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Because of the significant talent shortage in the US and Western Europe, many companies are considering Eastern Europe as their primary destination for IT outsourcing. Many world-famous organizations like Google and Apple have already opened software development in Eastern Europe.

According to the State of European Tech report, there are around 6.1 million tech experts located in Eastern Europe, meaning that companies can choose from a variety of technologies for their software development. Ukraine, Poland, and Romania alone account for 600,000 tech experts with a strong educational background and expertise in a broad range of technologies.

In this article, you’ll read about the most trusted organizations providing outsourcing services in Eastern Europe, as well as learn about the benefits of choosing the region as your primary software development destination.

software development eastern europe

Best Outsourcing Companies in Eastern Europe

Software Outsourcing Landscape in Eastern Europe

There are several reasons the region has recently become so popular, among which are its wealth of talent, cost-t0-quality balance, convenient geographical location and time zones, and scalability. According to Skillvalue, Eastern Europe has the best developers in the world. Ukraine ranks fifth in the list of countries with the best programmers globally, and fourth among the best developers’ hubs in Europe.

The region’s potential is tangible partly due to the strong technical background so many developers possess. A great number of tech Universities prepare students for future careers in IT, while the region’s literacy rate constitutes 98,99%. Moreover, companies offer trainee roles to students while they’re still studying in universities, meaning that young tech talent graduates already with job experience.

Total European tech industry employees by quarter, 2018 to 2023. 

Total European tech industry employees by quarter, 2018 to 2023.

Despite a recent slowdown in new people joining the tech industry and a small drop in total headcount in Q3 2023, it’s impressive that European tech has doubled its workforce in just five years – going from a little over one million employees to more than 2.3 million.

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Top 6 Trusted Software Development Outsourcing Companies Eastern Europe

The IT Market Value in Eastern Europe

The IT Market Value in Eastern Europe

Daxx

Daxx (now belonging to Grid Dynamics) is a company in Eastern Europe that helps businesses build dedicated development teams in Ukraine. Initially starting as an IT outsourcing company, we soon switched to staff augmentation as our primary focus. One of our core benefits is transparency — while helping you hire the most experienced tech talent, we still let you manage the process.

software development eastern europe

Daxx’s core services and locations

Itransition

Itransition is a global software development organization with a broad list of services. They have been operating for more than 20 years, and handle software projects of any scale and complexity. Located in Kyiv, Ukraine, Itransition provides its customers with many services, including custom software development, software product development, dedicated development centers, and much more.

software development eastern europe

Itransition’s core services and locations

Future Processing

Future Processing is a company located in Gliwice, Poland, with more than 20 years of experience in software development outsourcing. Their core services include building dedicated teams, software product design, software development, and support and maintenance. Headquartered in Poland, the organization already has 800+ employees. They organize events like Quality Excites, FDD, WUD Silesia, and DPTO.

software development eastern europe

Future Processing’s core services and locations

ScienceSoft

ScienceSoft is among the most professional software development organizations headquartered in the US and operating internationally, providing its services to software product companies and non-IT enterprises. They have 700+ IT professionals and a partnership network of more than technology professionals located internationally.

software development eastern europe

ScienceSoft’s core services and locations

MentorMate

Having built their first mobile application in 2001, MentorMate went on to become one of the most experienced outsourcing companies in Eastern Europe. It was a Palm Pilot app called MentorMate that helped students learn foreign languages. Since then, they’ve been involved in providing various web development and staff augmentation services, ensuring the smooth integration of innovative ideas.

software development eastern europe

MentorMate’s core services and locations

Top Outsourcing Providers in Eastern Europe

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Company NameYears of ExperienceLocation in Eastern EuropeNumber of Tech Experts
Daxx by Grid Dynamics20+Ukraine500+ on board
Itransition20+Belarus, Latvia2000
Future Processing20+Ukraine
ScienceSoft32+Belarus700
MentorMate20+Bulgaria650

Lampa software

software outsourcing companies in eastern europe

Based in Vinnytsia, Ukraine, Lampa Software has been in the software game for a solid nine years. They’ve got a team of over 70 folks who are experts at creating apps for the Web, Mobile, and TV. Lampa Software has honed its focus on several key sectors, including Fitness, OTT/streaming apps, Healthcare, Business/Enterprise, Cashback services, FinTech, PetTech, and Startups. So, if you’re looking for tech pros in Eastern Europe, Lampa Software could be a great pick.

Software Development in Eastern Europe compared to Latin America and Asia

Because of the vast talent pool and optimal rates, many Western European and US-based businesses are looking for a trusted partner in the region. Therefore, it is much cheaper to hire a dedicated team in the CEE region than doing so in the US.

Eastern European countries have become Asia’s competitors when it comes to software development outsourcing. Countries like China, India, and the Philippines are popular because of the low rates they offer. For example, the average junior software developer in Asia makes around $20-$30 an hour, while for a senior expert, the rates are between $30-$50.

The CEE region is becoming more popular because of the high quality of the delivered services, while prices are either slightly higher or in some cases, the same. A median developer’s hourly can range between $30 to $60.

Latin America is among the primary destinations for organizations in North America because of the close geographic proximity and minimal time difference. The average hourly rate in the region is between $35 to $70. If a tech company chooses to hire the same dedicated software developer through an outsourcing vendor, it would cut those rates by up to 20%.

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Key Steps to Take When Choosing Software Development Eastern Europe

Before choosing your software development provider, you should look for the information online. Search for the most experienced providers with positive reviews on platforms like Clutch. Learn about the company’s corporate culture, tech technology availability as well as the core services they provide.

  • Check out the company’s LinkedIn profile

It will help you learn about their locations, projects, employees, and management team. So that you can understand if the company suits your requirements.

  • Visit the company’s website

Once you do that, you’ll be able to access the company’s pricing policy, learn more about the industries they are working in, and choose the cooperation model that best fits your expectations. There you can also reach out to the contact employee to receive a consultation about available services and have your questions answered.

Wrapping Up on Software Development Eastern Europe

Eastern Europe has become a hotspot for software development outsourcing, attracting companies with its skilled talent pool, cost-effectiveness, and favorable business environment. For those exploring reliable outsourcing partners, companies like Daxx, Itransition, Future Processing, ScienceSoft, MentorMate, and Lampa Software stand out as trusted options.

Meanwhile, if you’re considering Vietnam for your software development needs, InApps Technology is a standout choice. With a proven track record and a skilled team, InApps Technology is ready to bring your software projects to fruition. Visit our website.

5/5 - (5 votes)
I am Tam, Founder & CEO of InApps Technology, ranked 1st in Vietnam and 5th in Southeast Asia in Application Development and Custom Software Development. We build a team with a people-centered culture that serves our customers with the WOW experience. I have helped hundreds of startups and brands to succeed with our robust technology solution. Besides, I have 5,000+ connections with C-Levels on LinkedIn and 10,000+ other professionals in communities. I hope to bring BIG VALUES to our right partners and customers. What I can help: – World-class software development service. – Building a dedicated talent team for only 30% of your local vendors’ cost. – Consulting tech startup solutions comprehensively and systematically. – Growth-hacking marketing solution. If you read here, don’t hesitate to contact me for further advice.

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