I’ve worked in project with geographically dispersed teams a lot of times. The teams were based in the UK (where I was based), Poznan in Poland, Kuala Lumpur in Malaysia and Pune in India.

The worst experience I had by far, was in projects in which we cooperated with the Pune team in India.

Bad English, shyness (probably because of bad English) that repeatedly led to missed timelines and very bad code, because people were too shy to ask questions, very very poor technical knowledge.

Management on the Indian site were only caring about the numbers of employees under them in order to promote their own career and not the quality of the developers. People with little or no experience were presented as Senior Java/Web/whatever developers. Testers that had no technical background or reasoning. A horrible experience in general.

In that company, large numbers of consultants were recruited from two or three large agencies in India. It’s not an exception to the rule, it is the rule.

Numbers do not add quality and cheap labour can only bring cheap and bad results

Thank you for the question.

I will try to be short and avoid advertising.

That’s a controversial question, and I don’t want to be the one to start a holy war because everyone makes mistakes, not depending on where you outsource. It’s all about the way one admits and handles errors, about transparency and trust.

Based on our experience(over 60 projects in the last four years for both startups and Fortune 500 companies) the worst ongoing projects we were overtaking or had hybrid teams on(in terms of architecture, code quality, code conventions, deadlines, and communication) were overtaken from Indian teams/companies. At the same time, I met and worked with some decent and very talented Indian people so it probably all comes to the ability to find a diamond on the vast market.

In India, you mostly hear what you want to hear but barely ever get it done in time and shape. Partially it’s all about mentality and very often inability to say “no,” inability to challenge customer’s ideas with different and better solutions, and that is what customers mostly seek for.

That’s a good question that made me think

Success or failure in outsourcing is defined by several factors, including, but not limited to:

• Costs
• Engineering qualifications
• Ability to protect your rights as a client and work inside the country’s jurisdiction.
• Probability of situations caused by force majeure, that may damage your business

Developing countries win by their cost and it’s no surprise that one can find good engineers for a great price there. Here is where the latter two factors matter. It is hard to create an adequate rating of the worst countries to outsource your engineering to, but the country where you cannot protect your rights and have your intellectual property stolen is not the right place.

I don’t think any specific country is worse than any other. I’ve worked with over 25 countries managing offshore teams over my career and all of them have good and bad developers.

What I find is the teams that have a direct representative who manages quality control on-site with the developers tend to have better quality code and “care” more about the product they are building.

It also comes down to you and your local staff. Have a software manager keep checks on the code, the project etc. Do pull requests and have someon local review them for quality and best practices. Ultimately it’s then up to you what is accepted into your product. If the quality isn’t there, proceed feedback and reject it until resolved.

The other issue I have found with offshore teams is they don’t have the same testing standards as we do. So run thorough QA on the pull requests as well. If there is an issue, have the dev team fix it before accepting into your product.

All that being said, vet your offshore team and you will have better results than just picking someone off of Upwork because they have the lowest rate. That’s always the death stroke.

There is no single correct answer to this question because the wrong choice criteria will be different for each client.

However, when it comes to the worst choice of partner, problems with technical security, political and stability of the country and the company itself will certainly be the key contraindications. Before choosing a supplier's country, you should carefully look at its market. It is also necessary to check the real level of qualifications of the partner, his certificates and testimonials.

In my opinion, one of the most important criteria for selecting a partner is mutual trust.

And this is built, apart from competence issues, on the ground:

• a common language
• common culture, customs and values
• a common sense of humour
• a common understanding of time and punctuality
• a common understanding of the integrity and value of money

Therefore, the best choice for a Western client will be European development companies. For an Asian client, Indian companies are a good choice.

It is difficult to transfix a particular country and label that as the best. However, Bangladesh is fast becoming the next big destination in software development outsourcing and offshoring.

Over the last few years the volume of software projects offshored here has doubled almost every year. More than 220,000 people are now working in this industry.

The cost advantages of outsourcing has proven to be quite significant when compared with other possible destinations for offshore software development like India, China, Philippines, Russia, Poland, Sri Lanka etc. A great number of rookie software engineers coming out from the universities every year coupled with the strong English speaking skills make it possible for the IT outsourcing industry to grow very fast. A large number of software projects has been executed here over the past few years and many international IT companies themselves have setup offshore development centers here. Moreover, local IT entrepreneurs of Bangladesh have also come out to set up some prominent IT Companies which are doing pretty well. For example, I work in Nascenia Limited, which is one of the leading software companies in Bangladesh. Existence of such IT companies has had the effect of bringing experience and skills to the resource pool.

Here are some of the factors driving the IT and software development industry in Bangladesh to a prominent position in the global software outsourcing locations:

-Large pool of talent

-Industry focused tertiary education

-Government priority given in IT sector

-Expansion of IT industry

-Increasing demand of software solution in local market

-Large scale adoption and increasing popularity of outsourcing industry

Before you choose a country, keep in mind that there are hundreds of outsourcing companies in a single country. Therefore it is extremely difficult to generalize. However, I am giving you a million dollar tip.

Consider only two things -

1. Average developer salary in a country. ( Average developer salary is important because if a country’s average developer salary level is less than your bidding price, most probably the brightest minds will work for you.)

2. How skilled developers are in that country (Not every country is equally good at everything. Even though a talent can born anywhere, overall ecosystem is important.)

When you can find out answer to point one and two, you will understand which country is the best option for outsourcing.

Based on these two points I think Bangladesh is a very good option. Because Bangladeshi students have consistently performed well in international programming contests.
Second, it is one of the cheapest countries in the world. You can live in the city center, have good food, wear nice clothes and go on trip twice in a year for ten dollar a day only. Because there are not many big IT firms here, you can hire top 1% talent which is either very costly or unavailable for outsourcing elsewhere on earth. So, I will definitely recommend Bangladesh as you can hire the brightest talents at the cheapest cost.

Although I myself work for an outsourcing company, I can at least relay a few of the more common complaints/negative experiences I hear:

1. Bad communication. Probably the biggest problem that most outsourcing companies face is not being on the same page as the client. This occurs because of a variety of reasons - cultural differences, working over multiple time zones, bad management systems or just straight up incompetence (on the outsourcing side OR the client’s side). It’s what I stress to anyone looking for an outsourcing solution - you MUST be able to communicate with all levels of the company clearly and efficiently if you want your product to turn out right and on time.
2. Bad quality work. This is especially a problem for non-technical clients who don’t know how to evaluate outsourced code/products properly - I’ve seen people pay a TON of money for what is essentially a landing page because they were duped into thinking that it costs thousands of dollars to make such a thing. Also, it’s very difficult for non-developers to “check under the hood” so to speak, which can prove disasterous down the line when the client wants to bring on another team and realizes he has a bunch of spaghetti code and no documentation to sort through it. Check references, folks!
3. Scams, extortion, and general ass-hattery. There are a lot of outsourcing companies out there which will tell you that they are amazing, and only when a contract has been signed and development is underway do the warts really start to show. I’ve lost count of how many clients I’ve seen who complained about having their code “held hostage” by companies which demand more money and time then what was originally agreed upon, dragging the client into litigation which obviously burns valuable time and money. Make sure to build some trust with your outsourcing company before committing to a big contract - go visit them in person, interview former clients, etc. and make sure they are legit. It’ll save you a ton of money in the long run.
4. The investor kiss of death. This is specifically for startups who don’t have a CTO/technical person onboard - if you go straight to outsourcing to develop your product and then go to VC investors, expect to get shot down every time. Investors see outsourcing-only startups as huge red flags, and the logic is simple - if you can’t convince at least one technical person to join your team, how can you expect to get actual clients to buy into your product? How will you know the true quality of the outsourcing company’s work (see problem number two above)? Investors like to see a technical person inhouse who is committed to the project before outsourcing is brought into the picture.

Those are the four major complaints I keep hearing over and over again - and all of them can be avoided with proper due diligence and some effort on your part!

I am brought in to fix these problems, so let me tell you some of the funniest (worst) things that I have found.

First off, you want to be simple. Simple is important. Applications should not be complicated. Yet, I see this all of the time when I get brought in. Here are some of the ones that I found.

• The first cheap developers that I met decided that the coolest thing to do would be to do whatever was in a development magazine. they would open up a magazine, blindly pick several articles, and just do whatever was in the articles. These folks had built their own page description language because classic asp and asp .net were never going to be good enough for these folks. they built their own page description language based on xml, but didn’t use the xml dom. They had an automated orm that they made themselves. once again, an orm wasn’t good enough, they had to make their own. Everything was custom, including many things that shouldn’t be. The damned thing use mts/com+. A single page would take 30+ seconds to load and create 1500+ com+ objects on a page call. And the app would just generate errors left and right. I have no idea who thought that any of this was a good idea.
• The garbage the grandmas had. The grandmas had gotten something like $500k, and blew it all with the boys from brazil, some outsourcing company in south america on their startup idea. This app was a disaster, a complete and total disaster. No one could figure out how to login with it, the damned thing generated errors left and right. I had one conference call with the boys from brazil, and they defended the application as a good application. Nobody would give me access to the database or web application. It was all garbage anyway. instead of using some of the standard security, identity, and authentication libraries, these guys had built their own (are we seeing a common thread here?). the grandmas just became more and more of a disaster. they kept hassling me to fix all of their problems for free. No, my time is worth something. They were price anchored and didn’t understand the difference between people. they thought I would go work for them for 24–36 months with no income and they said it with a straight face. Its easy to work for free when you are married to daddy warbucks. they were just a disaster and they finally slinked away. the grandmas were a disaster. The outsourcing company the grandmas had was a disaster. They deserved each other.
• “You are too expensive.” I loved this one. These folks in texas had no idea what they were doing in the startup world. I kept saying they need an mvp, and it took them weeks to finally ask what an mvp was. They then claimed I was too expensive. Ok, fine, whatever. They paid me, I sent them their code. Within a few months, they were back because they had had a bad eastern european experience. they even admitted all of my code worked as they wanted and made sense. the ukrainian code, not so much. I kept telling them that they couldn’t run a startup like the way that they were. The ukrainian code never worked. I was told that they could never get code to compile and work for the customer.

I have 3–4 other stories just like this. I’ve never seen cheap outsourcing to ever work. That’s my experience.

If you need help with your startup or code and want a great experience, contact me.

The development team is the core of many tech businesses. Hence the question of whether to outsource some part of activities (or keep it all inhouse) is vital. When looking at tech and non-tech businesses, it’s much easier to go with the last. If software development isn’t your central activity, then outsourcing is a valid option to get some software as your main focus still remains inhouse. Yet it’s more complicated with tech businesses. When developing a product, delegating a part of the vital work to external experts is worrisome. Concerns about service quality, communication, deadlines, and pricing are usually commonplace, considering the experiences of many businesses.

Under such circumstances, think of the following four factors to identify if you need outsourcing (or can handle all that work by your own effort).

· Your internal capabilities

This is the easiest point. If you have people with the necessary skills and their workload allows for them to be assigned new tasks, then it’s not reasonable to outsource. Still, outsourcing could be a good option for you in case you significantly lack internal human resources to perform additional tasks.

· Your budget

This element is also quite simple. Before opting for outsourcing, consider your financial situation. In case you have sufficient funding to hire specialists inhouse, you might follow this scenario. However, if your budget is limited and you cannot fit everything into it with only internal expertise, then outsourcing may come to the rescue.

· Time to launch the project

Another important aspect to consider is the so-called time-to-market requirement. If you need new specialists within a short time period but hiring will take too long, then outsourcing is a valid solution. It’s also a good fit for businesses that require flexibility.

· Possible risks

When thinking about outsourcing, make sure that you understand all the risks. Some might be related to security issues, time differences, miscommunication, etc. In some cases, the fact that you outsource software development may also discourage investors from funding your company. Therefore, make sure you’ve considered everything thoroughly.

If you cannot opt for outsourcing but still need more team members (and find it complicated to engage them) or you simply want to cut off some expenses, you can launch your team in an offshore location like Ukraine. You’ll get the necessary developers who will be a part of your team, plus setting up such a development center might benefit you in a much bigger way. If you find a reliable service provider to support you in the country, you won’t have to worry about any operational issues, payroll, bookkeeping, or legal aspects, etc.

That is what we do at Alcor, and we’d be happy to tell you more about this opportunity!

According to various sources, the top IT outsourcing destinations are:

• Ukrain, Romania, Poland in Europe
• Argentina, Mexico, Colombia in South America
• India, China, Malaysia, The Philippines, Bangladesh in Asia

Having mentioned so, it is indeed difficult to transfix a particular country and label that as the best. However, Bangladesh is fast becoming the next big destination in software development outsourcing and offshoring.

Over the last few years the volume of software projects offshored here has doubled almost every year. More than 220,000 people are now working in this industry.

The cost advantages of outsourcing has proven to be quite significant when compared with other possible destinations for offshore software development like India, China, Philippines, Russia, Poland, Sri Lanka etc. A great number of rookie software engineers coming out from the universities every year coupled with the strong English speaking skills make it possible for the IT outsourcing industry to grow very fast. A large number of software projects has been executed here over the past few years and many international IT companies themselves have setup offshore development centers here. Moreover, local IT entrepreneurs of Bangladesh have also come out to set up some prominent IT Companies which are doing pretty well. For example, I work in Nascenia, which is one of the leading software companies in Bangladesh. Existence of such IT companies has had the effect of bringing experience and skills to the resource pool.

Here are some of the factors driving the IT and software development industry in Bangladesh to a prominent position in the global software outsourcing locations:

• Large pool of talent
• Industry focused tertiary education
• Government priority given in IT sector
• Expansion of IT industry
• Increasing demand of software solution in local market
• Large scale adoption and increasing popularity of outsourcing industry

Outsourcing benefits:

Saving. The costs associated with an internal employee are generally higher than the costs of an external service provider. For example, it is often cheaper to hire an outside accounting service to keep track of your bookkeeping, even if their hourly rate is high because you only need them for a few hours a month. You also don't need to provide office space and all the associated overhead associated with an in-house employee. All of this applies to outsourcing to a foreign country or not. But in the event that you outsource to a country that has a lower cost of living, you will have the added benefit of lower labor costs.

Access to high-paying talent. An external vendor may be your only solution if you need someone with specific skills such as computer programming or legal services. An outside contractor is able to provide this because the costs are shared among all of their clients.

Quality of service. External providers are usually specialists, which means they focus their efforts on providing services that you lack experience. This, in turn, allows your business to focus on your own area of ​​expertise. An external vendor is also typically able to provide a more consistent level of service than you would with internal employees.

Mitigating risks. Many functions related to your business, while not essential to your business, are nevertheless critical to your success. For example, it can be important that your customers can get technical support 24 hours a day. You can provide this service through an external provider that specializes in this.

Less hassle. This is one of the main reasons for outsourcing work to subcontractors. Hiring and sometimes firing employees, along with accompanying requirements, testing, training, accounting, payroll, tax reporting, etc. is a headache, which is why many businesses choose to outsource to focus on their core competencies.

Bandwidth management. Companies that are experiencing fluctuations in their human resource needs can be helped by an outside vendor who has access to a significantly larger pool of talent than you do.

Access to the best technology. Most small businesses cannot afford to provide the latest technology to every employee. An outsourcing firm will most likely be able to do this as part of its core business.

Increase in productivity. With regard to the principle of mass production, it is usually more efficient when an employee is focused on performing the same task over and over again than when he tries to perform different tasks with equal efficiency. When you outsource a business function, you outsource it to someone who can complete the task more efficiently because they are focused on it and nothing else.

Best countries for software development outsourcing:

With today’s emphasis on remote work, companies have access to a wide-range of talent around the world. At first glance, this plethora of choices can seem exciting. Then the option fatigue sets in. There’s no one-size-fits-all answer to this question. There are a lot of factors that go into choosing where to outsource for software developers, but the most important one is location, location, location. Absence may make the heart grow fonder, but closer proximity sure does make business run smoother.

If you’re in North America and haven’t considered looking at Latin America when hiring software developers, this is your sign to start. While Latin America is made up of many different countries, the following three with tech sectors that have grown leaps and bounds in recent years are:

• Brazil - In 2022, the Coursera Global Skill Index ranked Brazil in second place in Latin America as an emergent country in technology. On top of that, the country offers tax incentives that have spurred impressive IT infrastructure growth.
• Argentina - Argentina boasts seven universities that are listed among the best global universities. With a continuously developing software sector and strong support of higher education, top-notch software developers are entering the workforce every year.
• Mexico - Since 2006, Mexico has made a huge push in educating the next generation of scientists, engineers, and, yes, software developers, producing a generation of workers looking to solve the talent shortage in the tech sector.

No matter which country you choose, Latin America as a region is an ideal place to look for tech industry talent. Here’s why:

• Time Zone Alignment - The majority of countries in Latin America are only a few hours ahead of US time zones. This makes integrating new team members from this region into your company’s business hours much easier.
• Cultural Alignment - There is a huge emphasis placed on learning English in Latin America’s growing tech industry. Combine that with a corporate culture that’s fairly similar to the U.S. and Latin America quickly stands out as the top place to search for talent that will mesh well with your team at home.
• The Iron’s Hot - The rise of tech talent in Latin America has been growing at an impressive pace over the last few years. Even major tech giants like Microsoft and Hewlett-Packard have started investing in educational programs there. With demand in this region poised to rise, it’s a great time to get on the bandwagon.

Of course, knowing where to look and knowing what to look for when hiring a software developer are two very different things. Not to mention the time it takes to sort through resumes, interview candidates, and onboard new team members. Hiring a nearshore software development company like BairesDev eliminates these issues.

BairesDev has a rigorous vetting process, meaning we’ve already narrowed down our pool of talent to the top 1% of software developers. Whether you need a dedicated team, to fill a few holes on your current team, or anything in between, reach out to us and you could have someone working on your project in as little as a few days.

When you’re trying to scale your business, you’ve got enough on your plate already. Our Talent Success Guarantee ensures you’ll never have to skimp on development quality in favor of speed. We’re confident you’ll love our developers, and if you don’t we’ll replace them until you get the perfect fit. Our happy clients include Google, ViacomCBS, Burger King, and Square (to name drop a few).

If you’re starting a new project or just looking to catch up on your backlog, schedule a 15-minute call with us. In this call, we will discuss your project requirements, success criteria, timescale, budget and required skill sets to provide you with a customized proposal to accelerate your project.

As an outsourcing company owner, I can answer this question. The best way to outsource is to understand why you need to outsource.

1. Key expertise. Apple is outsourcing the process of assembling phones and computers. Phones are not built in Cupertino, a design and software are made there. So if you are great at marketing, sales or doing business, you should not outsource it elsewhere. Instead, outsource everything different from your key expertise. Please DO concentrate on your strong points and outsource everything from janitorial services to software development.
2. Flexibility. Modern businesses should be flexible. Hire a team of your employees, make their office and pay rent, buy computers for all of them, and pay for sick leaves and parental leaves. Instead, an outsourcing company must provide you with a service; if you don't need it anymore, then it's not a big deal. Notify a company, and you are free from any obligations after the notice period.
3. Hire experts for a specific task. Imagine you need a team of rare experts who can perform a particular job (such as data processing, as our company does). Outsourcing companies doing these jobs daily have collected experience and know all common pitfalls. However, if you start looking for the right team on the market and training existing employees - these activities distract you from your primary business.

If any of these points match what you need, then at least you are sure that outsourcing is the right choice.

Be aware. Price is usually considered an excellent reason to go for outsourcing. However, if you buy a cheap car, would you expect it to last long? Same here. Good outsourcing couldn't be cheap.

Which location is the worst to outsource software development to?

Any location beyond your local community is the worst location to outsource software development.

There’s a commonly held misconception amongst penny pinchers and amateurs that it’s prudent to find cheap labor to build your software product. It’s not. Over three decades of developing software products, I’ve never observed a successful outcome of the outsource-to-cheap-labor scenario.

Making a software product is not sewing a pair of canvas sneakers. Never outsource to a remote location continents away hoping it’ll save money.

The prudent moves are:

1. Hire the best independent developers you can find in your community.
2. Contract directly on a corp-to-corp, fee-for-services basis with independent developers.
3. Offer top market rates, plus 10% for good measure, and pay your invoices promptly.

Sure.

Work quality, intellectual property, loss of control, dependency. There are countless ways it can go wrong.

The risks are the same as outsourcing anything that is not a commodity.

Not the end of the world, though. You just need to take extra care when picking your partner.

Should you decide to outsource, here are some key aspects to consider:

Record and Experience: always validate the quality of your future partner’s previous work. For an MVP it’s easy to validate design quality just by looking at the portfolio. For development quality, you can ask an exempt professional or have a geek-friend look into the code quality via their git repository.

Communication, Technology & Infrastructure: you should check if the partner has the right tech framework and communication abilities. That will tell you if they can execute the project successfully with ease of communication.

Cultural Compatibility: it is also important that your partner understands what you say and what you want. They need to understand your idea, your business and your industry. Ask for some references and don't stop until you see some you like.

Size Match: find a partner with a compatible pricing structure. Software is a living organism and your requirements will most likely change along the way. Plan for that. Of course, being cheap won’t bring you good results in the long run and you definitely need someone experienced that can provide good quality and professional customer care, so make sure you make a balanced decision.

Dependency: the agency must also follow the industry standards for project organization and documentation. Be extra careful with “lock-in nightmares”. If you want to be able to work with other parties in the future, make sure you sign the right contract. You must be able to bring your code to other players, otherwise, you get into marriage by force and you’ll need to bring the lawyers for the divorce.

Scalability / Flexibility: look for a partner that offers flexibility in terms of team size and allocated time. You don’t want to go into a waterfall contract that is not flexible. You should try to commit with small sprints and deliverables instead of getting into a contract of months and months – remember: As I said, software is a living organism. You will have different needs along the way. Choose a partner that can adapt to your different needs, that is flexible to scale up and down the team accordingly to your needs, that keeps evolving, growing and shrinking.

Thanks for reading. And if you find this answer useful, please vote for it so it can help other people.

Rui

The modern digital era demands businesses to adopt fast-paced innovation methods that will help them secure a competitive advantage. Software development outsourcing has proven itself as a fundamental strategic choice because it enables companies to obtain specialized expertise together with cost reduction while enhancing operational efficiency. Firms achieve better quality software solutions when they assign their development tasks to outside teams allowing core business operations to stay uninterrupted. This essay explains the necessity of outsourcing software development.

Cost Efficiency

Software development within the company requires substantial expenses for personnel acquisition together with staff training in addition to infrastructure set-up. Through outsourcing companies gain the advantage of acquiring high-end talent because they pay reduced rates for this talent. Business organizations access cost-effective labor resources from specific locations that deliver superior software quality development standards.

Access to Global Talent

Through outsourcing businesses expand their employee search beyond their regional market. The companies that partner with global software development outsourcing firms will benefit from developers and designers who specialize in modern technology alongside qualified project managers. Businesses have access to this worldwide talent network which results in exceptional high-quality innovative solutions.

Faster Time-to-Market

The current competitive market seriously depends on quick execution. The implementation of dedicated software development teams operating twenty-four hours gives organizations faster development times through outsourcing. Through outsourcing software development businesses achieve quick product launches while embracing market demands which results in better competitiveness.

Focus on Core Business Operations

In-house software development interferes with essential business operations including sales, marketing and customer service support. A specialized team through outsourcing enables companies to maintain efficient business operations by taking care of technical tasks while businesses focus on their core functions.

Scalability and Flexibility

Through outsourcing businesses achieve the freedom to modify their development team size according to their current project needs. Businesses achieve flexible resource handling by outsourcing since it lets them acquire more developers through controlled hiring and minimize expenses when demand lowers.

Access to Cutting-Edge Technology

Businesses must constantly invest time and funds to both implement modern technologies and educate their workers on emerging systems because technology changes quickly. Software development outsourcing entities possess advanced expertise to use AI and other cutting-edge technologies such as cloud computing alongside blockchain and cybersecurity elements. The expertise of outsourcing firms enables businesses to use professional knowledge without building advanced training programs internally.

Risk Mitigation and Compliance

Security standards together with regulatory requirements are combined through outsourcing providers that follow industry best practices. When businesses assign their software development tasks to specialized teams they minimize the risks which stem from data security incidents and system outages and failing to meet legal requirements.

Conclusion

Software development outsourcing stands as a mandatory tool rather than a luxury since agility and efficiency play vital roles in achieving successful businesses. Through software development outsourcing organizations achieve superior software solutions and lower their spending along with worldwide knowledge access and faster innovation delivery. Organizations that outsource operations remain competitive within the digital realm and dedicate their attention to their main business objectives.

To compete in today’s economy, every business must become a digital business. And while consumers appreciate the convenience, the cost involved with digitizing everything is a significant burden to bear on the business owner. So how do companies afford top-notch software development? They outsource it.

Outsourcing is anything but new. The US has been outsourcing since the ’80s, and there are no indications of the trend slowing down. The reason for its massive adoption is that companies can hire someone else to execute on some task or project while they focus on whatever it is they’re good at. So if everyone’s doing it, you’ve got to be asking yourself, “where’s all this work going?” We’ll show you the top countries for outsourcing and what makes them so popular.

There has been a recent surge of US companies utilizing domestic sourcing. This is a good option for those who only want to work with other US-based persons. While this may be good for some company cultures, it leaves little to be desired concerning cost. Not to mention, opportunities to diversify the labor pool and source the absolute best talent globally rather than locally.

As a company, Zibtek has decades of experience working with outsourcers from all over the globe. We’ve compiled crucial information about outsourcing with some of the globe’s best tech hubs. With a world full of tech-literate professionals, it’s hard to know where the best place to outsource software development is. The top contenders for tech are India, Bulgaria, China, Argentina, Egypt, China, India, the Philippines, Chile, Brazil, Indonesia, and Thailand. We’ve compared manpower, education, English skills, cultural factors, and value. Value is calculated on a 1-10 (10 being the best value) scale taking all other factors into account.

#1 INDIA

Manpower: 1.324 billion

Education: 74% literacy rate. Much has changed for India since its British rule until 1947. While this literacy rate is slightly lower than some other countries on this list, math is heavily emphasized in schools throughout India leading to many technologies based degree programs throughout the nation.

English skills: 125 million people in India speak English. This means that India is the second-largest English speaking country.

Cultural factors: Because of India’s early British rule, much of the country has a very western approach to education. Both speaking English and having a white-collar job in India are very prestigious. Indian call centers have been around (and often hung up on) for years. As the nation has grown, literacy rates have risen, and India has become the number one country for outsourcing. Modern-day India is a tech hub with the bandwidth needed to communicate with US-based firms. The path for Indian outsourcing was paved years ago by US-based innovators who knew they could get high-quality development for less than what is charged in the US. Indian programmers have been offering solutions like system migration, legacy system maintenance, system integration, application development, and more.

Value: 9.7

#2 BULGARIA

Manpower: 7.128 million

Education: 98.6% literacy rate. 83.8% of males and 81.5% of females attend secondary school.

English skills: 25% of Bulgarians speak English.

Cultural factors: Bulgaria is becoming quite the contender for Eastern European outsourcing. Due to Eastern Europe’s focus on education, Bulgaria has become an outsourcing mecca like its counterpart, Ukraine. Since the country’s government reform to qualify for induction into the EU, it's business culture has benefited. Many Bulgarian developers are highly proficient with challenging programming languages like C++.

Value: 8.2

#3 CHINA

Manpower: 1.379 billion

Education: 95% literacy rate. This is an enormous improvement from the late 90’s polling reporting a 78% literacy rate. Even with only 5% illiteracy, China’s population of non-readers is 54 million people.

English skills: 10 million English speakers. While that sounds like a lot, keep China’s large population in mind. This is roughly 1 in 100 Chinese English speakers.

Cultural factors: China has been a popular outsourcing destination for more than just software for decades. In programming and manufacturing alike, China has provided US outsourcers with a lower cost option for services rendered. Because of China’s size and heavy emphasis on math and science in primary and secondary schooling, many young professionals have coding chops. While China’s literacy rate is on the rise, its percentage of English speakers is low. This has created a communication barrier for US outsourcers in the past. Another less obvious concern is China’s discretion on intellectual property. Working with a Chinese outsourcer may lead to code ownership and updating issues if not previously discussed.

Value: 7.8

#4 ARGENTINA

Manpower: 43.42 million

Education: 98.1% literacy rate. While Argentina boasts an excellent literacy rate, the number of Argentine people pursuing secondary education is slim, the country ranks 120 out of 197.

English skills: Spanish is the #1 spoken language, but English is a close second with nearly 50% of the population being bilingual.

Cultural factors: Argentina is an attractive option for those seeking a similar culture. The cultural norms of Argentines are closer to the majority of the US. The Argentine economy has not been as strong in the last decade as previous years. Some see this as a sign of little support for technology-based education. Optimists, on the other hand, see this as a great opportunity to hire programmers for a lower rate.

Value: 7.8

#5 THE PHILIPPINES

Manpower: 103.3 million

Education: 95.6% literacy rate. Prior to World War 1, the country’s literacy rate was just 20%. Much progress has been made since the 1960s and education in the country continues to be a top priority.

English skills: 76% of Filipinos report being able to understand English, with similar results for reading in English and even thinking in English. Only 8% of the pool from this study reported not understanding English at all.

Cultural factors: The currency in The Philippines has recently appreciated, driving wages up slightly but also indicating a good sign of stability and growth as a nation. Many Filipinos have close cultural affinities with western regions, making partnership and collaboration easier for first-time outsourcers. The Philippines have been known as an outsourcing destination for back office or less skilled work. Because of this type of work, quality standards for software development must be vetted early on.

Value: 7.1

#6 EGYPT

Manpower: 95.69 million

Education: 73.8% literacy rate with a disparity amongst genders, 82.2% male and 65.4% female.

English skills: 35% of Egyptians speak English.

Cultural factors: Egypt is becoming increasingly popular amongst the middle east as an option for software outsourcing. In fact, many of India’s software giants are opening satellite offices in Egypt because of it’s strong IT centered workforce. The country is recognized for its young working population that continues to grow. The downside, however, is that much of the middle east remains politically volatile, making it less appealing for some western businesses.

Value: 6.6

#7 CHILE

Manpower: 17.91 million

Education: 96% literacy rate. This is the highest literacy rate of all countries in Latin America. Chile uses an education voucher system made popular by Europe. 93% of Chilean children go to public school, with the remaining 7% attending private school.

English skills: About 5% of the total population of Chile speaks fluent English. This is a relatively small portion of the population, especially for a tech affluent country with many IT-centered businesses headquartered here.

Cultural factors: Chile is no newbie to offshoring. In fact, more than 20% of the country’s total exports to the US alone. Chile also has the most stable government in the area and open immigration policy to boot, making it easy for global talent to funnel into the country. If you’ve ever been to Chile, you know it’s beautiful and pricey… the downside to outsourcing your development here is that the cost for anything is much higher than some of the other alternatives. It should be noted too that the average cost for a program in the US is still much higher than Chile.

Value: 6.1

#8 BRAZIL

Manpower: 207.7 million

Education: 92.6% literacy rate, growing at an annual rate of 0.49%

English skills: 3% of the total population of Brazil is fluent in English, about 6.18 million.

Cultural factors: The country is working very hard at rebuilding its economy, 2015 and 2016 were the country’s worst recession in history. This situation is a bit of a catch 22 for companies looking to outsource as some may be thinking that the exchange rate makes development here very affordable, others may be thinking that because of the economic downturn, it’s not a place where innovation and cutting-edge technology is built. Brazil makes a great outsourcing destination for companies looking to have more basic, legacy software built.

Value: 5.7

#9 INDONESIA

Manpower: 261.1 million

Education: 95.38% literacy rate.

English skills: While statistics on the percentage of English speakers in Indonesia are mixed, English is growing in popularity. As the middle and upper economic classes of Indonesia have grown, more schools put emphasis on learning English.

Cultural factors: The main point to be noted about outsourcing to Indonesia is its drastic difference from US communication. While publicly reprimanding your product owner at the office is ok in New York, it’s not in Indonesia. Indonesia people are quite indirect in their speaking and very caring as a population. Note these differences in early talks with Indonesian outsourced talent and tailor your questions to be literal and specific, especially about the timeline. While these cultural differences may scare some US companies away, many successful enterprises have been outsourcing to Indonesia for years with minimal hiccups.

Value: 5.1

#10 THAILAND

Manpower: 68.86 million

Education: 96.4% literacy rate and has been growing linearly since the 1980s.

English skills: About 27% of the total population of Thailand speaks some English. Because of its appeal to tourists, many Thai people learn to speak some English for job advancement.

Cultural factors: Thailand is one of the most finally attractive outsourcing destinations in the world. It's a business environment however is lack-luster for some outsourcers attempting to develop software using up and coming technology stacks. The culture overall lacks western-like problem-solving skills based on mathematical reasoning, a major factor in programming work. Outsourcing to Thailand is typically successful when development is done on the front-end

Is outsourcing software development dangerous for business?

Outsourcing Software (or any part of your business) will get you and the outsource provider into one of 4 states: (Not necessarily financial).

1. Lose-Lose - worst case. Contract will probably be renegotiated.
2. Win-Lose - you win at the cost of the outsource provider. If there is a major loss on the provider side expect issues with quality, availability, flexibility or commitment. You probly want to renegotiate to improve the other side’s position (Real world example -Torrijos–Carter Treaties - Wikipedia renegotiation of the Panama Canal)
3. Lose-Win - You lose and the provider wins. A real life example is Electronic Data Systems - Wikipedia and Ross Perot’s battle with GM.
4. Win-Win - best but rare case.

As you can see from the list above there may be major risks involved like GM being forced to purchase the outsourcing provider.

Everything has its upsides & dwonsides. If Outsourcing has benefits like faster adaption to newer technology or peace of mind, then it has downsides that could weigh huge depending on company to company. The downsides have been mentioned below

1. Language- By offshore development, you pretty much get the idea that it would be involving teams that would be based out of your country. So it’s very likely that their language would be different. This leads to improper communication and confusion which could be devastating.
2. Time Zone- The offshore company could be working in a different time zone compared to yours. It could be as wide as your morning hours & their sleeping hours. Here arises the need to manage time for dialogue and better communication.
3. Cultural Differences- You could be settled in a western country & offshoring company in Asia or vice-versa. The pattern of holidays is going to be opposite, your way of interpreting may be different. Even your perspectives towards certain things would be different.
4. Security Risks- When using offshore development services, information leakage is a potential detrimental risk that can cause severe security problems. Developers need sensitive information, including customer data, code, and workflows so that they can understand the entire system and tackle projects. Companies need to make a great effort to maintain information confidentiality.

Software development Is being outsourced right now. Will more company outsource web development or should they rather do it in-house? That’s the question.

I will mention some reasons that software development will be outsourced in the next four years. Based on finding and research the BPO market might grow $76B between 2020 and 2024. The major business process outsourcing market growth came from the IT segment.

#1 Cost savings

Your business can already save up to 30% of total development costs when working with a digital team remotely instead of hiring developers in-house. Whether it's nearshoring or offshoring, every type of outsourcing is financially attractive. It's because of the different labor costs in various countries.

#2 Devs' personal development

When it comes down to in-house developers' knowledge, if you hire your development team, you have to take care of their personal growth. Thus, I return to the subject of the previous point - costs. Developers in software houses have to be up-to-date. To do not strike out, we continually invest in courses, conferences, workshops, books, etc. for our devs and Project Managers. The team has to learn perpetually about new technologies and we bear the brunt of it.

#3 Experts in their fields

The fact that outsourcing software development will help you save money doesn’t have to be related to the low code quality - quite the opposite! According to various rankings, Europe has the best software developers in the world. More and more businesses are re-routing their outsourcing destinations to Southeast Europe (SEE) for obvious and business-related reasons. Reasons include cheaper on-demand skills, dissimilar cultural affiliations, multilingual trade-offs, less travel time, and lower costs, etc. Kosovo stands out in this region as a leading outsourcing market.

#4 The Kosovo advantage

As i mentioned on another question asked about where is the best country to outsource software development. According to figures recently released by the Government, Kosovo has the youngest population (53% of Kosovo are aged under 25) in Europe, Kosovo recorded a 20 – 30% growth rate and it’s leading the way in the BPO/ITO sector.

#5 Breaking the Language barrier

A strong average of English and German skills, similar work culture to people of Western Europe and the US, huge, untapped and well-educated workforce and experienced training service providers, which deliver certified professionals to the market, make Kosovo a runner-up in the list of the top places for outsourcing in Eastern Europe.

Outsourcing BPO to Kosovo or IT, software development, cyber security staff to Kosovo is smart choice for any company who is interested in outsourcing.

Who ever is looking for serious, high quality hardware & software development company, I recommend Mechatronix. The new system of huge companies, remotely outsourcing businesses, dominating the market is coming and we are ready for it. You can hit me on DM Tomor Shala

Outsourcing is a business practice in which a company hires a third-party to perform tasks, handle operations or provide services for the company. Outsourcing can involve using a large third-party provider, such as a company like IBM to manage IT services or FedEx Supply Chain for third-party logistics services, but it can also involve hiring individual independent contractors, temporary office workers and freelancers.

Outsourcing is commonly done when you don’t want the headache of paying salaries or having to account for every task. Companies normally outsource tasks related to customer handling like customer service and call service functions. They can outsource other types of work as well, including manufacturing processes, human resources tasks and financial functions such as bookkeeping and payroll processing.

Importance of Outsourcing

Companies often outsource as a way to lower costs, improve efficiencies and gain speed. Companies that decide to outsource rely on the third-party providers' expertise in performing the outsourced tasks to gain such benefits. The underlying principle is that because the third-party provider focuses on that particular task, it is able to do it better, faster and cheaper than the hiring company could.

For example, they outsource because they're unable to hire in-house, full-time employees with the specialized skills and experience needed to perform certain jobs.

Companies sometimes opt to outsource as a way to shift meeting regulatory requirements or obligations to the third-party provider. This way, they don’t have any obligation of providing salaries and other overhead costs, which end up helping the company save resources.

We have also had our fair share of experience with Outsourcing with Codersera.

Advantages of Outsourcing

Reduce Cost and Expenditure

Money and time are the two impactful reasons why most businesses decide to outsource. Rather than employing full-time employees on payroll and investing in infrastructure and other licensing and training costs, it is better to outsource. Outsourcing is the most viable option for businesses to reduce their expenditure and improve profit margins.

Flexible Solution Offering

The businesses must now accommodate change quickly in these changing dynamics. For this, they have to enable agility in all their entire development processes in order to meet current market needs and demands. With the ability to outsource their services, businesses can now cater to changing needs easily and stop looking at the escalating cost of hiring and other technology investment.

Globalization of Talent

Internal resources are limited to a city or state, no resource travels from one country to another. To access global talent, Outsourcing will be the best option for businesses. Access to the globalization of talent by hiring remote developers, designers and working from offshore to give a boost to your business with their services.

Build Productive Partnerships

Outsourcing can help businesses to build and sustain their organizational goals. If you partner with the right company, your business will be able to improve efficiency, productivity, improve the quality of the product and create a scalable work environment.

Software Outsourcing is done by a team of developers sitting overseas and working on your project. They would be connecting with you in case any issue arises. Your job is to stay connected with them and keep your superiors updated regarding the process.

Answering cities would be much better because there is no country in the world where each and every city is suitable for software engineers. There are few cities in a country where a software engineer can find a good job.

I will try to list as many suitable cities as possible. My list would be based on factors like Job opportunities, career growth chances, average salary, living costs, startup culture and job satisfaction. The list will be in descending order. Higher is the country, the better it is.

1. San Francisco Bay Area, USA 🇺🇸
2. New York, USA 🇺🇸
3. Beijing, China 🇨🇳
4. London, UK 🇬🇧
5. Berlin, Germany 🇩🇪
6. Austin, USA 🇺🇸
7. Tel Aviv, Israel 🇮🇱
8. Shanghai, China 🇨🇳
9. Boston, USA 🇺🇸
10. Bangalore, India 🇮🇳
11. Los Angeles, USA 🇺🇸
12. Chicago, USA 🇺🇸
13. Toronto, Canada 🇨🇦
14. Paris, France 🇫🇷
15. Amsterdam, Netherlands 🇳🇱
16. Seattle, USA 🇺🇸
17. Singapore 🇸🇬
18. Dublin, Ireland 🇮🇪
19. Munich, Germany 🇩🇪
20. Vancouver, Canada 🇨🇦
21. Stockholm, Sweden 🇸🇪
22. Tokyo, Japan 🇯🇵
23. Moscow, Russia 🇷🇺
24. Montreal, Canada 🇨🇦
25. Sydney, Australia 🇦🇺
26. Seoul, South Korea 🇰🇷
27. Sao Paulo, Brazil 🇧🇷
28. Copenhagen, Denmark 🇩🇰
29. Dallas - Fort Worth, USA 🇺🇸
30. Houston, USA 🇺🇸
31. Helsinki, Finland 🇫🇮
32. Washington DC, USA 🇺🇸
33. Zurich, Switzerland 🇨🇭
34. Delhi - Gurgaon - Noida, India 🇮🇳
35. Atlanta, USA 🇺🇸
36. Hong Kong 🇭🇰
37. Melbourne, Australia 🇦🇺
38. Manchester, UK 🇬🇧
39. Frankfurt, Germany 🇩🇪
40. Shenzhen - Guangzhou, China 🇨🇳
41. Vienna, Austria 🇦🇹
42. Warsaw, Poland 🇵🇱
43. Hamburg, Germany 🇩🇪
44. Madrid, Spain 🇪🇦
45. Milan, Italy 🇮🇹
46. Philadelphia, USA 🇺🇸
47. San Diego, USA 🇺🇸
48. Hyderabad, India 🇮🇳
49. Ottawa - Guatineau, Canada 🇨🇦
50. Barcelona, Spain 🇪🇦
51. Dubai, UAE 🇦🇪
52. Istanbul, Turkey 🇹🇷
53. Prague, Czech Republic 🇨🇿
54. Lisbon, Portugal 🇵🇹
55. Cologne, Germany 🇩🇪
56. Denver, USA 🇺🇸
57. Santiago, Chile 🇨🇱
58. Rotterdam - The Hague, Netherlands 🇳🇱
59. Oslo, Norway 🇳🇴
60. Buenos Aires, Argentina 🇦🇷

Software development seems to follow a certain law, regardless of who or where the developers are. Simply put the law is that the stakeholders get to pick 2 of the 3 factors but the 3rd factor will manifest adversely even when the project is well managed.

The 3 factors are as follows.

1. Cheap
2. Good
3. Quick

Say the stakeholders plan to build software Quick and Good, then the opposite of Cheap will manifest. The product will be very expensive.

Say they pick Cheap and Quick then there is no escaping from manifestation of the opposite of Good. The software will be Terrible. It will break often, rack a lot of downtime and service expense. Forget extending it ever, short of a complete re-write. Unfortunately this is where most outsourced software developments will end up and many US corporations are realizing that.

Absent good oversight of the project, you may experience more than 1 factor manifesting adversely. Say the stakeholders outsourced the software development planning for it being Good and Cheap with lax oversight. What they are likely to get is money hole with nothing to show for even after months.

The term “outsourcing” has a negative connotation with a lot of people.

So I’d first reframe the question as to whether you feel comfortable managing a distributed, remote team or having everyone in one place?

The answer to this question can be substantially impacted by the type of project you are working on (ie hardware vs software, do you need people on site to do product testing, etc) and also your experience level managing distributed teams.

I am a strong proponent of lean startup and design thinking principles when building a software product and I think a lack of adherence to these principles is what causes so many “outsourcing” experiences to end in disaster.

This is a story I hear over and over, “We found a team on UpWork, they told us a reasonable price for our entire project and then it ended up taking 5x as long, we checked in every 2 weeks and they just kept building the wrong things”. Anyone contemplating doing this…if you want to just send me 50% of the money and keep the other 50%…you’ll probably end up in the same place but with 50% more money.

If your answer to the question of “whether you feel comfortable managing a distributed team” is “yes”, then the benefits of outsourcing may outweigh the costs for you.

The financial savings can be substantial and access to a global and flexible talent pool can make it much easier to scale your team up and down quickly without needing to go through the arduous process of bringing on FTEs.

This can be especially valuable for startups or large companies looking to prototype new products and explore new markets. It can eliminate red tape in testing new ideas and also allow for budget allocation from more easily accessed pools of money within larger companies.

The outsourcing team that you choose is vitally important. There are merits to both working with an agency and also with individual freelancers.

An agency can offer you much faster access to vetted talent and may already have well-developed processes for working with partners. Their employees may also benefit from internal training and professional development programs within their organization. And most of all, a good outsourcing company is likely to be reliable and will be able to assist in hiring specialized team members for you (in the event you need them in the future).

A freelancer can also be useful for smaller projects because they may be more open to working below certain budget thresholds (ie projects that a larger company might not be willing to consider).

Whether you opt to go the agency or freelance route, the most critical element to your success will be adhering to a high communication, scrum process.

You should insist on daily stand up calls to discuss progress and also be very diligent and thorough about breaking your project down into individual tasks complete with clear mocks and easy to understand user stories. You should act as the Product Owner and make sure there are no proxy Project Managers dis-intermediating you from the actual development and design team.

Playing telephone doesn’t work with general communication, so it certainly won’t work with something as involved as a software project.

So to summarize, first ask yourself “am I comfortable managing a distributed team” and ignore the stigmas about outsourcing.

Those are a result of poor implementation.

Choose outsourcing over insourcing, if

1. Your business is not reliant on the latest and greatest of technology and so outsourcing development is not going to affect the customer facing side.

2. You are in a high-cost region and your burn rate has to be reduced till you hit a sweet-spot with revenue.

3. You have hit scale and to sustain the momentum you need a flexible workforce than can plug in and out, faster than you can hire and fire

4. You eventually want a low cost base for yourself and you are outsourcing on a build-operate-transfer model

5. You have no experience in managing technology. However, this is a dangerous place to be in. Hire a technology manager inhouse, before you outsource the actual development work.

6. You found a company that is genuinely passionate about software development, understands your business cycle well and does not impose their methodologies/processes instead of aligning to the way things work in your startup/industry

7. You are in a position and have the maturity/tact to handle resources of another company and yet get better value/cost than doing it in-house

The answer is simple. You should ask yourself why you are outsourcing. In software development outsourcing, a third party takes over the process of software development. It lets you minimize the burden of your core team and you get greater control over the resources you use. Software outsourcing not only lets you contract organizations and delegate some job functions to them, it also allows you to build a long-term business partnership.

Software outsourcing offers some key benefits, which are mentioned as follows:

1. Cost Effective

Software outsourcing enables you to save a considerable amount of money that you would have spent if the project had been developed in-house. You can utilize this money elsewhere.

2. Less Time-Consuming

Outsourcing a software development project saves a lot of time too as people work on it round the clock. The final product takes lesser time to finish and you get more time for marketing your thing.

3. Solution to Lack of In-House Experience

Chances are that your in-house software team may have less experience in their field. Hiring another company for software development will add another dimension to the final product. The outcome can be more sound and systematic and the overall performance could be exceptional.

4. Flexibility

When you outsource software development, you don't have to spend time recruiting, hiring, training, and housing employees for short-term projects.

5. Focused Business Strategy

Outsourcing software development helps streamline business processes. It provides a focused strategy and a competitive edge in the technology race.

6. Risk Mitigation

You can mitigate risks by choosing an outsourcing firm that has a high-quality project management system and a tried-and-true process for developing applications.

Outsourcing all your software development requirements to an expert or a professional company comes with a lot of advantages. It helps you accomplish the tasks quickly and efficiently and also ensures the growth of your business.

In addition to that, you can quickly get a competitive advantage over your rivals without losing efficiency or focus. Outsourcing involves a lot of flexibility, and you can take advantage of all the technical skills of the company you hire to get the job done.

I have listed down the core benefits of Software development outsourcing

1. Access to The Latest Technology and Global Talent

The first and foremost reason to outsource software development needs is the vast pool of global talent you will have at your disposal.

2. Cost Saving

Another great benefit of outsourcing software development is that you can save a lot of money in the process. Statistics say that companies can save a whopping 30% on their operational costs if they outsource their software development.

3. Focus on The Growth of The Core Business

When you outsource your software development requirements to an out-house company or professional, it gives you added time to focus on the growth of your business and carry out the core business processes.

4. Accommodate Crazy Demands

All businesses experience a certain time in their business during the year when the demand is at its peak. Whether you offer goods or services to customers, you would have a month or a few weeks dedicated to meeting the crazy load and peak demands of the customers. In such a scenario, it becomes super important to re-distribute all the in-house resources that are available in the company and are not involved or specialized in the core business processes.

5. Better Risk Management

It is usually advised by investment gurus not to put all your eggs in one basket when it comes to investing. This helps in mitigating the risk involved should you lose all that money.

6. Enhanced Security

If there is any security breach or flaws in how the team is working on the software, it could result in the leaking of sensitive company and employee information, hence putting the company and its reputation at risk. Therefore, it is always a better option to outsource your software development to an expert professional who can provide better coverage against security breaches.

7. Low cost for Support & Maintenance

Another great advantage of outsourcing the development of your software is that your in-house team will not be required to spend time, money, or resources on the support and maintenance of the software.

8. Get the Work Done Quickly

Outsourcing is equivalent to the quick accomplishment of work. Speed is always a crucial aspect for any business, and it can be all the leverage you need to get a competitive advantage.

You can develop your business software by using both in-house vs. outsourced software development methods. But, I think you should choose a software outsourcing option instead of in-house software development. Let’s check out the core reasons.

If you go through the software outsourcing method, a big amount of cost will be reduced. Because, if you develop the business software with the help of an in-house method of software development, you need to install tools, hire developers, engineers for that.

At the same time, developing software is a short-term project and it’s not a continuous business action. For this reason, software outsourcing could be the best strategy instead of in-house software development. Overall, it reduces costs.

The project quality could be best if you outsourced this instead of in-house development. Because outsourcing companies offer a better quality project with the best DevOps team.

I think these are appropriate reasons. Thanks!

Are you from US? Silicon Valley

Are you from Europe? Switzerland

Curious why? Let me explain that for you…

The other answers here focus on the US point of view, and, yes, if you are from the US or Canada your best pick is probably to stay in the US, and more specifically go to Silicon Valley (which is outrageously expensive but pays unthinkable well) [besides that, the IRS will come after you anyway :) ]

In Europe, Switzerland is probably the best option if you want to earn the top, while living a great life at the same time. It is also a cakewalk for EU-citizens to get a Swiss work permit (you only need to find ANY job)

Payrolls for software developers are one of the highest in the world (only US companies pay better). Now, finding a job here might be a struggle, but it’s well worth it.

Why is Switzerland so cool?

Well, imagine living in a city with crystal-clear lake and rivers, earning over 100k USD per year and having only a 1-hour drive to the mountains. That’s why.

DISCLAIMER:

I currently live in Switzerland (moved there from Poland) and can definitely recommend this direction. If you are thinking about moving to this country, I would suggest to check out this comprehensive guide on the topic:

How to find a job as a software developer in Switzerland?

You might also consider other European countries (these are the top picks when it comes to Quality-of-Life/Salary ratio, based on this article

• Denmark
• Germany
• Netherlands
• Norway
• Sweden
• United Kingdom

In the end, you have to ask yourself, what is your top priority and pick a country which satisfies your needs to the greatest extent. Only you can answer this question. :)

Footnotes