New IT sourcing destinations constantly pop up. Some settle into the pack, while others mature. The sourcing destinations include India and China, the Philippines, and Eastern Europe. They offer an array of niches and general needs. The diversity of sourcing destinations has never been greater. Neither has the depth of the skill pool.

However, the unique IT specialties and benefits of niche players like Vietnam and Israel are being viewed better. Strategic use of these destinations will increasingly define winners and losers in the ultra-competitive IT sourcing market. Knowing the strengths and appeal of each location is essential to creating a sourcing strategy for informed decision-making and accessing the broad continuum of IT services that can draw from the unique expertise of a given region.

Leading IT Sourcing Powerhouses

India and China are prominent players in the IT sourcing industry. Their abundant talent pool, solid infrastructure, and cost-effective solutions have made them well-known. These countries have become go-to destinations for multinational companies looking to benefit from their expertise.


India is a leading destination for IT sourcing globally, known for its skilled workforce and cost-effective solutions. The country’s strong IT industry and talented professionals have made it a key player in the global market.

India’s software development, IT services, and outsourcing expertise attract businesses worldwide looking for quality solutions at competitive prices. The excellent business environment, strong technical education system, and English proficiency make India’s appeal as an IT sourcing hub even greater. Many organizations choose India to optimize costs while maintaining quality, making it a top choice for reliable and efficient IT solutions.


China is known for its technological prowess and competitive advantages. The country boasts a robust IT infrastructure and a skilled IT workforce that enable it to efficiently provide affordable solutions without sacrificing quality.

The country has prioritized innovation, significantly improving artificial intelligence, cloud computing, and cybersecurity. Its location also helps it serve a growing Asian market and markets beyond Asia.

Emerging Stars in IT Sourcing

One of the IT sourcing trends that has become significant is the emergence of IT sourcing hubs. These hubs can be found in the Philippines and Eastern European countries, such as Poland, Ukraine, and Romania. An improving IT infrastructure bolsters a highly skilled workforce in these countries, making them cost-advantaged.

These emerging destinations represent an opportunity for companies to diversify and add to their sourcing strategies. Increased competition from excellent IT professionals has created additional options for better-quality services for them.


The fast-growing Philippines has emerged as a go-to for IT outsourcing, leveraging English-speaking expertise—engineers and IT professionals—and an inexpensive workforce. The result has significantly contributed to a global outsourcing market that surpassed $27 billion in revenue in 2020. This success can be attributed in part to government incentives and initiatives that have helped establish the Philippines’ competitive edge in the IT-BPM sector.

Eastern Europe (Poland, Ukraine, Romania)

In recent times, Eastern Europe has emerged as a preferred destination for IT outsourcing, with countries such as Poland, Ukraine, and Romania as the leaders of this venture. Poland is the cradle of a strong IT sector, with over 450 thousand IT specialists in software development and cybersecurity.

Ukraine provides many IT experts, especially in programming and IT consulting, at lower wages than Western Europe. Romania is among the countries that have excelled in IT services, with IT outsourcing, software development, and tech support services being their priorities.

Niche Players with Specialized IT Skills

Vietnam and Israel are emerging as significant players in IT sourcing due to their specialized skills and expertise in specific areas. Both countries offer niche strengths that cater to evolving technological demands, establishing them as valuable global partners.


Vietnam has cultivated a formidable talent pool of software developers and engineers, representing a cost-effective option for firms requiring software solutions. Its professionals are highly skilled and sought-after internationally. Through a focus on STEM and solid English abilities, Vietnam provides high-quality, affordable IT outsourcing. A stable political environment, business-friendly rules, and government support for the sector enhance its appeal further. As Vietnam invests in infrastructure, its reputation as a premier outsourcing destination continues to ascend.


Israel is renowned for innovation and advances in cybersecurity and artificial intelligence, making it a premier choice for cutting-edge requirements. The nation boasts specialists in cyber protection, AI, and data examination. Global demand for Israeli expertise stems from problem-solving understanding and imagination, rendering them highly pursued. Israel’s collaborative atmosphere, encompassing premier universities, research institutions, and startups, fosters continuous progress in the industry. This dynamic ecosystem positions Israel as a prime selection for companies requiring customized IT services and know-how.


The top IT sourcing destinations worldwide include established leaders, up-and-coming contenders, and specialized hubs with unique expertise. These locations present many opportunities for businesses seeking to outsource their IT needs. By using the strengths of each destination, companies can access skilled professionals, cutting-edge technology, and cheap solutions. These will support their IT sourcing needs. The global landscape of IT sourcing is constantly changing, and these destinations play a crucial role in driving innovation and progress in the industry.

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