Let’s get straight to business: if you’re reading this, your development needs have outgrown your local options. Whether costs are soaring, you have a talent drought in your region or your team is simply feeling the strain of doing more with less, you’re eyeing potential tech partners in Eastern Europe. It’s a smart move, but let’s look at the real story behind outsourcing to Eastern Europe, beyond the marketing speak.
Master your strengths, outsource your weaknesses.
The state of play: Eastern European outsourcing scene in 2025
Eastern European countries are vying to be the next Silicon Valley, and they’ve got the goods to prove it. The region’s IT sector has grown from a budget-friendly backup plan to a mature and legitimate trailblazer. Statista projects the IT services market in Eastern Europe will grow at a steady CAGR of 4.54% between 2025 and 2029, reaching US$17.99 billion.
With high-caliber education systems turning out skilled talent, business-friendly taxation, affordable labor, buzzing startup scenes and a drive for progress, Eastern European countries have shown they can compete on the global stage and have become a magnet for innovation and investment.
Growth of IT outsourcing in Eastern Europe: services by segment (2016–2028)
Source: Statista Market Insights
Home to over 1.3 million IT and software engineers and counting, Eastern Europe has become the go-to destination for companies looking for serious technical muscle without an exorbitant price tag.
Poland, Ukraine, Romania and Czechia (or the Czech Republic) are at the heart of Central and Eastern Europe’s tech surge, offering some of the deepest talent pools for IT outsourcing and R&D services. Hungary and Bulgaria are turning heads with relentless innovation and state-backed growth. Meanwhile, the Baltic states are drawing startups and SMEs with their pro-business edge. Moldova and Slovakia are carving out their place as rising stars in outsourcing software development to Eastern Europe, strengthening the region’s standing in the global outsourcing space.
The real country breakdown: beyond bullet points
Poland: the enterprise tech heavyweight
Poland, the sixth-largest economy in the EU, stands as Central and Eastern Europe’s largest IT hub, and they’ve earned that spot. Polish engineers are architecting enterprise-grade solutions for banks, automotive giants and gaming companies.
The Polish tech scene runs deep: Warsaw and Kraków host development centers for Google, Microsoft and Samsung, while Wrocław and Gdańsk have become hotbeds for FinTech innovation. The Polish Association of Business Service Leaders (ABSL) states that the ICT workforce volume counts 430,000 ICT professionals, with this number growing yearly. Many companies choose outsourcing to Poland for expertise in complex systems built on Java and .NET, but Poland is far from confined to the enterprise bubble. The Polish JavaScript scene, especially in React and Node.js, has seen a remarkable surge in recent years, making Poland a top JavaScript destination when outsourcing software development to Eastern Europe.
Source: Intellias
Ukraine: the innovation engine
Ukraine’s tech arena is phenomenal – they’ve turned adversity into opportunity. Despite ongoing geopolitical challenges, the country’s tech sector hasn’t just survived; it’s thrived. The IT industry remains one of the top contributors to the Ukrainian economy, with over 307,600 IT professionals.
Ukraine isn’t just part of the Eastern Europe outsourcing space; it’s one of the key players delivering expert solutions and a serious digital punch. The country’s innovation metrics have been on the rise, showing solid performance in areas such as R&D (research and development), digital infrastructure and AI/ML technology. When it comes to digital assets, Ukraine is all in; it boasts one of the highest crypto adoption rates globally. Dedication to tech-driven growth is evidenced across various sectors, from e-governance improvements to their impressive 97% score for open data maturity.
Ukraine’s technical DNA leans heavily toward JavaScript (40% of all tech professionals), but it’s Ukrainian developers’ full-stack capabilities that really shine. From React front ends to Node.js back ends, Ukrainian IT outsourcing vendors design scalable infrastructures, build custom mobile apps, and implement digital twins and AI-powered copilots. And with solid process and project management services, they make sure everything clicks into place, every time. The Ukrainian cities of Lviv and Kyiv are leading the charge in outsourcing software development to Eastern Europe, working with big names like Amazon, Siemens, Boeing and Visa, while growing a vibrant startup culture.
Romania: the deep technical specialist
Romania, the legendary land of Dracula, has secured a unique niche in Central and Eastern Europe’s tech landscape. Their 240,000 professionals working in the information and communications technology (ICT) sector aren’t just generalists — they’re specialists in embedded complex systems, low-level programming and cybersecurity. Bucharest (the capital of the country of 19 million) and Cluj-Napoca have grown into serious IT outsourcing destinations in Eastern Europe.
IT outsourcing companies chose Romania for their automotive IT and software development needs. Big-name manufacturers like Bosch and Porsche Engineering outsource the development of electric vehicles, digital cockpits and autonomous driving systems to Romanian teams. Around 70% of the country’s automotive software developers have specialized experience in these areas. But the Romanian tech scene is not just about cars. It is diversified, with a strong focus on Java and C++ along with a growing interest in Python as AI and automation make waves in the industry.
Bulgaria: the quality master with promise
Bulgaria may be smaller than its neighbors, but it’s recognized as a destination for quality IT outsourcing in Eastern Europe and the Balkans. Its service-based economy attracts businesses with a welcoming 10% flat corporate tax rate, 0% export tax, strong legal framework and competitive cost structure. In the 16 years of Bulgaria’s EU membership, the Bulgarian ICT market has seen a 300 percent increase in revenue, reaching EUR 2.5 billion according to the International Data Corporation.
Once known for its strength in QA automation services and testing frameworks, Bulgaria now boasts a respected, highly qualified pool of 70,000 IT engineers skilled in diverse technology stacks. Growth of the tech sector and adoption of cloud technologies, big data, IoT and social business have made Bulgaria a popular location for outsourcing to Eastern Europe.
Czech Republic: the digital transformer
The Czech Republic, or Czechia, is a big name in IT outsourcing in Eastern Europe. This is a country where delivery excellence meets a strong drive for innovation. The Czech tech scene is quietly revolutionary: once an industrial hub, Czechia has transformed into a digital groundbreaker, specifically in data science, precision coding and computer science fundamentals. The country is home to 13,000 IT firms concentrated in Prague, Brno, Olomouc and Saarbrücken that employ an impressive 200,000 ICT professionals.
Prague stands out as a center for AI and machine learning R&D for cybersecurity services and FinTech. When it comes to IT outsourcing in Europe, Czechia shines as a prime spot for business services centers (BSCs) with a cost-effective blend of operational efficiency and skills.
Top service areas by the Czech ICT sector
Source: ABSL Survey 2023
Hungary: the technology accelerator
Behind Budapest’s stunning architecture, goulash, and references to the Rubik’s cube lies one of the most sought-after Central and Eastern European outsourcing centers. Hungary today has a booming tech scene, with over 107,000 ICT professionals (according to Statista) working across everything from traditional SaaS development to the hottest fields like machine learning and blockchain. Hungary’s IT security services domain is showing strength, with the country hosting several cybersecurity centers of excellence. Plus, Budapest is buzzing with over 500 active startups, many of which are diving into AI-powered projects.
The country’s tech sector contributes roughly 6% to Hungary’s GDP, with key service areas including financial services, IT and telecommunications. A solid education system, EU membership and a relatively stable economy make Hungary an attractive IT outsourcing destination in Eastern Europe. Lufthansa and HP have set up operations in Budapest, where dedicated experts turn academic AI concepts into real-world business solutions.
Moldova: the rising challenger
Meet Moldova – the best-kept secret that’s rewriting the rules of IT outsourcing in Eastern Europe. With a population of just 2.6 million, its 25,000 IT professionals are building a strong reputation in fields ranging from web development to cross-platform mobile apps. What makes the country particularly intriguing is its blend of top-quality software engineering services with rates that are much lower than in countries like Poland. While Ukraine and Romania often steal the spotlight in discussions of Eastern Europe software outsourcing, Moldova’s unique selling point is its talent pool, which combines strong technical foundations with remarkable adaptability. Moldovan experts have earned recognition in JavaScript, PHP and C++, with many holding advanced certifications from global tech companies.
The government’s Digital Moldova 2030 strategy shows Moldova’s dedication to growth through investments in IT education and infrastructure investments. With Moldova IT Park (home to over 900 companies operating under special tax frameworks) and the country’s growing reputation as a hub for eCommerce development, Moldova is a destination for outsourcing to Eastern Europe that savvy tech leaders can’t afford to ignore.
Slovakia: the industrial code master
Slovakia’s evolution from industrial hub to technology maverick tells a different story than the country’s Eastern European outsourcing siblings. This isn’t just a typical case of pure IT staff augmentation. While Estonia made its mark in e-governance and Croatia benefits from its digital nomad status, Slovakia has combined its manufacturing heritage with digital progress. Now Bratislava’s and Košice’s 55,000-strong tech community is leading the charge in industrial automation. Slovak developers are the creative brains behind smart factories, Industry 4.0 solutions, and IoT implementations, with a depth of industrial understanding that’s not easy to find elsewhere in Europe.
Slovakia is also shaping up as a go-to destination for shared services and business process outsoucing, thanks to its prime location, qualified labor force, diversified economy and supportive business climate.
The Baltic states: Europe’s digital trinity
Estonia, Latvia and Lithuania — the Baltic states — have grown into some of the world’s most digitally advanced countries. They are stable IT outsourcing destinations in Eastern Europe thanks to effective laws, solid security measures and a pro-business climate.
The Baltic states are a digital sandbox, where trailblazing concepts for tomorrow’s digital societies are tested first. Together, they have built a tech ecosystem that punches far above its weight, with over 100,000 IT professionals spread across the three nations. The region’s strengths include digital identity and security solutions, FinTech and blockchain applications, data engineering and analytics, cross-border digital infrastructure and startup ecosystem development. This makes Estonia, Latvia and Lithuania attractive options when outsourcing software development to Eastern Europe.
Estonia: the digital society architect
Estonia is far from just another IT outsourcing destination in Eastern Europe; it’s the world’s leading digital society laboratory. What sets Estonia apart is that they’re not just talking about technological innovation — they’re living it. Estonia’s e-Residency program, now a global case study, shows how ambitious digital ideas can be turned into practical systems that work nationwide. With a population of just 1.3 million, Estonia has built a strong tech community of over 34,400 ICT specialists (according to the State of European Tech) who are literally setting the stage for future digital infrastructure.
Estonia checks all the important boxes for international business. They’re members of NATO, the EU, the WTO and the OECD, which means they offer the stability and reliability that global partnerships need. Their technical expertise is so trusted that NATO placed its cybersecurity center there, and the EU chose Estonia for its own IT outsourcing in Eastern Europe. For businesses hunting for credible tech talent, Estonia delivers deep know-how in building secure and scalable digital systems. Government support through low taxes and startup-friendly policies combined with a tech-driven public sector have made Estonia a launchpad for some of Europe’s biggest tech hits, including billion-dollar companies like Bolt, Wise and Skype.
Latvia: the data engineering specialist
Latvia, home to vast forests and vibrant ideas, is making a name for itself as a rising IT outsourcing destination in Eastern Europe. ICT services are now Latvia’s third-largest export after food and timber, and major players like Tieto and Accenture have established operations in the country. Latvia ranks among the world’s top 20 easiest countries to do business in, muscling out economic giants like Germany and Canada. On top of its price-to-tax ratio, solid infrastructure and skilled talent appeal, the country’s startup-friendly ecosystem is designed to attract investors.
Latvia’s tech community, about 35,000-strong, fuels big data projects for companies like IBM, PwC, KPMG and ABB. Data engineering services is Latvia’s standout strength, and among local programmers, PHP dominates, followed by Microsoft ASP.NET, Python, Perl, Ruby and Java. With its secure business climate and EU standards, Latvia is definitely a place to consider for Eastern Europe software outsourcing.
Lithuania: the FinTech pioneer
Lithuania has quietly grown into one of Europe’s most exciting destinations for financial outsourcing services. Vilnius, the capital, now hosts more licensed FinTech companies per capita than any other EU city, the result of a decade of thoughtful development. This Baltic nation of 2.8 million attracts global tech giants like Google, Nasdaq and Uber, offering a business environment built to scale, a strong technical portfolio and a culture of innovation. Beyond FinTech, Lithuania has a rising profile in global semiconductor manufacturing and continues to invest in innovation, solidifying its position as a hub for forward-thinking industries, ripe for outsourcing to Eastern Europe.
The country’s tech strength lies in its 52,000 ICT engineers, 97% of whom are multilingual (according to Eurostat), and its steady stream of skilled STEM graduates. Lithuania ranks 11th among OECD countries for work–life balance, meaning tech teams have lives outside their laptops. Adding to this, their digital infrastructure keeps pace with their human potential — Lithuania offers the fastest public Wi-Fi in Europe. This healthy balance has shaped a professional community that’s both productive and sustainable — a refreshing twist in the tech world.
Partnership checkup: what’s under the hood?
Eastern European outsourcing in “the tech 20s” isn’t about cheap labor. Gartner says that 65% of European companies now focus on technical expertise over cost savings when picking Eastern European IT outsourcing vendors. It’s about balancing cost takeout and access to new skills and capabilities, from enterprise platforms to the hottest generative AI services.
The key is matching your needs to the right country and team:
- Need enterprise-grade systems? Look to Poland.
- Aiming to skyrocket development and innovation? Ukraine is your spot.
- On the hunt for embedded tech? Romania has got your back.
- Chasing precision in FinTech and e-governance? The Baltic states are your go-to.
- After cheap and good? Time travel to 2005.
The time zone sweet spot
Most Eastern European countries sit one to two hours ahead of Western Europe and share three to four overlapping business hours with the US East Coast daily. This means real collaboration, not just status updates.
Cost reality
- Senior developers: $35–80/hour depending on location and specialization
- Team leads: add 20–30% to senior rates
- Project managers: similar to team lead rates
- Quality assurance: 60–80% of developer rates
But here’s what nobody tells you. These costs include:
- Knowledge transfer: 5–15% of year 1 costs
- Tool licenses and infrastructure: 3–8%
- Management overhead: 10–20%
The communication factor
Eastern European developers are direct communicators. They’ll tell you if your idea needs work or if your timeline is unrealistic. This isn’t rude — it’s efficient. They’d rather have an uncomfortable conversation early on than a project failure later. When a Ukrainian engineer says, “this might be problematic,” they’re not being overly diplomatic — they’re saving your project. This directness extends to technical discussions, where you’ll get honest feedback instead of “yes” responses.
What’s great about developers in Eastern Europe:
- They’ll let you know if your concept needs rework
- Their English is sometimes better than your uncle’s from Boston
What’s not so great:
- They’re sometimes too honest (yes, that’s possible)
- Good luck pronouncing anyone’s last name
Technical education: the groundwork
With a strong tradition in math and sciences, the technical education in Central and Eastern Europe goes beyond standard curricula and is mathematically intense. SkillValue ranks Poland, Ukraine, Hungary and the Czech Republic among the 10 countries with the best IT talents. They are recognized for their religiously intense academic programs and technical schools, which often outperform global averages. Data from assessments like the Trends in International Mathematics and Science Study (TIMSS) show the exceptional performance of Eastern European students in math and science, pointing to education systems that produce adaptable, high-caliber experts who don’t just follow specs but understand the principles behind the code. When they say, “this won’t scale,” they can explain why with algorithms and data structures, not just gut feelings.
The real deal about Eastern European developers:
- Their documentation doesn’t look like a five-year-old wrote it
- They solve problems you didn’t even know you had
- They’re basically code ninjas
- They’ll move mountains to meet deadlines
Making it work: TL;DR
When you need to innovate, you need collaboration.
Start small
- Don’t expect developers to read your mind
- Don’t outsource your entire operation overnight
Begin with a specific project or team augmentation, and let the relationship grow organically. Even tech giants — pioneers in outsourcing to Eastern Europe like IBM and Google — started with testing the waters by outsourcing several non-core activities before diving in. A two- to three-month trial with a small team or an MVP tells you more than any sales pitch.
Focus on value, not just cost
- Do appreciate technical feedback
- Do remember that time zones exist
While cost savings are always attractive, you might miss out if that’s your only focus. Take Grammarly, for example: when they built their core NLP engine with Ukrainian developers, they found exceptional math experts who delivered a polished architecture. The real ROI goes way beyond hourly rates — you’re getting deep knowledge and solid expertise.
Invest in relationships
- Don’t treat developers like your personal code monkeys
- Don’t micromanage (seriously, don’t)
When you treat your remote team like they’re part of your in-house staff, not just another IT outsourcing vendor, you’ll see real results (usually within three to six months) in the form of greater productivity, smoother communication and better employee retention. For example, Microsoft includes R&D teams in Poland and Romania in everything from daily standups to quarterly planning sessions, turning their outsourcing relationships into true partnerships.
Want to discuss your specific situation? The Intellias team is standing by (probably with coffee in hand) to help you make sense of IT outsourcing in Eastern Europe.
