Top 10 Software Development Outsourcing Countries in 2022
The most typical motivations for outsourcing countries include cost savings, access to experienced labor, and increased focus on key business concepts, among others.
According to research, people outsource I.T. services for a variety of reasons.
Doing business with someone you’ve never met in person necessitates extra caution and attention. You don’t want to deal with an insecure country where you don’t know English or aren’t committed to high-quality coding. When deciding where to outsource your next significant software project, there are several important things to consider.
Here are the Top 10 Software Development Outsourcing Countries
1) China – The Largest Outsourcing Market
Let’s start with China, which is unquestionably one of the world’s most popular outsourcing destinations. According to numerous survey-based reports (including Statista) produced in 2021, China is responsible for around 68 percent of all outsourced work. Experts expect that, in addition to its low costs, China’s outsourcing marketplaces will undergo major changes over time.
According to Failory’s recent research, India has surpassed China as the most sought-after destination for international companies wishing to outsource work while keeping costs down.
- Developers Population: 7 Million+
- Hourly Rate of Developers: $40 to $100 per hour
- English Language Proficiency: 0.9% of the total population
- Time-zone Differences: 15 hours ahead of the U.S.
2) India – The Second-Largest Country by Number of I.T. Workers
India is second only to China in terms of technological workforce, and it is frequently cited as one of the finest countries for hiring software engineers. More than half a million developers working on projects for American companies that are outsourced. In comparison to most other outsourcing countries, software engineers in India are paid significantly less.
Education financing, land grants, and tax breaks are all available from the Indian government. All of this makes India a favored location for outsourcing companies hoping to take advantage of highly skilled people at a fraction of the cost of labor in the United States.
- Developers Population: 3 Million+
- Hourly Rate of Developers: $15 to $60 per hour
- English Language Proficiency: 14.18% of the total population
- Time-zone Differences: 10 hours & 30 minutes ahead of the U.S.
3) Mexico – Experienced in Software Testing
According to ProMigración Mexico, Mexico’s economy is heavily reliant on remittances, particularly from the United States. Computers are the second-largest U.S. export to Mexico, according to Intra-Americas Information Network Inc, followed by computer parts and accessories, which account for 12% of exports.
As a result, many software testing organizations in Mexico have greater experience than their counterparts in other countries, having tested a number of programs for the American market.
- Developers Population: 100K+ Developers
- Hourly Rate of Developers: $30 to $100 per hour
- English Language Proficiency: 12.9% of the total population
- Time-zone Differences: 1 hour behind the U.S.
4) Malaysia – A Stronger Focus on Technology & Digital Skills
Malaysia, dubbed Asia’s next outsourcing hub, places a strong emphasis on technology and digital skills. With an offshore development center specializing in producing mobile apps, enterprise apps, and customized software development in Malaysia, you can take advantage of these advantages.
Malaysia, which is known for its technological prowess, is an ideal alternative for enterprise software development. Malaysia, like other countries, has a large number of entry-level developers that may help with prototyping or basic coding needs.
- Developers Population: 100K+ Developers
- Hourly Rate of Developers: $30 to $50 per hour
- English Language Proficiency: 62.57% of the total population
- Time-zone Differences:13 hours ahead of the U.S.
5) Singapore – An Excellent Workplace for Women
According to the World Bank, women make up roughly 41% of Singapore’s workforce. Affirmative action is a policy that requires local firms to provide equal employment chances for men and women. Not only that, but part-time jobs for working mothers are relatively unrestricted. Furthermore, high-quality international schools provide an excellent environment in which to raise children.
However, mastering English might be difficult, and there are just a few areas where you can compete with people from other countries. Because of its proximity to Indonesia, the island is also prone to earthquakes.
- Developers Population: 200K+ Developers
- Hourly Rate of Developers: $40 to $60 per hour
- English Language Proficiency: 83.10% of the total population
- Time-zone Differences: 13 hours ahead of the U.S.
6) Philippines – Among the Highest Average Wage in Asia
The Philippines is at the top of our list of the best outsourcing countries. While it is a developing country with a poverty rate of roughly 20%, its average income is quite competitive when compared to India, Nepal, Vietnam, and China, which are all important outsourcing destinations in Asia. Filipinos are also fluent in English.
Around 95% of businesspeople can read, write, and speak fluent English, so you won’t have any trouble getting your project requirements across to them. Even if you have no prior experience working in Southeast Asia, Filipinos are a perfect outsourcing option for any organization with consumers or workers who speak English as their primary language.
- Developers Population: 190K+ Developers
- Hourly Rate of Developers: $40 to $60 per hour
- English Language Proficiency: 58.2% of the total population
- Time-zone Differences:13 hours ahead of the U.S.
7) Vietnam – Taking Advantage of Low Costs And Technological Advances
Vietnam is a major outsourcing location, according to numerous reports, for a variety of reasons. For starters, corporations wishing to outsource are drawn to the country because of its low labor costs. Workers in several Vietnamese cities can earn $600 to $800 per month, over 30% less than their Chinese counterparts.
Furthermore, thanks to technical advancements such as cloud-based computing and videoconferencing, Vietnam now has access to a professional workforce that is not centralized.
Read more: Top 10 Reasons to Hire Software Developers in Vietnam
- Developers Population: 50K+ Developers
- Hourly Rate of Developers: $20 to $50 per hour
- English Language Proficiency: 53.81% of the total population
- Time-zone Differences: 12 hours ahead of the U.S.
Bestarion is a subsidiary company of Larion (www.larion.com ) and provides software development/consultation services specializing in Healthcare Supply Chain, Financial, Hospitality, Banking, Education, Security Trading services for the last 14+ years. Moreover, we helped the U.S. healthcare organizations of savings up to 15% of the annual supply chain spend on 34,000 subscribed users. We are a global Software Development firm providing services to clients spread across 15 countries and have been successful in outsourcing services and notably in Ruby on Rails, C on Linux, and .NET
8) Brazil – Ongoing Growth in I.T. Services Firms
Brazil has a history of outsourcing information technology services to other countries, most notably India. This is rapidly changing, however, as Brazil’s economy grows at an exponential rate every year. In terms of technological advancement, Brazil experienced one of its most crucial years in 2020, and it is expected to continue to expand in 2022.
The country’s network infrastructure is improving, making it a desirable location for foreign investment corporations wishing to outsource software development and IT infrastructure.
- Developers Population: 500K+ Developers
- Hourly Rate of Developers: $20 to $50 per hour
- English Language Proficiency: 5% of the total population
- Time-zone Differences: 2 hours ahead of the U.S.
9) Romania – Increasing Influence as a Western European Location
Because of its low living costs and incomes, as well as its cultural proximity to Western Europe, many Western European countries, such as Germany, France, and the United Kingdom, prefer outsourcing to Romania. Romanian personnel is easier to oversee than workers in other Central or Eastern European countries, and they have a higher standard of living.
Given Romania’s high unemployment rate and, as a result, lower qualifications for these professions, this is especially true for non-skilled labor (i.e. contact center workers).
- Developers Population: 100K+ developers
- Hourly Rate of Developers: $30 to $60 per hour
- English Language Proficiency: 31% of the total population
- Time-zone Differences: 7 hours ahead of the U.S.
10) Argentina – Close Ties to Developed Markets
Argentina is well-positioned to provide outsourced services due to its proximity to developed markets in South America and its membership in Mercosur, a Latin American economic integration group that allows trade with Brazil, Uruguay, Paraguay, and Venezuela.
It also has a substantial domestic IT sector that could be suitable for offshore by international companies. Furthermore, competent labor is abundant, and costs are far lower than in many other top outsourcing countries, such as China.
- Developers Population: 100K+ developers
- Hourly Rate of Developers: $20 to $60 per hour
- English Language Proficiency: 6.52% of the total population
- Time-zone Differences: 2 hours ahead of the U.S.
So, Which Software Development Outsourcing Countries are your Best Options?
Wrapping Up
Choosing to outsource your business does not imply that you will lose control. Outsourcing, when done correctly, can bring new sources of knowledge, skills, and expertise into your firm, as well as increase profitability.
You should have no issue finding success through outsourcing as long as you keep your emphasis on prices and create clear expectations at every stage of working with remote professionals. As previously stated, the globe is a huge place; whether you want to tackle it alone or hire some help is entirely up to you!
Connect with a reputable outsourcing firm to get the most out of your project on a budget.
See more:
- Top 10 Software Development Companies in Viet Nam 2022
- Outsourcing vs Outstaffing: Which is the best choice?
Related Article:
https://hackernoon.com/10-best-countries-to-outsource-software-development-in-2022
