April 7, 2023

  • 7 minutes

Nearshoring Eastern Europe Top Locations

Blog Team

As technology continues to advance and companies strive to remain competitive, the need for custom software development has increased. However, with the rising costs of hiring and retaining skilled technology professionals in Western Europe, many companies are turning to Eastern European countries as a nearshoring destination. In particular, Romania and Montenegro are emerging but also with very mature professionals, and are considered as attractive options for companies seeking top-quality development services at a lower cost.

The trend of nearshoring to Eastern Europe is not new.

Countries such as Poland, Ukraine, and Belarus have long been known for their strong technical expertise and high-quality development services. However, as the demand for these services continues to grow, more companies are looking beyond these traditional options and exploring the advantages of working with Romania and Montenegro.

Romania as a really matured IT and technology market.

According to a report by A.T. Kearney, Romania is one of the top ten most attractive countries for outsourcing in the world, thanks to its favorable business environment, talented workforce, and competitive costs. The country's IT industry is booming, with over 160,000 IT specialists currently employed in the sector, and the number is expected to grow further in the coming years. Additionally, Romania has a high literacy rate and an excellent education system that produces a large pool of skilled professionals every year. The country is also home to a large number of IT universities, including the prestigious Technical University of Cluj-Napoca, which is ranked among the top 500 universities in the world for Computer Science.

Romania has a booming technology industry and is home to some of the best developers in the region. The country has a high English literacy rate qualifying in top 20 speaking countries in the world, and a strong education system that produces a steady stream of skilled professionals. Romanian developers are known for their expertise in areas such as artificial intelligence, machine learning, cloud engineering and blockchain technology. The country's software development companies are also known for their quality and cost-effectiveness, making them an ideal nearshoring partner for Western European businesses.

Montenegro is a safe bet for the IT future.

Moving on to Montenegro, the country is relatively new to the software development industry. However, it has quickly established itself as a prime nearshoring destination, thanks to its favorable business environment and skilled workforce. According to a report by the European Bank for Reconstruction and Development, Montenegro's IT sector is growing rapidly, with a projected growth rate of 9.5% per year until 2023. The country has a high level of English proficiency, with 81% of the population speaking English, which is a significant advantage for businesses looking to outsource to the country. Additionally, Montenegro offers a range of incentives to attract foreign investment, including tax exemptions and reduced labor costs.

Montenegro has quickly established itself as a prime nearshoring destination due to its favorable business environment, skilled workforce, and excellent infrastructure. Montenegro's developers are particularly adept at building custom software solutions, and their services are in high demand by companies looking for cost-effective and high-quality development services.

Both Romania and Montenegro offer significant advantages to businesses looking to outsource their software development needs. These countries have a large pool of talented and skilled professionals, who are fluent in English and are familiar with the latest technologies and development methodologies. In addition, both countries offer a favorable business environment, with supportive governments that promote entrepreneurship and innovation.

It's worth noting that the cost of outsourcing software development to Romania and Montenegro is significantly lower than in Western Europe, making it attractive both to UK based enterprises as well as US companies. According to a report by Clutch, the average hourly rate for software development in Romania is $25, which is around half the cost of hiring a developer in Western Europe. Similarly, the average hourly rate for software development in Montenegro is around $20, making it a cost-effective alternative for businesses looking to cut costs without compromising on quality.

In conclusion, with the rising cost of custom software development and a shortage of technology professionals in Western Europe, outsourcing to Eastern European countries such as Romania and Montenegro is becoming an increasingly attractive option for businesses. These countries offer top-quality software development services at a significantly lower cost, making them an ideal nearshoring destination for Western European companies looking to stay competitive in today's market.

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EU: Nicu Bordea


US: Michael Philip

Group CEO & Founder