According to the US Bureau of Labour Statistics, there are more open software development positions in the country than people who apply for them. Lack of talent is obvious, and 44% of U.S. companies outsource software development services to reduce expenses and boost profits. Nowadays, many newly-established companies want to hire a dedicated development team in Europe, as this region is known for its major IT hubs.
In this article, we have rounded up the main advantages of hiring a dedicated development team abroad and demonstrated why this collaboration mode benefits small companies and startups. We will explain how hiring a dedicated development team helps companies reduce expenses, minimize risks, and meet business goals.
The only difference between such and in-house teams is that the former are based abroad. You won’t notice any significant collaboration issues that might hinder your progress. In addition, you won’t need to spend time on the hiring process, calculate taxes, and pay administrative expenses. Read on to learn how to find an experienced team to speed up the project completion and help you bring your product to the market more quickly.
Who Should Hire a Dedicated Team?
Whether you are interested in backend or frontend development, you might need to hire a dedicated development team from Europe to save money and other valuable resources. Local specialists might lack a specific skill necessary for developing your project. A dedicated development team will be a perfect solution for companies looking for professionals capable of using innovative approaches. Such units have high proficiency in their specialization and can either modernize an existing product or build a new out-of-the-box solution from scratch.
If you are working on a long-term project, the best way to ensure that it will be completed in time is to establish a partnership with an outstaffing company to provide the services you need. It will help you streamline the hiring process and source new talents.
Dedicated teams are perfect for companies that want to minimize recruitment expenses. It might be impossible for a startup to find one experienced developer with relevant skills within a short time frame without paying loads of money. Finding a team for such companies will take even more time.
Such teams are often hired by companies that want to bring new products to the market more quickly as they are efficient and include professionals with solid technical backgrounds. It allows them to speed up the release of a software product, app, or website.
Benefits of Hiring a Dedicated Development Team from Europe
In 2020, the IT industry in the European Union had nine million employees. If you are looking for a dedicated software development team, Europe is a perfect place to consider as it has a large pool of IT talents. In Eastern Europe, there are over a million developers, many of whom are looking for remote jobs. Poland, Ukraine, Romania, and Czechia are among the top outsourcing destinations. There are several benefits of hiring a development team based in Europe.
Large Pool of Professionals
Poland alone has over 430K experienced IT professionals, making this country a major hub in Eastern Europe. Other countries of the region invest in the development of the IT industry as well.
High Expertise Level
European countries prioritize STEM education, which results in the top level of their IT professionals. They stand out for their technical backgrounds and high level of skills. As a result, European developers often get top positions in world skill rankings.
Many U.S.-based companies want to hire dedicated development teams in Europe to save money. The salaries in Europe are typically 2-4 times lower, contributing to the success of developers from this region on the global market.
As most European countries strive to expand their IT talent pools, they work on improving their legislation to make it easier for foreign companies to conduct business operations. They improve tax legislation and provide extra perks to new companies on the market. Some countries facilitate the task of setting up a virtual office. Due to this, many top companies, including Google, Apple, and Amazon, work with teams based in Europe.
The Best European Destinations for Hiring a Dedicated Team
If you are wondering how to hire dedicated developers in Europe, make sure to learn more about the advantages and disadvantages of the most popular outstaffing destinations. While Poland, Romania, and Ukraine remain one of the most popular places for hiring remote software developers in Europe, Hungary, Bulgaria, Croatia, and the Czech Republic also become increasingly popular. Let’s take a closer look at the top-3 options on this list.
This country is known as a major IT outstaffing destination. The IT industry in the country is growing every year, while the salaries of IT specialists remain lower than in Germany. While the average monthly pay of an IT professional in Warsaw is 8.939 PLN, or 22.800 EUR per year, IT professionals in Germany earn 37.500-80.000 EUR per year.
Professionals who know modern programming languages
Two types of employment contracts
With over 290K IT specialists, Ukraine remains one of the main outstaffing destinations in Europe. According to Beetroot’s 2021 Tech Market Report, more than 100 Fortune 500 companies work with development teams from Ukraine.
By outsourcing IT tasks to Ukrainian companies, businesses get superb services at affordable hourly rates. Ukraine has a cohesive and resilient tech sector. Local developers know the most complicated programming languages and frameworks. They are involved in development projects all across the globe in such sectors as healthcare, travel, education, sports, and many more.
Transparent investment conditions
The vast number of middle and senior developers
Favorable tax exemptions
Fast-developing technical environment
This country has three well-established centers providing IT services. They are located in Bucharest, Cluj-Napoca, and Iași. If you want to find dedicated software developers in Europe, this country offers a pretty large talent pool. Romania has a highly-skilled workforce that includes over 90K IT specialists.
Many professionals to choose from
A large major hub in Bucharest
How to Hire Dedicated Development Team in Europe
If it’s the first time when you need to hire dedicated developers team in Europe, you can save time by selecting a reliable company that provides outstaffing services. It should know everything about the local market, have years of proven experience, provide guarantees, and use a well-thought-out hiring strategy.
Create a Longlist of Reliable Vendors
Look for companies that specialize in hiring dedicated development teams and analyze the feedback left by their clients. Read the information posted on their official websites and pay attention to their positions in the Clutch, Manifest, and other similar rankings.
Select Companies With Relevant Resources and Experience
In case you need to build a complex product, it might be better to establish a partnership with a large company with a recognizable brand. Check whether a company has experience in your niche.
Narrow Down The Selection
To shortlist the most reliable vendors, check whether the companies meet extra requirements that you might have. For instance, if your project has to meet specific security standards, take a look at the security policy of each vendor and check whether they comply with GDPR, ISO, PCI, or HIPAA regulations.
Sign a Contract
Well-established IT companies with years of experience have transparent contract terms. Their legal departments monitor any changes in legislation. Such companies include liability and warranty clauses in a contract and outline the responsibilities of both sides. Their lawyers also add a choice of law provision to a contract. Due to this, their customers can entrust them with the task of drafting a contract and allocate more time to the development of their businesses.
What You Need to Pay Attention to When Hiring a Dedicated Team from Europe
When hiring dedicated team from Europe, you need to consider several things to ensure that your business runs smoothly. It’s crucial to consider the difference in time zones, legal issues, and how you organize your workflow.
Unless you are interested in nearshore outsourcing, there might be significant differences between the time zone of the location your headquarters and remote team are based. For example, companies in Western Europe won’t face any difficulties after hiring a team based in Eastern Europe. However, if your company is U.S.-based, the difference between your time zones might range from 6 to 10 hours.
While this fact might put off some business owners, this difference is less significant than it might seem. You can hire a highly experienced team that meets tight deadlines and keeps in touch throughout the process. Despite occasional minor delays caused by time zone differences, hiring dedicated developers from Europe will save you much time and money in the long run.
When working with an in-house team, you can control all the processes and keep track of progress. However, if you want to hire dedicated software developers in Europe, you might need to adjust the communication flow. Learn how to set clear objectives and use progress-tracking tools to maintain the overall productivity of a team.
Before hiring a remote software development team, you need to pay attention to the legislation in the country where it is based. For instance, Poland remains one of the most popular destinations for businesses seeking outstaffing solutions. However, it takes 2nd place in the Global Business Complexity Index in Europe. This is due to convoluted legislation and the tax system. You can bypass such issues by hiring a reliable outstaffing service provider.
Consider Integrio Your Trusted Partner
Integrio Systems is a well-established company with extensive experience building efficient AI-powered solutions for businesses of different sizes. It has teams in Canada, Poland, and Ukraine. For over 20 years, the company created various projects for businesses based in the U.S., Canada, and Europe. It works across several industries and specializes in software development, the creation of machine learning solutions, SaaS development, and legacy system modernization.
The Polish and Ukrainian teams have extensive experience developing solutions of different complexity. For instance, since 2015, Integrio Systems has been developing a SaaS solution for 123Signup. It fully transformed the ways of managing member organizations and events. After conducting a code audit, the team decided to rewrite parts of it from scratch and modernize its components.
Another project the team has been working on involves creating ML-based analytics to increase the profits of supermarkets, eCommerce platforms, and quick-service restaurants. Mobiry is an innovative solution for companies that sell their products and services across multiple channels. It allows businesses to improve every step of the customer journey by estimating changes in customer behavior patterns. Mobiry takes autonomous steps to increase the engagement rate and boost profits due to 1:1 personalization. To learn more about the completed and ongoing projects of the team, take a closer look at our official portfolio.
Yes, there are no laws that prohibit companies from outsourcing various tasks to remote teams. Outstaffing is legal in most European countries, so you can hire developers in Europe without worrying about legal issues.
The easiest way is to contact a trusted company that provides outstaffing services. If you are interested in team extension and don’t have time to look for new talents, you can entrust this task to Integrio Systems.