Companies all around the world are in need of highly qualified professionals that are eager to use cutting-edge technologies. Due to the difficulty in finding qualified individuals, outsourcing has become increasingly popular. The greatest nations for outsourcing software development are therefore the ones to watch closely in 2023.
1. India – Leading the world in IT outsourcing
India is currently regarded as one of the top nations in the world for outsourcing software development. 17.7% of the world’s population is represented by the population of India. It makes sense that it is one of the most important sites for many businesses to outsource their software development. Recent studies show that India’s software business is expanding by 60% annually.
Over the past three decades, India’s market for software development has expanded by more than 30%. Up to 100 countries are already receiving its software services exports. The Software Sector Analysis Report claims that developers from India are highly qualified technical graduates. India’s software market is five times less expensive than, say, those in North America.
2. Vietnam – Southeast Asia’s next Silicon Valley
According to Market Insider from the article “The 5 Best Countries To Outsource To In 2019“, Vietnam has been among the top countries that provide excellent outsourcing services.
IBM, Intel, and Microsoft all pour huge investments into software development in Vietnam. Vietnam also frequently outperforms other nations in artificial intelligence software projects as a result of the surge of high-tech corporations investing in the area. The Google, Temasek and Company & Bain’s 2022 report on digital economy ( e-Conomy SEA 7th) announced that Vietnam is going to lead ASEAN in market growth of the Internet economy in the upcoming years.
A dependable B2B outsourcing company can easily be found in Vietnam because to the country’s talented and dynamic workforce. Vietnam has over 400.000 IT engineers and more than 50.000 graduates from more than 153 IT Institutions each year, according to TopDev’s statistics.
According to the 2019 Developer Skills Chart Of Skill Value Report, Vietnam is ranked
- 29th in the world in terms of skill value.
- Top 6 globally in the 2016 Topcoder Report Developer Skills Charts
- Rank 23rd globally in the 2016 Hackerrank Report’s Developer Skills Charts.
3. The Phillipines – Affordable Destination
Despite the fact that many companies ignore it, The Philippines has a 95.6% literacy rate. Because of this, the nation is perfect for companies that need to accomplish a lot of administrative, content-focused, or data-centric labor.
Competitive costs are the main factor influencing firms’ decision to locate in The Philippines. The Philippines can also provide advantageous government policies for international businesses and ICT services generally, in addition to the benefit of a cheap labor force. BPO services are specifically mentioned as one of The Philippines’ 10 high-potential and priority development areas.
The government of the Philippines also provides tax and non-tax benefits that might assist you save 8 to 10% of the cost. Additionally, The Philippines has established national ICT road maps and regional ICT councils for the entire nation to follow.
4. China – World’s Most Populous Human Resources
The outsourcing industry in China is expanding by 30% annually. In addition, data structures, Python, Shell, and functional programming are among China’s top software initiatives.
Many of the IT organizations with the greatest rate of growth are based in China, which also produces up to 4.7 million IT graduates annually. China came out on top in a fictitious HackerRank examination of nations qualified to compete in a “programming Olympics.”
There are a few potential problems with this, though. First off, just 10 million of China’s 1.3 billion inhabitants are fluent in English, creating a significant communication gap for many foreign employers.
Second, it is well known that China does not strictly enforce its intellectual property (IP) regulations. However, this may be avoided by working with a reliable outsourcing company and setting up clear guidelines before you begin collaborating.
The government of Ukraine places a lot of emphasis on education, which has supported a vibrant IT sector there. According to HackerRank’s statistical research, developers from Ukraine completed all challenges with an average score of 88.7%. In addition, Ukraine has the most C++ programmers per capita in the world.
Communication hurdles aren’t a big problem because the majority of the country’s IT community knows English, despite the fact that English isn’t widely spoken in the general population. A time zone that largely overlaps with US and UK timings as well as a working environment that values challenge and competition are two additional advantages of outsourcing to Ukraine.
However, with the unstable political situation going on in recent years, a lot of companies are cautious in choosing Ukraine as their top destination for outsourcing.
6. Brazil – Rising Tech Star in South America
Around 6.18 million people in Brazil understand English fluently, which is remarkable. The government is making great efforts to improve the infrastructure for technical education. With a workforce that is exceptionally youthful (38.18% of the population is under 24 years old), Brazil is a rising star for software development outsourcing.
Brazil’s IT community is still comparatively new, nevertheless. On HackerRank evaluations, Brazilian programmers only received an average score of 71.3%. As a result, Brazil is excellent for finding junior developers, but for more complex projects, you should look at other nations on this list.