Outsourcing software development has become one of the most practical and cost-effective strategies for businesses looking to scale, innovate, or simply get projects off the ground faster. With access to global talent, flexible collaboration models, and significant savings on operational costs, it’s no surprise more companies are looking overseas for development support.
At our company, this is one of our specialties — helping clients navigate the world of software outsourcing and find the best match for their needs. In this guide, we’ll walk you through some of the best countries to outsource software development in 2025, including a region that’s often overlooked but packed with potential: Southeast Europe. Countries like North Macedonia, Serbia, and Bulgaria are proving to be hidden gems in the outsourcing world — and we’re here to show you why.
As global dynamics shift—due to geopolitics, technological advances, or economic trends—businesses must regularly reassess outsourcing destinations. Staying current helps mitigate risks and maximise opportunities.
Key Factors When Choosing an Outsourcing Destination for Software Development
Before choosing where to outsource software development, there are a few key things we always tell our clients to look at. These factors don’t just apply to software — they matter across all the branches we work with, from mobile app development and IT to digital marketing, graphic design, customer service, accounting, admin, and sales. No matter the department, the right outsourcing destination will check all the boxes below:
Cost-effectiveness
Outsourcing is one of the most effective ways to reduce overhead while still getting high-quality results. In software development, offshore teams often deliver top-level work at a much lower cost than local hires. You’re not just saving on salaries — you also cut back on infrastructure, tools, and recruitment costs, giving you a leaner and more efficient operation.
Talent Availability and Expertise
Some of the most skilled software developers in the world aren’t based where your company is — but with outsourcing, you’re no longer limited by geography. The global market is full of highly trained specialists who are experienced, innovative, and ready to hit the ground running. Whether you’re building apps, working on backend systems, or launching new platforms, the right destination will have the talent you need.
Communication Skills and English Proficiency
For any outsourced collaboration to work, communication has to be seamless. That’s why we look at countries where English proficiency is high and work habits align with international expectations. In software development, where feedback loops and updates are constant, being able to clearly express ideas and requirements is a must — and we make sure that’s never a weak link.
Time Zone and Cultural Compatibility
Time zones don’t have to be a hurdle — they can actually be an advantage. Some teams can work while you sleep, others overlap just enough for real-time check-ins. What matters most is coordination and flexibility. When culture and communication styles match well, it’s easier to manage expectations, maintain productivity, and build long-term partnerships.
Political and Economic Stability
You want to work with teams based in countries that are stable, business-friendly, and safe from major disruptions. Especially in software development — where you’re trusting an external team with your systems, code, or customer data — political stability and clear legal frameworks play a huge role in risk management. We help our clients choose countries with the right mix of opportunity and reliability.
Top Software Outsourcing Countries: Regional Breakdown
Southeast Europe: A Rising Tech Outsourcing Hub
At Connect Macedonia, our mission is simple — we connect companies from all over the world with the best talent that Southeast Europe has to offer. From Macedonia to Serbia, Albania, and Bulgaria, we help businesses outsource smarter by providing access to highly skilled professionals, competitive rates, and smooth collaboration. Based in Skopje, we specialise in sourcing top-tier remote talent — the top 3% — across software development, digital services, and more. Our clients don’t just outsource; they scale efficiently, communicate in real time, and gain dedicated team members who truly understand their goals. With our support, offshoring feels like in-house teamwork — just without the overhead.
Macedonia
This is where it all started — and it’s still one of the most promising outsourcing destinations in Europe. Macedonia offers everything modern companies are looking for: a strong technical education system, impressive English fluency, and a workforce known for adaptability and loyalty. Local developers and digital professionals are skilled, driven, and easy to collaborate with. On top of that, our region’s time zone works perfectly with both European and U.S. clients. Macedonia is no longer just an up-and-comer — it’s a serious player. And as your local partner, we know exactly how to connect you with the right people here.
Serbia
Serbia’s tech sector has exploded in recent years, and for good reason. It’s now a go-to destination for software development, thanks to its deep pool of engineers, strong university programs, and business-friendly environment. English proficiency is high, and the culture aligns well with international clients. Whether you’re after frontend developers, QA engineers, or full-stack experts, Serbia has the talent — and we’re here to help you find it.
Albania
Albania is one of the most overlooked countries in Europe when it comes to outsourcing — and that’s a mistake. The country has made big moves in tech and education, producing young professionals who are sharp, ambitious, and eager to work with international teams. Competitive pricing and proximity to Western Europe make Albania a strong strategic choice. We’ve built strong relationships here, giving our clients early access to a growing market of talented professionals.
Bulgaria
Bulgaria combines the best of both worlds: EU standards and affordability. With a well-developed tech sector and strong government support for innovation, it’s no surprise that global companies are increasingly turning to Bulgarian teams for software development and IT services. English is widely spoken, and the legal protections of being in the EU make it a safe and reliable place to build long-term partnerships. We make it easy to tap into Bulgaria’s tech ecosystem and build your team with confidence.
Global Leaders in Software Outsourcing
Asia:
- India: continues to dominate the global software outsourcing landscape, commanding over 55% of the market share . The country boasts a vast pool of over 4.5 million IT professionals , making it an attractive destination for companies seeking skilled developers.
In 2025, India’s IT outsourcing market is projected to reach a revenue of approximately $12.72 billion, with expectations to grow to $20.81 billion by 2029. The United States remains India’s largest client, with 59% of American companies outsourcing to Indian firms. India’s strengths lie in its cost-effective solutions, a highly skilled workforce, and a robust infrastructure that supports a wide range of IT services.
- Vietnam: has rapidly emerged as a formidable player in the global software outsourcing arena. The country’s IT outsourcing market is expected to reach $792.60 million in revenue by 2025, with a compound annual growth rate (CAGR) of 11.77% projected through 2029.
Vietnam’s appeal lies in its young and tech-savvy workforce, with approximately 78% of the population under the age of 35 . The government has been proactive in supporting the IT sector, implementing policies that foster growth and attract foreign investment. Additionally, Vietnam offers competitive pricing, with outsourcing rates up to 50% lower than traditional hubs like India.
- The Philippines: The Philippines has solidified its position as a global leader in business process outsourcing (BPO), with the industry contributing approximately $38 billion to the economy in 2024.
The country is home to over 1.57 million full-time BPO employees working across more than 800 companies. The Philippines’ strengths include a highly English-proficient workforce and a strong emphasis on customer service. These factors make it an ideal destination for outsourcing not only customer support but also IT services, including software development.
Eastern & Central Europe:
- Poland: Poland has solidified its position as a premier software outsourcing destination in Central Europe. With a robust IT infrastructure and a highly skilled workforce, the country is projected to generate approximately $3.84 billion in IT outsourcing revenue by 2025, with expectations to reach $5.38 billion by 2029.
The nation’s tech ecosystem is bolstered by over 600,000 IT professionals, supported by esteemed institutions like the University of Warsaw and AGH University of Science and Technology. Poland’s commitment to technological advancement is further exemplified by significant investments from global tech giants, including Google’s initiative to enhance AI capabilities in energy and cybersecurity sectors.
- Ukraine: Despite facing geopolitical challenges, Ukraine’s IT industry has demonstrated remarkable resilience and growth. The sector is projected to generate $1.2 billion in IT outsourcing revenue by 2025, with a compound annual growth rate (CAGR) of 9.58% leading to an estimated $1.73 billion by 2029.
Ukraine boasts a vast pool of over 363,000 IT professionals, with the number of tech specialists growing by more than 7% in the past year . The country’s emphasis on education, producing over 23,000 qualified IT graduates annually from 181 universities, ensures a steady influx of skilled developers.
- Romania: Romania is rapidly emerging as a key player in the Eastern European software outsourcing landscape. The IT services market in Romania is expected to generate approximately $1.38 billion in revenue by 2025, with IT outsourcing accounting for $506.7 million of this figure.
The country is home to a growing tech workforce, with approximately 250,000 IT professionals contributing to its vibrant tech scene. Romania’s competitive advantages include a high level of English proficiency, cultural compatibility with Western Europe, and a favorable business environment supported by government initiatives aimed at digital transformation
Latin America:
- Brazil: Brazil has emerged as a prominent player in the global software outsourcing market, particularly appealing to North American companies due to its minimal time zone differences. The country’s IT outsourcing sector is projected to reach a revenue of $23.67 billion by 2025, driven by government policies and economic recovery efforts.
Brazil boasts a large pool of skilled IT professionals, with a strong emphasis on education and training in technology fields. This, combined with cultural compatibility and language proficiency, makes Brazil an attractive destination for software development outsourcing.
- Argentina: Argentina is gaining recognition as a cost-effective and high-quality software outsourcing destination. The country benefits from a strong education system, producing a steady stream of well-trained IT professionals. Additionally, Argentina offers competitive rates for software development services, making it an appealing choice for companies seeking quality work within budget constraints.
The Argentine government has implemented policies to support the tech industry, fostering an environment conducive to growth and innovation. This, coupled with a growing number of tech startups and a focus on digital transformation, positions Argentina as a rising star in the global outsourcing landscape.
Conclusion
When it comes to outsourcing software development, the world is full of possibilities — but not all of them are obvious. While the usual names like India or Brazil dominate the headlines, we encourage you to look beyond the well-worn paths and explore opportunities others might overlook.
We focus on connecting you with the right talent in the right places, and that doesn’t always mean the biggest or most popular markets. Southeast Europe offers everything you’re looking for: skilled professionals, competitive rates, strong communication, and a work culture that fits. You don’t have to settle for what everyone else is doing. We’ll guide you to the options that truly fit your goals — even if they’re a little off the radar.