Outsourcing in Eastern Europe: Offshore Software Development is Rapidly Accelerating

In fact, most software development companies prefer to outsource in Eastern Europe nowadays. Back a decade, it was more profitable to outsource in Asia, but the situation has suddenly changed. Eastern Europe’s become a treasure trove for offshore software development. 

Those countries are overrun with talented high-end IT-experts capable of fulfilling any order in the short term. A high level of the technology stack and business ethics make them indispensable in this area. But the pitfalls appear quite often, and this should be taken into account. There are no perfect schemes of cooperation, think carefully before entrusting your campaign to EE IT-enterprises.

Reliable Countries for IT Outsourcing 

The GSL indicator regularly evaluates EE countries to determine their programming rating about the suitability for subcontracting. Outstanding results were shown by  Romania and Poland. The same can be said about the Republic of Bulgaria and Czech. A summary of the economic situation will reveal the true picture of IT-engineering in those countries.

Poland

Probably the most steadfast country regarding the economy. Poland is developing with fantastic speed and stands out against the commercial background of other countries of the EU. As for Polish IT-sphere, it’s amplifying rapidly as well. Over a hundred thousand IT-experts work in computer programming. They demonstrate an incredible technological stack: professionals from Poland are confident in such programming languages as:

  1. PHP;
  2. Java Script;
  3. Python;
  4. .NET;
  5. C ++;
  6. Java and so on.

The Republic of Bulgaria.

This country has recently shown good performance in economic growth. By WEGCI ranks 47th out of 136 countries. Analysts point to extraordinary progress because the Bulgarian financial output used to rank 55th in the rating a couple of years back. It certainly outstripped many EE countries and that points out the financial stability. In the matter of subcontracting for the IT-technologies development, it managed to reach fifth place in the world.

Romania

Romania can also boast its rapidly growing economy. It is one of the five countries of the EU with the highest social level. Talented young people have the opportunity to graduate from universities in Romania and take their first steps in IT-developments. In a year, they reach the expert level and take on serious projects. Every Romanian specialist speaks fluent English, and this is more than in demand today. Market augmentation of application programming approached 20%.

Czech

In 2005, the Czech became part of the EU and since then the legitimate environment has allowed demonstrating industrial stability. In the WEFGCI its economy is firmly rated 32nd on the current reports. Moreover, the Czech hosts the branches of global software powers such as IBM, Microsoft, Red Hat, and others. The Czech’s a low-risk country in terms of farming out.

Advantages of Software Programming Farming out in Eastern Europe

Subcontracting in Eastern Europe is considered the most practical solution for the owners of large corporations. The countries of the Eastern part of Europe are fully credible and there are compelling reasons for this:

1. Not overpriced concerning professional skills. As they say, cheap is never good and European developers get more than their Filipino counterparts. However, the quality of the programming is much higher, considering this fact the price seems to be quite acceptable.

2. Medium context culture. Experts from Eastern European countries are forthright in relations and culture is in many ways similar to people from Western Europe or the US. They are reasonable in discussing serious issues and able to express their point of view.

3. Time zones allow us to interact efficiently. Spreadsheet designers can work both offshore and nearshore thanks to the TZ of EE. The distinction between EET and UK outsourcers is approximately two hours, whereas much more with the US. Nevertheless, they allow several hours for synchronizing with each other.

The Insecurity of Distant Subcontracting in EE Countries

The favorable economic climate in Eastern Europe doesn’t mean an absolute paradise for outsourcing in the field of software programming. We will consider each pitfall thoroughly and come to an appropriate conclusion. Redistributing risks in Eastern Europe arise as a result of the following reasons:

  1. software developers may find a better deal and leave;
  2. incorrect billing method;
  3. data leak.

Developer’s Leaving

This is a frequent situation when after transferring software upgrowth services to delegating corporations in Eastern Europe, programmers begin to disappear. It happens because the information technology market in Eastern Europe is enormously competitive. Any tempting offer from another firm can take a developer away. Besides, if the labor relations on a new project are better, they will be lured there immediately.

Incorrect Billing Method

Offshore development groups tend to bill at an hourly rate. Often this happens dishonestly, that is, there’s a billed sum for more time than they actually spend. Thus, you should set a fixed price and check what you pay for. The payment amount must be specified in the redistributing contract.  

Information Leak

The leak of information from the database is a rare case, but not unprecedented. Nobody wants to see his confidential data in third-party resources. What about the disclosure of trade secrets? It is terrible, but sometimes it occurs in offshore software development. The reason is obvious – signing a contract without the NDA. It’s too bad to be a lubber and make such mistakes. 

These are the main problems that are faced by those who decide to work with software through outsourcing.