Top Countries in IT Outsourcing in 2022

Last updated on 

January 7, 2022

by

The VA Reviewer
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Outsourcing a company’s software development has become a new trend and a tried-and-true cost-cutting approach. Around 75% of businesses outsource their IT services at a lesser cost than an in-house workforce. 

Finding suitable employees to handle your company’s needs might be an ideal match for any company, including a fresh start-up.

The “best” outsourcing countries are in a constant state of rivalry. Various disruptors to the business, such as automation and increased concerns about cyber security, are predicted to throw the rankings for a loop towards the end of every year.

The following is an in-depth look at the top outsourcing countries and the reasons why corporations choose them and their expertise.

India

With 14 “super cities” ranking top the list for service globalization, India is a veteran in the field and a prominent industry leader. Despite the obstacles brought by the pandemic, the country was ranked second in the Tholons Top 50 Digital Nations and seventeenth in the Kearney Global Services Location Index this year. According to the Tholons report, the country also has 14 supercities.

Aside from its 24/7 service and cutting-edge technology, it is proud of its top talent, specializing in IT and software development.

Ukraine

Ukraine has emerged as a go-to destination for outsourcing work and one of the best top software outsourcing countries, particularly for web and software development, thanks to many educational opportunities and an increasing number of IT specialists graduating from universities and private schools each year. There is a wide array of talent in Ukraine that goes unappreciated.

Not only does Ukraine have a large number of ready-to-work web and software developers, but it also has many international tech businesses, such as Grammarly. As a result, several of the world’s most well-known corporations, such as Google, Samsung, Apple, Siemens, and Magento, have hired Ukrainians and created R&D facilities.

With C++, PHP, Java, and Ruby as the most prominent programming languages, Ukraine has many specialists who lead the worldwide software outsourcing business in online and mobile development, machine learning, AI, and blockchain technologies. Their prices range from $25 to $50, depending on their level. Ukraine is the most suitable location for IT outsourcing.

Poland

Poland, like Ukraine, has a vast deal of untapped potential. In recent years, IT education has been in high demand, and Poland has emerged as one of the world’s IT leaders. 

Poland has ascended to third place globally in terms of experienced in-depth programmers, according to HackerRank’s outsourcing statistics. In recent years, IT education has been in high demand, and Poland has emerged as one of the world’s IT leaders. 

It has attracted numerous organizations looking for new talent due to its standing as one of the top countries in the software sector. Their IT industry market is worth over $9 billion, with over 60,700 active software development companies. It has gone to the top of the list of software outsourcing countries for the same reason.

With more than 30% of the population speaking English as a second language, their grasp of the English language is outstanding, which is one of the reasons why most US corporations pick Poland as an outsourcing location. Due to their better status, Polish coders will charge more than their Ukrainian counterparts, with charges ranging from $30 to $55 per hour.

Philippines

Along with India, the Philippines holds a special place in this country-by-country outsourcing ranking. Despite being severely affected by the pandemic, the Philippines have maintained their long history of highly outsourced work. A growing freelancer market appeals to many employers, making the country one of the top destinations for outsourcing work.

The country is ranked sixth in the Tholons index and provides low-cost services. You can outsource your software development for an hourly rate of $18 to $40 and get top-quality results in less time than you would normally.

The Philippines has one of the world’s largest English-speaking populations, with more than 92 percent of Filipinos fluent in English. Because there is no language barrier, most international companies find it easier to collaborate with us. 

Aside from that, the country offers low costs for outsourced services, making the Philippines a less expensive option. Finally, the Philippines has a growing freelance market and e-commerce, making it one of the top outsourcing destinations.

United States of America

Only recently, the outsourcing industry in the United States gained popularity. Domestic or onshore outsourcing has grown in popularity since 2017 due to the massive pullout of companies.

In Tholons Digital Nations this year, the United States ranked first out of 50 countries, followed by India. The country is well-known for its technical support and IT-related services.

Argentina

Argentina has secured its place in this outsourcing ranking by country by investing in its education system and providing a plethora of free educational opportunities. 

When you combine their educational system with the fact that roughly 70% of students combine their studies with practical work in the form of internships and jobs, it’s easy to see why Argentina has a large pool of talent to choose from. Experienced specialists in software and mobile development, DevOps engineering, and cloud computing can be found. 

In Argentina, you can hire an expert in these fields for between $30 and $50 per hour.

Brazil

Outsourcing in Brazil has become unrestricted due to the Outsourcing law signed in 2017 and the subsequent Supreme Court decision.

Apart from secondary services such as janitorial work, this has enabled companies to outsource core duties in the country. Tholons ranks the country fourth in IT outsourcing, and it has been dubbed an alternative to India since 2010.

South Africa

South Africa, ranked 12th in Tholons Digital Nations, is now the third-largest emerging BPO geography, competing with India and the Philippines. With the help of impact sourcing, the country’s BPO industry is also credited with contributing to economic and social growth.

South Africa specializes in contact center and information technology outsourcing, with most banking and finance, telecommunications, and healthcare clients.

Malaysia

Finally, Malaysia is a growing outsourcing destination. This year, it ranked third in the A. T. Kearney rankings. The country’s popularity in IT and IT-related services is growing.

However, it must catch up with neighboring countries regarding infrastructure and English proficiency.

FAQs

Why is outsourcing so hot right now?

Since then, outsourcing has grown in popularity to have a distributed workforce and expand into new markets. For example, an increasing number of small businesses hire virtual assistants to manage bookings and schedules on sites like Airbnb.

As a result of the COVID-19 pandemic’s disruptions, businesses outsource their services to continue operations. According to a technology firm NTT, 45 percent of 1,250 executives surveyed worldwide would choose outsourcing in the next 18 months. Meanwhile, logistics and e-commerce have their outsourcing companies’ demand balanced out due to the increased need for e-commerce services due to quarantines.

Which countries are the most reliant on outsourcing?

The United States continues to be the world’s leading outsourcing market. According to a KPMG report from 2017, 84.2 percent of outsourcing deals originated in the country. Following that are the United Kingdom and Europe. The United States, United Kingdom, and Australia are among the leading outsourcing markets, with contracts awarded to companies in the Philippines and India.

Singapore and Japan are two developed Asian countries that have begun to outsource their services.

Takeaway

The ongoing COVID pandemic has thrown many industries into disarray, forcing many companies to go remote and rely on outsourcing as their primary source of talent.

The best country for outsourcing your business needs is determined by your personal preferences as well as the type of work you require. Still, one thing is sure: outsourcing work can help you save money on projects and make better investments.

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