When any business needs instant access to highly-skilled IT engineers, they have to either try to hire them in-house or go for one of the 5 top IT outsourcing destinations worldwide. As outsourcing IT operations to a reliable provider becomes a new mainframe, we highlight the best choices for starting your IT outsourcing cloud computing project.
To begin with, there are multiple IT outsourcing destinations across the globe. While some specialize at providing services for a specific location, nobody prohibits you from working with an IT outsourcing company across the hemisphere like https://itsvit.com/, if their pricing and expertise meet your project requirements.
Thus said, the major IT outsourcing powerhouses are:
China — for government-backed Chinese and American companies
India and the Philippines — for all of South-Eastern Asia and Japan
Eastern Europe — for the EU and the US
Let’s take a closer look at what these IT outsourcing destinations have to offer to their customers.
China is huge and is a conglomerate of governmental and private businesses, who work in close tandem to achieve their goals. Chinese hackers are the best according to multiple surveys and popular beliefs. China pours huge sums of money into developing their own cloud (Alibaba Cloud), Big Data and AI algorithms. China offers great salaries to expats and attracts talents from all countries to bolster their already formidable force of IT specialists.
Thus said, there is no shortage of skilled IT engineers in China, many of whom are engaged by IT outsourcing companies. The key benefit of Chinese IT outsourcing companies is much more affordable pricing, as compared to hiring the US or European businesses, so you save up to 50% as compared to working with US contractors. The main disadvantage, however, is the lack of fluent English skills, so miscommunication is always a possible issue. In addition, one might be sure that when a Chinese contractor does the job for them, they will also make a copy for themselves and market it as their own product.
India and the Philippines
India and the Philippines have been one of the first regions to emerge as outsourcing IT hubs, due to the availability of cheap landline Internet access and lots of English-speaking tech-savvy individuals. These countries were housing outsourced call centers for companies from Singapore, Taiwan, and Hong Kong for decades. In addition, the costs of living in India are so small that their developers are literally dirt-cheap, so you save about 80% on the budget.
However, their role now in sharp decline. When people that worked at call centers tried to enter the software and web development alley, it turned out that merely knowing English does not substitute the fundamental understanding of software building principles. “Indian code” became the byword for subpar software development and Philippinians are in political turmoil for the last decade or so, which significantly raises the risks of working with them.
Poland, Ukraine, the Czech Republic and Romania are in the spotlight of modern IT outsourcing industy. DevOps engineers, software developers, AI and Big Data architects from these countries regularly get high praises from HackerRank, Stack Overflow and other reputable IT communities. Ukraine was named #1 IT outsourcing destination in 2017 and continues to grow its IT industry by approximately 30% YoY.
Ukrainian, Polish and Romanian IT outsourcing companies have a good cultural fit with their EU and US customers, they have fluent English, deliver high-quality solutions in general and hiring them is still about 30%-40% cheaper than building an in-house team in the EU or US. You also don’t have to pay for them once the project is completed, but this applies to working with any IT outsourcing company, of course.
Conclusions: select the best fit for you
Thus said, there are risks and considerations that need to be addressed regardless of what of the top IT outsourcing countries you locate your project in. In addition to quality and schedule factors, you must think of possible IP violation from the Chinese or overestimates of their abilities from Indians.
The best way to address these concerns is by doing your homework and forming a dossier on your potential contractors. Ask for references to their previous projects, access their customer reviews, try to dig up some negative feedback — this way you will be able to filter out all bad candidates and select the best fit for your business.