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Central Europe: The Ideal Destination for Outsourcing Software Development

Central Europe: The Ideal Destination for Outsourcing Software Development

Tina Lj

Tina Lj.

8 minutes

Jan 15, 2024

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Central Europe: The Ideal Destination for Outsourcing Software Development

Why do companies turn to outsourcing? The term “outsourcing” often evokes a mixed range of perceptions. Yet, at its core, outsourcing represents a strategic move towards efficiency and growth.

A simple Google search on “Why do companies outsource software development” offers different benefits, ranging from time and cost savings to freeing up your resources.

If you are still wary about the benefits of outsourcing software development, in this blog, let's see why Central Europe might just be the right fit for you. While yes, we are based in Croatia, there is more to this region than just a tourist destination.

In Central Europe, outsourcing is, among other things, having access to a highly skilled talent pool. From highly skilled developers in Poland to innovative designers in Hungary, this region has a dynamic workforce ready to tackle your toughest tech challenges. Let’s see why taking these things into account is important when hiring software developers.

Why Central Europe is an ideal destination for outsourcing

Educational background and expertise

Without the questions, when looking for strategic partnerships, you want partners who possess in-depth tech knowledge and experience. Collaboration is key because having someone who specializes in certain tasks allows you to focus on your own work while they handle what they excel at.

A country with a strong tech education system is more likely to produce highly skilled developers. Education is essential, and European engineering schools are well-known for their strong academic standards and research achievements. Central Europe is home to several top universities known for their great STEM programs.

Moreover, Central Europe actively encourages interest and talent in technology. For example, there's the Central-European Olympiad in Informatics (CEOI), which celebrated its 30th anniversary last year. It's an annual competition aimed at sparking interest in informatics among high school students. It has been held since 1994, and the goal is to get people more interested in informatics and information technology in general. Notably, in 2022, Croatia hosted CEOI in Varaždin.

Furthermore, Central Europe boasts vibrant tech hubs that serve as centers of innovation and collaboration. The talent nurtured through quality education and recognition from awards and competitions plays a vital role in these ecosystems' future growth and success. For instance, the team from Zagreb's Faculty of Electrical Engineering and Computing Furthermore won a prestigious robotics competition held in Abu Dhabi. Over the years, FER Zagreb won numerous awards and recognitions. These results emphasize the importance of investing in education to drive the growth of tech ecosystems in the region.

Strong development teams

Building on the foundation of education and expertise, Central Europe is home to strong development teams known for their specialization and proficiency across various technologies.

Poland has a thriving IT industry and is known for its skilled developers in various technologies. The Czech Republic has a growing tech scene, while Slovakia is gaining recognition in cybersecurity, data analytics, etc.

Croatia does not fall behind in strong software development teams. Our company started with Ruby on Rails teams, and today, eight years later, we've built one of the largest Ruby on Rails teams in this part of Europe. These things are important when you are looking for a dedicated team to build custom software.

Central European development teams are increasingly sought after for their proven track record in delivering top-notch software solutions, thanks to their reputation for reliability, professionalism, and technical expertise in the global outsourcing market.

Moreover, it's about assembling a team and effectively developing teams to achieve peak performance. The company's success lies in attracting talented individuals and their dedication to nurturing and developing teams for optimal performance. This commitment to team development is pivotal in winning prestigious awards for excellence in software development.

Relevant achievements

When assessing potential outsourcing partners, it's important to consider not only their educational background and expertise but also their track record of achievements. Just as individuals seek recognition for their skills, countries are also recognized globally for their contributions to the IT field. By examining the awards received by IT professionals and organizations in a particular country, you gain valuable insights into their capabilities and the quality of their work.

For Central Europe, one of the examples is the Deloitte Central Europe Technology Award. The Deloitte CE Technology Fast 50 ranking assesses companies' average growth spanning four years. Last year, our company secured the 4th position overall, marking us as Croatia's fastest-growing company and the leading company in the Software category.

As we said, the program covers the Central European region, which means that eligible companies must have their headquarters or a significant presence in one of the CE countries. Deloitte CE Technology Fast 50 focuses on technology companies, including software development, healthcare and life sciences, fintech, and other related fields. Deloitte has a rigorous verification process to ensure the accuracy and validity of the financial information submitted by participating companies.

Language proficiency

It is said that English is the language of science and technology, so when looking for tech outsourcing, opting for a team from Central Europe ensures proficient communication, enabling efficient collaboration and understanding throughout the project lifecycle.

If you have traveled around Europe, you will know that English fluency is widespread among its residents. This is largely attributed to many European countries prioritizing English education from a young age, which is also evident in most Central European nations. There are 370 million English speakers out of about 450 million EU residents.

Poland and Austria hit a very high figure, with 62% of the population being English speakers, while in Germany, almost three-quarters of the population speak English. If you want to assess the language competency within the region, consider checking the EF English Proficiency Index. Croatia is among the world's Top 20 countries with high English proficiency. Adding to this is the fact that in the Croatian education system, they teach English as the initial foreign language.

Personal touch

When used the right way, agile methodologies can do wonders

Adoption of Agile methodologies can enhance the capabilities and competitiveness of Central European development teams.

When collaborating with someone on project development, you want software partners to emphasize regular communication, feedback loops, and collaboration tools. Agile methodologies promote collaboration between developers, clients, and stakeholders.

Projects are broken down into smaller, manageable tasks or sprints throughout iterative development. This allows for continuous improvement and adaptation based on evolving requirements and feedback, which results in more responsive and adaptable software solutions.

Another important factor contributing to the success of outsourcing in the CE region is cultural compatibility. Effective communication plays a pivotal role in breaking down barriers and strengthening collaboration between clients and development teams. Using agile methodologies enables Central European development teams to respond quickly to changes in project requirements, market conditions, or even technology trends. Agile frameworks allow teams to adjust priorities and resources based on the project's evolving needs.

Optimal time zone alignment

Considerations such as nearshore and offshore outsourcing are essential aspects to contemplate when seeking software development expertise. Nearshore software development outsourcing offers benefits such as geographical proximity and shared time zones, which makes for smoother communication and collaboration. On the other hand, offshore development teams can provide access to a broader talent pool.

Our tip: when exploring outsourcing options, look for teams with time zones that conveniently overlap with European nations and, ideally, offer a local presence. This can bridge communication gaps effectively.

Professionalism and reliability

Central European countries are known for their strong work ethics and diligent and disciplined approach to tasks. Just look at the valued traits in countries like Germany and Austria. The culture in CE countries highly values reliability, punctuality, and attention to detail.

We already talked about why tech companies would choose Croatian partners. In Croatia, companies prioritize honesty and transparent communication, even if it means advising against pursuing an idea they believe may not bring the desired results. This straightforward approach can be a valuable asset, helping clients avoid unnecessary expenses and frustrations. Croats are unafraid to offer constructive criticism when significant investments are at stake.

Sandro Blaslov, Executive Vice President of Technology at Rectangle Health, a client of ours, stated:

“If you’re developing something, you want people who can tell you the truth, not what you want to hear. That’s really important.”

Personal touch

The most important thing when looking for experts in software development

But overall, to get the best answer to questions like “Which countries are best for offshore software development?” and many other related questions, define what is most important to you. You can always go onto and research location, technologies, and industry focus. Besides all that, you can see detailed references gathered directly from the company’s customers. In the same way, the potential employee needs to see the pros and cons of working for the company; potential clients want to see insights into how you approach development projects, what technologies you are using, etc.

Here's a quick tip: the amount of expertise is important, but remember that if someone worked in one industry, it doesn’t mean they can’t apply the skillset to some other industry. Look at their way of work and their problem-solving mindset.

So, as you consider outsourcing options, keep Central Europe on your radar. Whether it's because of the thriving tech hubs, the strong educational background, or the cultural predisposition for innovation, there are plenty of reasons to explore what this region has to offer. Central Europe might just be the outsourcing solution you’ve been searching for.