28 Software
Outstaffing in Software Development: High-Quality Expertise without Breaking the Bank

Today Poland, Ukraine, and Portugal are one of the best European hotspots for getting exceptional software development resources that won’t cost you an arm and a leg.

Main Points:

In today’s highly competitive global market, tech companies are discovering the incredible benefits of outstaffing. When it comes to hiring software development experts, cost is a crucial factor for businesses to consider. That’s why countries like Poland, Ukraine, and Portugal are becoming go-to destinations. They offer a killer combo of being affordable and having highly skilled programmers, engineers, and other software development experts. So for those who are looking to make the most of the budget and still get top-notch expertise, these countries are the way to go.

Save up to 80% on Expert Salaries

As mentioned earlier, labor costs in Poland, Ukraine, and Portugal are comparably low. It is notably lower than in the USA, Canada, Israel, and most other European countries. While it’s important to consider that salaries can vary based on factors such as specific locations within a country, required expertise levels, and market demand for software development professionals, the average figures indicate a general trend of cost-effectiveness.

Let’s take a closer look at the numbers.

According to salaryexpert.com, the average annual salary for a Software Developer is:

  • $117,214 – in the United States,
  • $95,570 – in Germany,
  • $84,690 – in the Netherlands,
  • $76,759 – in France,
  • $69,060 – in Israel.

In comparison, in Poland a Software Developer earns an average of $47,510 per year, and in Portugal – $51,407. The average annual salary for a Software Developer in Ukraine is only $20,997 – it is almost SIX times less than in the USA and more than THREE times lower than in Israel!


The difference in salaries of entry-level Software Developers (1-3 years of experience) is also impressive. In the USA Junior Software Engineers earn an average of $81,920 per year, in Israel – $48,570, while in Portugal they make $35,845, in Poland – $33,235, and in Ukraine, as reported by DOU.ua, only $12,000 per year.

The average annual Remote Developer Salaries in some countries (the survey of remote career platform Arc, based on self-reported data)

Even for Seniors, the salary in Poland and Ukraine is more than twice lower than in the USA. According to DOU.ua Ukrainian Seniors earn an average of $60,000 per year, in Poland – $59,075 (salaryexpert.com) – against $86,323 in Israel and $145,597 in the USA.

The average annual salaries for Remote Senior Developer (the survey of remote career platform Arc, based on self-reported data)

As you can see, the affordability of the software developers in Poland, Ukraine, and Portugal makes outstaffing here an incredibly cost-effective option for businesses, allowing them to save up to 80% on expert salaries. Choosing these countries for software development outstaffing offers significant cost advantages and exceptional value for businesses looking to maximize their resources.

Get Access to Prime Skill Hubs

Why not consider countries like India, China, or, for example, the Philippines, you may wonder, as they also offer lower salary ranges. While they may be viable options for certain projects, it’s important to take into account some potential drawbacks.

For instance, Indian developers, as per research from Gild, have performed remarkably well in math and logic assessments, outscoring their American counterparts by 11%. However, their scores in PHP and HTML tests are notably lower. So it is essential to select outsourcers with a strong track record in web development if that is your primary focus.

China is known for its relaxed enforcement of Intellectual Property (IP) laws, and the skills and expertise of Software Developers from the Philippines are not yet on par with developers from other mentioned countries. While the Philippines is a good option for simpler projects, it may not provide the expertise needed for more complex tasks.

Working with Ukrainian, Polish, or Portuguese engineers, you can have the best of both worlds: cost-effectiveness and excellent results.

In technical assessments conducted by SkillValue (tests assess over 160 skills using over 30k technical questions), Polish developers have garnered global recognition, ranking 3rd worldwide with an impressive score of 93.38%. Ukrainians took 5th place with 93.17% and outperformed their American, Israeli, and Indian counterparts by 8.58%, 13.62%, and 13.88%, respectively.

Both countries – Ukraine and Poland – are in the TOP 10 of the countries with the best programmers worldwide. Portugal is ranked 18th with a score of 88.25%, which is also a high indicator compared to the USA and Israel, ranked 27th and 34th, respectively. India, China, and the Philippines scored below 80%.

Global Developers’ Skills: Country Rankings and Scores

Resource: SkillValue research (evaluating 160+ skills using 30k+ technical questions)

The Winning Formula for Success

Evidently, Poland, Ukraine, and Portugal are becoming top choices for cost-efficient software development outstaffing and recognized engineering centers in the world.

  • Low labor costs and highly qualified software development professionals offer businesses the optimal solution.
  • Business-friendly tax systems and affordable day-to-day operations create a favorable environment for growth and success.
  • Numerous software engineering-focused universities and a fast-growing number of skilled professionals each year offer a simple and efficient search for the right expertise.

By making the most of what Poland, Ukraine, and Portugal have to offer, businesses can maximize cost-effectiveness without compromising on expertise, ensuring successful and productive results.


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