The outsourcing industry is one of the biggest industries worldwide – in 2019, it amounted to $92.5 billion. There are several countries that are best for offshore development, and all are fast-evolving in terms of tech skills, expertise, and competence. They also provide a great quality-to-cost ratio and a wide IT talent tool. 

Read on to find out the best nearshore development countries in Europe based on digital innovations, tech, business, financial, cultural, and other criteria. 


Ukraine is the hotspot in Eastern Europe when it comes to outsourcing software development. It was named Outsourcing Destination of the Year for 2017 by Global Sourcing Association (GSA) and has been featured in the top 30 countries for offshore services according to Gartner’s list. 

It has the largest number of developers specialized in Unity 3D and C++, and it is also second in the world for Magento, JavaScript, and Scala software engineers. There is a strong tradition in technical education, and tech jobs are highly desired and considered prestigious. 

In 2020, there were more than 200,000 tech specialists in Ukraine, with a regular 30,000 young specialists graduating from Ukraine’s tech universities each year. 

Companies like Microsoft, Oracle, and Samsung already leverage Ukrainian tech talent quality and either outsource or establish offshore offices in the country. 

There are many fintech projects in Ukraine, and approximately 4,000 tech companies, many of which work on global digital transformation projects. 


According to Forbes and software development, Hungary is ranked 40th in the Best Countries for Business, generating 10% of its annual GDP. 

The outsourcing sector is mainly focused on IT security services and anti-virus software development. Companies like IBM, HP, Microsoft, Lufthansa, and Nokia have chosen to work with local IT specialists. 

Around 80,000 people are engaged in the IT sector in Hungary. There are also many R&D centers of various international companies, including Siemens, Ericsson, Microsoft, Nokia, etc. 


Poland is a popular R&D hub for many international companies operating in different industries. There are more than 295,000 software developers in Poland, and around 20% are working in companies offering various software development services. 

IT industry sales continue to grow each year, and it is expected that they will reach €14 billion in 2022.

Poland ranks 34th in the Best Countries for Business and is the sixth-largest economy in the EU. There are various R&D offices opened by tech giants such as IBM, Google, Motorola, Fujitsu, Motorola, Shell, and IBM. Almost 80% of Polish IT experts work for these corporations, and the other 20% are employed in IT service outsourcing companies. 

In conclusion, when you choose to outsource IT services, there are several factors to consider. The main ones include cost-to-quality ratio, tech skills, and smoothness of cooperation. These three countries provide all of these to ensure that you will have highly skilled IT professionals working on your project to deliver great quality in a cost-efficient way.