What Are the Best Offshore Software Development Countries?

Many companies have been looking to offshoring to make the most of specialized talents and cost efficiency. One popular industry has been software development. 

However, companies often struggle to decide which countries are the best for offshoring their software development team. 

In this article, we’ll answer that question and highlight the top points to consider when choosing a country for your offshoring needs.
 

Reasons to offshore your software development team 

There many benefits to offshoring your software development team. Although cost-cutting is often the main reason, it’s not the only one. 

Here are a few other benefits:

• Reduced labor costs: Access to highly skilled team members at significantly lower rates than in the US or Europe due to a lower cost of living. This offers opportunities to invest in areas that were too expensive to tap into.
• Large talent pool: An important benefit of offshoring is the access to a large talent pool of skilled professionals in various fields.
• Access to talent in various industries and fields: Regardless of the industry you’re in, you can find talents in offshore countries like Egypt. This allows you to speed up both core and non-core operations. 
  You can hire a software development team for your e-commerce, software-as-a-service (SaaS) business, or anything else. You can also use offshore services for other teams like marketing, legal, finance, among others.
• Round-the-clock support: While time zones can be an issue for some companies, using the offshoring approach allows you to provide round-the-clock service. This is beneficial for companies that need to offer 24/7 technical and non-technical customer support and other related services. 
  For IT and software development, you can finish work in your time zone, while your offshore software development team begins in a different time zone, allowing for more projects to be completed.
• Mitigating talent shortages: Some fields have higher demand and a lower supply of skilled candidates than others. IT and software development are among those industries. Using offshoring services, you can mitigate local shortages and collaborate with skilled talent who are proficient in several programming languages and technologies.
• Reduced overhead operational expenses: Having an offshore team and even renting office space in a foreign country can still be cost effective. You save money on labor, rent, utilities, and even compensation and benefits packages.
• Freeing up internal resources: This means your in-house teams can concentrate on strategic initiatives, core business functions, and innovation by offloading time-consuming or specialized development tasks to skilled offshore experts.

Best offshore software development countries 

Not all countries are suitable for offshoring. Here are the top 7 countries that should be at the top of your list for offshoring your software development team or other business operations. 

Points of comparison: Language compatibility, Time zone, cost-per-hour, other notes.

It’s worth mentioning that while we mention average pay per hour, hourly rates differ based on choice of programming languages, experience, tech stack, among other factors.
 

Egypt 

Our top destinations for offshoring your software development team is Egypt. The country is often considered a great offshoring solution for companies in Europe, the Middle East, and the United States. Especially the Eastern US.

Many Egyptian technical candidates are skilled in multiple programming languages.

Egypt is popular for call center outsourcing and offshoring as well as HR outsourcing, which includes outsourcing various HR functions.

Language compatibility: A large portion of the population speaks English, with varying degrees of fluency. There are also smaller percentages who speak other languages like French, and German. 

Time zone: Egypt is GMT +3 (during summer) and GMT +2 during winter. However, this might be a plus if you want to offer technical support or need a team to complement yours after their working hours. 

Cost-per-hour for developers: Starts at $20 per hour and can reach $80 for advanced tech skill sets and tech stacks. 

Other notes: A competitive offshoring option, offering significant cost savings compared to the United States and Western Europe. The Egyptian government also offers support for the IT sector, a growing tech ecosystem with a large pool of STEM graduates, and cultural compatibility.
 

India 

Ranking second on the list of best countries for building an offshore software development team is India. 

With a massive pool of candidates in almost every field, India can offer several opportunities for offshoring. 

Language compatibility: A large percentage of the population speaks English with varying degrees of fluency.

Time zone: Might be a challenge. India is GMT 5.5 hours, which could be a bonus or a hinderance if you are in the United States.

Cost-per-hour for developers: Starts at $20 to $60.

Other notes: India is considered one of the largest IT talent pools in the world with a vast number of engineering graduates. Strong expertise across diverse technologies, a well-established outsourcing industry, and a proven track record with global clients.

Mexico 

Mexico is considered a top consideration for its proximity to Spanish-speaking parts of the United States.

Language compatibility: Population speaks Spanish fluently, but there are limitations with English language proficiency. 

Time zone: Mexico’s time overlaps with time zones with the US (UTC-6, UTC-7, UTC-8). Ideal for real-time collaboration with North American companies.

Cost-per-hour for developers: Generally lower than the US and Canada with hourly rates ranging from $25 to over $50, often higher for senior roles).

Other notes: Mexico offers a nearshore advantage for North American companies, strong cultural alignment with the US, growing tech hubs, and a focus on specialized talent in areas like AI and robotics. Good intellectual property protection.
 

Ukraine 

Ukrainians are known for the technical skills. Despite recent challenges, Ukraine's IT sector has demonstrated remarkable resilience, continuing to offer a large pool of highly skilled and technically strong developers with good English proficiency. 

Its competitive pricing and strong technical education background make it an attractive option, particularly for European clients.

Language compatibility: Good to high proficiency in English among IT professionals (many at upper-intermediate or advanced levels).

Time zone: GMT+2, which is a good overlap with Western European countries, and some overlap with Eastern US.

Cost-per-hour for developers: Competitive, offering a good balance of price and quality compared to Western Europe. Hourly rates often range from $25 to $50+.

Other notes: Large pool of highly skilled IT specialists, strong technical education, robust IT infrastructure, and a reputation for technical excellence. The tech sector has shown resilience.
 

Poland

Another Eastern European nation that’s considered one of the best countries to offshore your software development team is Poland.

Known for its strong technical universities and regarded as having good English proficiency among developers, Poland offers relatively competitive IT costs compared to other parts of Europe.

Poland also offers competitive rates compared to Western Europe and North America. However, its hourly rates are higher than Egypt and many Asian countries on this list.

Language compatibility: Fairly good English proficiency as English is considered the primary business language in the IT industry.

Time zone: GMT +1, Poland also uses Central European Time (CET), which makes it convenient for Western European countries and offers some overlap with Eastern US.

Cost-per-hour for developers: Hourly rates can range from $35-$70+ depending on experience and tech stack).

Other notes: Ranked highly globally for developer skills, large and highly motivated talent pool, increasingly Westernized work culture, and a favorable economic environment with major tech companies having R&D centers there.

Philippines

The Philippines is a well-established outsourcing hub, particularly strong in business process outsourcing (BPO), with a large pool of English-proficient developers. 

Its significant cost advantages, cultural affinity with Western business practices, and adaptable workforce make it a strong contender for various software development needs.

Language compatibility: Very high English proficiency, ranking among the largest English-speaking countries globally (after US and India).

Time zone: PST (GMT+8). Significant time difference with the Americas and Europe, often leveraged for 24/7 support models.

Cost-per-hour for developers: Highly cost-effective, offering substantial savings. Hourly rates can range from $15 to $40+.

Other notes: Strong cultural affinity with Western business practices, a large pool of talented and experienced developers, strong work ethic, and a focus on customer service and Business Process Outsourcing (BPO).
 

Brazil 

Here's the information for Brazil:

Brazil

A prominent Latin American outsourcing destination, Brazil offers a large and dynamic tech ecosystem with a significant pool of skilled, innovative developers. 

Its time zone compatibility with North America and cultural affinity make it an attractive nearshore option, while its competitive costs provide economic benefits for companies seeking high-quality talent.

Language compatibility: Growing English proficiency among IT professionals, with Portuguese as the native language. 

Time zone: Multiple time zones, primarily UTC-3. This provides good overlap with North American business hours, particularly the US East Coast.

Cost-per-hour for developers: Competitive, generally lower than the US and Canada. Hourly rates range from $20 to $65+, depending on experience and tech stack.

Other notes: Largest economy in Latin America with a robust educational system producing numerous STEM graduates. Brazil boasts a thriving tech startup ecosystem with government incentives for innovation. Strong cultural affinity with Western business practices. Ranked highly for developer skills, especially in data science.
 

How to choose the best country to offshore your software development team 

Before you can select a partner, consider the following points so you can choose the best country for your offshoring needs.

Talent pool size and technical expertise 

When selecting an offshoring location, assess the availability of skilled IT professionals and their expertise in the programming languages and technologies you need. 

This involves examining the size and growth of the talent pool, the quality of the country's STEM education system, and the presence of specialists in niche areas like AI or blockchain. 

Communication and culture compatibility 

Effective communication is vital for successful offshoring. This means you should prioritize countries with a high level of English proficiency coupled with a strong tech team.

Look for team members who align with your company’s values. While time zones may vary, and even pose challenges, there are perks too, like 24/7 development and technical support. 

Assess the opportunity for overlapping work hours so that one team can handover to the next. Make sure you have a clear communications strategy in place, along with communication channels like Slack for better team collaboration.
 

Business environment and stability 

It’s important you ensure your offshore development team seamlessly fits in with your other team to create a stable and efficient work environment. Even if your teams are all working remotely.

Evaluate offshore countries’ economic and political stability and ease of doing business. Reliable infrastructure, including high-speed internet and power, is essential for smooth operations.

Collaborate with an offshore partner or agency, like Tawzef, to help you manage your software development team and their local needs.

Track record and experience 

Choose a country that has a track record of successful IT outsourcing and mature vendor ecosystem. 

Researching client testimonials and case studies provides insight into the reliability and quality of services offered by local providers, demonstrating their experience in handling international projects.

Scalability and flexibility 

Finally, choose a country that helps you scale your team easily based on project needs without significant administrative or financial burdens. 

This ensures that as your requirements evolve, the country can continue to provide the necessary talent and maintain operational agility.

Wrapping it up 

Egypt is becoming a leading destination for outsourcing software development, especially for businesses focused on cost-effectiveness. 

If you need help offshoring your software development team to Egypt and managing that team, get in touch with Tawzef.

We help companies around the world through offshoring services for both technical teams and non-technical teams. 

Get in touch with Tawzef to learn more.