According to Grand View Research, Europe’s IT-outsourcing market is expanding rapidly. Their 2024 report shows that the European outsourcing sector generated around USD 183.6 billion in revenue, with steady growth expected through 2030. This data highlights a clear trend: more businesses — from startups to large enterprises — are increasingly turning to remote IT teams to accelerate development, streamline operations, and innovate faster.
Eastern Europe plays a particularly important role in this growth. The region stands out thanks to its combination of highly qualified specialists and cost-effective service rates. Local developers often come from strong technical and STEM-focused education systems, contributing to a large and continually growing talent pool. At the same time, development costs remain significantly lower than in Western Europe or North America, allowing companies to work with top-tier professionals without exceeding their budgets.
Recruiting, onboarding and administrative support are handled by the outsourcing partners, which reduces the time needed and the workload for the internal HR and management.
We will cover the reasons that make Eastern Europe such a trusted outsourcing location in this article. Later sections will also compare its benefits with other regions such as Western Europe and Scandinavia to give you an idea of how Eastern Europe stacks up in terms of cost, availability of skilled workforce, and overall outsourcing feasibility.
Development Cost by Region
In 2025, the price gap between European regions became even more noticeable, making the choice of location a crucial factor in software outsourcing. While global demand continues to grow, Eastern Europe remains one of the most cost-efficient regions, offering competitive rates without sacrificing technical quality or project reliability.
While elements such as project size, seniority level, and necessary technologies affect the cost, the region remains the biggest price determinant. To offer realistic estimates for 2025, we analyzed the latest data from major platforms including Clutch, Upwork, TopTal, and Indeed.
Let’s take a look at how developer rates in different European regions compare in 2025:
Region | Average Hourly Rate |
Eastern Europe | $32-70 |
Western Europe | $75-115 |
Scandinavia | $90-155 |
Baltic States | $42-65 |
Balkans | $30-48 |
Eastern Europe continues to offer the best balance of cost and expertise. The region combines a strong tech talent pool, advanced technical education, and a mature outsourcing culture that keeps quality high even as global demand grows. These advantages make it the preferred choice for many companies seeking reliable development at reasonable prices.
Western Europe and Scandinavia maintain the highest rates due to increased operational costs, local economic conditions, and strict regulations. The Baltics and the Balkans remain solid mid-range alternatives, but still fall short of Eastern Europe in terms of depth and scale of available specialists.
For many companies, the most financially efficient option for software outsourcing is the Eastern European region. It combines strong engineering talent with competitive rates and reliable delivery.
Why Do Companies Outsource Software Development to Eastern Europe?
Strong engineering talent, competitive pricing, and efficient delivery models make Eastern Europe an increasingly popular outsourcing destination among businesses. Western & Northern Europe certainly provide good quality services; however, these are generally at a much higher cost. In contrast, Eastern Europe has developed a focused outsourcing ecosystem ideal for global companies in need of reliability and cost-effectiveness.
Here are the main reasons why companies prefer Eastern Europe:
IT Outsourcing in Eastern Europe: A Strategic Approach to Software Development
Cost Reduction
Development rates in Eastern Europe are considerably lower than in the US, Canada, or Western Europe. For example, developers in North America often charge $50–$250 per hour, which is nearly double the cost in Eastern Europe. This makes the region an ideal choice for companies that want to reduce expenses without compromising quality.Large Pool of Skilled Talent
Eastern Europe is home to one of the fastest-growing tech communities. The region offers access to highly trained engineers, strong STEM education, and specialists experienced in complex digital projects. Many teams also include international experts, expanding the available skill set.Expanded Development Capabilities
In case a company's in-house team is overwhelmed or the company requires special skills, outsourcing in Eastern Europe offers a quick helping hand. Be it a full development team or a niche specialist, companies can rapidly scale resources and run parallel projects.Time and Resource Savings
Outsourcing vendors manage recruitment, onboarding, and administrative processes. This means companies avoid lengthy hiring cycles, and teams from Eastern Europe can start working almost immediately.Fast, High-Quality Delivery
European software development firms, particularly in Eastern Europe, are renowned for their effective processes and high technical standards, enabling companies to release digital products to the market more quickly and at a lower cost.
In the upcoming sections, we will also contrast these advantages with those of Western Europe and Scandinavia in order to show the differences in cost, talent pool, and outsourcing potential of each region.
Western Europe IT Outsourcing
Western Europe is still one of the most expensive places to hire a software development team. Stronger economies, higher taxes and more rigorous regulations affect the prices and IT services here are significantly more expensive than in Eastern Europe, where a lot of businesses tap into software development outsourcing as a means to cut down on costs without sacrificing quality.
Average developer rates in Western and Central European countries are generally around $50-$300 per hour. Switzerland and the United Kingdom are the exceptions to this, with the highest prices of $100-$300 per hour. More reasonable, although still premium rates are available from the Netherlands, Belgium, Ireland, Germany, and France, at between $50-$200 or so in most cases.
Outsourcing in Northern Europe and the Baltic Region
Compared with Eastern Europe, where companies often rely on software development outsourcing to balance cost and quality, Northern Europe remains one of the most expensive regions for hiring development teams. Scandinavian countries — Denmark, Finland, Sweden, and Norway — typically have some of the highest hourly rates in Europe, often starting around $50–$150 and rising significantly for advanced expertise. This naturally makes the region a less budget-friendly choice for businesses that prioritize cost efficiency.
Baltic-based development, however, presents a significantly cheaper option while still offering a good level of quality. Average rates for development in Lithuania typically amount to $25–$49 per hour, which can be considered competitive with many Eastern European countries. Prices in Latvia are usually a bit higher, while Estonia - with its highly developed digital ecosystem - has a massive price range: from $25 to $100 an hour, based on the complexity of the project and the level of the specialist.
If we are to take a look at the overall comparison, it’s clear that Eastern Europe still holds the best combination of cost when it comes to cost, technical expertise, and the ease of scaling. The Baltics, on the other hand, are the middle ground — more affordable than Scandinavia, but slightly more expensive than many parts of Eastern Europe. Meanwhile, Northern Europe attracts companies that prioritize proximity, strict compliance, or niche expertise rather than budget optimization. For businesses evaluating potential outsourcing software development companies, the Baltics and Eastern Europe often present a more cost-effective and equally reliable alternative.
Top Outsourcing Destinations in Eastern Europe
Here we explore the Eastern European countries that have become the most reliable choices for software outsourcing. Each of them brings its own mix of strong technical expertise, practical business conditions, and reasonable development costs. Ukraine, Poland, Romania, and the Czech Republic continue to attract international companies not by chance — their engineering culture, modern tech approaches, and consistent project delivery make them some of the most trusted partners for building high-quality digital products
Ukraine: A Hub for High-Quality IT Talent at Competitive Rates
Ukraine remains one of the most popular outsourcing destinations in Eastern Europe. The main reason — a large pool of highly qualified IT specialists offering competitive prices. Many Ukrainian developers have extensive experience in areas such as software development, artificial intelligence, cybersecurity, and can work with modern cutting-edge technologies. Clients also appreciate strong technical skills and English language proficiency among Ukrainian engineers, which makes cooperation smooth and efficient.
According to regional estimates, Eastern Europe now employs over 1.3-1.5 million software developers, and Ukraine remains one of the central contributors to this talent pool.
With competitive hourly rates and high delivery standards, Ukraine offers one of the best cost-to-quality ratios in the European outsourcing market
Poland: Nearshore Outsourcing Leader with Strong Technical Expertise
Poland is ideal for companies looking for a nearshore provider in which they can benefit from predictable processes and a mature tech community. The country’s location close to the rest of Western Europe, as well as its established education system, makes for a great number of specialists with experience in fintech, machine learning, enterprise, and cloud solutions. A steady economy and EU-aligned regulations add support for IT talent, making it a viable option for long-term collaboration.
The country has built a strong reputation in the region thanks to its growing tech industry and large number of skilled IT professionals. The country now hosts a substantial pool of developers who work confidently with fintech, machine learning, enterprise systems, and cloud technologies — making Poland one of the most capable engineering hubs in Central and Eastern Europe.
Romania: A Strong Player in Custom Software Development and IT Services
Romania has become a strong destination for companies seeking tailored digital solutions. Its development teams work confidently with cloud technologies, mobile applications, enterprise platforms, and blockchain-based architectures, making the country a solid match for projects that require deep customization. Another strength of Romania is its ability to scale teams quickly, which is particularly valuable for long-term projects that evolve over time.
What makes Romania stand out is the balance between technical flexibility and moderate pricing. Businesses that need high-quality engineering but want to maintain financial efficiency often see Romania as a practical and well-rounded outsourcing partner.
Czech Republic: Innovative Solutions with Affordable Outsourcing Rates
The Czech Republic has steadily strengthened its position in the outsourcing landscape thanks to its focus on modern engineering practices and a long-standing tradition of technical education. Czech developers frequently work in areas such as automation, industrial software, and enterprise system modernization, offering a high level of precision and operational reliability. Many teams also excel at integrating new technologies into existing infrastructures, which is especially valuable for companies operating in technology-heavy or highly regulated industries. For these businesses, the Czech Republic often becomes a natural and strategically sound choice.
One of the benefits of this market is regularity: customers value a predictable supply, structured workflows and cheap service fees. The local teams bring discipline and local knowledge that minimize project risks and provide stable long-term collaboration. This means companies can have access to innovation without losing budget control.
How to Choose the Best Country for Software Development in Eastern Europe?
Choosing the right country in Eastern Europe can significantly influence the success of your software project. Although the region as a whole is known for its strong tech talent and rapidly growing IT ecosystem, every country has its own strengths, specializations, and business environment. To make a confident decision, it’s worth evaluating a few key factors that help determine which destination aligns best with your goals.
1. Technical expertise and industry maturity
Look for countries with a well-developed IT sector and a strong engineering culture. In Eastern Europe, many markets have invested heavily in digital education and modern infrastructure, giving you access to specialists experienced in software engineering, cloud technologies, and full-scale product development.
2. Cost of services
Although Eastern Europe generally offers competitive prices compared to Western Europe, rates still vary between countries. Compare pricing from several development teams and consider what level of expertise you expect for your budget. This helps you find the right balance between cost and quality without overpaying.
3. Legal environment and contract transparency
Each country has its own tax rules and cooperation standards. Before choosing a destination, review the legal specifics, data protection requirements, and common contractual practices. Eastern Europe is known for clear business frameworks, but it’s still important to ensure smooth onboarding and compliance.
4. Time zone convenience and geographic accessibility
One of the biggest advantages of Eastern Europe is the comfortable time zone for clients from Western Europe and a partial overlap with North America. Still, differences exist — so select a country where communication won’t be slowed by delays or logistical barriers.
5. Communication style and language proficiency
As you begin conversations with potential development teams, note their English level and how well they can explain requirements and how transparent they are with you. Most teams from Eastern Europe do have good language skills, yet it is always good to establish this upfront to avoid any surprises during development.
With this knowledge of these factors, you can confidently select an Eastern European country that best aligns with your workflow, budget, and vision for your product in the long term.
IT Outsourcing: From First Contact to Release
Working with any outsourcing software development company in Europe involves essential steps. Let's break them down using our example at Lampa.
Initial Call: After selecting an IT service provider and submitting your request on their website, a company representative will contact you. You will then need to provide a brief overview of your idea or project for which you seek specialists.
Team Discussion: A meeting is scheduled where you will discuss the project in detail with domain experts. Business analysts, lead developers, and designers are present at this stage. They help you define requirements for remote developers in Eastern Europe, plan the scope of work, set key quality indicators, design requirements, and more.
Discovery: At this stage, all your requirements and preferences are structured into a clear work plan. The project's details, such as software functions, necessary integration services, additional features, and more, are documented.
Development and Quality Assurance: The team writes code, tests it, makes adjustments, refines, and tests again to ensure a high-quality product. The software created here undergoes tests on different platforms and devices as defined during the discovery phase
Release of the Finished Product and Support: After testing, the team assists you in launching the product on a platform or in an app store. In the case of a corporate IT product, specialists integrate it into your existing infrastructure and help train your personnel to use the new solution. Moreover, most software development companies in Eastern Europe offer post-release support, which involves releasing updates to maintain the stable operation of your IT solution.
Why Should You Choose Lampa.dev, a Ukrainian Company?
Whenever companies seek a dependable technology partner, they keep coming back to Ukraine — and we know exactly why. Our country’s IT community is one of the most powerful in the region, combined with a deep engineering culture, quality technical education and a problem-solving and innovation-driven mindset. Ukrainian developers have proven to be resilient, professional, and capable of producing top-quality digital products even in the most adverse conditions.
At Lampa.dev, we’ve built our approach around transparency, flexibility, and consistent results. We don’t just take on projects — we collaborate with you to create solutions that fit your goals, timeline, and budget. Here’s what makes working with us a valuable decision:
Experienced team: each of our engineers has 6+ years of hands-on experience in web development, mobile applications, and custom software.
Predictable schedule: we make each phase transparent and realistic deadlines, and employ well-defined processes, enabling us to deliver your project on time and on schedule.
Flexible cooperation: we adapt to what best suits your needs, whether you need a fixed price, an entire team, or a time and materials-based cooperation.
Competitive pricing: being a Ukrainian company, we are able to provide some of the best prices for quality rates in the area.
Easy communication: as English speakers, our team is aligned with and committed to the best communication practices, so working with us as a client is a comfortable experience no matter which country you’re from.
When you want a technology partner that gets both your vision and your business needs, that’s who we’re ready to be. Schedule a free consultation and turn your idea into a dependable digital product.