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Tech 7 minute read

Nearshoring to Eastern Europe

Peter

Jan 28

Eastern Europe has been gaining in popularity when it comes to nearshoring. Companies from the rest of Europe have been outsourcing their work to countries like Serbia, Croatia, Poland, the Czech Republic, or Ukraine. There must be a good reason a lot of companies try nearshoring to Eastern Europe. The software development outsourcing industry in these countries has been rapidly growing throughout the past couple of years. Finding a nearshoring partner in some of them is most probably going to be great for your general business plan. What makes nearshoring to Eastern Europe so special? Where can you find a good nearshoring partner?

Nearshoring is the practice of outsourcing work, or some part of the work, to a near country. Nearshoring is most commonly practiced in the information technology industry. The most common reason European companies opt to outsource their work to Eastern Europe is a lack of IT specialists. And because of the fast digitalization of almost everything during the last decade, many businesses and companies are in need of websites, applications, and software in general.

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Rear view of concentrated coders using computer and analyzing computer program script while working together on new web project in office

In Germany, for example, a lack of employees with relevant IT skills is insufficient. This is forcing a lot of German companies to nearshore to Eastern Europe. In some way, nearshoring is the best practice, just because sometimes it’s the only option.

When it comes to software outsourcing, you are most probably going to think about some Asian countries. This stereotype is here for a reason, but things have changed in the past couple of years. There are many good reasons why is nearshoring to Eastern Europe the best practice for a European company. The most common reason companies decide to nearshore their work to countries like Croatia or Serbia are:

  • Large talent pool
  • Quality work
  • Price
  • Practicality
Large talent pool

Did you know there is more than 1 MILLION software developers just in Eastern Europe? And this number is still growing each year. This means that there are loads of IT professionals that are ready right now to take on new projects. Doesn’t matter if you are in need of android, web, game, or any other software developer. The reasons there are a lot of people interested in becoming software developers are good education and a pure need for IT specialists. Whoever decides to pursue their career in IT is guaranteed loads of employment opportunities. The economies of these countries are still lacking behind, so a job in the IT industry promises a stable and well-paid career.

Did you know that in some of the countries in Eastern Europe higher education is totally free? This is because most of the universities are public and funded by the government. But when it comes to electrotechnical faculties, there are way more funding sources. Besides governments, a lot of IT companies invest in universities and their students. They offer scholarships and paid practices. This encourages a lot of individuals to pursue and finish their studies in IT. Many students find well-paid jobs during their studies.

Besides companies and government, the IT community in these countries is pretty active! There are loads of different conferences, training, and manifestations that encourage, motivate, and promote the implementation of the latest technologies amongst the experts. The strong community is in charge of quality experience and knowledge exchange, even years after graduating.

Quality work

With good education and lots of opportunities, there should be no doubt about the quality of software. But it's not just the product quality that makes nearshoring to Eastern Europe so great. Communication between the business and client companies is on a great level! Did you know that most people from countries like Serbia and Croatia speak the English language at a high to a very high level? This means there is no language barrier and nothing gets lost in the translation. Establishing good communication is essential when it comes to quality collaboration.

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Cultural similarity and similar work ethics is also something that heavily influences the quality of work. This means that deadlines are always met, and clients are transparent and honest during the process. Similar cultures approach objectives in a similar manner, so collaborating with someone with a similar culture is always more beneficial than with someone with a vastly different approach.

Price

Cutting costs is one of the top reasons companies opt to try any type of outsourcing or staff augmentation. Countries in Eastern Europe have below-average price rates. As mentioned before, this is because of the currently struggling economies of the mentioned countries. In most of these countries, IT sectors are one of the most developed and richest sectors. Software development and outsourcing are of great value for the general economies of countries in Eastern Europe.

For European companies nearshoring to Eastern Europe means that they get below-average prices for high-quality products!

Practicality

Nearshoring means outsourcing to a near country. This means that there is usually no time difference between the core company and the outsourcing partner company. This can positively affect communication and general productivity and workflow.

This also means that core company representatives can easily visit their outsourcing partner. Since they are so close, and Europe is very well connected with land and air transport. It is more practical to visit an outsourcing partner that is a few hours away than to travel to another side of the planet.

Governments of Eastern European countries are not investing only in better education. They also offer loads of benefits for companies that are willing to invest in the IT sector of their countries. These come in form of favorable taxes and simplified legal and financial regulations that control the IT services export. This makes nearshoring to Eastern Europe way more easy and practical!

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What now?

Now that you know what makes Eastern Europe a great nearshoring destination, you might still have some more questions. If you want to learn more or are interested in outsourcing your work to an Eastern European company, Addria is here for you! Addria is an IT consulting firm with years of experience in software development. Throughout the experience without previous nearshoring partners, we’ve established a quality practice that delivers the highest quality software. Do not hesitate to contact us right now! Our talented team of developers is more than ready to tackle a new project!