Where To Outsource Software Development In 2023

Where to Outsource Software Development – the Ultimate Guide to Outsourcing in 2023

Where to outsource software development? Good question, as the decision can make or break a business project. Considering the time, skills, and dedication required, it’s an investment that deserves careful consideration. The quality of your outsourcing partner is the most crucial factor in building successful software.

The Ultimate Guide To Outsourcing In 2023

In other words, efficient outsourcing can double your development output, allowing you to complete projects you would struggle to complete independently. So, look at the top three locations where you can outsource software development in 2023.

A Quick Breakdown of Software Development Options in 2023

First, choosing the right outsourcing partner has many compelling immediate and long-term benefits when outsourcing software development. Even if you are developing software for internal use, software development outsourcing can help you scale your business. Whichever the reason behind your decision, here we list three destinations that are making serious strides in the world economy today and are worth considering for your next project.

Eastern Europe

While some people might shy away from outsourcing Eastern Europe, due to language and cultural differences, often it cannot be further from the truth. On the contrary, the region has been developing software for decades, has experienced developers, and most are well-acquainted with western business culture.

Speaking about the best locations to outsource software development, many European countries like Poland, Romania, and Serbia are globally recognized as the top offshoring destinations. The government noted that the Serbian IT sector featured approximately 3,354 firms employing over 47,000 people in the past year alone.

According to a company from New York, Pantalog, Serbia, as an outsourcing destination, is the fifth in worldwide software development rankings with a score of 92%. Additionally, it’s the number one choice for western European countries because of the time difference. For instance, Serbia is an hour ahead of the UK, which enables British companies to communicate with nearshoring partners in real-time.

Eastern European countries are well-versed in commercial software and are known to have different technical expertise. Eastern Europe has an abundance of Java, JavaScript, PHP, Python, C, C++, C#, React, and .NET developers. There are slightly more than a million professional software developers in Eastern Europe that can offer quality services. These include countries like:

  • Poland
  • Romania
  • Serbia
  • Hungary
  • Slovakia
  • Czech Republic
  • Bulgaria


On the eastern side of the world, Asia is home to some of the world’s largest and most skilled IT markets. With a population of over 4 billion people, plenty of talented developers can help you build your software project.

India is the best-known outsourcing destination in Asia. Indian developers excel in fields such as cloud computing, web development, and theoretical computer science, according to Coursera’s Global Skills Report 2021. The primary advantage of hiring tech talent in India is the low cost. However, time zones and cultural differences often affect choosing the country to outsource software development.

But China also has vital IT industries with large pools of talent to draw from. Chinese teams are skilled in Python, algorithms, and Functional Development, but their rates are higher than their neighbors in India.

According to the Chinese government, over 7 million tech specialists (including data scientists) are employed in the country. There are approximately a total of 15 million software developers in Asia, and if you are hiring teams, you can find them in the:

  • China
  • India
  • Vietnam
  • Indonesia
  • Philippines
  • Pakistan
  • Sri Lanka

Software Development Outsourcing Options In 2023

Latin America

In the southern hemisphere, Latin America is a great place to outsource software development for US projects due to minimal time zone differences. Mexico, Argentina, Chile, and Brazil are the most popular destinations in Latin America for outsourcing software development. In addition, Mexico has the highest number of IT graduates in Latin America, with 225,000 software developers working in 453 startups.

Argentina is leading when speaking of outsourced software developers. Their skills lie in Java, Python, SQL, and Distributed systems development. The Latin American country is a top destination for software outsourcing. It has over 115,000 skilled programmers working in 3,800 companies.

  • Argentina
  • Chile
  • Brazil
  • Mexico
  • Panama
  • Peru
  • Colombia
  • Costa Rica


Another southern location on the planet, Africa, is the world’s fastest-growing software development continent, and it is quickly becoming known as an excellent outsourcing destination. With large populations of young educated people looking for work, Africa is becoming a viable option for outsourcing software development.

Geographically, North Africa, particularly Egypt, is the closest to the European continent. According to the government’s IT Industry Development Agency, Egypt’s companies employed 220,000 professionals in the past two years, providing services to companies in more than 100 countries in 20 languages.

However, Nigeria is closely behind significant tech giants and small startups working on real-world problem-solving with technology. The best locations to outsource software development are:

  • Egypt
  • Nigeria
  • Kenya
  • South Africa


Lower hourly rates, educational infrastructure, a developed IT market, and knowledge of the English language are the main things most clients are looking for when determining where to outsource software development projects.

Time zones can also be one of the decisive factors for some businesses. Of course, there are cultural differences, whether in holidays or how they perceive cultures for which they are developing software.

Once you make a list of outsourcing requirements, you’ll be able to find the right nearshoring or outsourcing partner wherever they are in the world.

TNation is a Serbian outsourcing software development company based in Belgrade. If you want to add experienced and qualified software developers or IT staff to your team, contact us to discuss your requirements.

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