Choosing the top IT outsourcing provider in Europe is undoubtedly difficult and time taking task. Numerous factors must be taken into account, including potential cost savings, a favorable business environment, and the availability of sufficient engineering resources. We hope that our overview of the leading software development destinations in Europe has helped you evaluate the pros and cons of outsourcing IT services to different European countries. With a significant increase in the number of companies offering IT outsourcing services across Europe in recent years, there are plenty of options to choose from. Therefore, conducting thorough research and clearly defining your priorities will undoubtedly lead you to find the software outsourcing company that meets your business requirements.

What are the primary outsourcing markets in Europe?

In Europe, both Southern and Eastern European countries are notable for their appeal as nearshore outsourcing destinations, primarily due to the availability of highly qualified bilingual staff at significantly lower prices.
In 2020, the Southern European IT outsourcing market reached a value of USD 12.484 billion. Italy emerged as the largest market with USD 6.257 billion, followed closely by Spain at USD 5.181 billion. In Eastern Europe, Ukraine leads as the top IT nearshore outsourcing location, boasting a market value of USD 4.5 billion. Other attractive destinations in Eastern Europe include Poland, valued at USD 2.088 billion, and the Czech Republic at USD 1.016 billion.
Currently, Ukraine hosts over 200,000 IT specialists, and this number is projected to rise to 242,000 by 2025 (Grid Dynamics).

What are the Benefits of IT Outsourcing?

IT outsourcing refers to the practice of contracting out various IT functions or processes to external service providers rather than handling them in-house. There are numerous key benefits but some are mentioned below:

  • Cost Efficiency

    Outsourcing IT services can often lead to cost savings as businesses can leverage the expertise of external providers without the need to invest in infrastructure, hiring, training, and maintenance of an in-house IT team.

  • Access to Expertise:

    By outsourcing IT tasks, organizations gain access to specialized skills and expertise that may not be available internally. External providers often have a team of professionals with diverse skill sets and experience in various technologies.

  • Focus on Core Competencies:

    Outsourcing non-core IT functions allows businesses to focus their resources and energy on core competencies and strategic initiatives, leading to increased productivity and efficiency.

  • Flexibility and Scalability:

    Outsourcing provides flexibility to scale IT resources up or down based on business needs and fluctuations in demand. This scalability enables organizations to adapt quickly to changing market conditions without the burden of maintaining a large in-house IT infrastructure.

  • Risk Mitigation:

    External IT service providers often have robust risk management practices and compliance frameworks in place, helping organizations mitigate risks associated with security breaches, data loss, and regulatory compliance.

  • 24/7 Support and Maintenance:

    Many IT outsourcing partners offer round-the-clock support and maintenance services, ensuring that critical systems and applications remain operational at all times, thus minimizing downtime and maximizing uptime.

Difference Between remote and on-site Developers

Top outsourcing destinations for IT in Europe

Europe has a variety options IT outsourcing locations, all of which has distinctive strengths and advantages. The top destinations are:

  • Poland is a country that is renowned for its highly skilled workforce, a strong work ethic and a competitive price.

  • Ukraine is emerging as a center to develop software, it has an abundance of IT experts and affordable solutions.

  • Romania Acknowledged as a leader in the field of technical knowledge, creative solutions, as well as its strategic place of operation.

  • Norway: IT outsourcing to Norway offers a myriad of benefits for businesses seeking to leverage external expertise and resources. From its robust infrastructure and skilled workforce to its culture of collaboration and trust, Norway provides an ideal environment for driving digital transformation initiatives.

  • Czech Republic: The Czech Republic is renowned for its high-quality education, its modern infrastructure and an enviable business environment.

  • Hungary is attracting attention due to its skilled workforce, its culture-rich Western clients and affordable outsourcing rates.

Why is Xeosol Your Top Choice for IT Outsourcing in Europe?

  • 1. Xeosol boasts a team of experts, operating from our development centres located in Pakistan.

  • 2. With more than 5 years of experience in the IT market, Xeosol prioritizes cultivating long-term and strategic partnerships with our clients.

  • 3. Our company possesses extensive technical and industry expertise, offering a wide range of services including custom software development, cloud solutions, DevOps, Machine Learning & AI, Big Data and more. We cater to various industries such as telecom, manufacturing, retail, fintech, healthcare, and others.

  • 4. Xeosol ensures quality and reliability in service delivery.


  • What are the typical engagement models?
    Common engagement models include dedicated teams, project-based outsourcing, managed services, and staff augmentation. Select the model that best fits your project's needs and financial constraints.
  • How do I assess the financial stability and reputation of potential IT outsourcing partners?
  • What steps can I take to mitigate risks associated with outsourcing IT services to Europe?
  • How do I ensure a smooth transition when onboarding an IT outsourcing partner in Europe?
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