The Future of Nearshore Software Development In Europe: Trends and Predictions

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The practice of nearshore software development is gaining momentum as businesses worldwide seek ways to optimize their projects, reduce costs, and boost the economy. This article will explore the benefits of outsourcing operations to a nearby country, so read on to see how companies from Eastern and Western Europe cooperate closely to foster synergy in the software development industry.

The Rise of Central and Eastern Europe as the IT Nearshore Destination

The European Union is facing a significant shortage of skilled IT professionals. According to a Eurostat report, one in three companies in the EU is actively seeking programmers, and up to 50% of companies across the European Union are struggling to recruit IT developers. The shortage is particularly pronounced in Germany, followed by Sweden and Denmark. The lack of technology specialists in the UK is estimated to be as high as 70%.

Central and Eastern European countries have emerged as the premier nearshore destinations for IT outsourcing. With a shortage of skilled IT professionals in Western Europe, companies are flocking to the talent pool in this region. Poland, Romania, and Ukraine, among others, offer proximity, exceptional quality work, and cost-effectiveness.

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IT Companies Focus on Return on Investment

Nearshoring trends indicate that software development is becoming increasingly crucial for companies aiming to achieve cost savings. You may wonder how hiring people from other countries can boost the ROI.

Think about all the financial benefits: tax incentives, lower employee wages, office expenditures, and travel expenses, as well as the more advantageous cost of managing remote workers. This strategy gives businesses greater leeway to direct resources where they will have the most significant impact, resulting in a faster ROI.

Why Do Companies Nearshore Software Development to Europe?

Nearshoring trends in the IT industry have seen a significant rise in recent years. Europe, particularly Eastern Europe, has emerged as a favored destination for companies that plan to outsource their software development operations. Several key reasons are driving this trend.

  • Clients and European development teams can easily communicate and work together in real-time thanks to the continent’s convenient time zone proximity.
  • European nearshore software development teams typically have a high English proficiency and an accent comparable to that of their contractors. The lack of a language barrier is incredibly beneficial.
  • Since Eastern European countries have affordable labor force and IT solutions, it is possible to save money by nearshoring software development to Europe from Western Europe, the United States, or Canada.
  • The IT workforce in Europe, especially in Eastern Europe, is among the best in the world. Due to the abundance of highly skilled professionals and technological innovation hubs, many IT companies have set up shop in the area.
  • Geographic proximity means no more need for late-night phone calls or lags in transmission. Because of shared values and traditions, open communication and productive collaboration are easier.
  • Enterprises can take advantage of tax incentives offered by some European countries. For example, Poland is well-known for its generous reward program.

Poland - one of the top nearshoring destinations

Poland - One of the Top Nearshoring Destinations

Poland is one of the best nearshore outsourcing destinations in Eastern Europe, and here is why. There are more than 60,000 IT businesses and software houses in the area. In terms of global rankings, Polish programmers come in at number three globally in overall programming skills and 1st in Java programming skills – an impressive result!

Businesses looking for outsourcing opportunities are drawn to Poland because of its lower costs, supportive regulatory framework, and well-developed infrastructure. Don’t forget about a high level of English proficiency and a large pool of skilled developers (over 500,000 strong).

All these nearshoring trends make Poland an attractive option for businesses seeking to outsource their software development projects.

How Can You Nearshore Your Company's IT Operations to Poland?

When analyzing the nearshoring trends in Europe, you can quickly notice that you should consider Poland the ideal destination for your company’s IT operations and services. Here is how to go about it:

  • Do extensive research, exploring the multitude of benefits that nearshore outsourcing to Poland offers. Stay up-to-date with the latest nearshoring trends sweeping across Europe, ensuring you make informed decisions about how Polish companies operate.
  • Choose a reliable partner who possesses high-level technical skills and aligns with the cutting-edge nearshoring practices prevalent in Europe. Seek out a provider who can keep pace with the dynamic industry market.
  • Visit the nearshore offices of potential contractors. Experience firsthand how they operate and witness the impressive projects they have undertaken.
  • Gain a comprehensive understanding of Polish employment laws harmonized with standard EU regulations. This knowledge will bolster your confidence in entrusting your work to Polish tech talent.
  • Take inspiration from leading global companies, including Google, Microsoft, IBM, Intel, and Amazon, who have already recognized Poland’s potential and established successful research and development hubs.

European Outsourcing Trends and Predictions

Nearshoring trends in Europe point to Eastern Europe’s continued allure as an IT outsourcing location, especially for Western countries. Automation’s growth, political unpredictability, and a slowing global economy will all impact the outsourcing environment. In light of these changes, organizations should look for service providers who provide excellent services, place a premium on adaptability, and use state-of-the-art technology.

Despite challenges, outsourcing software development is anticipated to grow due to the benefits it provides to businesses.

How To Choose the European Nearshoring Company?

Think about the nearshoring company’s accessibility and dedication before deciding on adding it to your supply chains. You should read feedback from customers and business associates and inquire about previous work samples. Ensure your needs will be met, and look for a company that prioritizes efficiency over cutting expenses. Think about how they treat their employees, how secure their business is, and how they deal with intellectual property.

Why Choose Scalo as Your Go-To Partner for Nearshore Software Development?

In the post-pandemic era, businesses must stay updated on outsourcing developments and adjust their strategies accordingly. By leveraging the advantages of Eastern European countries, you can optimize outsourcing practices, drive innovation, and remain competitive in the respective industries.

Scalo’s nearshore software development services come highly recommended due to the company’s experience, versatility, and technological prowess. For nearby countries, using Scalo for nearshore development has many benefits, such as a common legal framework and shorter meeting commute times. By choosing our services, you can save money and access the best talent without sacrificing productivity or quality of work.

So go ahead and contact us. We stand ready to help your business thrive!

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