Software Development Outsourcing in 2022: Why and Where?

Software Development Outsourcing in 2022: Why and Where?

December 14, 2021

“Do what you do best, outsource the rest” – Peter Drucker

Over the past 20 years, software development outsourcing has grown by almost $50 billion US dollars worldwide. Why do you think that is?

In the past, companies were able to manage all of their IT needs on their own. However, technology advances quite fast and becomes more complex, making it almost impossible to manage everything on your own. This urges more and more companies to outsource their projects and needs. 

Let us go through three important questions to prepare you for 2022:

  • How did Covid-19 influence the market?
  • What are the benefits of outsourcing?
  • Most popular outsourcing destinations and why?

Let’s jump right to it.

How did Covid-19 influence the IT market?

The global pandemic caught humanity off-guard, unleashing havoc around the world and halting nearly all social activity – from school and work to entertainment, and communication. Whole industries, such as tourism, for example, reached complete stagnation. Others managed to stay afloat in exchange for cutting down the number of their employees.

This made businesses rethink their strategy. Everything started to get digitized. Remote work became more popular, especially in the IT industry. More businesses now realize the crucial role of IT specialists and that creates a greater demand for their services — whether it’s to hire developers in-house or to outsource development work to a reliable IT partner.

Statistics show that the outsourcing market is expected to grow by $98 billion USD during the years 2020-2024, meaning businesses are now evaluating the benefits of IT outsourcing before in-house.

What are the benefits of outsourcing?

With all being said about Covid-19’s influence over the IT market, it’s clear we now need fast and reliable solutions in order to keep up with the surge in demand. What do you think the most common and affordable solution is?

It’s software development outsourcing.

When we think of doing that, we tend to worry about expenses, time and resources. In fact, those are the advantages of outsourcing:

1. Cost

To make a successful product, you may either use your in-house IT talents or outsource these services to competent professionals. The first option, however, requires salaries, social benefits, insurance, etc. and because of this, not many businesses can afford to hire software developers. Aside from saving time and money on the recruitment process, you also save from office space and don’t have a full-time employee to look after once the project is done.

2. Time

Time is always precious. That is why by delegation some of your tasks and projects to an outsourcing company like Dreamix, you are freeing up your in-house resources to do the core tasks at the same time: win-win.

3. Access to international resources

Employees are tied to a specific schedule, meaning that the work stops once their shift ends. Searching for talent outside of your country not only expands your pool of options but also allows you to literally complete work while sleeping.

Now, let’s go through some of the countries ranking as the best outsourcing destinations.

What are the most popular outsourcing destinations and why?

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Let’s talk facts.

Data shows that the best outsourcing countries are the ones in Eastern Europe. We are judging, of course, by a few factors: average rate per hour, number of software engineers and primary tech skills. Let’s take a look at the statistics for Eastern Europe:

Bulgaria: 35-65$, 65,000 developers; Java, JavaScript, .Net, Python, Angular, ReactJS

Romania: 35-55$; over 100,000 developers; Python, SQL, JavaScript, Java

Croatia: 35-45$; 35,000 developers; HTML5, Java, ReactJS, JavaScript

Poland: 45-70$; over 275,000 developers; Java, JavaScript, SQL, Python

Eastern Europe takes pride in its abundant talent pool and advanced skills at favourable prices. Working in a Bulgarian company allows me to see why our country is already an established leader and one of the best choices for outsourcing.

Bulgaria in numbers:

  • Year Founded: 681
  • Location: Southeast Europe
  • Area: 110 993,6 km²
  • Population: 6,916,548
  • Capital: Sofia
  • Time Zone: UTC+2 (EET)
  • EU Membership: Since 2007
  • GDP (PPP): $174.998 billion
  • GDP (nominal): $77.782 billion

  1. Education
    The education system in Bulgaria includes studying the English language and puts a strong emphasis on Maths and Technology. With more than 2500 schools and universities here, we offer more than enough resources and support for new IT specialists.
  2. Strategic geographic location
    Bulgaria is located in the Southeastern part of Europe, on the Balkan Peninsula. We became a member of the European Union in 2007, making our communication and travel within the other member countries easier. Our geographic location is perfect for countries outside of the EU as well, since we are only a flight away from many of the major capitals in Europe, as well as parts of the USA and Asia.
  3. Reliable internet infrastructure
    Ranking 6th in the mobile download speed and 54th in fixed broadband connection speed in the SpeedTest rankings for April 2021, Bulgaria is on both lists among the world’s leaders for internet coverage, accessibility and speed.

Final thoughts

If there is something that we learned from 2020 and 2021, it is that the world can change in a moment. Adaptivity and agility are key. We need to be able to quickly react to sudden challenges and be flexible. This is why outsourcing has become a vital tool. We at Dreamix always strive to give our partners the best solutions so you can focus on what you do best.

Contact us and outsource the rest.

Magdalena Nikolova

Middle Software Engineer 1 at Dreamix

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