We’ve all heard of the all-mighty tech centres, located all over Poland and Ukraine.
Saying they are well-known is an understatement.
What about the rest of Eastern Europe?
Shortly said, the Balkan region has a lot more to it than meets the eye.
If every country was included the list would be too long.
Here are 7 examples of Eastern Europe’s hidden gems for outsourcing:
- Bulgaria
- Romania
- Serbia
- North Macedonia
- Albania
- Bosnia and Herzegovina
- Kosovo
Looking beyond traditional outsourcing giants to explore lesser-known countries is also a trend. It shines the spotlight towards exactly those that provide their clients with “the best of both worlds”.
What are the benefits of outsourcing in Eastern Europe?
- It’s cheaper
- The employees are experienced
- Time-zones
- Enhanced scalability and flexibility
Now, let’s dive into it.
What is Outsourcing?
Outsourcing is the practice of hiring external organizations to perform tasks that are typically handled in-house.
In the IT field, this can include contracting third-party companies for software development, IT support, or data management.
For example:
A company might outsource its customer service to a specialized firm or hire external developers to build and maintain its software applications.
This approach allows businesses to:
- focus on their core activities
- leverage specialized expertise
- boost cost savings
- provide scalability
- adjust their resources based on demand.
Understanding Eastern Europe One Country at a Time
The IT field in Eastern Europe is becoming a pivotal hub for software development and technology services.
Why?
For starters, the educational infrastructure is robust. This allows universities to produce a steady stream of IT graduates.
Here’s an example:
The region includes 133 universities in the QS World University Rankings, with notable institutions like Sofia University “St. Kliment Ohridski” leading the way.
Also, Eastern Europe’s IT sector:
- is thriving
- offers worldwide business opportunities
- is high-quality
- has cost-effective technology solutions
- has shown significant growth in recent years
- has a strong educational foundation
It doesn’t end there.
Here’s a list of the 7 countries mentioned earlier, along with their size in square kilometers:
Bulgaria:
- Country size: 111 000 m²
- ICT professionals at hand: 101 000
Romania:
- Country size: 238 000 m²
- ICT professionals at hand: 220 000
Serbia:
- Country size: 88 000 m²
- ICT professionals at hand: 35 000
North Macedonia:
- Country size: 67 000 m²
- ICT professionals at hand: 20 000
Albania:
- Country size: 29 000 m²
- ICT professionals at hand: 15 000
Bosnia and Herzegovina:
- Country size: 51 000 m²
- ICT professionals at hand: 30 000
Kosovo:
- Country size: 11 000 m²
- ICT professionals at hand: 15 000
Upon analysis, the most notable finding is the large number of ICT professionals in proportion to the country’s size.
Here’s why:
Bulgaria
A piece of paradise, but on earth.
Bulgaria is becoming known as Eastern Europe’s silicon playground.
What is so special about it, though?
(no, we’re not talking about rakia this time)
Advantages
Well, the country has:
- a strategic location
- competitive costs
- a skilled workforce
- highly educated IT professionals
- favorable tax policies
- a growing tech ecosystem
And let’s not forget the country’s highly skilled workforce. Bulgaria boasts a large pool of IT professionals with strong technical and language skills.
Also, Bulgaria is an EU member.
Moreover, the labor costs in Bulgaria are among the lowest in the EU, making it an attractive destination for cost-conscious companies.
Then there’s the cherry on top – the favorable business environment. The government support and optimal tax policies enhance Bulgaria’s appeal even further.
Key Cities
Sofia, Plovdiv, and Varna are pivotal cities in Bulgaria’s flourishing IT sector.
Each offers unique advantages for tech professionals and companies.
Sofia, the capital, stands as the country’s primary tech hub. It boasts a:
- robust infrastructure
- highly skilled workforce
- vibrant startup ecosystem
Plovdiv has emerged as a significant player with:
- growing investments in tech education
- its rich history and cultural heritage
- fostering a conducive environment for IT development.
Varna, with its strategic location on the Black Sea coast, combines:
- a thriving IT community
- an abundance of both local and international talent
- a high quality of life
Together, these cities create a dynamic and supportive landscape for the IT industry.
Their combined strengths position Bulgaria as a leader in digital innovation and a prime location for future tech investments.
Romania
With its blood-suckingly good infrastructure, Romania is the perfect place for all things IT.
There are many aspects worth checking out.
So, let’s get our teeth into them.
Advantages
The country has a large talent pool with a strong educational background in STEM fields.
Romanian ICT professionals have a high proficiency in multiple languages, including:
- English
- German
- French
Their multilingual capabilities are top-notch.
Also, Romania is a part of the European Union. As an EU member, it offers:
- regulatory stability
- access to a larger market
The country has a well-developed IT industry with a focus on:
- software development
- cybersecurity
- R&D services.
Key Cities
Bucharest, Cluj-Napoca, and Iași – the cities driving Romania’s rapidly expanding IT sector. Each offers distinct advantages for tech companies and professionals.
Bucharest, the capital, serves as the “centre” and has:
- a rich talent pool
- an advanced infrastructure
- numerous tech parks
- a policy fostering innovation
Cluj-Napoca, in turn, is renowned for its:
- strong educational institutions
- vibrant tech community
- favorable business environment
Iași – with its strategic location and emphasis on IT education – has become a crucial center for:
- software development
- research
These cities collectively create an attractive landscape for IT businesses, characterized by competitive costs, a skilled workforce, and supportive government policies.
They have made sure Romania’s position as a significant player in the global tech arena remains untacked.
Serbia
Serbia has been proving itself as a tech hub in the Balkans for quite some time now.
The focus is on software development and digital services, with gaming emerging on the horizon as well.
And while the pljeskavica really is a huge upside, there are a few more:
Advantages
Here are the main ones:
- competitive labor costs
- a well-educated workforce
- good English proficiency
- a favorable business environment
Then there’s the country’s growing tech ecosystem. The tech industry is supported by a growing number of tech startups and favourable governmental policies.
These factors, combined with the large number of tech conferences and events, underscore Serbia’s rising status in the global technology sector.
Key Cities
Belgrade, Novi Sad, and Niš are the main cities advancing Serbia’s IT sector.
What do they have to offer?
Belgrade, the capital, is a vibrant tech hub with numerous:
- startups
- tech parks
- a highly skilled workforce
Novi Sad, on the other hand, is renowned for its strong educational institutions, particularly in engineering and IT. They contribute significantly to the tech talent pool.
Niš, has a:
- strategic location
- focus on technological development
The city is also becoming an important center for innovation and research.
All these cities provide a favorable environment for IT companies. They are characterized by competitive costs, supportive government policies, and a growing number of tech events, and each offers distinct advantages for technology businesses and professionals.
North Macedonia
The country is gradually making its mark in the IT outsourcing market.
The number of tech startups and service providers is rapidly growing.
And while the good wine is worth mentioning, North Macedonia has many other things to offer.
Advantages
Let’s check them out:
- cost-effective labor – the country offers low operational costs, making it an attractive outsourcing destination
- skilled workforce – a focus on technical education has produced a skilled IT workforce
- government support – strong support from the government for the IT sector, including incentives for foreign investors
Key Cities
Skopje and Bitola are crucial for North Macedonia’s IT sector. Each offers favorable conditions for technology companies and professionals.
Skopje, the capital, is the primary tech centre. It has a:
- robust infrastructure
- skilled workforce
- supportive business environment
Bitola, known for its strong educational institutions, contributes to:
- the tech talent pool
- language skills development
- fostering innovation
Both cities benefit from competitive operational costs and government initiatives. Together, they provide a conducive landscape for the growth and success of IT businesses in North Macedonia.
Albania
Yet another diamond in the rough.
Albania is lesser known for outsourcing, but this hasn’t stopped its tech sector from burgeoning.
And yes, the Albanian riviera may be breathtaking, but take a look at this:
Advantages
The country is one of the most cost-efficient ones. It offers one of the lowest labor costs in Europe.
Their multilingual workforce is to be envied as well – many professionals speak multiple languages, including Italian and English.
As for their improving infrastructure:
Recent investments are enhancing Albania’s attractiveness for outsourcing, and the government has made BPO services a focus.
Key Cities
Tirana and Durrës are pivotal cities for Albania with their advantageous conditions for technology companies and professionals.
Tirana, the capital, has a lot in store:
- a vibrant startup ecosystem
- modern infrastructure
- a highly skilled workforce
Durrës, on the other hand, has its focus on other aspects:
- the growing focus on tech education
- its strategic coastal location
- the development of IT talent and innovation
Both Tirana and Durrës are quite attractive for international investments. They provide a favorable environment for the growth and success of IT businesses in Albania and benefit from their strategic location on the Balkans.
Bosnia and Herzegovina
What’s not to like about this country?
It has both a natural and an urban beauty, it is emerging as a big fish in the IT field.
The only thing left is for us to cross the Stari Most (Old Bridge) and see where it leads us:
Advantages
Bosnia and Herzegovina is filled with many things to look forward to.
Here are some:
- competitive pricing – the country offers competitive pricing for outsourcing services
- educational excellence – a strong education system produces skilled IT professionals
- growing tech scene – the IT sector is supported by a number of local and international companies investing in the region
It doesn’t end there:
Key Cities
Sarajevo, Banja Luka, and Mostar are essential for driving the IT sector in Bosnia and Herzegovina.
Sarajevo, the capital, is The Tech Hub with :
- a growing startup ecosystem
- modern infrastructure
- a highly skilled workforce
Banja Luka is known for its strong educational institutions and supportive business environment. It also significantly contributes to the tech talent pool.
Mostar is becoming an important center for IT development as well, because of its location and workforce.
These cities benefit from competitive operational costs and create a conducive environment for the growth and success of IT businesses in the country.
Kosovo
Last but not least – the Mother Teresa of IT hubs – Kosovo.
The country has been steadily gaining attention regarding its outsourcing potential for some time now.
What does that mean for the IT field?
Advantages
Well, it essentially means that the country has:
- a young workforce with a strong interest in IT
- cost-effective solutions
- government initiatives aimed at supporting the tech sector and attracting foreign investment
The young and dynamic workforce, along with competitive costs make quite a first impression.
The improving business climate and support for tech startups also bring their fair share to the table
of advantages.
Key Cities
Pristina and Peja are the main hubs in Kosovo’s IT sector.
Pristina, the capital, is in possession of a:
- vibrant startup scene
- modern infrastructure
- highly educated workforce
Peja is increasingly contributing to the development of IT talent. The city is known for its strong focus on:
- tech education
- training
Both cities are attractive destinations for international investments. Together, they provide a conducive environment for the growth and success of IT businesses in Kosovo.
To Sum Up
In the end, what are the benefits of outsourcing in Eastern Europe?
Well, there’s the fact that the countries in question aren’t that known.
Why is that a benefit?
Because it means each one is trying to prove themselves as the next big tech hub. Therefore, the quality of work is top notch, the deadlines are always met, and the employees know what they’re doing.
That’s not all.
Eastern Europe has a lot to give to the IT field. It has:
- the potential for cost savings
- access to skilled talent
- favorable business environments
Whether it’s a small business, or a big one – don’t hesitate to explore the options.
Your outsourcing needs are our priority.
Contact us, at Expert Allies, and get the first consultation for free!
FAQ
Why choose Eastern Europe for outsourcing?
It’s cheaper, the employees are experienced, the time-zones allow for longer workdays, the scalability and flexibility are enhanced.
Which country is the best destination for outsourcing?
Unfortunately, there isn’t an easy answer to this one. While Kosovo, for example, may be a good choice for some, Bulgaria could be 5 times more suitable for others. Really, it all depends on what you’re looking for and what meets your requirements.
How many software developers are there in Eastern Europe?
According to research, Eastern Europe has around 6.1 million skilled developers. The ICT professionals talent pool is constantly expanding.
