The movement towards total digitalization and new complex technologies, such as generative AI, has driven businesses to seek external expertise to keep up the pace and stay competitive. The cooperation model where a software development company provides technical solutions or builds the product for another company is called outsourcing.

The demand for outsourcing in software development grows annually, with the market size expected to increase at a CAGR of 8.6% from 2025 to 2030, according to data from Grand View Research. The software development outsourcing market was estimated at $744,623.5 million in 2024.

In this article, we'll look at the reasons to outsource software development and provide an overview of leading vendors from different regions.

When outsourcing is the way?

Before choosing among development companies, it is important to determine whether outsourcing is a necessary option for the projects. Below are cases when it can be efficient and beneficial.

Not meeting deadlines. When a company has an internal team that is busy with the main product and doesn't have the time and resources to finish other projects, it might be helpful to outsource software development to an experienced third-party team.

Lack of skills. If an internal team lacks certain skills or simply doesn't have an IT department but still wishes to launch a digital product, hiring outsourced specialists provides an opportunity to enhance the team.

Need for flexibility. Software outsourcing doesn't require a long-term commitment from the parties. The collaboration ends once application development is completed. Therefore, a company can expand or scale back the team whenever needed.

Access to technologies. More specifically than just acquiring missing skills, some companies want access to cutting-edge technologies. For example, to implement an AI chatbot or integrate analytics during app development. In such cases, it's easier to outsource software development to experts in the field.

Need for reduction in development costs. Hiring an in-house developer incurs expenses on taxes, perks, training, and management overhead, along with potential delays due to employee sickness and holidays.

How to find a reliable vendor?

With many countries, both nearshore and offshore, offering software outsourcing services, choosing the most suitable vendor can be challenging. However, several factors can help guide the decision.

1.Timezone

For some, it is important to synchronize workflows and have the opportunity to exchange messages during the day. In such cases, narrowing the search to vendors in the closest time zones will help.

2. Communication

Regardless of whether the software outsourcing company is nearshore or offshore, they should not delay responses, should set up demos at least every two weeks, and should update the client as often as needed. You can easily check if a vendor communicates efficiently by using review platforms like Goodfirms and Clutch, where company communication is evaluated separately.

3. Integration

Even though you're using outsourcing services and the team is managed by another software development company, they should still integrate you into their internal processes and project management systems — this is the foundation of transparency.

4. Deadlines

Another important factor to consider is the vendor's ability to meet deadlines. Review platforms can again be of great help in setting realistic expectations for a vendor's performance.

5. Rating

Be sure to check the overall rating of the company. You can usually see an average rating in a Google search preview or find the outsourcing development company's profiles on various platforms. In addition to those mentioned, Google Reviews, Upwork, and DesignRush also provide ratings and listings of different software outsourcing companies.

6. Experience

If an outsourcing software development company has experience working on projects within your industry, it is worth partnering with it. Nevertheless, outsourcing companies whose various clients are satisfied with their service quality but who don't match your industry could also be good partners. So, experience is not the ultimate deciding factor.

Speaking of time zones, let's now look at the company listings from different regions we've compiled. All software development outsourcing companies mentioned have numerous reviews, including those on the Clutch platform, and an average rating of over 4.8.

Outsourcing software development companies

The development companies in the list are organized by region. The selected regions are known for their popular software development outsourcing services. Each company description briefly outlines core services and highlights their areas of expertise. To provide a better understanding of the types of tasks that can be outsourced, we offer a more detailed overview of outsourcing services using Ronas IT company (the first on the list) as an example. This will help make the following development companies listings clearer for the reader.

Eastern Europe

We're starting with Eastern Europe, which is often praised for its good balance of cost and quality, making it one of the favorite hubs for custom software development outsourcing services. Outsourcing services in Eastern Europe generate significant revenue, especially through collaboration with US clients, projected to reach $197.30 billion in 2024.

Estonia

Ronas IT

Since 2007, Ronas IT has been renowned for their quality and timeliness among clients. Most clients highlight their expertise in UI/UX design and are satisfied with the skilled and experienced development team. The company establishes long-term partnerships with their clients, providing support and maintenance services after outsourced development.

Using Ronas IT, an Estonian software development outsourcing company, as an example, let's explore the services these types of agencies can offer.

Custom software development

Some businesses seek to automate specific business processes, where digitalization involves complex or unique product development. In such cases, a custom software solution is the best decision. To determine if the company works with large projects, see if they mention enterprise-dedicated solutions. Ronas IT has separate custom enterprise software services mentioned on their website.

Mobile app development

This service involves mobile application development for mobile operating systems, iOS and Android. It can be performed natively with platform-specific programming languages: Swift for iOS and Kotlin for Android, or it can be done with cross-platform frameworks like React Native, when a single code is written for both platforms.

Web development services

This software development service focuses on building websites and web applications using various technologies such as HTML, CSS, PHP, and frameworks like React, Next.js, and Angular. Such projects can vary in size and complexity, from landing pages to corporate websites.

Design services

Usually, outsourcing software development goes hand in hand with also outsourcing the product's design. The service responsible for the product's interface design is called UI/UX design. However, there are more opportunities for outsourcing in this field. For example, Ronas IT, being a software development company, provides concept design, creative landings, illustrations, graphic designs and logos, and works on customers' strategy and branding.

Software testing

Apart from building and designing an app or website, a software development outsourcing company can assist in checking the product's code quality. Usually, writing unit tests is a part of the software development service. However, when a client wants to integrate new features into existing software, it is essential to perform special checks and a code audit, which can be offered as a separate service.

Maintenance and support

After software product development, an application or website may need updates or enhancements over time. That's when support and maintenance services are needed. Most software outsourcing companies offer post-release collaboration, which, while not mandatory, is very handy.

Analytics

The goal of analytics is to define the client's business goals and the ways to achieve them through digitalization. Analytics include creating an impact map that helps connect business goals with future product features, user stories that compile a list of app features, and estimates that show the time and cost required for the project.

Emerging technologies

This software development outsourcing service relates to technologies at the forefront of innovation. For example, Ronas IT offers generative AI integration for business and marketing needs. This doesn't have to be a fully-fledged development from scratch but rather a technology implementation.

DevOps services

DevOps is a software development methodology designed to improve collaboration between developers and operations teams through the automation of processes using various tools. Procedures at Ronas IT involve establishing development and product environments and automating processes in the post-release period.

Industry-specific solutions

Industry-specific solutions are software development services aimed at addressing tasks and issues typically encountered in a certain field. Examples include e-commerce platform development, healthcare solutions that comply with documentation, complex logistics or retail digital ecosystems, convenient booking platforms, and education websites and apps.

MVP development

Minimum viable products (MVPs) for testing and validating business ideas are crucial in the case of new app development, whether launched within a large enterprise or a startup. This outsourcing service suits those who want to launch quickly on the market with just enough features to start.

Now that we have discussed the types of services a software development outsourcing company can offer, using Ronas IT as an example, and what these services entail, let's move on to the company listings.

Ralabs

Ralabs offers both outsourced custom software development and staff augmentation services. Their outsourcing projects concentrate on the fintech and healthcare industries. In addition to development and design services, they offer a wide range of audits.

Riseapps

Riseapps is a full-cycle end-to-end outsourcing software development company. Most clients highlight their high-quality work, communication skills, and timeliness. One of their defining traits is their investment in the client's project success. The company currently focuses on providing software outsourcing for the healthcare industry.

Poland

Merixstudio

The software outsourcing company is praised by international clients for effective remote collaboration. Despite the distance, they are able to collaborate well with their partners online. Merixstudio provides consulting and custom development services.

Droids On Roids

The software outsourcing company specializes in mobile app development outsourcing. They develop native and multiplatform apps and also create web applications. Droids On Roids offers end-to-end outsourcing development services.

Future Processing

Cultural compatibility is one of the reasons the company is chosen among other software development outsourcing vendors. In addition to custom software development, the company provides AI and ML, cloud computing, consulting, cybersecurity, and data solutions.

Bulgaria

Dreamix

The software outsourcing company works with clients from North America, Europe, and the Middle East. Dreamix supports both custom software development and staff augmentation delivery models.

Accedia

Accedia focuses on technology consulting and custom software development. The company is praised most for its proactive approach to problem-solving, as well as delivering projects on time and of good quality.

Wiser Technology

The software developer provides software development services to niche clients, serving industries such as automotive, hi-tech and communications, financial services, aerospace, and defense. Within these fields, they provide a full range of services, from business analysis to app development.

Czech Republic

OAK'S LAB

The company specializes in custom software, mobile, and web application development. OAK'S LAB positions itself as a business partner rather than just a software development vendor, assisting their clients starting from the proof-of-concept stage.

STRV

The software outsourcing company's portfolio includes cases of developing for A-list startups and big brands. Clients choose them for their strong communication and technical skills, noting that the company can deliver applications for various platforms while maintaining high quality.

Moravio

Moravio focuses on web and mobile app development. They claim to be accustomed to working with clients from different time zones and have experience in multiple technologies, including AI, ML, VR, voice and language processing, and the IoT.

South Asia

India stands out as a global leader in the software development outsourcing industry, largely due to its vast pool of highly skilled IT professionals and cost-effective services. The country has established itself as a powerhouse for software development, IT services, and tech innovation over the past few decades.

India

Aalpha Information Systems

The company has delivered custom software development services globally across 45+ countries. What clients appreciate most about Aalpha Information Systems are their cost-effective software solutions and expertise in e-commerce development.

TechnoYuga Soft

TechnoYuga has offices in New Delhi and Surat. They offer a wide range of software development outsourcing services and work with a staff augmentation delivery model as well. Clients value their ability to communicate effectively and provide partners with regular updates.

Infograins Software Solutions

The agency offers solutions in blockchain, mobile and web development, design, AI and ML, IoT, Salesforce, software testing, and game development. They work within an agile methodology and effectively help their clients reach their goals.

Southeast Asia

Southeast Asia, with its growing tech landscapes in countries like Vietnam and the Philippines, presents a vibrant outsourcing ecosystem. Known for its cost-effective software solutions and a strong technological foundation, the region is popular among businesses looking for balance between cost and quality.

Philippines

LANEX Corporation

As a full-cycle development company, LANEX Corporation works with companies of any size, from startups to enterprises across different industries. They combine cost-effective solutions with a customer-centric approach in their development services.

Offshorly

In addition to providing outsourcing development services with their dedicated development team, Offshorly offers staff augmentation and fully managed project collaboration models. They claim to have significant experience in delivering projects in the e-commerce field.

KODA Kollectiv

Based in Mandaue City, the software outsourcing company has operated since 2013, building mobile apps, websites, and enterprise systems. Their distinctive services include experience in Bluetooth and hardware integrations and business process outsourcing solutions.

Vietnam

Powergate Software

In addition to its headquarters in Hanoi, the company has six other offices in London, Melbourne, Quebec, Richmond, and Iowa. They boast an impressive tech stack and offer a variety of outsourcing services to their clients.

SOTATEK JSC

The agency specializes in custom software development and has a large team of over 1300 IT specialists. The team adheres to schedules and even completes projects ahead of time. In addition to development services, they work with blockchain development, AI and ML, IoT, white-label solutions, CRM services, SAP development, and cloud migrations.

Politetech Software

They provide IT outsourcing services, from app development to support and maintenance, working with an agile methodology. Clients particularly highlight their technical proficiency in custom, mobile, and web development.

South America

South America is gaining traction in the outsourcing arena, with countries like Brazil and Argentina leading the way. This region offers a compelling mix of competitive pricing and high-quality service due to a growing number of skilled software developers. South American development companies are known for their flexibility and efficient project management, often working effectively across time zones that align well with North American clients.

Brazil

BairesDev

BairesDev is capable of establishing long-term relationships with its clients and positions itself as an offshore software development partner. They bring their clients' projects from concept ideation to completion. The company supports various delivery models, including outsourcing, dedicated teams, and staff augmentation.

Cheesecake Labs

This software development and design company with offices in both Brazil and California provides custom, web, and mobile development services and offers different models of collaboration.

Snowman Labs

The company provides custom software development services and works in agile squads. The team is prepared to handle projects of any complexity and implement emerging technologies.

Argentina

Software Mind

It would be more accurate to consider Software Mind an international company, as they have 14 centers worldwide, including Argentina. With over 20 years of experience in software development outsourcing, clients usually choose the company when industry-specific knowledge is required.

Intermedia IT

They offer management and development outsourcing services with their strategic and tactical teams. Clients have highlighted cultural and value alignment as well as high-quality talent among the many positive aspects of Intermedia IT.

Vates

Vates offers outsourcing services for custom software development, app testing, and IoT and big data solutions. Clients emphasize their effective Jira workflow and high-quality management.

North America

While the United States and Canada are often highlighted in discussions about North America's tech scene, Mexico has been emerging as a dynamic player in the software development outsourcing sector. Mexico offers several advantages as an outsourcing destination, including its proximity to the United States, making it an ideal choice for nearshore outsourcing.

Mexico

Codebay

The software outsourcing company operates using the SCRUM methodology and provides dedicated teams for web and mobile app development projects. Their services also include maintenance and testing.

ClickIT

ClickIT specifically highlights their DevOps services as a separate offering that accelerates software delivery. They also work with a staff augmentation model and provide software development outsourcing services.

Unosquare

Unosquare is an international team with offices in the US, Mexico, UK, Colombia, and Bolivia. As a full-cycle outsourcing development company, they take on projects of different sizes and complexity, delivering them on time and budget.

Southern Europe

Southern Europe presents a compelling outsourcing option, particularly in Portugal. Southern Europe offers a blend of innovative approaches and cultural compatibility with Western countries, making it appealing for businesses in search of quality and cultural alignment. The strong local emphasis on technology education produces skilled professionals capable of tackling diverse and complex software development challenges.

Portugal

eBridge Technologies

eBridge Technologies specializes in e-commerce and CMS solutions. They combine popular e-commerce builders' capabilities with custom design.

Altar.io

The agency provides custom product and software development services. They assist with MVP development, AI implementation, fully-fledged custom software development, and UI/UX design.

Pixelmatters

The company is praised for their UI/UX design skills, producing visually appealing interfaces aligned with client branding. Along with mobile and web app development services, they provide DevOps and Infrastructure solutions and assist with QA.

Conclusion

The global software development outsourcing landscape is rich and diverse, offering many opportunities for businesses to extend their innovation potential. Each region brings its unique strengths to the table. We've mentioned some of the most popular destinations for outsourcing software development chosen by many clients before. However, there are even more opportunities around the globe. If you'd like to know the cost of your app development outsourcing in Eastern Europe, we're here to help. Just fill out the form below, and we'll help you estimate development and design costs.