Top Outsourcing Countries for Technical Talent in 2024

In 2024, the IT outsourcing market is expected to generate revenue of around $541.10 billion. This market is projected to grow at an annual rate of 8.48% from 2024 to 2029, reaching a total value of $812.70 billion by the end of that period. On average, companies will spend about $152 per employee on IT outsourcing in 2024.

Companies are using the expertise of professionals worldwide, particularly in software development, IT support, and business process outsourcing (BPO). This blog will explore the top outsourcing countries for technical talent in 2024, focusing on salary details, technical skills, and other relevant metrics.

The Top Outsourcing Countries for Technical Talent

Below are the top outsourcing countries for technical talent to scale your business: 

1. India

India has long been considered one of the top outsourcing countries, offering a large pool of skilled professionals and cost-effective solutions.

• Average Salary: Indian software developers earn between $8,000 and $15,000 per year.
• Technical Expertise: India excels in custom software development, IT support, and business process outsourcing. The country is also renowned for its technical skills in Java, Python, and AI development.
• Educational System: With over 1.5 million engineering graduates annually, India has one of the largest talent pools globally.
• English Proficiency: High levels of English proficiency allow seamless communication with clients from English-speaking regions.
• Time Zone Flexibility: Indian outsourcing companies provide 24/7 services, aligning well with the time zones of the U.S., U.K., and Australia.
• Cultural Compatibility: Familiarity with Western business practices makes India a reliable choice for companies looking to outsource.

2. Philippines

The Philippines is often highlighted as one of the top outsourcing countries due to its focus on IT services, BPO, and customer support, coupled with a highly educated workforce.

• Average Salary: IT professionals in the Philippines earn between $7,000 and $14,000 annually.
• English Proficiency: As the third-largest English-speaking country globally, the Philippines offers excellent communication capabilities, especially for U.S.-based companies.
• Skilled Workforce: Filipino developers and IT professionals excel in web development, mobile app development, and back-end technologies.
• Cost Advantage: Lower salary and operational costs make the Philippines one of the most cost-effective outsourcing destinations.
• Cultural Affinity: The Philippines shares cultural similarities with Western countries, making the outsourcing process smoother.
• Government Support: The government actively promotes the outsourcing sector through educational investments and financial incentives.

3. Ukraine

Despite geopolitical challenges, Ukraine remains one of the top outsourcing countries for European companies due to its strong technical talent pool and competitive pricing.

• Average Salary: Software developers in Ukraine earn between $25,000 and $45,000 per year.
• Technical Specializations: Ukraine excels in AI, blockchain, cybersecurity, and mobile app development.
• Education and Skills: Ukraine produces highly skilled engineers thanks to its strong focus on STEM fields.
• Time Zone Alignment: Ukraine’s time zone aligns with Western Europe, making collaboration easier.
• Competitive Pricing: While more expensive than in Asia, Ukraine offers a strong balance between cost and quality.
• Language Proficiency: Many Ukrainian professionals are fluent in English, facilitating smooth communication with international clients.

4. Poland

Poland has quickly become one of the top outsourcing countries in Europe, offering highly skilled professionals at competitive rates.

• Average Salary: IT professionals in Poland earn between $30,000 and $50,000 annually.
• Technical Expertise: Poland is known for software development, cloud computing, and IT consulting. Polish developers are particularly skilled in Java, C++, and Python.
• EU Membership: Being part of the EU, Poland provides stability and ease of business for European firms.
• Highly Educated Workforce: Poland’s robust educational system produces a steady stream of qualified IT professionals.
• High Quality: Polish companies are known for delivering reliable, high-quality solutions.
• Cultural Compatibility: With strong ties to Western Europe, Poland’s professionals are well-versed in international business practices.

5. Vietnam

Vietnam is quickly climbing the ranks of the top outsourcing countries due to its fast-growing tech sector and cost-effective solutions.

• Average Salary: Software developers in Vietnam earn between $9,000 and $15,000 per year.
• Growing Tech Ecosystem: Vietnam’s tech industry is booming, with expertise in software development, mobile app development, and game design.
• Government Support: The Vietnamese government is heavily investing in tech education and infrastructure, further enhancing the country’s appeal for outsourcing.
• Cost Efficiency: Vietnam remains one of the most affordable destinations for technical talent.
• English Skills: While not as widespread as in the Philippines, many Vietnamese IT professionals speak English, particularly in tech.
• Time Zone Advantage: Vietnam’s location offers real-time collaboration with other Asian and Australian markets.

6. Mexico

As a nearshore location, Mexico is one of the top outsourcing countries for U.S. businesses, offering significant proximity advantages.

• Average Salary: IT professionals in Mexico earn between $25,000 and $45,000 annually.
• Nearshoring Advantage: Mexico’s geographic proximity to the U.S. facilitates travel, real-time collaboration, and reduced cultural barriers.
• Technical Expertise: Mexico excels in embedded systems, software development, and IT support services.
• Education System: The country’s education system emphasizes technical skills, producing a reliable stream of qualified IT graduates.
• Cultural Compatibility: Mexican professionals are familiar with American business practices, which improves collaboration.
• Government Support: Various tax incentives and policies promote Mexico’s IT sector, attracting international clients.

7. Brazil

Brazil has established itself as one of the top outsourcing countries in Latin America, particularly for software development and cloud services.

• Average Salary: IT professionals in Brazil earn between $30,000 and $60,000 per year.
• Tech Hubs: Cities like São Paulo and Rio de Janeiro are becoming innovation centers, driving growth in Brazil’s tech sector.
• Skilled Workforce: Brazil’s IT talent specializes in web development, mobile apps, and cloud technologies.
• English Proficiency: While Portuguese is the primary language, many IT professionals in Brazil have high English proficiency.
• Time Zone Alignment: Brazil’s time zone overlaps with that of the U.S., making collaboration easier for North American companies.
• Government Incentives: Brazil’s government offers incentives for companies investing in the country’s IT infrastructure and talent.

8. Romania

Romania is emerging as one of the top outsourcing countries in Eastern Europe, offering strong technical expertise at competitive prices.

• Average Salary: Software developers in Romania earn between $35,000 and $50,000 per year.
• Technical Skills: Romania has a reputation for excellence in software development, cybersecurity, and AI.
• EU Membership: As a member of the European Union, Romania provides a stable and regulated business environment.
• Highly Educated Workforce: Romania’s strong emphasis on STEM education produces a pool of highly skilled IT professionals.
• Cost Efficiency: Romania offers a balance between quality and affordability, making it attractive for European businesses.
• Language Proficiency: English is widely spoken, allowing for smooth communication between international teams.

9. Argentina

Argentina stands as one of the top outsourcing countries in Latin America, known for its innovative and skilled tech talent.

• Average Salary: IT professionals in Argentina earn between $21,000 and $45,000 per year.
• Technical Specialties: Argentina excels in software development, mobile app development, and UX design.
• Time Zone Advantage: Argentina’s time zone is similar to the U.S., making it an excellent nearshore destination.
• Creative Talent: Argentine developers are recognized for their problem-solving and creative approaches to software development.
• Government Support: The Argentine government is committed to supporting tech education and growing the outsourcing industry.
• Cultural Affinity: Argentine professionals work well with North American companies due to shared business practices and work culture.

10. South Africa

South Africa rounds out the list of top outsourcing countries with its English proficiency, strong IT skills, and competitive pricing.

• Average Salary: IT professionals in South Africa earn between $20,000 and $40,000 annually.
• Technical Skills: South Africa is particularly known for software development, IT support, and data analytics.
• English Proficiency: As an English-speaking country, communication with international clients is straightforward.
• Government Initiatives: The South African government is heavily investing in technology and education, attracting global clients.
• Time Zone Alignment: South Africa shares a time zone with Europe, making it an ideal outsourcing partner for European businesses.
• Cost Advantage: South Africa provides a cost-effective solution for outsourcing technical talent without sacrificing quality.

Conclusion

Outsourcing technical talent continues to be a key strategy for businesses looking to optimize costs and access global expertise. The top outsourcing countries like India, the Philippines, and Ukraine remain strongholds while emerging markets such as Vietnam, Argentina, and South Africa are offering competitive talent at affordable rates.

Partnering with Avyenter can help you streamline your global outsourcing strategy with services including EOR, payroll, HR, IT asset rental, and global team management. Contact us to learn how we can support your business in building an international team.