The increase in IT outsourcing worldwide hints at a dynamic move towards outsourcing the most vital business operations like web development services and marketing strategies. Big and small brands alike are hiring professional strategists offshore to expand their marketing efforts. With the influx in outsourcing, it has become vital for a Web development agency to assemble an offshore development team to provide services at par with its competitors. According to Statista, a specialist in the market and consumer data, the global outsourcing market size was about $92.5 billion in 2019. And businesses today are outsourcing web development services offshore at a much faster rate.
A web development company that outsources its work overseas can provide its clients with a better service without any high additional costs. More and more companies have begun outsourcing their web development project offshore due to the apparent benefits. If you are still on the fence about outsourcing your work offshore, you miss out on the various advantages that come with outsourcing. The first question that arises is, “Which is the best country to outsource web development services?” It depends, you can choose among several countries based on your requirements. The following are the countries and factors that can influence your outsourcing decision.
Top countries for web development outsourcing:
Factors that affect the choice of best countries to outsource:
- Outsourcing cost
- Time-zone differences
- Country-specific limitations
- Innovation index
What has each country gone for itself?
- It is a labor surplus economy
- Hiring cost is low – between $18-$35
- Skilled labor
- Good infrastructure
- Software and web development expertise
- Time-zone difference is an advantage for US and UK-based companies
The Indian outsourcing industry is experiencing multi-dimensional development. In 2019, A.T. Kearney’s Global Services Location Index ranked India as the first choice for outsourcing. Deloitte’s study found that about 59% of companies globally outsource to India. India’s favorable position as a preferential outsourcing option presents web development agencies with opportunities to outsource their projects to India. India has excellent hubs of skilled web developers. They are adept in NodeJS, ReactJS, Angular JS, WordPress, ASP.NET, Magento, Joomla, Codeigniter, etc. Also, the Indian outsourcing industry provides an innovative and cost-effective value-creation model.
- It offers a diverse skillset
- A high population means more workers
- Skilled people, advanced technology, and consistent innovation
China ranked first among the emerging economies in the world. It has excellent financial, human, and physical capital that makes it a compelling outsourcing destination. China also tops the hypothetical assessment of all the countries for participating in the programming Olympics by Hacker Rank. China is typically implementing the latest technology for delivering client excellence. This insistence on using the newest tech enables Chinese outsourcing companies to design and develop solutions that are best suited for their clients.
- Globally recognized for skilled developers
- Competitive development costs
Poland’s IT industry is comparable to other Western European countries in terms of maturity. According to available data, Poland ranks third for highly skilled programmers across the world. Polish web developers are excellent with project management skills, and there is no shortage of experienced developers. According to Hacker Rank, Polish developers rank third based on their language, databases, security, and algorithm skills.
- Manageable time-zone difference
- Companies usually work according to the client’s time-zone
- Competitive prices
Though the Philippines is emerging as an outsourcing economy, the hardworking and dedicated developers drive effective results. It has presented itself as a low-cost alternative to international companies. The Philippines ranked 95th in ease of doing business, but it got 10th rank in location attractiveness. The Philippines has garnered a reputation for its talented workforce that maintains well-functioning and quality development projects. Web development agencies leverage Phillippno developers’ skills in .NET, HTML, Ruby, PHP, JAVA, ASP, C++, Python, and other technologies.
- It is easy to manage time-zone differences
- Development rates are slightly higher than in Asian counties at between $30-$60 per hour
Factors affecting the choice of best countries to outsource:
- India has the most competitive outsourcing rates
- The average cost of hiring developers in India is between $18-$35 per hour, in contrast to $60 per hour in the US.
- China offers a low outsourcing cost with a wide range of developers
- The wages in China are far lower than in Europe and America
- Outsourcing to China can decrease the total development cost by up to 30-50%
- Poland offers superior-quality web development
- According to the Association of Business Leaders (ABSL), an experienced Polish developer charges about $3000 to $5000 a month
- The Philippines’ wage rate is almost 50% lower than the developed economies
- It cost an average of $20 to $40 per hour to hire developers in the Philippines.
- Outsourcing cost in Ukraine is higher than the Asian countries
- It will take between $30-$60 per hour to hire a developer in Ukraine
India is 12 hours and 30 minutes ahead of the USA (California) and 5 hours and 30 minutes ahead of the UK. Though there is a significant time difference, India still got an edge when it comes to outsourcing. Web development companies outsource work to India because the time difference has never been a problem for companies. Outsourcing service providers in India ensure 24*7 work shifts as per companies' requirements.
China is 15 hours ahead of the USA (California) and 8 hours ahead of the UK. In this competitive global environment with 24*7 work shits, coordinating web development outsourcing in China is not a big issue despite the significant time differences.
Poland is 8 hours ahead of the USA (California) and 1 hour ahead of the UK. If you choose Poland as the outsourcing destination, you’ll have the benefit of a non-existing time difference, albeit if your company is in Europe. For companies in the US, the time difference will vary depending on location, but it will still be less than those of Asian countries.
The Philippines is 15 hours ahead of the USA (California) and 8 hours ahead of the UK. The Philippines also has a 24*7 work culture that has helped cement its place in the best outsourcing countries list. With the 24*7 availability of outsourcing services, choosing the Philippines for outsourcing web development projects is not a bad idea.
Ukraine is 9 hours ahead of the USA (California) and 2 hours ahead of the UK. Similar to Poland, Ukraine also doesn’t have significant time differences with European countries and the US. So outsourcing to Ukraine will offer difficulties in coordinating efforts.
The Indian outsourcing industry is enormous, and multiple companies are engaging in the process. Due to the involvement of many companies, there is a possibility of unreliable agencies. So it is vital to pay attention before assigning a project.
Because of one local time zone and potential language barrier, China might be difficult to approach as a possible web development outsourcing destination.
Poland is yet an emerging outsourcing destination that is at a developmental stage. More factual claims need to support Poland’s outsourcing industry’s potential before it becomes easy to recommend.
The Philippines economy is in the developing stage for quite a while now. More industrial and technical changes are still to come.
The hidden development cost is the primary risk for outsourcing in Ukraine. It can quickly fluctuate the cost of the entire project.
India has contributed significantly in terms of R&D in the global economy. The digitization process has also accelerated the delivery of competitive and quality services to the worldwide market. The constant growth and innovation and the active participation of companies in the digitization drive are the factors that are continually improving the service quality. Due to this, Indian web development companies are far better than other countries for outsourcing work.
China credits innovations as the primary reason for the growth in the last few years. China has transformed from a manufacturing hub to a center for innovation. The Global Innovation Index ranked China 14th in the world. According to reports, China spent $256 billion in 2019 on technology and R&D.
Poland will drastically change its policies in the upcoming years because the EU has designated it as a “moderate” innovator. The perfect mix of innovation and research systems in the country will soon have a positive and productive effect on Poland’s outsourcing industry. It will affect the productivity, quality, and cost of the IT sector outsourcing in the country.
The Philippines’ economy has kept up with digital transformation and AI development, which boosts the outsourcing industry. The IT outsourcing industry accounts for nearly 15% of the occupational structure and 10% of the Philippines’ total GDP. While these numbers are impressive, the Philippines still has a long way to go. However, it has shown continuous growth.
Ukraine is on the path to becoming a leading outsourcing web development services provider because of its tech ecosystem and a large pool of talented individuals. Continuous advancements in web development solutions, Big Data, Artificial Intelligence, and other emerging technologies strengthen Ukrainian developers’ position.
The primary factor to consider while outsourcing web development services is the outsourcing provider’s expertise and reliability. For consistent and long-term advantage, cost, global recognition, and skilled developers are the detrimental aspect. India’s adopted working methodology includes all these factors making it the most beneficial option for companies with the pre-determined process.