Nearshoring in Europe: Choose the Best Country for IT Outsourcing

IT outsourcing is becoming more and more popular as an effective and profitable model for business. Nearshoring is one of the beneficial types of outsourcing, which predisposes various advantages. So, which of the European countries is the best for IT nearshoring?

 

Outsourcing vs. Nearshoring

If we compare these two notions, outsourcing has a slightly broader context, as well as involves a different procedure to apply the business model. Thus, outsourcing implies the collaboration between companies while working on a project. On the other hand, nearshoring is one of the outsourcing types peculiar for its collaboration with a bordering country (a country situated within the same time zone). 

The primary advantages of nearshoring are:

  • close proximity;
  • convenient time zone which does not exceed two hours;
  • variable capacity and increased efficiency;
  • access to multiple skillful workers and resources.

Opening an offshore development center in the nearshore country provides an opportunity for the company to engage many IT talents, as they are always interested in working for product companies. Hence, offshore outsourcing is a perfect chance to get the best software engineers who are ready to do their best for succeeding in cooperation with the originating company.

 

Nearshoring in Europe

Nearshoring in Europe predisposes a wide range of opportunities. Such countries as Ukraine, Poland, Czech Republic, and Romania offer their skilled talent pool. In order to choose the best country for nearshoring, it’s important to make some in-depth analysis of the local market.

The best option should correspond to such criteria: 

  • easy to reach;
  • offering quite low labor costs yet talented and skillful tech specialists;  
  • fluent communication in English;
  • no cultural gaps.

Why Ukraine is the Best For Offshoring

There is a need to draw a parallel between the Ukrainian IT market and other popular European destinations for outsourcing. Ukraine is the country with a well-developed IT market and infrastructure represented by over 190,000 highly competent and talented tech specialists (in contrast to 110,000 IT specialists in Romania 160,000-250,000 in Poland). The low tax rates, which are approximately 5% of a single payroll tax for software engineers, is one more benefit to consider. For comparison, the payroll tax for software engineers in Poland ranges from 13% to 19% as an addition to other employer taxes.

It is a well-known fact that in Ukraine developers are results-oriented, meaning that they want to create value for the business via coding rather than just do programming, – Ukrainian engineers care much about the product development.

A convenient time zone (GMT+2) and high level of English language skills of tech specialists are also beneficial in terms of nearshoring to Ukraine. If you need to get more detailed information about how to hire Ukrainian developers, the Alcor group can help you find competent and skillful IT specialists and provide highly-qualified support for your offshore development center – that includes HR payroll, legal compliance, real estate support, etc.

As mentioned above, an offshore development center is the best option for cooperation with companies situated in Ukraine and other European countries. Subsequently, the central benefit of this business model is the opportunity for tech companies to hire dedicated software engineers and control product development at the same time.

 

Conclusion

Nearshoring in Europe is a beneficial and profitable way to find the best tech talent and succeed in nearshore development. Ukraine is a country that offers a wide range of opportunities due to reputable and dedicated software engineers ready to work on various IT projects, a well-developed market, and rapid development. Hence, offshore development centers in Ukraine can help the company attain a reputable business partner.