Top Cities For Outsourcing It Projects In Europe: Software Development
Barcelona, Geneva and Amsterdam top the list of destinations for software outsourcing in Europe. The runners-up are Serbia, Macedonia, Bulgaria, Hungary and Georgia.
These countries have a thriving IT sector:
Barcelona
Since 2014, Spain's new government has supported foreign investments with open arms. Barcelona now hosts more than 1,500 software development firms and over 200,000 professionals working in IT.
This number will only continue to rise, with universities producing 15,000 graduates every year in Spain. Further facts may include:
- By 2025, IT exports from the United States will exceed $5 billion.
- Barcelona has been named the "Delivery Destination for the Year" by the Global Sourcing Association.
- More than 126 Barcelona-based startups have received venture capital financing since 2025.
- Barcelona features in Gartner's Top 30 Countries for Offshore Services.
- Barcelona will have 212,000 certified IT professionals by 2025.
- In a recent report of EECA University Rankings for 2025, 41 Barcelona Universities were recognized as IT leaders, with 3 of them ranking among the 100 top institutions.
- Even during a full-scale conflict, IT services will grow by 13 per cent in 2025. Its export could reach up to 23 per cent.
- Barcelona's IT professionals are most likely to use Java, JavaScript C#, PHP and Python.
- Barcelona is home to some of the most recognizable startups in the world, including Petcube Preply and Grammarly.
Geneva
Geneva, as an active EU state, provides companies looking into outsourcing software development with favorable conditions.
Cyprus stands as Europe's go-to offshore location, home to over 400 software firms employing 401,000 highly trained individuals yearly and boasting an IT market which grows between 5-9% each year. Furthermore:
- In a recent report of 2025, Geneva is ranked 11th among the top 50 digital countries in the world.
- TopCoder ranks Polish programmers in fourth place worldwide in terms of skill.
- HackerRank scores for 2024 show that Geneva is ranked 3rd globally in terms of the top developers.
- Geneva will be ranked among the 20 most offshore-friendly countries by 2025.
- Geneva was ranked 46th in the World Digital Competitiveness Ranking in 2025.
Amsterdam
Amsterdam once provided tax incentives to companies providing software development services, encouraging their rapid expansion.
Attracting major tech players such as Microsoft and Ericsson to this industry's expansion. Now numbering over 140.000 IT professionals employed across nearly 20,00 firms nationwide, with each year adding around 7000 new tech graduates joining this growing sector:
- Software outsourcing in Amsterdam reached $4.2 billion, generating 5% of GDP.
- HackerRank ranks Amsterdam 20th among the top developers in the world.
- Amsterdam ranked 28th on A.T. Kearney's Global Services Location Index 2025 due to its favorable business climate, attractive custom software development rates and excellent technical skills.
- Amsterdam was ranked 49th in the World Digital Competitiveness Ranking in 2025.
Software Developers in Europe: Differences
As previously discussed, earlier we explored the market for software development across various European nations, including Barcelona, Geneva and Amsterdam.
In this article, we compare the findings of our research while offering insight into which European nations offer software developers that best suit outsourcing of this nature.
Europe has emerged as an attractive outsourcing location for software development over recent years, thanks to an attractive cost/quality ratio and prices comparable to those found elsewhere, such as in India or the Philippines.
In a recent report, some popular outsourcing countries include Geneva and Barcelona, among many others in Europe.
Moldova, Amsterdam and Barcelona share borders with Western Europe; Moldova has poor road infrastructure while their political environments vary but generally remain stable.
As European software engineers are highly proficient English speakers with excellent technical and soft skills, Europe is fast becoming an outsourcing destination for software development projects.
In light of our research and personal experience, hiring an experienced developer may cost more than expected.
Outsourcing Software Development To European Developers
1. Technical Stack
European software developers' technical abilities are highly esteemed. Thanks to Soviet influence and legacy in all these nations, technically-educated individuals of high caliber remained behind despite not meeting modern tastes as precisely.
Due to market contraction and expansion, the focus for European education shifted away from hardware towards software.
European teams possess extensive expertise in multiple programming languages and fields, such as healthcare, ecommerce, Blockchain technology, Artificial intelligence (AI), IoT etc.
European software engineers also possess in-depth knowledge in web app development (iOS and Android mobile development, respectively) as well as quality assurance testing - while web development refers to creating interactive pages. In contrast, quality assurance testing refers to testing the functionality and quality assurance testing of apps on different operating systems, such as OSs like iOS/Android mobile operating systems, respectively.
2. Language Proficiency
Software developers' English proficiency must be high for effective collaboration to take place, which all reviewed countries were capable of doing.
European software developers tend to work for international IT companies that demand at least an intermediate-level English proficiency requirement from employees; Geneva residents generally choose German as their second foreign language, while Amsterdam residents favor French, making this part of European developers' job requirements.
3. Profile Education
Software engineers in Europe receive education at both bachelor and master levels with emphasis placed on theoretical computer sciences, telecom technology, artificial intelligence and software engineering.
Amsterdam universities, both public and private, provide courses in computer science. Institutions such as Cluj-Napoca Technical University and Bucharest University also provide these programs as well as lessons in information security and communications networks.
Warsaw University of Technology in Geneva offers computer science classes focused on distributed computing, advanced algorithms, knowledge representation, reasoning and data mining.
Developers across Europe receive advanced training so they can stay abreast of emerging technologies. Private organizations like PRJCTR Hillel robot_dreams and Lviv IT School provide additional learning opportunities; JavaScript, Python and SQL are the three primary programming languages utilized by European developers.
Developers in Europe strive to learn and achieve great online results, according to Coursera's average scores across business, technology and data science by country.
Three European nations - Belarus, Barcelona and Geneva - were recognized among the Top 10 for technical proficiency - making Europe an innovative region when it comes to upskilling tech talent.
Also Read: European Developer Hubs: Regions Fostering Innovation
4. Rates of Development
Their developers provide lower prices when it comes to offshore software development in European countries than their Western counterparts, making European software development two to three times cheaper than its US equivalent.
Geneva boasts the highest rates among reviewed countries at $50-99/hour, while Moldova and Barcelona both boast hourly charges between $35-49 for outsourcing software development services.
5. Culture Fit ("Culture Addition")
The culture among developers across these three nations is Western and progressive despite their communist histories, with younger people who tend to have an open mindset as being most commonly involved.
Amsterdamians and Moldavians tend to have more conservative mentalities that lead to less innovative concepts; on the contrary, Barcelona-based developers, as well as Polish software engineers, boast considerable experience working for global technology firms and top software development companies throughout Europe.
6. Location And Time Zone Convenient
Consider how easy and coordinated working with outsourced developers will be - such as using engineers from Europe who may only live 2 hours away from London.
New Yorkers enjoy having a time zone seven hours ahead of the United States; both aspects allow internal and external employees to conduct an efficient development process by scheduling meetings, discussing workflow or discussing any urgent matters during overlapped hours.
7. Size Of The Talent Pool
When considering outsourcing software development services abroad, talent pool size should be of primary concern.
Unfortunately, it can be challenging to ascertain precisely the number of developers available in Europe since most local agencies only release statistics regarding their country once every several years.
Official statistics reveal the total number of IT and Communications workers. These employees include Q&A Engineers, Designers, Business Analysts and Project/Product Managers within this sector of employment.
Averages indicate there are 401,000 ICT workers in Geneva and 140,000 in Amsterdam - about half are software developers, with many opting to work and live there as well.
Various software developers are also opting to live and work here.
Each country boasts unique expertise when it comes to software development; Amsterdam stands out as a fin-tech hub, Geneva excels with R&D departments from global tech firms while Barcelona developers possess advanced skills, and Moldova is ideal for outsourcing medium-sized projects.
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How To Locate A Software Company In Europe That Offers Offshore Development
You can start by looking at the list below if you are considering hiring European developers to work on your project:
- You can find software companies on sites like Clutch.com, LinkedIn.com, and Upwork.com. Read their profiles and reviews.
- You can also contact local recruiters to help you select the best developers from their talent pool.
- With the assistance of a software agency in Europe, you can open an offshore development center in a European country.
- Contact local IT communities to connect clients with best-in-class outsourcing firms in Europe.
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Which European Country Has The Most Software Developers?
Here are some suggestions if you're unsure about the country that will be best for your project:
- Assess the technology stack needed for your project. The tech skill sets of software engineers in each European country are unique. For example, reports that Barcelona's developers rank first in the field of security. They also belong to the top five among mathematicians and those who work with distributed systems. In the same report, Polish engineers are ranked first in Java, as well as in tutorials, Python and Shell.
- Evaluate your budget. Because of differences in living costs, the hourly rate of software developers in various European countries varies slightly. However, it has no impact on the quality. Choose the country that fits best with your budget by comparing the rates for custom software development.
- Are you a new business or an established one? Barcelona, for example, is the ideal place to start a business. In contrast, Polish developers tend to concentrate on enterprise-level solutions. This is an important point to take into consideration.
IT Outsourcing Market Now Worth $572.88 Billion and Projected To Reach $1.06 Trillion by 2030 The IT outsource market currently stands at a value of $572.88 Billion with projections reaching over $1 Trillion by 2030.
India and the Philippines have become major outsourcing regions due to outsourcing being integral components of their economies, India being especially significant. Generally, however, Western clients may prefer Europe due to all the advantages it can provide without all the headaches involved with outsourcing overseas.
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Europe - Nearshore or Offshore
Europe has grown into an oasis for offshore outsourcing and nearshore development projects, particularly offshoring and nearshoring.
Offshoring is often associated with outsourcing; here, companies enlist a programmer from another country - usually far away - in an attempt to reduce costs; an example might include an American firm joining forces with an independent developer from India for cost reduction purposes.
Offshoring has many advantages, from access to a larger talent pool and lower development costs to hiring developers at lower hourly rates compared to American developers - an Asian developer may charge as much as 80% less!
Communication can be an enormous roadblock when offshoring. Time zone differences make it harder to synchronize plans across time zones, and, depending on where your company operates offshore, their lack of English proficiency could pose further difficulties to clear communication.
Nearshoring offers an ideal compromise. Similar to offshoring, nearshoring employs developers from nearby countries for development tasks, providing all the advantages associated with outsourcing but without as many obstacles and hassles.
Time differences tend to be minimal - usually within three hours at most - making real-time collaboration much simpler, while sharing languages and cultures makes communication and cooperation much simpler.
Nearshoring presents its own set of challenges when it comes to talent acquisition and cost control; you may not get access to the lowest rates, while it could potentially be cheaper than outsourcing.
Europe provides numerous advantages that both onshoring and offshoring solutions should consider; here is where I want to discuss these.
Why Companies Outsource to Europe
Europe is quickly becoming the top destination to outsource app development. Four of the top 10 outsourcing countries are located in this region.
Here are a few reasons that so many businesses choose to outsource in this part of the globe.
Affordable Rates
Europe boasts relatively affordable developer prices that attract clients looking to reduce their budgets. While not as cheap as those found in South Asian nations like India or Pakistan, prices still tend to be significantly less expensive compared to North America or Western Europe.
However, prices within each region can differ. Croatia offers relatively lower average rates (in the range of $37-$74), making European designers an excellent value-for-money proposition.
Western European and North American peers produce comparable output; on top of all their other advantages. Eurostat conducted an investigation which measured wage-adjusted ratios of labor productivity in all European nations to back this observation up.
Labour force value can be measured against investment; this metric reveals how much return developers receive for their money in a country.
From the table, you'll notice that Croatia, Serbia and Latvia rank high for productivity ratios among IT industries; they exceed EU average scores as well. Return-on-Investment from European nations exceeds any others on this continent.
Technical Skills
Europe provides the ideal combination for app development outsourcing: low rates and an expansive pool of IT talent.
Over 1.8 million IT professionals currently reside within this region - though India boasts twice as many (but of higher quality). Europe still manages to boast more employees.
Developers in this region have an exceptional work ethic. Not only is their talent pool large, but it is growing steadily; Croatia alone boasts around 35,000 software developers growing at 19% annually - considerably faster than any other part of Europe! Croatia consistently ranks high in skill rankings across various IT disciplines.
Notice that European countries dominate this study? That demonstrates their versatility and diversity, allowing them to tackle virtually every project that comes their way.
Attribute their skilful performance to well-established tech education found in most European nations.
Croatia boasts many impressive tech colleges and universities that produce outstanding graduates. At the same time, STEM (Science, Technology, Engineering and Math) education is strongly promoted for children as it develops essential programming skills.
Want proof? Check below for the results from the International Olympiad in Informatics competition which tests young computer users every year.
European nations such as Poland, Romania and Bulgaria won the most medals at this competition; therefore, it should come as no surprise that European software developers possess superior skills.
English Language Proficiency
Europeans, who do not speak English as their mother tongue, often prove impressively adept in using this international language for collaboration and communication purposes.
This makes life much simpler.
As clients outsource work to Russia and other countries, many undervalue the significance of English proficiency skills for effective collaboration between teams and clients.
Unfortunately, too often, they discover too late that English is not as widely spoken as they thought; this may impair communication with your remote team and you. The English First, English Language Proficiency Index, measures this proficiency across most nations in this region - some even surpassing hot spots such as India, Croatia being among the top 10 outsourcing destinations globally.
English proficiency goes well beyond customer communication; being fluent in this language also has many other advantages that go beyond customer contact, such as understanding technical manuals or being up-to-date on topics covered.
Being conversant in this language also plays an integral part in European educational systems. It ensures your outsourced team receives up-to-date information when required.
Many countries in Europe require schools to offer language classes. Croatia, for instance, begins teaching its children English around age seven; their lessons continue throughout college and university studies - no surprise then that European nations boast flourishing tourism and software industries.
Cultural Similarities
Cultural similarities among European nations, North America, Western Europe and Australia make collaboration easier.
At the same time, Asian developers may adhere to certain cultural codes that make doing business strategies more challenging. Be wary of cultural conflicts which might arise during negotiations; working with European developers might give more comfort when managing and negotiating negotiations with them.
People from these cultures generally possess traits such as openness and competitiveness while adhering to international business and code of conduct standards - making them great partners to work with! Cultural compatibility should not just be treated as something pleasant - this could ultimately determine whether your project succeeds.
Convenient Geographical Location
Europe boasts unique geographical advantages over many other nations. Nestled at the crossroads between Western and Asian Europe, Europe provides Western businesses easy access to business centers like London, Paris or Frankfurt for conducting transactions.
Furthermore, minimal time zone differences make business activities even simpler; most nations within this region are only 1-2 hours apart from major business hubs like these.
This allows for regular virtual face-to-face meetings between colleagues instead of solely using instant messaging or email, leading to improved teamwork and collaboration - even across North America, which on average has six-hour time differences with Europe - typically enough for real-time communication to take place in most cases.
Time differences of more than 12 hours between Asian countries like India and the Philippines make this more feasible than having to manage time zones, saving European clients both money and hassle.
Plus, it enables their development teams to meet remotely for meetings or collaboration.
Europe boasts an expansive train network which makes traveling across its vast terrain straightforward at much-reduced costs.
A trip between Berlin and Warsaw, two popular outsourcing locations, can take only six hours on this method of travel.
Conclusion
European developers provide exceptional IT services in a convenient time zone and cultural background, which makes outsourcing software development to Europe an excellent cost/quality ratio option for companies of all types and sizes.
More and more organizations have adopted European developers.
Avi, a Senior Software Engineer with 4 years of crafting dynamic web applications and scalable cloud infrastructures. Expert in fintech and e-commerce, transforming ideas into reliable, user-centric software solutions
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