In recent years, Eastern Europe has risen to the top of the list of most desirable offshore software development locations. Before the arrival of cloud computing, many software businesses in North America, the United Kingdom, and Western Europe chose to outsource development services to India or the Philippines.
The only advantage they were able to obtain was cheaper costs, even though the quality of the services was poor. Outsourcing to Eastern Europe has resulted in lower costs, higher-quality services, a larger pool of available personnel, more accessible time zones, and improved communication. The Eastern European countries are widely regarded as preferable outsourcing locations by the A.T. Kearney and Tholons consulting firms, respectively.
The Advantages Of Offshore Software Development In Eastern Europe
To summarise the information provided about the three primary outsourcing destinations, the following are the significant advantages of outsourcing software development services to Eastern Europe:
Competent Professionals At A Reasonable Cost
When compared to developers in India or the Philippines, software engineers in Eastern Europe sourcing charge a higher rate. However, their rates are about twice as low as those in the United States. Low prices do not affect the overall quality of the service.
Convenient Time Zones
When a head office in the United States and an offshore team in Ukraine are working together, there might be a few hours of overlap. As a consequence, it can appear as though the job is completed around the clock. For example, the time difference between the United States and Ukraine is around seven hours on average.
A Large Pool Of Potential Employees
Eastern Europeans, in contrast to people of other nations, are enthusiastic about information technology, and obtaining a degree in information technology is growing more and more popular with each passing year. In today’s world of technology and innovation, a large number of young people desire to remain abreast of the latest trends and developments.
Location And Culture Are Important Considerations
For example, the situation in Ukraine. Ukraine’s international airports are located in Kyiv, Lviv, and Odesa, and it takes only a few hours to go there from EU nations and around 8 hours to travel there from the East Coast of the United States. When you have the opportunity to interact with your team in person, eastern Europe sourcing becomes considerably easier.
Laws And Restrictions Are In Place
In Ukraine, there is legislation on intellectual property protection that protects the copyright for databases and computer programs, among other things. Therefore, eastern European sourcing is extremely safe since no portions of the code may ever be transmitted to third parties.
Low Context Culture Is Prevalent
In contrast to their Asian counterparts, the Eastern European nations are more uncomplicated and, in general, more culturally comparable to North America and Western Europe than their Asian counterparts. They actively participate in conversations, do not mindlessly agree with everything, do not duplicate the flawed code of others, and give their perspective on diverse topics.
Contrary to this, software engineers in developing nations such as India, the Philippines, China, and so on are fearful of being criticized. To avoid seeming as though they have misinterpreted any of the criteria, they would like to agree with the team lead or project manager. As a result, even the most serious problems are kept under wraps and do not grow further, with the consequences being revealed only after it is too late.
The Disadvantages Of Offshore Software Development In Eastern Europe
Outsourcing to Eastern Europe, like any other endeavor, has some hazards, the most significant of which are as follows:
Taxation That Is Difficult To Understand
The taxes structure in several Eastern European sourcing nations can be confusing to clients who are based in the United States. We urge that you double-check the legal entity to whom you are making the payments. If you look at Ukraine, you will discover that it has one of the lowest tax rates in all of Europe.
Developers Have Withdrawn From The Project
The team suffers losses as a result of the extremely competitive offshore software development market in Eastern Europe, as well as the failure of local software companies to retain the developers they have hired.
There Is A Lack Of Communication
When working with a local software development agency, contact is often limited to a project manager, with the customer having no direct access to the development team. Communicating with your team members should be planned and agreed upon in advance so that everyone is aware of how, when, and how often they will interact with one another.
Information Leaks Involving Highly Sensitive Information
Contracts may be signed in a rush without the use of an NDA. The fact that some developers may have included portions of the code in their GitHub portfolios is because they were not aware that it was not permitted. All of these subtleties should be explored with the vendor at the initial stages of the collaboration.
There Is A Lack Of Adaptability
Changing project objectives can occur at any level of the SDLC, and it is not always feasible to foresee them in advance and make necessary changes to the stack or add more personnel to the team promptly.
Software Developers That Have The Propensity To Abandon Their Projects Or Disappear
If you outsource bespoke software development services to a local software business in Eastern Europe, you may find that the developers begin to leave the team and search for other employment possibilities after some time. The IT market in the majority of East European nations is quite competitive, which means that developers would not stay on a project with poor working circumstances for an extended period.
Another issue that might arise is the abrupt disappearance of freelancers. Freelancers are generally self-employed individuals who do not work for a web development company or organization. As a result, they are not obligated to any long-term obligations and are free to withdraw from the initiative and cease replying at any point.