The Best Countries To Outsource Software Development in 2022

If your company is struggling to hire tech talent, outsourcing may be a highly effective strategy for finding the developers you need. Some of the world’s most promising talent hubs are outside of the United States, and outsourcing in these countries can kickstart your hiring to grow your team quickly and inexpensively.

But where should you focus your search? Below, we reveal the best countries to outsource software development to in 2022.

What does it mean to outsource your software development?

Outsourcing your software development means using a third-party organization to assign your engineering needs to developers they employ. There are many types of  outsourcing, but you’ll get the best results from a third-party that embeds their software developers at your company, giving you full-time engineering assistance with developers who can work on a daily basis with your existing team.

Why outsource?

The engineering talent shortage has made it much harder for companies to find the developers they need to innovate and stay competitive. Tech recruiters now source fewer candidates per role and take longer to hire, and compensation packages are becoming prohibitively expensive. These challenges have made the recruitment of developers the number one concern for a majority of tech executives today. Outsourcing allows you to sidestep many of these challenges and get development work done faster using elite talent.

The best countries for outsourcing in 2022

To determine the best countries to outsource software development to in 2022, we weighed several factors, including cost, time zone alignment, and the overall quality of talent pools. The following countries rose to the top, making them ideal regions to consider for outsourcing your development work.

Mexico

Mexico has long been the epicenter of a rising tech revolution. Mexico’s technical universities turn out thousands of talented developers every year, and the country’s well-established startup and nearshoring industries offer a large population of highly experienced developers. And because the US and Mexico share a border, its tech workers have cultural similarities to their US counterparts.

• Talent pool: Mexico is a hotbed of software engineering talent within Latin America. The country is home to over 700,000 developers, with over 110,000 more joining the labor force every year as 20% of all university graduates in Mexico obtain a relevant technical degree.
• Cost: In Mexico, businesses can expect to pay less than 50% the salary of a developer in the United States. 
• Time Zone Alignment: Mexico’s time zone is highly aligned with the US, with three quarters of the country on Central Time for most of the year. 

Canada

Canada is home to some of the world’s biggest tech giants like Shopify, Constellation Software, and CGI, Inc., giving it a mature and well-developed tech scene. It’s closely aligned with the United States both in terms of culture and time zone, and more than three-quarters of the population speaks English.

• Talent Pool: Of all the countries in the world, Canada is home to the world’s fifth largest share of developers. Sixty percent of its population has a post-secondary education, making it the most educated populace in the world. The Canadian government also heavily invests in STEM education, creating a steady stream of tech talent
• Cost: In Canada, businesses can expect to pay less than 50% the salary of a developer in the United States. 
• Time Zone Alignment: No matter where in Canada your developers are located, Canadian time zones line up closely with continental US time zones. Toronto, for example, is on the equivalent of Eastern Time. Daylight Savings Time is observed sporadically throughout the nation.

Chile

Chile is one of the world’s most promising fintech and e-commerce hubs thanks to its strong economy and business-friendly environment, making it an outsourcing hotspot for US-based tech companies. 

• Talent Pool: Chile is home to 75,000 software developers, many of whom have experience working at top companies such as IBM, Experian, Equifax, HP and startups like Cornershop and Fintual. Chile has also been ranked number one in digital skills for all of LatAm by the International Institute for Management Development.
• Cost: In Chile, businesses can expect to pay less than 50% the salary of a developer in the United States. 
• Time Zone Alignment: Most of Chile – including Santiago – is one hour ahead of Eastern Standard Time year round.

Colombia

Colombia is Latin America’s fastest-growing and third-largest tech talent hub. It has a bustling tech scene that includes, most famously, Rappi, Colombia’s first unicorn. It is also home to engineering teams for US-based tech firms such as IBM, HP, and Oracle.

• Talent Pool: Colombia is home to over 65,000 software developers, ​​two thirds of whom hold an advanced degree in computer science or a related field. And these numbers are only growing every year: Colombia’s biggest cities are home to prestigious universities and tech bootcamps that mint South America’s most talented developers.
• Cost: In Colombia, businesses can expect to pay less than 50% the salary of a developer in the United States. 
• Time Zone Alignment: Colombia has one time zone, and it aligns with Eastern Time during Standard Time and Central Time during Daylight Savings Time.

Poland

Poland is home to one of Europe’s most promising tech talent markets. The country came in third in HackerRank’s ranking of the world’s best developers, and it ranks 16th globally for English proficiency, allowing Polish and American engineers to easily collaborate.

• Talent Pool: Poland is home to 166,000 highly experienced software developers; Polish developers have a median experience of 8.5 years, and over 10% of developers in Poland have had experience working for top product companies.
• Cost: In Poland, businesses can expect to pay less than 50% the salary of a developer in the United States.
• Time Zone Alignment: With some slight adjustments to work schedules, there can be a four hour overlap between Central European Time and Eastern Time.

Spain

Spain is home to one of Europe’s largest tech talent pools, and that number grows larger every year. What’s more, Spain ranks in the top twenty of HackerRank’s ranking of the world’s best developers. 

• Talent Pool: Spain boasts 333,000 IT professionals with a median experience of 10.5 years. In addition, the Spanish government recently announced a ten-year plan to attract startups to the nation, which is expected to spur significant growth and provide valuable startup experience for developers.
• Cost: In Spain, businesses can expect to pay less than 50% the salary of a developer in the United States.
• Time Zone Alignment: Spain is on Central European Time, which allows for a four hour overlap with Eastern Time with some slight adjustments to work schedules.

Costa Rica

Costa Rica’s engineering talent has attracted significant international interest, making the country one of Latin America’s most sought-after tech hotspots. Tech companies like IBM, Intel, and Accenture have all set up Costa Rican hubs, and the country ranks fourth in Latin America for English proficiency. 

• Talent Pool: Costa Rica has been dubbed a “technology paradise,” with 7,000 technology graduates per year and more government spending on education than the United States. 
• Cost: In Costa Rica, businesses can expect to pay less than 50% the salary of a developer in the United States.
• Time Zone Alignment: Costa Rica is aligned with either Central Time or Mountain Time depending on the time of year.

Need help figuring out where to outsource? Terminal can help.

Terminal is better for your company than a traditional offshore development shop because we embed developers at your company to work with you full-time. We hire, support, and retain elite global engineering talent in all of the above markets, and we’re adding more markets to our portfolio every year. Our recruiters will work with you to assess your needs and recommend the best hiring markets for your team. We leverage local expertise to handle interviewing and navigate employment laws and cultural norms so that your new developers can get up to speed and start delivering value as quickly as possible. Grow your business with Terminal.

Now that you know the best countries to outsource software development to in 2022, you can explore how outsourcing can transform your team. Read Terminal’s success stories today.