Nowadays, it is becoming more popular for offshore software development companies to locate in Eastern Europe rather than in the United States. Many software businesses in North America, the United Kingdom, and Western Europe outsource development services to India or the Philippines. Although they could profit from decreased pricing, the quality of the services provided was substandard at best. Here are some pros and cons of Eastern Europe software outsourcing.
Pros of IT outsourcing in Eastern Europe
IT outsourcing in Eastern Europe totals affordable rates, high-quality services, a large pool of available personnel, accessible time zones, and effective communication. Eastern Europe software development outsourcing is widely regarded as a desirable outsourcing location by several consulting firms. Here are the main benefits of outsourcing software development services in Eastern Europe:
Competitive pricing for advanced talents
Compared to developers in India or the Philippines, software engineers in Eastern Europe charge much more. Compared to the United States, their rates are about twice as low. Low rates do not compromise work of a high standard.
Employees from a large pool of candidates
Those in Eastern Europe, in contrast to people in other countries, are enthused by information technology, and having a degree in information technology is becoming more and more popular with every passing year. Many young people nowadays, particularly in today’s technological and innovative environment, want to keep up with the newest trends and advancements to stay relevant.
An abundance of talent
For the most part, Eastern Europeans are enthusiastic about information technology, and obtaining a degree in information technology is growing more popular with each passing year. In today’s world of technology and innovation, many young people seek to keep up with the latest developments.
Location and culture
Consider the situation in Ukraine. It takes just a few hours to travel to Ukraine from most European nations and around 8 hours to go to Ukraine from the East Coast of the United States. Kyiv, Lviv, and Odesa all have international airports, and it takes only a few hours to travel from most European countries. When you can interact with your team in person, project management becomes considerably simpler.
Legislation and administrative rules
Ukrainian law on intellectual property safeguards the copyright for databases and computer programs, which are protected by a separate statute. Therefore, outsourcing in Eastern Europe is very safe since no bits of the code may ever be passed to other parties.
Cons of IT outsourcing in Eastern Europe
It is true that whatever has advantages also has disadvantages. Outsourcing companies in Eastern Europe, like any other endeavor, has specific hazards, the most significant of which are as follows:
Taxation that is difficult to understand and calculate
Foreign clientele may be perplexed by the tax systems in several Eastern European nations. It would help double-check with the company to whom you are making the payments before sending them. Ukraine has one of the lowest tax rates in Europe, making it a good candidate for comparison.
The project may get abandoned by the developers
The team may suffer losses due to the highly competitive offshore software development market in Eastern Europe, as well as the failure of local software businesses to retain professionals. Outsourcing software development to Eastern Europe can be detrimental due to this.
The inability to communicate effectively
In many circumstances, collaborating with a local software development organization may require indirect contact via a project manager. Sometimes, the customer does not have direct access to the team members. To determine how, when, and how frequently you will interact with your team members, you should outline your communication strategy and methods in advance.
Secret information may get leaked
Sometimes contracts are signed in a hurry without the benefit of an NDA. Since some developers were not aware that they were not permitted to put portions of the code in their GitHub portfolios, some may have included sections of it. At the beginning of the collaboration with the vendor, all of these details should be covered.
Even though outsource development in Eastern Europe can prove beneficial to companies and individuals alike, it comes with certain disadvantages. Whether you are a first-timer or not, the tips and tricks in this guide can help you make the right decisions while you go IT outsourcing in Eastern Europe.