Software Development in Eastern Europe [Epic Overview]

Software Development in Eastern Europe Statistics

Digital transformation is accelerating, penetrating deeper into more industries, and this process will not stop in the near future. Technology adoption drives companies to develop new and better software solutions that enhance business workflow and ease its management system.

With the growing demand for innovative software, the need for a qualified and experienced software development team is rising respectively. More and more global organizations consider Eastern Europe a suitable option for hiring from abroad. This region has several advantages, and a large talent pool along with reasonable service prices are a few of them.

In this article, we will give you a detailed overview of outsourcing software development to Eastern Europe. We will discuss the key facts about it, the top offshore software development Eastern Europe companies, top countries, and their pros, and cons. Here, you will find all the necessary details that will help you to choose the right outsourcing destination, pick the right company and fully benefit from collaboration with a trusted partner. The information we offer will be useful for big corporations and medium- and small-sized businesses. Let’s get started!

Eastern Europe Software Development Market Overview

What does it take to create a great product? The first and foremost component is people. Software development in Eastern Europe is a vast sector that counts over 1.3 m developers and this number will only keep growing in the next few years. In addition, there are between 4,500 and 6,500 software development outsourcing vendors in Eastern Europe.

Among the most popular programming languages used by software developers in Eastern Europe, it’s possible to name JavaScript (65.3%), HTML/CSS (55%), SQL (49,3%), and Python (48%). These are used in developing new software solutions that can fully transform businesses and make them grow exponentially.

Leading tech companies tend to outsource to Ukraine, Poland, the Czech Republic, Romania, and Bulgaria due to the immense talent pool and reasonable prices.

The region has well-known technical universities, like

  • the National Technical University of Ukraine “KPI”
  • AGH University of Science and Technology in Poland
  • University Politehnica of Bucharest
  • Warsaw University of Technology

For example, computer science education in Ukraine is considered one of the most powerful in Europe-wide. It’s worth noting that up to 40K students graduate from Ukrainian universities yearly. In this country, there are 9 universities with the best iT programs which are also recognized by Times Higher Education World University Rankings.

These universities guarantee high-quality education and give hands-on experience to have relevant knowledge and a chance to master their skills.

The software industry is boosting in this region as the countries have a favorable environment for investors. Low taxes make it an attractive destination for outsourcing.

Developers from Eastern Europe have a strong command of written and spoken English that guarantees easy communication. Strong tech educational background, high English proficiency, and devotion to work make Eastern Europe a preferable global organization choice.

There is a shortage of talent in countries like the US and the UK, so searching in European countries for the right professionals is a suitable option to fill up the available positions.

Kyiv Ukraine

Top Eastern Europe Countries for Software Development Outsourcing

The best countries in Eastern Europe include:

  1. Ukraine
  2. Poland
  3. The Czech Republic
  4. Romania
  5. Bulgaria

These are the countries we will discuss in detail in our article. They have a lot of potential in terms of available experts, economic environment, cost-effectiveness, etc.

Ukraine is one of the most popular offshoring destinations housing skilled and professional developers in Eastern Europe. Poland, the Czech Republic, Romania, and Bulgaria are members of the EU, so they work according to high EU standards regarding the security measures applied to data and intellectual property.

10 Top Software Companies in Eastern Europe

Software Development Companies in Eastern Europe

  1. Yalantis
  2. N-iX
  3. Intellectsoft
  4. Andersen
  5. iTechArt Group
  6.  Itransition
  7. The Software House
  8. Inoxoft
  9. Intellias
  10. IBA Group
  11. Ciklum
  12. Kanda Software
  13. Altamira

If you are looking for the best software development in Eastern Europe, down below you will find the list of companies that offer quality services and solid tech expertise.

Yalantis

Yalantis is considered one of the most-rated companies and delivers the best software development in Eastern Europe. They have more than 13 years of experience and have tech centers in Ukraine and Cyprus. Among their main clients, it’s possible to name Toyota Tsusho Corporation, KPMG, Zillow, and others.

Yalantis operates in healthcare, logistics, fintech, real estate, and telecommunications. They have more than 500 specialists on board to help clients build tech innovations, extend their teams, and enhance their existing systems to drive business value and ensure sustainable growth.

The company has extensive experience designing and delivering stable, scalable, and functional digital products of different complexity.

The list of main services offered by Yalantis:

  • SaaS development
  • End-to-end business solutions
  • Digital transformation
  •  Mobile software products
  • Cloud & DevOps
  • BI, Analytics, Big data
  • IoT
  • Cybersecurity
  • High load systems
  • UI and UX design

N-iX

This one is one of the top software development companies in Eastern Europe. Located in Lviv, Ukraine, N-iX has been operating in the market since 2002 and offers a wide range of software development services to companies across the globe. The company partners with businesses while helping them to build successful engineering teams as well as software products to solve problems through the power of innovation.

They offer software development in Eastern Europe but have offices not just in Ukraine and Poland, but also in Malta, Sweden, and the US. N-iX operates in a variety of industries that include telecommunications, fintech, manufacturing, logistics, healthcare, and more.

The list of main services offered by N-iX: 

  • Full-cycle software product development 
  • Development of MVP
  • Software architecture design
  • Development of native iOS and Android apps
  • Cross-platform mobile solutions
  • Custom software development
  • Open text services
  • SAP consulting
  • Cross-platform game development
  • Game art production
  • QA and testing

Intellectsoft

Intellectsoft is a digital transformation consultancy and outsourcing partner in software development in Eastern Europe that has been in the market since 2007. The mission of the company is to assist Fortune 500 companies, startups, and mid-sized companies accelerate the adoption of the latest technologies and boost their digital evolution. Intellectsoft’s team leads the development process from ideation to the final product launch and provides ongoing product support.

Intellectsoft became a reliable digital transformation partner for many companies across the world. Its major clients include Guinness, EY, Jaguar, Eurostar, Harley-Davidson, Cirrus Insight, and so many more. The key technologies are IoT, blockchain, and customer services applicable to numerous industries — including construction, healthcare, fintech, and hospitality.

Intellectsoft has been named one of the highly-rated software development B2B companies in 2021 by Clutch and gained multiple awards from platforms like The Manifest, Inc. 5000, and IT Firms as one of the most highly ranked Eastern Europe software development companies.

The list of main services offered by Intellectsoft: 

  • IT consulting
  • Custom software development
  • Full-stack mobile, web, and desktop application development
  • Dedicated development team
  • Product engineering
  • Architecture
  • UX/UI design
  • Legacy product re-engineering
  • App developers
  • QA and testing
  • Cyber security
  • Web development
  • Outsourcing software development services

Andersen

Here is another pretty renowned company that offers software development in Eastern Europe. They have a very strong pool of technical experts with robust expertise who can augment your in-house workforce.

Established in 2007, Andersen provides the unique skills and knowledge of more than 3000+ developers, as well as QA engineers, business analysts, and other software development professionals.

Now, Andersen represents a big and mature organization that excels in helping businesses achieve the best possible IT outcomes while meeting all business needs and sharing their excellent expertise.

Andersen possesses a deep knowledge of financial services, logistics, and healthcare industries. The company made its own contribution to projects of globally-known corporations including Siemens, S&P Global, Ryanair, IHS Markit, TUI, Johnson & Johnson, T-Systems, and others.

The list of main services offered by Andersen: 

  • UX/UI design
  • Mobile app development
  • Web development
  • Custom software development
  • IT staff augmentation
  • Solution architecture
  • Project management & analysis
  • DevOps services
  • Product development services 
  • IoT development services

software development team

iTechArt Group

This top-rated software development company located in Eastern Europe equips startups with teams of dedicated engineers since 2002. iTechArt Group enables them to scale from MVP to becoming a scalable and promising product.

The key focuses of iTechArt Group fall in the financial services, medical, education, and gaming fields. Their major service lines relate to mobile apps and custom software development. However, it’s worth saying that, unlike other organizations, it also provides CRM consulting and SI services.

This company possesses extensive experience in web, mobile, cloud, DevOps, and emerging technologies.

They have 3,500 developers on board who deliver high-ROI and high-performing software solutions and products.

iTechArt Group has partnered with more than 350 large companies, and it’s possible to name ClassPass, Gain Capital (forex.com), Merkle, Barchart, BuildingLink, and many others among their key clients.

The list of main services offered by iTechArt Group: 

  • Web application development
  • Custom software development
  • Mobile development
  • QA & testing
  • Cloud computing
  • UI/UX design and development 
  • DevOps
  • AI-powered application development
  • Blockchain-based application development

Itransition

To your attention is another company that sells software development in Eastern Europe with extensive experience and a big range of professional services.

They have a great reputation as a trusted global software development company with 20+ years of professional experience and presence in the market. Itransition delivers a wide spectrum of software consulting and development services to clients worldwide.

The company has more than 3000 IT professionals with powerful and proven skills. Their employees apply all the latest business knowledge and methodologies to effectively cope with software projects of different complexity and scale.

Itransition has proven its professionalism and has been recognized by many industry authorities and gained multiple awards like The Software 500 by Software Magazine and Technology Fast 500 by Deloitte.

The list of main services offered by Itransition: 

  • Custom Software Development
  • Software Product Development
  • Enterprise Application Integration
  • Technology Consulting
  • Application Security
  • Software Testing & QA
  • Maintenance and Support
  • Dedicated Development Centers

The Software House

This Eastern European software development organization helps technology-oriented companies scale or build their development team with knowledgeable and experienced professionals while cutting down the costs and assisting businesses in their exponential growth.

The Software House has more than 200 developers on board with various expertise including DevOps, QAs, and designers. The main industries the company operates in are fintech and information technology, and it assists in building custom solutions and adopting innovations for startups and established institutions.

They are recognized by Clutch, Financial Times 1000, Deloitte Fast50, and ComputerWorld Top200 which is great proof of their reliability.

The list of main services offered by The Software House: 

  • Agile development teams on demand
  • Full-cycle product design & development
  • Product design
  • Cloud development
  • QA as a service
  • Modern software architecture
  • Cloud adoption & engineering
  • Cloud architecture, migration, maintenance
  • DevOps team augmentation

software developer

Inoxoft

Inoxoft is an international company with the main focus on software development in Eastern Europe. They have already successfully delivered a big number of amazing software products for international clients.

They have a reputation as a reliable provider of original software and as an expert at creating customized solutions. The main industries Inoxoft works with include healthcare, fintech, education, logistics, and real estate.

Inoxoft empowers its clients with tailor-made solutions and delivers first-class innovative products to enable organizations, enterprises, and companies to grow faster with a skilled workforce by their side.

Their teams specialize in the world’s best software technologies like Flutter, React Native, Python, .Net, React and Node.js, and many more

The list of main services offered by Inoxoft: 

  • Discovery Phase
  • Mobile Application Development
  • Web Development
  • Quality Assurance
  • UI/UX Design
  • Big Data analysis services
  • AI and machine learning services
  • Software development services for startups
  • IT system and software integration services

Intellias

This is another gem among the Eastern Europe software development companies as it mainly focuses on building digital solutions for Fortune 500 companies. Nevertheless, they also have a great track record of successful collaboration with foreign startups and mid-size organizations.

Intellias is a global digital consulting and software engineering partner that built software products for renowned brands like LG, Kia, and Swissquote Bank. They don’t just showcase exceptional tech skills and expertise in building top-notch solutions but also help clients to increase their IT and R&D capacities.

Intellias has been featured by Inc. 5000, named the winner of a Silver Stevie Award, and ranked the top employer among IT service providers by Forbes.

The list of main services offered by Intellias: 

  • Digital consulting services
  • AI, data science, RPA, and IoT development
  • Software engineering
  • Solution operations
  • End-to-end software development
  • Application development
  • Quality control & quality control automation
  • Performance engineering
  • DevOps
  • Cloud and platform adoption
  • Service reliability engineering

IBA Group

This software development outsourcing Eastern Europe giant has more than 3000 professionals on board with a headquarters in the Czech Republic and offices in Ukraine and Slovakia. The company serves clients all over the world in more than 40 countries.

IBA Group seamlessly delivers the most advanced and progressive software solutions while applying its diverse skills and expertise. Their robust quality orientation and cross-technology expertise guarantee on-time project completion.

IBA Group addresses the specific business needs of mid-size organizations and large corporations across several industries including banking & finance, IT, logistics, energy, telecommunications, manufacturing, retail, healthcare, and pharmaceuticals.

The list of main services offered by IBA Group: 

  • Custom software development
  • Mobile app development
  • Cloud computing
  • SAP services
  • Automated testing & support
  • Data engineering
  • Mainframe services
  • IoT, DevOps, Cloud, BI, Big Data, RPA+ML

colleagues

Ciklum

Ciklum is a global digital solutions company that also offers software development outsourcing in Eastern Europe. The company works with multiple clients of different sizes starting from small businesses to large enterprises. They operate in information technology, retail, financial technology, as well as other domains.

This outsourcing service provider has over 3,500 professionals who build tailored digital solutions and boost the adoption of the latest tech innovations. Among their clients, it’s possible to name Just Eat, Metro, Flixbus, Mercedes Pay, EFG International, Zurich Insurance, Lottoland, and many more.

Ciklum is known for building solutions that have proven market value and for enhancing digitally immature products. In addition to their exceptional tech expertise, they also offer robust digital consulting services aligned to each specific business goal.

The list of main services offered by Ciklum: 

  • Digital commerce
  • Robotic Process Automation
  • Cyber security services
  • Application development
  • Data & analytics solutions
  • DevOps
  • Quality engineering & testing
  • Managed services

Kanda Software

Kanda is one of the highly-rated software development companies in Eastern Europe. It is a full-service software engineering, digital transformation, and QA partner which specializes in the development of innovative SaaS, mobile, and on-premises solutions.

They possess strong domain expertise and a big number of engineering talent who can share their best skills and practices for creating impeccable solutions.

With 25+ years of presence in the IT  market, Kanda delivered over 3000 products for their clients all over the world varying from big corporations to startups across finance, healthcare, and education sectors.

The list of main services offered by Kanda Software: 

  • Custom software development
  • Software design, architecture, and prototyping
  • Cloud engineering and migration
  • Business intelligence solutions
  • Data analytics and warehousing
  • Legacy software modernization
  • Solutions integration
  • Digital transformation services
  • DevOps services
  • ML and AI development services
  • Maintenance and support
  • Software QA and testing services 

Altamira

Formerly known as GBKSoft, Altamira was founded in 2011 and its talented team aims at bringing innovations to businesses in order to digitally transform their daily operations and improve their internal services.

Altamira operates in the field of healthcare, logistics, fintech, and IoT. They offer a wide spectrum of services starting from custom ERP development or mobile app development to team extension services for worldwide clients.

Throughout their market presence, they have completed around seven hundred projects while maintaining the highest quality of end products.

The list of main services offered by Altamira: 

  • Discovery phase
  • MVP development 
  • Dedicated and extended teams
  • Design
  • Consulting
  • Cloud solutions
  • Embedded software development
  • BI & Data science
  • Machine learning & AI product development
  • IoT
  • DevOps

Eastern Europe Software Development Costs

There are plenty of pros and a few cons of hiring developers in Eastern Europe. The main advantage of collaborating with this region is their reasonable rates per specialist.

As mentioned above, the salary rates for software development in Eastern Europe are lower than in the US, the UK, and other developed countries.

The statistics at PayScale show that the average software developer salary in the US is around $75000 and goes up to $105000 a year. The rates in the UK are between $50000 and $82000.

The average rates for the software developer position in Eastern European countries are the following:

  1. Ukraine - avg. $3000 per month;
  2. Poland - avg. $3100 per month;
  3. The Czech Republic - avg. $3600 per month;
  4. Romania - avg. $1700 per month;
  5. Bulgaria - avg. $2200 per month.

For example, take a look at the average software engineer salary of Ukrainian developers depending on their level of seniority and the programming language they use.

Software Developers Rates

It’s crucial to understand that the software developers rates differ from one company to another and are influenced by multiple factors that are hard to generalize and predict. Our main recommendation is to choose one or two potential software development partners and contact them directly to discuss your project details. The final rates will depend on the technologies used, length of collaboration, team composition, industry, etc. They will analyze your business needs and will give you project estimates based on which you can plan your budget.

Software Development Daily Rates in Eastern Europe

Hiring from abroad lets you employ engineers to complete different projects, starting from the shortest ones. It is possible to find an offshore partner that will provide you with the necessary resources for the short-term project that can take several hours.

Software developers' salary rates in Eastern European countries let us understand that the hourly rates are also lower than those in the US, the UK, Germany, etc. For instance, the US medium hourly rate is $45-80, the UK - $30-70, and Germany - $32-75.

As for Eastern European countries, the rates for outsourcing services are as follows:

  1. Ukraine - $30-60;
  2. Poland - $40-56;
  3. The Czech Republic - $39-58;
  4. Romania - $31-51;
  5. Bulgaria - $39-56.

The numbers speak for themselves. Businesses can pay less when hiring from countries in Eastern Europe, but the quality of a product and work overall will be the same as if you have been working with engineers from developed countries.

Still, the average hourly rates vary in different companies, and they can be higher. It is essential to check the rates with the company before you start hiring their team.

Poland, Romania, Ukraine, Bulgaria, or the Czech Republic: Which One to Choose?

Choosing the right location and company for outsourcing requires a lot of time and effort. We have conducted our research and compiled data for each country, including the following criteria: number of software developers, most popular programming languages, main IT hubs, and famous startups.

Here is a comparison table that will give you an essential overview of the key facts that can help you make the right decision. As you can see, Ukraine and Poland have the biggest number of qualified developers. Although their rates are a little bit higher than in other countries, you can be sure you will get access to a wide talent pool of IT specialists with various tech expertise and vast experience which is worth the investment. Take into consideration the main programming languages which prevail in countries and know what you are looking for.

Software Development in Eastern Europe Comparison

And down below you will find some extra information that will give you a more deep insight on the IT market of each country so you pick the best option for you.

Software Development Market Overview in Ukraine

IT market in Ukraine is very dynamic and grows every year by 20-30%. The experts predict that in 2025 Ukraine’s income from exported IT services will reach $8.4 billion.

Nowadays, more than 4 000 companies and more than 200K developers in Eastern Europe operate in their IT market. Large corporations like Oracle, NEC, Amazon, etc., have their R&D centers in Ukraine.

In Poland, the revenue from exporting software development services is expected to reach $13 billion in 2022.

How Many Software Developers are There in Poland?

Poland has the largest number of software engineers when compared to other Eastern European countries. There are around 280 000 developers in the country. Ukraine is the second with 200 000 engineers, 3rd - Romania having about 116 000.

Polish tech universities give high-quality education to over 15 000 IT specialists each year.

What are the Top Programming Languages in Bulgaria?

The statistics show that SQL and JavaScript are the most popular programming languages in Bulgaria, following Java, PHP, Python, C++.

JavaScipt, Java, and SQL are among the top languages in other Eastern European countries. Apart from this, you can find specialists who have a professional command of other, less popular programming languages.

IT Startup Scene in the Czech Republic

The Czech Republic ranks as the 6th most comfortable country for startups in Europe. It has a pleasant environment and government support that helps young companies develop and grow into big corporations. Czech startups mainly focus on SaaS, mobile, and web software development.

team working

In a Nutshell

Collaboration with a software development company in Europe can bring you numerous opportunities and benefits. More and more companies opt for nearshore software development as it’s more cost-effective and gives access to a wide talent pool of qualified professionals. Eastern Europe is a developing region that has great potential in the IT sector. There are many destinations and companies you can partner with.

Intellectsoft can become your future trusted and long-lasting vendor and guide you on your digitalization journey. Our team has more than 15 years offering outstanding software development services to clients all over the world. We are knowledgeable in the most widely used modern technologies and collaborate with clients across healthcare, construction, fintech, hospitality, and other industries. Take a closer look at the full list of services we provide.

In addition, feel free to check out our prominent client cases that will demonstrate how we solve business challenges through an effective digitalization strategy.

If you have any questions or want to discuss potential collaboration with Intellectsoft — don’t hesitate to contact us and our managers will be happy to assist you and give more detailed information regarding any service you are interested in.

FAQ 

How much does it cost to hire software developers in Eastern Europe? 

The software development costs depend on multiple factors. Hiring Eastern European developers is a very cost-effective strategy that will help you save up to 40% on development costs. However, the pricing depends on the destination you choose. Ukrainian software developers are the most renowned for their price-quality balance. We recommend you contact your vendor directly and discuss the pricing. They will take into account the tech skills you are looking for, seniority level, team structure and composition to help you clearly define your software development budget.

How to choose the right outsourcing vendor? 

Picking the right software development partner is not a very easy task. The market is overflowing with companies and service providers. If you decided to go for Eastern Europe then we highly recommend you pick from the companies we reviewed in the article. All of them are established businesses with impeccable reputations and track records of successful collaborations. To make the final decision, check out their website to get familiar with their services and previous clients. It’s also obligatory to also visit the platforms like Clutch or GoodFirms to see the client’s direct reviews and evaluate if it’s the right match for you.

What software can they develop for my business? 

All companies have their own focus on certain industries. For example, Intellectsoft operates across healthcare, fintech, construction, logistics, hospitality, insurance, and retail sectors. If you represent a business in one of them, you should contact us to discuss what types of software you are interested in or what challenges you want to overcome. Our team will offer you possible solutions and assist you in developing the right software that will help your company grow exponentially, boost client satisfaction, and drive bigger revenue.

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