from $25 to $40. Besides, their convenient time zones, huge talent pool, cultural similarities, etc. make East European countries a top choice for outsourcing. A host of East European countries that outsource their services are listed below:

· Ukraine

· Czech Republic

· Russia

· Hungary

· Belarus

· Poland

· Romania

· Bulgaria

· Estonia

· Slovakia

Latin America

In recent years, Latin America has experienced a growing demand for offshoring its software services. The hourly rates of the developers vary from $30 to $55 per hour, depending on their work experience, and qualification. The countries in Latin America have similar time zones like North America and so, there is very little difference in time zone.

Here is the list of top offshoring countries from Latin America:

· Brazil

· Argentina

· Chile

· Costa Rica

· Panama

· Colombia

· Peru

· Mexico


Amongst all the destinations, African countries are the cheapest to hire offshore software developers as the hourly rates of the developers are lower than $20. There are approximately 20,000 software professionals in Africa. But a few professionals with good experience can even charge around $40 — $50.

Here is the list of African offshore development countries:

· Egypt

· Nigeria

· Morocco

· Kenya

· South Africa


Australia has steadily emerged as a preferred zone for outsourcing software services. As compared to other Asian countries, Australia has a geographical advantage. Also, their native language is English, which is another huge advantage. However, the hourly rate of developers can be very high ranging from $100 per hour to $180 per hour.

Some Tips to Begin with Offshore Software Development

How to Start with Offshore Development?

While choosing the apt offshore destination for you, you first need to finalize your project requirements and then, choose the best-suited destination to hire offshore software developers. Next, you need to research for deciding the offshore company by looking for client reviews, the company’s specialization, their years of experience, company reputation, team size, etc. Also, before starting the project, you should have a rough picture of your project goals, the budget, and the timelines. This will help to avoid any miscommunication with the offshore team and help achieve the results as required.

Criteria for an Offshore Team

Here are some criteria that you should look for while selecting an offshore software development firm:

· Technical education and expertise of the professionals

· Ranking of software developers and their firm

· Time zone and location differences

· English language expertise

· Experience in highly complex projects

· Tech competency diversity

Final Thoughts

The outbreak of the Covid-19 Pandemic has brought a massive shift in the work culture and forced countless entrepreneurs to partner with offshore software development services for their development needs. And why not? Offshoring saves costs while delivering top-quality services and allowing businesses to focus on their core competencies.

So, in this blog, we have shared some of the top-notch locations for offshore development that will help budding entrepreneurs find the right tech partner for their projects.

So, was this blog helpful? Do share your feedback with us.

For any assistance on hiring an offshore software development firm, get in touch with us.

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