With the rapid growth of the IT industry and the demand for mobile and web applications in the market, western companies are finding the offshore development approach way better than hiring onsite resources. That’s why the offshore development center has become popular among companies in the US, Canada, the UK, Japan, Australia, New Zealand, the Middle East, and Europe. Many businesses plan to set up their offshore units for their IT development, so a common question arises: “Where should you set up an offshore development center?” Don’t worry; we have covered all the aspects in this article.
This article will introduce us to the top 7 countries for setting up an offshore development center. But before we delve deeper, let’s understand the basic concepts of offshoring.
- In offshoring, a company hires an app developers team from any company located outside its country for benefits such as lower costs and a mega talent pool.
- An offshore team refers to the resources deployed in an ODC (offshore development center) and work on your software development projects.
Top 7 Countries to Establish an Offshore Development Centre
India
With a vast pool of 2.6 million STEM graduates (Science, Technology, Engineering, and Mathematics), India is leading the list due to its high-quality talent in software development. The country’s robust education produces 2.6 million skilled IT professionals annually, meeting the high IT requirements of the world.
You can get proficiency, quality, and easy communication while working with the developers of India. The best thing about setting up an offshore development center in India is that you can get the best quality talent at quite affordable rates of as low as $6 per hour, just a fraction of US rates ($30-$50). While the average rates lie between $18-$40, India is a lucrative market for those who want professional services at reasonable rates.
You can get the talent for any technology, such as PHP frameworks, R, Python, SQL, Hadoop, AWS, SQL, Java, and others.
It’s no wonder the CEOs of IT giants like Google and Microsoft are Indians, as they provide high-quality work to their organizations.
China
China is second on the list, even with a higher number of IT resources than India. It is a prominent hub for outsourcing software and IT development services. The country boasts a huge talent pool of 5.2 million developers with varied skill sets in IT services. There is a strong emphasis on science and mathematics education in the country.
The country is renowned for producing professionals with varied AI, robotics, deep learning expertise, etc. China offers highly productive developers at a significantly lower labor cost than the US, where the average software developer wage is $108,978. In comparison, the average compensation in China is $35,538.
Philippines
Despite being quite a small country, the Philippines has emerged at a rapid pace as a topic choice for offshoring and outsourcing by Western countries. Factors such as a skilled workforce at competitive rates are the main reasons.
With more than 4 million skilled professionals, the Philippines is in great demand. This is bolstered by the 40,000 IT and engineering graduates it produces each year who are skilled in programming languages like Java, .NET, and API development.
The Philippines provides affordable options, with hourly rates between $15 and $35 on Upwork and estimations between $25 and $40 on Clutch. The country’s capital, Manila, is a crucial city that reflects the nation’s thriving market and advanced software background.
Poland
Poland is also a small nation, but it isn’t minor in terms of its IT background. The company is positioned at 4th position as it is a research and development hub for global companies across different industries. It is a beacon of growth in Eastern Europe’s software development market landscape.
The country’s IT landscape is growing 40-50% each year. It is expected to reach a valuation of $4.5 billion by the end of 2024. The country’s advantageous tax policy and business-friendly environment contribute to its attraction. Over 250,000 Polish developers specialize in widely used languages like Java, SQL, Python, and C++.
Furthermore, Poland’s competency in languages such as English, German, French, and Spanish makes it an ideal nearshore option for Western European enterprises and a strategic choice for offshore efforts.
Ukraine
Ukraine has an annual influx of 50,000 IT graduates, a vibrant talent pool for fuelling the growth of startups and enterprises. The hourly rates are higher than in Asian countries and range between $25 and $46 per hour. Thus, it is the ultimate destination for businesses looking for quality at affordable rates.
Ukrainian developers excel at programming languages like C++, Java, Ruby, PHP, and Python. Notable achievements such as Grammarly, Petcube, and GitLab originate in Ukraine and demonstrate the country’s inventive capabilities.
Brazil
There are more than 500,000 software engineers in Brazil, whose hourly rates range from $22 to $50. Brazil is the main market for IT services and half of the Latin American software market. The country excels at Java, Python, and SQL programming. Web development costs $25 to $60 per hour, making it a competitive option for software outsourcing.
Colombia
Last but not least, Colombia’s IT industry is worth more than $10 billion. The country intends to integrate software, contributing 5% of its GDP by 2025.
Popular programming languages include Java, Python, Perl, Kotlin, and HTML/CSS.
Cities like Bogotá, Medellin, and Cali are thriving startup hotspots, thanks to government support and easy access to finance. Colombia is quickly becoming a top destination for offshore software development.
Wrapping Up
In this article, we have reviewed the top countries that have set up offshore development centers. Utilizing remote resources is a great way to generate more profits and improve the quality of your IT projects. Countries like India, China, and the Philippines are doing exceptionally well in delivering IT professionals by outsourcing dedicated developers to Western countries.
At Octal IT Solutions, India’s best IT development company, we have a massive team of remote developers with vast experience in mobile development, AI & ML, deep learning, web development, and others. They can develop your software with complex features and the latest technologies. Let us know your requirements.
Do Read: Beyond Boundaries: Pioneering Technologies Redefining Travel
