IT outsourcing has emerged as a prominent trend in modern business strategies due to its cost-effectiveness and efficiency benefits. Organizations often choose to outsource their IT services to specialized providers, allowing them to tap into expert knowledge and resources while reducing operational costs. This approach enables businesses to focus on core competencies, enhance scalability, and stay competitive in the rapidly evolving technological landscape. By leveraging external expertise, companies can adapt swiftly to industry changes, foster innovation, and achieve higher productivity levels.
Read more about IT outsourcing models and their benefits at Offshore, Nearshore, Onshore - Which Way Forward?
This blog will share about the Top 10 countries for IT outsourcing in 2024 that you must know for an effective outsourcing strategy.
According to Statista, revenue of the IT outsourcing market is projected to reach $698.9 million in 2024 with an annual growth rate of 16.38% in the period of 2024-2028.
The monthly salary for a 4-year software engineer is around $2,100 - $6,000. ( $39,600 on yearly average) (Glassdoor)
Normal Rate: $18-$40/hour (Geniusee)
Pros:
Boasting a rapidly growing IT industry, Vietnam offers a cost-effective solution with a pool of skilled developers. Its time zone proximity to many Western countries enhances collaboration. Some main techstacks are Python, Java, JavaScript, PHP.
Cons:
English proficiency can vary so choosing a partner who has experience with global clients and is proficient in English is a key to winning the strategy if you investigate this country.
According to Statista, revenue of the IT outsourcing market is projected to reach $10.51 billion in 2024 with an annual growth rate of 17.58% in the period of 2024-2028.
The annual salary for a 4-year software engineer is estimated to be $16,800 on average. (Glassdoor)
Normal Rate: $18-$40/hour (Geniusee)
Pros:
A pioneer in IT outsourcing, India provides a vast talent pool (Java, Python, JavaScript, .NET), English proficiency, and a diverse range of services. It has a well-established reputation for delivering high-quality work at competitive prices.
Cons:
Increasing competition has led to rising costs, and the time zone difference can pose challenges in real-time collaboration.
According to Statista, revenue of the IT outsourcing market is projected to reach $28.76 billion in 2024 with an annual growth rate of 9.67% in the period of 2024-2028.
The annual total pay for a Senior (4-6 years of experience) Software Developer is $77,500 in the China area, with an average salary of $67,600 per year. (Glassdoor)
Normal Rate: $18-$40/hour (Geniusee)
Pros:
China excels in hardware development and offers competitive pricing. The country is rapidly advancing in software development and technology innovation including some popular techstacks namely Java, C++, Python, and Ruby.
Cons:
Language barriers and intellectual property concerns can be significant challenges. Additionally, the government's internet restrictions may affect collaboration.
According to Statista, revenue of the IT outsourcing market is projected to reach $686 million in 2024 with an annual growth rate of 13.54% in the period of 2024-2028.
The estimated total pay for a Senior (4-6 years of experience) Software Developer is $2,800 per month in the Philippines area, with an average annual salary of $34,000. (Glassdoor)
Normal Rate: $18-$40/hour (Geniusee)
Pros:
English proficiency, a Westernized culture, and a strong focus on customer service make the Philippines an attractive outsourcing destination, especially for customer support and business process outsourcing. Some most popular techstacks are PHP, Java, .NET, and Python.
Cons:
The talent pool is more specialized in certain areas, and rates may not be as competitive as in other Asian countries.
According to Statista, revenue of the IT outsourcing market is projected to reach $3.05 billion in 2024 with an annual growth rate of 12.12% in the period of 2024-2028.
The estimated total pay for a Senior (4-6 years of experience) Software Developer is around $4,400per month in Poland, with an average annual salary of $53,500. (Glassdoor)
Normal Rate: $40-$55/hour (Geniusee)
Pros:
Positioned as a European outsourcing hub, Poland boasts a skilled workforce, cultural affinity with the West, and a strong commitment to data security and compliance. They are strong in Java, Python, JavaScript, PHP.
Cons:
Costs are higher compared to Asian countries, and time zone differences may pose challenges for real-time collaboration with clients in the Americas.
According to Statista, revenue of the IT outsourcing market is projected to reach $1.35 billion in 2024 with an annual growth rate of 14.5% in the period of 2024-2028.
The estimated total pay for a Senior (4-6 years of experience) Software Developer is from $5,000 to $10,000 per month in Ukraine, with an average monthly salary of $7,000. (Glassdoor)
Normal Rate: $25-$45/hour (Geniusee)
Pros:
Ukraine offers a large pool of highly skilled IT professionals at competitive rates. With a strong focus on software development, the country is known for its expertise in areas like Java, .NET, and JavaScript.
Cons:
Political instability can be a concern, and English proficiency varies among the workforce.
According to Statista, revenue of the IT outsourcing market is projected to reach $6.13 billion in 2024 with an annual growth rate of 12.5% in the period of 2024-2028.
The estimated total pay for a Senior (4-6 years of experience) Software Developer is from $4,400 to $7,900 per month in Brazil, with an average monthly salary of $5,600. (Glassdoor)
Normal Rate: $30-$50/hour (Geniusee)
Pros:
Brazil is gaining traction as a tech hub with a vibrant IT community. It provides a similar time zone to North America and Europe, making collaboration smoother. Brazilian developers are proficient in Java, Python, and PHP.
Cons:
Cost can be higher compared to some other outsourcing destinations, and language barriers may pose challenges.
According to Statista, revenue of the IT outsourcing market is projected to reach $417.2 million in 2024 with an annual growth rate of 9.17% in the period of 2024-2028.
The estimated total pay for a Senior Software Developer is USD 750 per month in the Argentina area, with an average salary of USD 360 per month. (Glassdoor)
Normal Rate: $30-$50/hour (Geniusee)
Pros:
Argentina boasts a highly skilled IT workforce with expertise in software development and quality assurance. Time zone alignment with North America is advantageous, and English proficiency is generally good.
Cons:
Economic fluctuations can impact costs, and inflation is a consideration.
According to Statista, revenue of the IT outsourcing market is projected to reach $11.45 billion in 2024 with an annual growth rate of 10.89% in the period of 2024-2028.
The estimated total pay for a Senior (4-6 years of experience) Software Developer is from $67,000 to $99,800 per year in Canada, with an average annual salary of $81,000. (Glassdoor)
Normal Rate: unknown
Pros:
Known for its stable business environment, Canada offers proximity to the U.S. market, cultural compatibility, and a high level of education among its workforce. Major tech stacks include Java, Python, and JavaScript.
Cons:
Labor costs can be higher, and there may be challenges in finding skilled professionals for niche technologies.
According to Statista, revenue of the IT outsourcing market is projected to reach $415.2 million in 2024 with an annual growth rate of 12.9% in the period of 2024-2028.
The estimated total pay for a Senior (4-6 years of experience) Software Developer is from $3,200 to $6,500 per month in Romania, with an average monthly salary of $4,700. (Glassdoor)
Normal Rate: $25-$50/hour (Geniusee).
Pros:
Romania is an emerging IT outsourcing destination with a well-educated and tech-savvy workforce. The country excels in Java, Python, and PHP development. Cost-effectiveness and a strong cultural affinity with Western Europe make it attractive.
Cons:
English proficiency may vary, and the market is becoming more competitive.
Above are the Top 10 countries well-known for IT outsourcing. Considering your outsourcing goals is the first step in defining an outsourcing plan and then choosing your destination.
BlueOC is one of the Vietnam trusted IT outsourcing partners of clients worldwide namely the US, Canada, UK, Australia, and Japan. We are proud to be known as an IT services provider with quality, compliance, and clients in heart. Let’s contact us via [email protected] to bring your idea to the real world.
