In the past six years, the worldwide spending on outsourcing IT services achieved $288 billion. For 2019, the industry is set to increase by 5.84%.
Generally, the outsourcing market is very profitable and shows a promising return on investment. This brings the Eastern European legislators to take things seriously in developing a friendly ambiance for the IT investors.
Belarus is not exempted for this great opportunity. What are the benefits when you outsource your IT services to Eastern Europe and what makes a successful partnership? Read on this article to know more.
Belarus: A good global IT services provider
Belarus, which may not be a very big or rich nation, is one of the IT market leaders at the Eastern and Central Europe. In its current global ranking, this country has gained its reputation as the 13th leading country worldwide in IT outsourcing services.
Recently, IT offshoring has become Belarus’ strong point. Many Belarusian IT firms have widely used MSQRD and Viber success and showcased that the IT market is well-developed in the country. With the presence of the leading game development companies in Belarus, along with mobile and web developers, this highlights that the country’s software development is currently growing steadily.
Why Belarus belongs to top global IT outsourcing nations
Recognized globally. Seven years ago, Belarus was one of the 30 popular software IT outsourcing providers worldwide. Exporting computer services has attained $60 per capita even going beyond India and the United States. Belarus’ potential has been acknowledged by Stack Overflow, Gartner, and VentureBeat.
For instance, Gartner highly recommends Belarus as one of the software development in Eastern Europe locations. This leads to its government’s full support for IT business, 0% corporate tax rates for the advanced park residents, and experienced IT labor force. Statistics showed that the IT business has been increasing by 35% annually since 2006.
Skilled personnel. During the USSR era, Belarus had been the Soviet Silicon Valley. In the case of Minsk, the general-purpose computer, developed by Belarusian engineers five decades ago, was employed to power most computing centers and laboratories within the country.
When the Soviet Union lost its power, the Belarusian engineers began the establishment of multiple software development firms without any or very limited state interference. Currently, there are more than 800 IT firms in the country. They have employed 30,000 software developers, designers, testers, and expert project managers.
Despite the country’s population of about 9.4 million, the pool of IT talents soars at approximately 3,900 graduates annually, where nearly 2/3 of Belarusian IT specialists are aged 28 and below. These young breed of IT professionals are forward-thinkers and tech-savvy who have a good background in software development trends. Also, they have the willingness to be trained or be relocated anywhere as needed.
Cost efficiency. In driving economic growth and transformation, the Belarusian government has granted tax benefits to many software providers and other IT-related firms. Businesses that become part of the Hi-Tech Park initiative are provided with free customs duties, including value-added, profit, and corporate taxes. As a result, these software firms can recruit expert workers and pay competitive hourly rates.
If you are seeking for a software vendor who could write hundreds of codes for $7 per hour, you will not find any in Belarus. Eastern European software development providers are best known for high-end coding and expert developers don’t come cheap. However, compared to their American counterparts, Belarusian vendors charge less, along with other European vendors.
European outlook. Based on Hofstede’s cultural dimensions theory, the power distance index (PDI) of Belarusians is the same as the Western European countries but considerably lower compared to Asia. So how does it affect your outsourcing experience? Staff from a country having lower PDI provide clear goals and more realistic set-up regarding project expectations. Also, Belarusian software development experts are highly valued by their clients and stakeholders. Their nearby European countries consider them as hard-working, reliable, and diligent workers.
Favorable geography. Belarus is situated at the core of Europe. It has a well-designed transport system. Traveling from London to Minsk is about 3 hours. Belarus is bordering EU countries such as Lithuania, Latvia, and Poland. Once you employ a dedicated Belarusian software development team, you can easily arrange face-to-face meetings and be more hands-on in monitoring the software task.