29 Jan 2020
5 Things US Companies Need to Know About Outsourcing Software Development to Eastern Europe
If you’re on the fence about outsourcing your software development to Eastern Europe, there are likely several questions in your mind. Will a language barrier or time zone difference make communication difficult? How will I monitor the progress and assure the quality of my project from thousands of miles away? How will payments be handled? How will I secure my intellectual property?
For a US-based company looking to cooperate with a remote team, these are all important questions to consider. In this article we’ll cover these questions and make a case as to why Eastern Europe may be the best location to outsource your development to.
1. The Nature of Competition and Ease of Talent Acquisition
Cutting down on overhead costs is, more often than not, the primary motivator when a company decides to outsource software development. In 2017, the annual median income of a software developer based in the United States was $106,710. As demand rises quicker than the number of available qualified developers, outsourcing to a more affordable and accessible talent pool becomes the ideal solution. The cost of living in Eastern Europe is much lower than in the US and outsourcing is a particularly competitive industry. As such, wages are significantly lower and hiring top talent becomes an affordable opportunity.
Saving money is a big factor, but outsourcing to the right location may in fact, prove to be beneficial in other ways. Before you outsource work, it is important to research the nature of the job market and available talent in that target region. Countries in Eastern Europe – particularly Poland, Romania, Ukraine, and Belarus – have ranked within the top 30 destinations for IT outsourcing worldwide. Due to the strong educational focus on science and engineering in these countries, they host some of the most talented software developers and engineers in the world. In Eastern Europe, the outsourcing market is popular and competitive; thus, it becomes easier to find reliable and highly skilled developers that will work hard to meet the needs of your company.
2. Cultural Similarities and Love for the US
Eastern Europe falls within the sphere of Western influence, where entrepreneurship is encouraged and Western business etiquette is expected. You’ll find that, just as culture is no barrier, neither is language. In major cities where most remote teams are located, many professionals speak English in their day-to-day lives. One of the main focus in education system is teaching English , as foreign countries are a one of the primary sources of business and economic activity.
Poland, in particular shares love for the United States. In a 2016 estimate, 74% of Poles viewed the US favorably, the highest rating for any European country. According to the United States Department of State, healthy political ties and strong economic growth in the country are primary reasons why many US companies choose to do business with Polish companies. A 2013 review stated that US companies have invested over $65 billion in corporate assets in Poland. The strong relations, cultural similarities, and tax incentives between the Unites States and Poland, make it the ideal Eastern European country to hire a remote team.
3. The Benefits of EU Membership
A great draw toward outsourcing development to Eastern Europe is that many countries – such as Poland, Romania and Hungary – are members of the European Union. Doing business with an EU member provides many benefits, including alignment with US businesses customs and greater competition in services. The EU aims to be a competitive agreement and economic alliance that is open for international business, making it easier to sign contracts, make agreements, and avoid legal issues when outsourcing.
Regarding the protection of intellectual property, the EU has worked to standardize, unify, and strengthen IP laws. On November 29th 2017, the European Union passed measures to further enforce intellectual property rights and to prevent counterfeiting and other illegal activities within the EU. These efforts focused on how to enforce IP laws, as well as how to make IP laws more effective in specific industries. When outsourcing the development of proprietary software, it is reasonable to be concerned for the security of your intangible assets. By doing business with an EU country, the property rights and laws established, will protect what is rightfully yours.
4. Time Zones and Travel
Unlike most of Asia, Eastern Europe is located within more convenient time zones – just several hours ahead of New York City’s Eastern Standard Time. This is favorable because your remote partners can contact you and easily be reached during standard business hours. Moreover, arriving a bit earlier or staying late an hour or two before longer calls should not be a problem.
What’s more, should you need to visit your remote partners in their home country, you will quickly find out that travel and staying in countries like Poland, Czech Republic or any of the Baltic States is both affordable and safe. Food, transportation, and lodging are inexpensive and convenient. Destinations tend to be very close to one another, people are friendly and welcoming, internet is widely available and often faster than it is in the United States. . All this should make visiting your software development team a pleasurable experience.
5. Teams That Work Specifically with US Clients
In Eastern Europe, some software development firms choose to work with US client exclusively. Why? This specialization is important when developing certain type of software, such as fintech apps or accounting products, which must comply with standard US laws and regulations as well as established systems in the United States. Security takes a front seat as well.
These remote development teams are careful to abide by all security requirements, measures, and procedures. Therefore, having worked with US clients for some time – they know exactly what their clients expect.
Do not Underestimate the Value of Outsourcing to Eastern Europe
Eastern Europe is a low-cost, high-skill outsourcing destination that, for US clients, do not have any cultural or language barriers as mentioned before. Choosing to work with a development firm based in Eastern Europe gives you the talent, flexibility, and cost-savings required to develop a superior product, all without sacrificing security or convenience.
There are many reasons why remote teams based in Eastern Europe are perhaps the best choice for US companies. The common values and respect for US business expressed by countries such as Poland are an excellent foundation to a long-term working relationship. Rigorous education systems and excellent price to quality ratio gives you access to some of the best developers in the world and allows you to achieve the ROI you’re looking for. Lastly, the protection and convenience offered by the European Union creates a favorable international business environment.
By outsourcing your software’s development to Eastern Europe, you can focus on the core of your business as well as your product’s road map, making strategic decisions with great flexibility. With top talent available, you will not only save money and time, but will have the resources necessary to release a better product.