How Companies Benefit from Nearshore Outsourcing to Eastern Europe

When you think of outsourcing, popular destinations like India or the Philippines might be your first thought. While these countries are popular outsourcing destinations, companies are also discovering Eastern Europe, which is becoming quite a favored spot for its strategic location, especially for nearshore outsourcing. 

There are many more advantages to nearshore outsourcing to Eastern Europe than cost savings. Sure, cost savings are an important factor, but accessing highly-skilled talent with a similar cultural background all contribute to a successful partnership. Not to mention, that collaboration is much easier when there is only a few hours of time zone difference. If you want to know more about the advantages Eastern Europe offers in nearshore IT outsourcing or outsourcing in general, you’re in the right place. 

Advantages of Nearshore Outsourcing to Eastern Europe

If you’ve been wondering why many companies have been turning to Eastern Europe for their software outsourcing needs, you’re not alone. It’s more than just the obvious cost savings, though, it is always a nice bonus. But what else does Eastern Europe offer?

First things first, the talent pool is pretty impressive in this region. It’s full of tech-savvy professionals, highly educated in the IT department, and not only. You’ll find a lot of software engineers, developers, and IT experts with great English skills, and a good understanding of how global markets work. Nearshore IT outsourcing gives you the opportunity to find talent that may not be available locally. 

Let’s not forget about cultural alignment. Working with a team that doesn’t share your cultural values can get frustrating, and can lead to misunderstandings. This can happen quite often when businesses outsource to far-away countries with big cultural differences. Eastern Europe adopted Western business practices and work culture, making it easier for teams to work together.

Eastern Europe's time zone is convenient too. Working together in real-time is easy with other European countries, or even the U.S.

When talking about the advantages of outsourcing to Eastern Europe, we can't leave out innovation. Romania, Poland, and Ukraine are fantastic options for outsourcing hubs. IT pros in these countries truly are into staying updated with the latest tech trends, such as AI and blockchain. This lets them brainstorm new ideas and approach each project with enthusiasm.

What’s Next for Outsourcing in Eastern Europe?

What’s next for Eastern Europe in outsourcing? The future seems bright! The tech industry is growing, with new and old companies looking to the area's talented workers. Businesses are going beyond just outsourcing basic tasks and are beginning to create genuine partnerships for innovative, growth-focused projects. It’s a dynamic environment, and there’s a lot of potential for meaningful collaborations.

Software development is the first on the list when it comes to the outsourcing scene, but Eastern Europe is getting recognized for much more, especially in the tech field. You can find professionals specializing in data science, AI, machine learning, and cybersecurity, which are key areas in the constantly developing tech scene. Countries like Romania and Poland have an increasing number of professionals with deep expertise in the most sought-after tech fields. Let’s say you need AI algorithms to help your business make smarter decisions. Or do you need machine learning engineers to analyze your data and spot trends no one else sees? You’ll find many skilled experts in Eastern Europe across these fields. What’s impressive about professionals in Eastern Europe is their commitment to learning and growth. They’re always on the lookout for the latest tech trends and innovative ways to push boundaries. If your business thrives on fresh ideas and forward-thinking strategies, you’ll find experts here ready to help you bring those ideas to life.

There's some impressive talent in this region, but we can't overlook how important government support is too. Look at Romania, for example. For years now, the government has been offering tax incentives to IT companies, which makes it a great spot for foreign businesses looking for trustworthy partners. This support improves the infrastructure and talent pool, setting up the perfect environment for successful outsourcing.

The education system focuses on developing skilled tech talent. There are a lot of choices available for anyone wanting to get into the field, such as coding boot camps, university programs, and hands-on workshops. All of these factors play a role in shaping Eastern Europe’s skilled and competitive workforce.

Word of mouth matters when it comes to outsourcing experiences all over the world. Thanks to the growing number of success stories, Eastern Europe is building a global reputation when it comes to successful outsourcing partnerships. There are plenty of online platforms available to share experiences and various projects, with detailed reviews about companies, such as Clutch or TechBehemoths, where you can find lots of successful and 5-star outsourcing companies from Romania, Poland, or Ukraine. And it’s not only for big tech giants like Microsoft or Google. Mid-sized companies also find working with Eastern European developers very beneficial. And let’s not forget about global rankings and recognition. Eastern European countries frequently pop up in reports and surveys as top outsourcing destinations, with cities like Cluj-Napoca in Romania and Krakow in Poland being recognized for their tech talent and innovation.

In outsourcing, cost is usually an important factor. Eastern Europe offers some of the best value for money, with countries like Romania, Poland, and Ukraine providing skilled professionals at rates far below what you’d pay in Western Europe or the U.S. For $25 to $50 per hour, you can access top-quality talent without the premium price tag. In contrast, rates in places like North America can easily climb above $100 per hour. While Asia is still a cheaper option, Eastern Europe offers a rare mix of affordability, time zone convenience, and cultural fit, which is why more companies are choosing it for their nearshoring needs.

Eastern Europe has become a popular destination for nearshore outsourcing and it’s no longer just a “best-kept secret”. It has become a smart choice for businesses that want to work with the best tech professionals. 

Success Stories: Companies Thriving with Eastern European Partnerships

Talking about the advantages of nearshoring to Eastern Europe is important, but success stories are the ones that can confirm this. Many businesses, ranging from small startups to large corporations, have collaborated with Eastern European IT teams on different projects and achieved great outcomes.

For instance, look at Microsoft. The company established research and development centers in Romania and Poland and collaborated with their teams on various tech projects.

So, next up is Skyscanner, which is a well-known travel site. This popular travel platform teamed up with a group from Eastern Europe, not only to save some money but also to tap into some real expertise. What was the outcome? They experienced faster development times and quicker product launches, all thanks to the talented professionals they collaborated with.

Revolut, a UK-based fintech company started working with software developers from Eastern Europe to help support their rapid growth. They partnered with tech specialists from Poland and Romania, and the collaboration resulted in a modern product that let them quickly expand their user base. Since then, Revolut has become a big name in the global fintech space. 

Companies like Endava have elevated their nearshoring strategy. This IT services company based in the UK collaborates with nearshore software development companies in Eastern Europe, assisting clients worldwide in delivering complex projects on time, within budget, and with exceptional technical expertise. Their Eastern European partnerships have been crucial to their success in providing top-notch services in software development, testing, and support.

These companies are thriving because they’ve found a perfect balance of talent, cost-efficiency, and innovation in Eastern Europe. It’s a trend we’re seeing more and more, as businesses across industries realize the value that nearshore partnerships here can offer.

Conclusion

At the end of the day, nearshore outsourcing to Eastern Europe is about way more than just cutting costs. It's about discovering a place that brings together talent, innovation, and convenience. Eastern Europe is making a name for itself in outsourcing, thanks to its talented developers, cultural fit, and time zone benefits.

If you’re looking for more than just cost savings, you’ll find teams here that bring creativity, deep technical expertise, and a genuine commitment to your project’s success. Choosing Eastern Europe means partnering with passionate professionals who will approach your project with care and dedication, helping you achieve your goals.