10 best countries for offshore software development for 2025 and beyond

Do you need to get your product to market quickly, so hiring and onboarding an in-house team would take too long and cost too much?

Or, do you just want to cut development costs without sacrificing quality?

If the answer is yes, offshore software development is exactly what you’re looking for.

But, this begs a few more questions – where in the world should you hire your team from? And how do you choose the right company to partner with?

With that in mind, we’ve compiled a list of the 10 best countries for offshore development and a short guide on how to pick the right development partner.

Let’s dive in! 

How to choose the right country for offshore development? Key factors to consider

If you’re looking to outsource development offshore, you first need to nail the “where”, i.e. which country to outsource a team from.

Now, there’s no real wrong answer here – talented companies and skilled professionals exist in every corner of the world.

Nevertheless, this choice can impact your project’s chances of success – so, how do you make the right call?

Here are the key factors you need to consider:

• Technical expertise and talent pool
• English proficiency and cultural compatibility
• Cost-efficiency

So, for starters, the talent pool in the country needs to be well-versed in the technologies you need for your project – that’s pretty straightforward.

And it’s especially important for projects that use emerging technologies, like developing an AI app.

Next, you should pick a country that’s culturally compatible with yours and that scores high on the EF English Proficiency Index.

This will make communication much easier and that’s crucial – we’ll touch on why in more detail a bit later.

But, lower costs are the key factor.

In fact, they’re the main benefit of offshore development – on average, outsourcing development reduces costs by up to 53%:

source: Existek

However, the main factor here is actually cost efficiency, i.e. the right balance between quality and cost.

Just hiring the cheapest developers you find is a recipe for disaster and will cost you a lot more in the long run.

Still, even high-caliber software engineers are much cheaper when you outsource development offshore.

Next, we’ll cover that in more detail.

Average offshore development rates: comparison by role and region

We’ve already mentioned that reducing costs is the main motivation for outsourcing development offshore.

So, how much cheaper is an offshore team, exactly?

Here’s a comparison of the average offshore development rates by role and region:

So, a developer from Eastern Europe could be up to 5 times cheaper than a developer from Western Europe or North America.

Let’s say you need a team for a 90-day project which consists of:

• 3 software developers
• a solution architect
• a UX/UI designer
• a project manager

A team like this from Eastern Europe could cost you as little as $144,000 while the same team from North America could cost as much as $655,200 – that’s 78% more expensive!

Of course, this is just a thought experiment and in the real world the difference between the two teams likely wouldn’t be as stark.

Still, it proves that outsourcing development offshore can drastically reduce development costs.

And that’s why it’s so popular.

10 best countries for offshore development

Now, we’ll discuss the best countries for offshore development in more detail.

Poland

Poland should be near the top of your list when looking for an outsourcing partner.

It’s a major player in the global IT outsourcing market and one of the biggest offshore development centers in Europe.

And the stats back that up.

Poland’s IT services market reached $9.45 billion in value in 2024, with outsourcing leading the market and generating $3.49 billion.

Offshore software development in Poland: overview

With over 400,000 developers, Poland has the biggest talent pool in the region with budget-friendly hourly rates.

And that’s why it’s a good choice.

Average hourly rates by role in Poland

Pros and cons of offshoring development to Poland

Ukraine

Ukraine is one of those countries that’s almost synonymous with offshore software development.

And that’s no surprise once you dig a bit deeper into the numbers.

Ukraine’s IT outsourcing market reached a value of $1.09 billion in 2024 and it’s expected to grow to $1.79 billion by 2029.

Offshore software development in Ukraine: overview

And with 2150 IT services companies currently active, you’ll be spoiled for choice if you’re looking for an offshore development partner in Ukraine.

Average hourly rates by role in Ukraine

Pros and cons of offshoring development to Ukraine

Croatia

Croatia is a top choice if you want to outsource your development offshore – and that’s not just our bias talking.

While it’s a smaller market, valued at $304.7 million in 2024, there’s a number of reasons why it’s a great choice:

source: Croatian Chamber of Economy

And even though Croatia is a small country (just under 4 million people), it’s home to market-leading companies like:

• Infobip
• Microblink
• Sofascore

But, these facts don’t tell the whole story.

What really sets it apart from other offshore development destinations are cultural compatibility and very high English proficiency.

Croatia ranks 11th out of 113 countries on the EF EPI, comparable to Western European and Scandinavian countries.

So, you don’t have to worry about miscommunication derailing your project if you go with a Croatian software development company.

Offshore software development in Croatia: overview

On top of that, Croatia offers competitive and cost-effective hourly rates, which means you get high-caliber engineers for a fraction of the price you’d usually pay.

And that’s why it’s a great choice if you want to outsource development.

Average hourly rates by role in Croatia

Pros and cons of offshoring development to Croatia

Czech Republic

The Czech Republic is another key player in the European offshore development market.

And with the Czech IT outsourcing market reaching a market volume of $2.28 billion in 2024, that’s no exaggeration.

On top of that, with around 130,000 developers, it has one of the largest talent pools in Central and Eastern Europe.

Offshore software development in the Czech Republic: overview

Add in favorable tax policies and affordable hourly rates compared to Western Europe and North America, it’s no surprise it’s such a popular choice.

Average hourly rates by role in the Czech Republic

Pros and cons of offshoring development to the Czech Republic

Romania

Romania is an underrated choice if you’re looking to offshore development to Europe.

Home to over 200,000 developers, there’s no shortage of talented specialists available for you to hire.

In fact, Romania has the 4th largest talent pool in Europe, just behind Poland, Ukraine, and the Czech Republic.

Offshore software development in Romania: overview

What’s more, Romania has well-developed infrastructure with internet speeds twice faster than the global average and very competitive hourly rates.

And that’s why it should be on your radar.

Average hourly rates by role in Romania

Pros and cons of offshoring development to Romania

India

When you think about offshore software development, India is one of the first countries that come to mind.

With one of the largest talent pools in the world of over 5.2 million developers it’s one of the top global outsourcing hubs, valued at $11.04 billion in 2024.

And with such a large supply of skilled engineers and low costs of living, India offers some of the most budget-friendly hourly rates.

Offshore software development in India: overview

But, there’s a downside to this – quality may vary from vendor to vendor, so choosing the right company is crucial if you’re hiring a team from India.

Average hourly rates by role in India

Pros and cons of offshoring development to India

Vietnam

Vietnam is an emerging offshore software development hub that’s just starting to make its mark in the global outsourcing market.

And it’s one of the fastest growing markets, too.

Valued at $694.80 million in 2024, it’s expected to reach $1.23 billion by 2029, growing at an annual rate of 12.23%.

Offshore software development in Vietnam: overview

And with generous government support and investment in the IT sector, Vietnam will likely become an even stronger player in offshore development in the coming years.

Average hourly rates by role in Vietnam

Pros and cons of offshoring development to Vietnam

China

China is a key player in the global tech industry and has the largest talent pool in the world, boasting over 7 million developers.

Unsurprisingly, it’s also one of the top offshore development hubs in the world, with the Chinese outsourcing market reaching a value of $29.03 billion in 2024.

And with strong government support, it’s expected to grow even further and reach $45.31 billion in value by 2029.

Offshore software development in China: overview

But, language barriers due to low English proficiency can be a major challenge when working with Chinese vendors, so keep an eye out for that.

Average hourly rates by role in China

Pros and cons of offshoring development to China

Argentina

Argentina is another underrated offshore development destination.

Boasting 11 out of the 34 unicorns in Latin America and more than 115,000 developers, it’s a great choice if you’re looking for a team from South America.

Offshore software development in Argentina: overview

And while Argentina’s economic instability might make collaboration difficult at times, it should still be at the top of your list.

Average hourly rates by role in Argentina

Pros and cons of offshoring development to Argentina

Brazil

Brazil is undoubtedly the largest player in the Latin American offshore development market.

The stats back that up, too – Brazil has over 500,000 developers and the Brazilian IT outsourcing market reached a value of $6.63 billion in 2024.

Offshore software development in Brazil: overview

And when you look at Brazil’s cost-effective hourly rates, that dominant position should come as no surprise.

Average hourly rates by role in Brazil

Pros and cons of offshoring development to Brazil

How to choose the right offshore software development company

Now that you know where to look for an offshore partner, you need to truly make it count.

And that means choosing the right offshore software development company to work with.

So, in an endless sea of companies, how do you make the right choice?

Here’s what you should do when evaluating a company:

• Define your goals and requirements first
• Review their case studies and portfolio
• Check their reviews
• Review their tech stack
• Review their development process
• Look into their pricing

But, that’s just the process – how do you truly make the right decision?

Well, it boils down to the 3 standout qualities your future partner should have:

• Good work ethic and cultural compatibility
• Flexibility and proactivity
• Transparent and accurate communication

The first 2 are no-brainers – they need to be a good fit, dedicated to your project, and able to quickly adapt to changes.

But, the real key to a successful partnership is transparent and accurate communication.

Here’s DECODE co-founder and CEO, Marko Strizic, explaining how clear communication benefits clients during development:

Even a small, simple pilot project can be derailed by poor communication.

So, transparency and accuracy in communication truly are crucial for successful development, especially offshore development.

And that’s how you’ll know you’ve found the right partner.

Need an offshore development partner?

Do you want to outsource development offshore but are struggling to find a company that’s the right fit?

Well, you’re in the right place.

We can help you build a product from the ground up or update your existing product and take it to new heights.

If you want to learn more, feel free to reach out and we’ll set up a quick intro call to discuss your needs in more detail.