What are the Best Countries to Build an Offshore Software Development Team?

In the same way that big players do, offshore staff augmentation in tech is a strategic move to expand your in-house team. By leveraging top performers’ experience from around the world, you can incorporate specialized knowledge in less time and accelerate your project’s growth. But it’s not without risks.

Onboarding the most suitable offshore software engineers can be challenging if you don’t know where to look or how to find the right candidates. But don’t worry, we’ve got you covered.

In this post, we’ll explore the top countries for hiring world-class tech professionals and building a top-tier offshore software development team. But first, we’ll cover key points you should consider to identify the best offshore staff augmentation countries.

Without further ado, let’s get started.

How to Identify the Best Offshore Staff Augmentation Countries

To begin ranking the best countries for offshore software development, it is important to note that the right choice depends on your in-house team’s location and target language.

If your company’s headquarters is in the U.S., collaborating with remote tech talent across different time zones or who lack native English might not be the smartest option. Similarly, while technical skills and the ability to work remotely are must-haves, soft skills should  play a pivotal role in your decision-making process. 

There are some key criteria for selecting a country for building an offshore software development team:

• Time zone: Opt for countries with developers in the same time zone or no more than five hours apart for smoother, real-time communication.
• Nearshoring: Choose developers who are geographically nearby, making it feasible for occasional visits and integration with your in-house team.
• English proficiency: Ensure the country has professionals with advanced English skills to articulate technical concepts and communicate effectively.
• Country’s tech industry: Look for a country with a robust tech industry, supported by strong educational institutions and government backing for innovation.
• High-quality team augmentation services: Select countries with reputable IT staffing agencies or tech talent partners that rigorously vet top talent.

Cultural compatibility: A Statista survey revealed that 43% of respondents agreed that culture was one of the biggest challenges when working remotely. Find developers from cultures that value commitment and can handle complex projects despite the distance. However, determining if a professional is truly committed is not an easy task. Although some countries are known for having more passionate software engineers than others, identifying this commitment requires recruiters with soft skill assessment expertise.

Top Countries for Having an Offshore Software Development Team

Now, let’s take a closer look at the best countries for building an offshore software development team. We’ll divide the top offshore staff augmentation countries by region: 

• Asia with India, the Philippines, and China.
• Eastern Europe with Poland, Ukraine, and Romania.
• And Latin America with Mexico, Argentina, and Brazil.

Let’s dive in.

The Best Countries for Offshore Software Development in Asia: India, the Philippines, and China

Asia is a common magnet for offshore software development, boasting affordability and tech-savvy talent. For companies looking to tap into a skilled workforce at competitive rates, Asia offers an appealing option.

Learn why India, the Philippines, and China are great offshore software development destinations (and why they aren’t in some cases).

India

India is a powerhouse in the global software development arena, offering a wealth of benefits for companies considering outsourcing. Known for its excellence in the field, India boasts a robust pool of technically proficient developers, many of whom are products of the country’s strong emphasis on STEM education. This high level of expertise, combined with competitive pricing, makes India an attractive destination for offshore software development. 

Nevertheless, some companies, especially those based in the United States, should consider the challenges. One of the main hurdles is the time zone discrepancy, which limits overlapping work hours and real-time collaboration. 

Another consideration is communication barriers. Although many Indian developers speak English, cultural differences and varying communication styles can sometimes lead to misunderstandings.

Here’s a quick overview of the Indian tech industry and talent pool:

• ICT market: The Indian ICT market is projected to grow from $108 billion in 2023 to $160 billion by 2026. It’s easy to see why tech giants like Microsoft, Google, and Amazon have a strong presence in its most popular tech hubs.
• Tech climate: India’s tech climate is electrifying, ranking 35th in innovation outputs and 31st in digital maturity on the Global Innovation Index. Government initiatives, such as  Startup India and Digital India, are speeding up IT infrastructure and digital literacy. 
• Talent pool: India’s tech talent pool is vast, with over 3 million IT professionals.
• English proficiency: India ranks 60th in English proficiency according to the EF English Proficiency Index, indicating moderate fluency.
• Tech hubs: Home to over 4,000 tech startups, Bengaluru, Hyderabad, Pune, and Chennai are the beating hearts of India’s tech scene. They offer a rich tapestry of opportunities for software engineers, cloud architects, and data scientists. 
• Time zone: Operating on GMT+5:30, India’s time zone requires juggling for real-time collaboration with American companies.

The Philippines

The Philippines offers an attractive option for hiring software developers, thanks in part to its favorable business environment, which is ranked 95th in the World Bank’s Ease of Doing Business index. The country’s service-driven economy is supported by skilled developers proficient in English, making them well-suited to international collaboration. 

Communication is a strong point, as the Philippines has the second-highest level of English proficiency in the Asia-Pacific region. This proficiency, combined with cultural similarities, makes it one of the most U.S.-friendly countries in Southeast Asia, facilitating smooth interaction.

Nevertheless, the talent pool in the Philippines is smaller than India, which might limit developers’ availability for niche skills or large-scale projects. Additionally, while both countries offer cost-effective solutions, India may have a larger number of developers ready to meet diverse needs. 

Last but not least, the time zone difference can hinder real-time collaboration, as the Philippines is 12-15 hours ahead of various U.S. time zones.

Here’s a quick overview of the Philippines tech industry and talent pool:

• ICT market: With the ICT market set to grow from $36 billion in 2023 to $50 billion by 2026, the country is rapidly gaining traction as a tech hub. The Global Innovation Index ranks it 54th, and it holds the 12th spot in the A.T. Kearney Global Services Location Index.
• Talent pool: The Philippines is home to over 190,000 experienced software professionals.
• English proficiency: Renowned for its English proficiency, the Philippines ranks 20th globally, making communication with offshore teams a breeze. 
• Tech hubs: Cities like Metro Manila, Cebu, and Davao are tech hotspots, buzzing with innovation and investment. 
• Time zones: Positioned on GMT+8, the Philippines’ time zone must be navigated with strategic planning to ensure effective collaboration with global partners.

China 

China’s influence is underscored by its significant ranking on the global stage: 78th in the Ease of Doing Business index and second in Asia on the Global Innovation Index. These rankings reflect a booming economy and a thriving tech scene, making China a major player in software development. 

Chinese developers are recognized worldwide for their outstanding technical skills and unwavering work ethic, backed by robust government investments in technology and education. 

China’s allure is further enhanced by its competitive hiring costs. With median salaries lower than in many Western countries, U.S. companies can access a pool of skilled developers without excessive financial strain. This cost advantage, coupled with talent quality, positions China as a strategic choice for businesses aiming to maintain a competitive edge in technology.

It’s worth mentioning, however, that navigating bureaucratic red tape can prove challenging, as can navigating language barriers. Additionally, operating across time zones—China runs on GMT+8—demands careful coordination to ensure seamless collaboration.

Here’s a quick overview of China tech industry and talent pool:

• ICT market: China’s ICT market is a colossal $700 billion, projected to skyrocket to $950 billion by 2026. Initiatives like “Made in China 2025” and the “Internet Plus” strategy are fueling rapid growth in the tech industry.
• Talent pool: China boasts over 7 million skilled software engineers, supported by top-tier educational systems.
• English proficiency: The country ranks 66th in English proficiency, making language barriers a significant challenge.
• Tech hubs: Shenzhen (hosting giants like Huawei and Tencent), Guangzhou (a niche as a leading AI hub, attracting major players like NetEase and spearheading robot production), Tianjin (designated as an AI innovation zone) and Dalian (home to the Dalian Software Park and numerous Fortune Global 500 companies) are bustling tech hubs.
• Time zone: Operating on GMT+8, China’s time zone requires careful coordination for real-time collaborations with U.S. companies.

Top Countries for Offshore Software Development in Latin America: Mexico, Argentina, and Brazil

Several years ago, companies in countries like the United States primarily looked to Asia as the sole option for hiring software developers. Fortunately, technological advancements and the development of talent worldwide have opened the doors to nearshore software development. This change has led U.S. companies to begin hiring top talent from Latin America.

Latin America is becoming a beacon for hiring top-tier software developers, blending vibrant cultures with a burgeoning tech scene that attracts global attention. Especially for U.S. companies seeking top performers with cultural proximity, an outstanding English level, and an affordable nearshore software development rate.

Here’s why Mexico, Brazil, and Argentina stand out as top destinations for offshore software development.

Mexico

Ranked 60th in the World Bank’s Ease of Doing Business Index, Mexico’s business environment is ripe for innovation. 

Mexico shines in the tech climate, holding the 12th spot among upper-middle-income economies on the Global Innovation Index. Government initiatives, like the 500 Startups LatAm program, and a wide variety of outstanding tech parks, such as the Creative Digital City, fuel tech industry growth.

Mexico is also a sought-after offshore software development destination for U.S. companies looking for world-class software engineers near their headquarters. But there’s more. 

Let’s look at some facts about this tech-savvy country:

• ICT market & tech scene: Mexico’s ICT market is on a fast track for impressive growth, projected to hit $43.66 billion by 2026. Tech hubs like Monterrey and Guadalajara are home to industry giants like Facebook and Google, making the country a prime destination in terms of IT and inversion. It is perfectly positioned for companies looking to tap into cutting edge development and IT services.
• Talent pool: The talent pool in this country is immense and totally qualified, with over 300,000 tech specialists and a strong emphasis on STEM education.
• Tech hubs: Mexico City, Guadalajara, Monterrey, and Tijuana are thriving epicenters of innovation, driving breakthroughs in fintech and e-commerce. For instance, Guadalajara is known as the Silicon Valley of Mexico, with the presence of major players like HP and IBM, showcasing its reputation as a trusted hub filled with highly skilled engineers.
• English proficiency: Mexico’s close proximity to the U.S. gives its developers a distinct advantage, with strong English proficiency typically at an upper-intermediate level. 
• Time zone: Operating on GMT-6, Mexico provides excellent time zone alignment with U.S. companies, enabling seamless collaboration without the hassle of extensive meeting preparations. 

Interested in learning all about recruiting and hiring remote software developers in Mexico? Check out our full guide.

Brazil

Brazil, the largest economy in Latin America, ranks ninth globally, with its service industry driving a majority of its GDP. Brazil’s prowess in software development is unparalleled, representing 36% of the region’s IT market.

Brazilian software developers are known for being well-trained in both technical and soft skills as a result of the many opportunities the government provides to learn about technology and innovation. The country has the largest tech hubs in LatAm, which is not surprising. 

Let’s see the reasons:

• ICT market & tech scene: Brazil’s ICT sector is a heavyweight,valued at an impressive $96.66 billion in 2023, and projected to soar to $212.95 billion by 2028. The country’s tech ecosystem is thriving, teeming with a dynamic blend of innovative startups and cutting-edge hubs like Cubo Itaú in São Paulo. This dynamic landscape clearly illustrates why we say Brazil is one of the  leaders in the global technology arena. 
• Talent pool: With an impressive number of more than 750,000 software engineers, Brazil’s tech talent pool is among the most extensive in South America. Renowned educational institutions with strong global reputations, such as the University of São Paulo and the Federal University of Rio de Janeiro, rank among the best in Latin America, annually producing a diverse array of high quality software professionals.
• English proficiency: Fluency in English is not a challenge in Brazil. Cities like São Paulo and Rio de Janeiro are known for higher English language skill levels than other LATAM destinations.
• Tech hubs: Key tech hubs such as São Paulo, Rio de Janeiro, Porto Alegre and Florianópolis are bustling with activity, hosting a myriad of tech firms and startups. São Paulo, as the country’s financial powerhouse, is home to a vast array of giant tech firms like Amazon and startups such as Nubank, making it a magnet for talent and investment. Rio de Janeiro, with its rich cultural backdrop, fosters a dynamic tech scene, particularly in media and entertainment technology. 
• Time zone: Operating on GMT-3, Brazil overlaps with the U.S., making it an ideal partner for international projects.

Interested in learning all about recruiting and hiring remote software developers in Brazil? Check out our full guide.

Argentina

Argentinian software engineers are one of the most in demand professionals by U.S. companies.

There are many reasons for this: Argentina’s work culture is filled with people who are 100% committed and passionate about their work, as well as well-versed in their fields of specialization due to the country’s top-tier free education system.

Software engineers are well-recognized in such a way that Jordan Belfort has praised the talent and dedication of the Argentinian workforce, highlighting their education, skills, and strong work ethic. He even mentioned that his entire tech team is from Argentina, emphasizing their exceptional coding abilities and commitment.

Let’s look at some of the country’s characteristics:

• ICT market. Argentina’s ICT market has a truly promising future ahead, with software exports projected to reach an impressive $2.5 billion by 2026. This growth not only underscores the country’s potential as a global player in technology but also highlights the vibrant innovation and talent that fuel its ascent in the digital landscape.
• Talent pool. Argentina boasts a vibrant talent pool of over 130,000 top-tier software engineers, fueled by access to free, world-class tech education. 
• English proficiency. The country boasts the highest English proficiency in Latin America, ranking 28th globally, which facilitates seamless communication with international partners.
• Tech hubs. Buenos Aires, Córdoba, Rosario, and Mendoza are thriving tech hubs driving Argentina’s vibrant startup scene. MercadoLibre, Latin America’s leading e-commerce platform, as well as Globant, a key player in the IT industry, lead the way.
• Time zone. With a GMT-3 time zone, Argentina provides a favorable time overlap for collaboration with international clients.

Interested in learning more about recruiting and hiring remote software developers in Argentina? Check out our full guide.

The Best Countries for Offshore Software Development in Eastern Europe: Poland, Ukraine, and Romania 

As with Latin America, East Europe is certainly attractive as an offshore staffing option. It offers an excellent combination of top talent and cultural alignment with Western business practices. But, is it a better option than outsourcing Latin American software developers?

Let’s look at the best offshore staff augmentation countries in Eastern Europe.

Poland

As the largest economy in the region, Poland provides a stable and inviting environment for business, supported by robust regulatory frameworks and investor-friendly policies. In 2020, it secured the 40th spot in the World Bank’s Ease of Doing Business rankings, reflecting its commitment to creating a conducive business climate. Complementing its economic prowess is Poland’s impressive tech landscape, ranked 39th in the Global Innovation Index. The government’s “Polska Cyfrowa” initiative further underscores its digital ambitions, enhancing IT infrastructure and promoting digital literacy across the nation.

Here’s a quick overview of Poland tech industry and talent pool:

• ICT market & tech climate: The Polish ICT market is a juggernaut, valued at $33 billion in 2023 and projected to soar to $45 billion by 2026. With tech behemoths like Google, IBM, and Intel anchoring their operations in Warsaw, Kraków, and Wrocław, Poland is a good tech hub.
• English proficiency: English proficiency is also a strong suit, with Poland ranking 14th globally.
• Talent pool: The talent pool here is vast, with over 400,000 software engineers skilled in Java, Python, and cloud computing. 
• Tech hubs: Warsaw, Kraków, and Wrocław are buzzing with tech innovation, hosting thousands of tech companies and startups. These cities benefit from premier educational institutions that churn out a steady stream of skilled graduates, cementing Poland’s position as a tech titan in Europe.
• Time zone: Poland operates on GMT+1, which means there’s a notable time gap when coordinating with U.S.-based teams. For example, if it’s 9 AM in New York, it’s already 3 PM in Warsaw.

Ukraine

Ukraine’s rise is underscored by its 49th position in the Global Innovation Index, a testament to its advancing digital maturity. Central to this progress is the “Digital Transformation Strategy,” a robust initiative aimed at overhauling IT infrastructure and fostering digital literacy across the nation. This commitment to digital advancement is further bolstered by a strong focus on STEM education, fueling a tech sector that’s rich with skilled talent ready to tackle complex challenges.

Here’s a quick overview of Ukraine tech industry and talent pool:

• ICT market and tech climate. The ICT sector in Ukraine is on a sharp upward trajectory, valued at $11 billion in 2023 and expected to reach $16 billion by 2026. Global giants like Microsoft, SAP, and Infosys have established operations in Kyiv, Lviv, and Kharkiv. Remarkably, a DOU study from April 2022 revealed that 91% of IT professionals returned to work shortly after the war began, demonstrating the resilience of Ukraine’s IT industry.
• Talent pool. Ukraine boasts over 280,000 software developers, ranging from regular to highly skilled professionals.
• Tech hubs: Kyiv, Lviv, and Kharkiv are the nerve centers of Ukraine’s tech scene, with Kyiv alone hosting nearly half of the nation’s IT professionals. These cities are hotbeds of innovation, home to successful startups and a thriving outsourcing industry, particularly to the U.S.
• English proficiency. Ukraine ranks 45th in the EF English Proficiency Index, with 63% of their population speaking English. 
• Time zone. Ukraine operates on GMT+2, placing it seven hours ahead of New York, which is in the Eastern Time Zone.

Romania

Romania is establishing itself as a tech powerhouse in the Balkans, currently standing 33rd in the Global Innovation Index. This nation offers a wealth of opportunities thanks to its favorable regulatory environment. This is reflected in its 52nd place on the World Bank’s Ease of Doing Business index.

Romania’s growing tech infrastructure investments boost its technological capabilities. However, challenges such as bureaucratic hurdles and slow legal processes can impact business operations, along with varying infrastructure quality across different regions.

Here’s a concise overview of Romania’s tech industry and talent pool:

• ICT Market & Tech Climate: Romania’s ICT sector, valued at $10 billion in 2023, is projected to grow to $15 billion by 2026. Major cities like Bucharest, Cluj-Napoca, and Timișoara attract tech giants such as IBM, Microsoft, and Oracle, making them key centers of technological innovation.
• Talent Pool: Romania boasts a 150,000 tech workforce.
• Tech Hubs: Bucharest and Cluj-Napoca are at the forefront as tech hubs, hosting numerous companies that offer a diverse array of IT services. These cities appeal to international corporations due to their rich talent pool and cost-effective business environments.
• English Proficiency: Romania ranks 15th on the EF English Proficiency Index, making it an ideal location for effective communication across global teams.
• Time Zone: Operating in GMT+2, Romania is typically seven hours ahead of Eastern Standard Time and ten hours ahead of Pacific Standard Time.

Our Verdict: What’s the Best Country for Having an Offshore Software Development Team?

Choosing the best country for hiring offshore software developers requires a careful balance of technical quality, communication, and cost-effectiveness. Each country offers unique advantages that can significantly benefit your business.

• Brazil stands out with its top-level technical talent, driven by strong governmental support and vibrant tech hubs. This ensures you receive exceptional quality work. 
• But remember, communication is equally important. Argentina, with its high English proficiency, excels in ensuring seamless collaboration and clear project discussions, which are crucial for business success.
• Considering time zones is vital for efficient collaboration. For U.S.-based companies, working with countries within a 3 to 5-hour time difference, such as those in Latin America, can greatly enhance team synchronization and productivity. Opting for countries with a larger time gap can complicate scheduling and meetings.
• Budget is another key factor. India’s high tech talent pool and competitive rates make it an attractive option, offering experienced talent at a lower cost. However, Latin American countries strike a perfect equilibrium, providing high-quality work, proficient English-speaking talent, and manageable time zone differences, all at a reasonable cost. This balance is particularly advantageous for fostering long-term relationships with new hires.

Ultimately, the best choice depends on your specific needs and priorities. By considering these aspects, you can find a country that not only meets but exceeds your tech requirements, ensuring a successful expansion of your in-house tech team.

Recap of the best countries for offshore software development:

Country	GMT Time Zone	English Proficiency Ranking	Tech Talent Pool	Expected 2024 Software Market Revenue	Education Details	Major Tech Hubs
India	GMT+5:30	60th	3M+	$9,41BN	University is paid with scholarships available; notable institutions include Indian Institutes of Technology  (IITs) and the National Institutes of Technology (NITs)	Bengaluru, Hyderabad, Pune, Chennai
Philippines	GMT+8	20th	190,000+	$933,00M	Public universities have lower fees; notable institutions include UP and DLSU	Metro Manila, Cebu, Davao
China	GMT+8	82nd	7M+	$36,65BN	Paid universities cheaper than in the West; notable institutions include Tsinghua and Peking Universities	Shenzhen, Guangzhou, Tianjin, Dalian
Poland	GMT+1	13th	400,000+	$2,29BN	Paid universities; renowned institutions include Warsaw and Wrocław University of Technology	Warsaw, Kraków, Wrocław
Ukraine	GMT+2	45th	280,000+	$2,76BN	Paid universities; top institutions are Kyiv Polytechnic Institute and Lviv Polytechnic University	Kyiv, Lviv, Kharkiv
Romania	GMT+2	15th	150,000+	$387,00M	Paid universities; notable institutions include University Politehnica of Bucharest and Babeș-Bolyai University	Bucharest, Cluj-Napoca
Mexico	GMT-6 to GMT-5	89th	300,000+	$4,64BN	Public universities are paid; top institutions include UNAM and ITESM	Mexico City, Guadalajara, Monterrey, Tijuana
Brazil	GMT-3 to GMT-2	70th	750,000+	$9,40BN	Public universities generally free; top institutions include USP and UFRJ	São Paulo, Rio de Janeiro, Porto Alegre, Florianópolis
Argentina	GMT-3	28th	130,000+	$898,50M	Public universities are free; notable institutions include University of Buenos Aires (UBA) and Universidad Nacional de La Plata (UNLP)	Buenos Aires, Córdoba, Rosario, Mendoza

Hire Latin American Software Developers With the Help of Local Experts 

In this article, we’ve explored the offshore software development advantages. While Asia and Eastern Europe offer high-quality candidates to build an offshore software development team, Latin America stands out for U.S. companies. And it’s easy to see why. Latin America’s cultural compatibility, aligned work hours, and steady stream of skilled professionals from its robust educational system make the aforementioned countries the ultimate destination to work in sync with top talent.

If you’re ready to enhance your team with top-tier Latin American software engineers, BEON.tech should be your top choice. We specialize in matching your tech stack needs and business goals with the most qualified professionals.Curious? Don’t wait any longer—schedule a free consultation call.