Best Countries for Offshore Software Development for 2023

With rising running costs for businesses of all sizes, any savings to improve the bottom line are always welcome. With the advancing technical age it’s not surprise that there is a reliance on internal software tools for efficient working and productivity, plus likely a website and other lead generation tools. Businesses are pushed to consider offshore software development in today’s globalized environment as a productive and economical solution to meet their technical needs.

The term “offshore software development” describes the practice of contracting out software development work to specialist teams or businesses based overseas, rather than nearshore with UK based teams. This article examines the best countries for offshore software development, based on objective factors such as talent diversity, cost-effectiveness, scalability, and cultural compatibility.

Pros and Cons of Offshore Software Development

Before you start looking at restructuring and redundancies (bearing in mind you will be paying some laid off staff to not be there for a period of time), you will need to evaluate the risks of software development outsourcing.

There are numerous benefits of course such as cost savings, access to global talent, and the latest technologies. However, offshore software development also presents communication challenges due to time zone differences, cultural barriers and security risks.

But in all cases, effective project management is crucial for success. There is a key thing to understand about cost saving with price versus productivity. While on paper it may seem good business sense to replace someone on £50 p/h for someone on £10 p/h, if they take 10 x times as long to do tasks, you are far worse off. Even you if contractually hire someone as a dedicated resource, you may find this is not the case. Plus there could be lost expenditure on R&D time as they learn your systems and any unexpected complexities.

But using UK companies also has the same risk, potential amplified. Your near shore supplier could be outsourcing the work, paying a lower hourly rate and then charging you for as long as they take to complete the task. You could be over-paying not going direct to the source.

Again, a strong internal project lead is critical, as a high level understanding of how long tasks should take is key to delivering the value you need.

And lastly, the contract details are important especially around public holidays. Some countries have far more public holidays than others, so if this is expected to be paid leave you will find that low salary not so attractive.

team of asian software developers

Popular Countries for Outsourcing Software Development for UK Companies

Several nations stand out as top candidates for top offshore software development countries as companies look for more affordable and competent software development solutions. India, Ukraine, Poland, Vietnam, the Philippines, and China become the top offshore locations in 2023, delivering a mix of technical know-how, skill, and affordable wages.


Cost: ££

India is regarded as one of the most popular and established locations for offshore software development companies with English well spoken. India continues to draw firms from all over the world thanks to its large pool of highly qualified IT experts, affordable costs, and welcoming business environment. The nation’s IT centres, including Bangalore and Hyderabad, provide a variety of software development services in a variety of industries.

One thing to note is the numerous public holidays which do vary with faith. There are over 30 grand festivals including Diwali, which often results in time off. Not a problem if it’s unpaid of course.


Cost: £££

In recent years, Ukraine has become a top location for offshore software developers, although the war has limited it’s growth some what. The nation boasts a workforce with a high level of education, a strong technical talent pool, and affordable prices, and often very nice people to work with.

Ukrainian software development firms are known for their proficiency in fields including cybersecurity, blockchain, and artificial intelligence which is an attractive skillset. Also, Ukraine’s proximity to Western Europe makes it possible to work effectively with companies there with time zones.

software developer


Cost: £££

The market for offshore software development has seen significant growth in Poland, another European nation. The nation provides a friendly climate for business, affordable rates, and a well-qualified staff with a brilliant work ethic. Web development, mobile app development, and e-commerce solutions are just a few of the many technologies in which Polish professionals excel, often with very good English skills.

Poland is a desirable option for companies looking to outsource software development projects because of its strong cultural ties to Western Europe and handy time zone overlap. And being a predominantly Catholic country, time off is usually around Christian holidays like Easter and Christmas too.


Cost: ££

An emerging star in the field of offshore software development is Vietnam. The nation has a beneficial mix of affordable prices, a vast skill pool, and an expanding IT industry. Vietnamese programmers are skilled in a variety of technologies and have a good work ethic, although English-speakers are harder to come by.

The two main business-attracting technology centres are Ho Chi Minh City and Hanoi, which are known for their high-quality output and affordable solutions.


Cost: £

Especially for American companies, the Philippines has emerged as a top choice for outsourcing software development projects. The country is a desirable option due to its sizable English-speaking population, cultural affinity for Western nations, and very affordable prices.

Filipino software developers are renowned for their superior technical abilities, professionalism, and capacity for customization to meet the needs of various projects. Key IT centres in the Philippines include Manila, Cebu, and Davao City.


Cost: £££

China is a leading location for offshore software development because of its large pool of competent software professionals. The country has excellent technical know-how, cost-effectiveness, and infrastructure capabilities. Although the Chinese market caters largely to domestic consumers, several foreign businesses have outsourced their software development tasks to China with great success.

China presents a distinctive potential for companies looking for cutting-edge software solutions thanks to its concentration on cutting-edge technologies like artificial intelligence and robotics.

Again, it’s worth pointing out Chinese New Year sees a lot of office closures in Jan/Feb with 7 days public holiday absence at minimum.

Asian software developer



It is necessary to thoroughly evaluate several criteria when thinking about the best countries for outsourcing software development, including the country’s talent pool, cost, cultural suitability, and geographic proximity. The nations listed in this article, including China, Vietnam, the Philippines, Vietnam, Ukraine, and Poland, stand out as the best options for companies looking to outsource software development projects.

Businesses can achieve their technological objectives while maximizing efficiency and cost savings by utilizing the knowledge and cost advantages given by these nations. To guarantee effective offshore software development in 2023, keep in mind to do in-depth research, analyse potential partners, and create a well-defined business itinerary.

Tips on how to manage offshore software developers

1. Choose the right team: When selecting offshore software developers, it’s essential to consider their skills, experience, and expertise. Check their portfolio and references to ensure they have the required knowledge and experience to work on your project. Set tasks to prove capabilities, and use reputable companies to hire them.

2. Effective communication. Ensure that you establish a clear communication plan, including regular meetings, emails, and chat sessions. Use collaboration tools like Slack, Trello, or Asana to keep everyone on the same page.

3. Set clear expectations: It’s crucial to set clear expectations and goals for your offshore development team. Define your project requirements, timelines, and deliverables, and make sure everyone is on the same page. You could even ask in advance how long some tasks are expected to make.

4. Track progress and Quality Check work: Use project management tools to track the progress and ensure it’s to the standard you need. This will help you to identify any potential issues or delays early on and take corrective action if required.

5. Provide feedback: Regular feedback is essential to ensure that your offshore development team is meeting your expectations. Provide feedback on their work and encourage them to provide feedback on yours or issues they face which are not being communicated.

6. Build a strong relationship: Take the time to get to know them, their culture, and their work practices. This will help to build trust and ensure that everyone is working towards a common goal.