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July 9, 2024

Access to Hidden Talents: Why Outsourcing to Europe Makes Sense

Europe is home to some of the largest and most prestigious technical universities, cultivating a vast talent pool. This makes the region increasingly recognized as a prime destination for outsourcing, especially in the fields of engineering and software development.

We have identified four European countries that offer an optimal balance between skill and cost: Romania, Poland, Portugal, and Bulgaria. This is why we recommend outsourcing to these regions:

Highly Educated Workforce:

Quality Education – Universities such as Politehnica of Bucharest (approximately 30,000 students), the Warsaw University of Technology (around 30,000 students), and Instituto Superior Técnico in Lisbon (about 11,000 students) are renowned for their rigorous programs in engineering and technology.

Significant Graduate Output – With over 200,000 graduates annually from technical fields across these European regions, companies can tap into a deep reservoir of newly minted talent.

Specialized Skills:

Diverse Expertise – Institutions such as the Politehnica University of Bucharest (around 30,000 students), the Warsaw University of Technology (approximately 30,000 students), and the Gheorghe Asachi Technical University of Iași (over 10,000 students) offer specialized programs in emerging technologies, cybersecurity, and software development, aligning closely with current industry demands.

Strong Technological Foundation – Graduates from these universities are proficient in various engineering disciplines, including network engineering, systems integration, database management, software architecture, and cloud computing. This broad skill set enables companies to access a workforce well-equipped to handle diverse technological challenges across different IT sectors.

Cost Efficiency:

Competitive Salaries – The average annual salary for a software developer in Poland and Romania is approximately $35,000, significantly lower than in Western Europe and the US, yet the quality of talent remains high.

Reduced Operational Costs – Outsourcing to countries like Romania, Poland, Bulgaria and Portugal allows businesses to maintain high-quality standards while benefiting from lower operational expenses.

Cultural Compatibility:

Strong European Ties – These upper-mentioned countries share cultural and business affinities with Western Europe and the US, ensuring smoother integration with western business practices.

Multilingual Abilities – Graduates possess strong English language skills and a multicultural outlook, facilitating better communication and collaboration with international teams.

Strategic Location:

Time Zone Advantage – The region’s proximity to Western Europe ensures overlapping work hours, facilitating real-time collaboration. Additionally, Portugal’s time zone aligns particularly well with US companies, making it advantageous for close, timely coordination with American partners.

Growing Tech Ecosystems – Cities like Bucharest (Romania), Sofia (Bulgaria), and Lisbon (Portugal) are rapidly developing as tech hubs, attracting startups and multinational companies alike.

Government Support and Innovation:

Supportive Policies – Governments in the region actively support tech and innovation through grants, tax incentives, and infrastructure development.

Innovation Clusters – Areas like Wrocław (Poland), Bucharest (Romania) and Porto (Portugal) are becoming known for their innovation clusters and tech parks, providing fertile ground for startups and tech companies.

Conclusion:

Outsourcing to Romania, Portugal, Bulgaria and Poland offers access to a vast and skilled talent pool, specialized expertise, and significant cost advantages. These regions are not just hidden gems but emerging leaders in the global tech landscape, making them ideal partners for companies seeking quality and efficiency in their engineering and software development projects.

Navigating the Outsourcing Landscape with 112Hub

Given the vast array of opportunities and resources available in these regions, companies often find it challenging to pinpoint the best outsourcing options. This is where local expertise becomes invaluable.

At 112Hub, we excel in helping companies establish and grow their IT teams specifically in Romania and Portugal.

Similar to BCG, Deloitte, PwC and McKinsey, we offer comprehensive evaluations and support to optimize your operations. However, our specialized focus on these regions allows us to provide deeper insights and market analyses tailored to your needs. We ensure you achieve the best quality/cost ratio for your projects by leveraging our in-depth understanding of the local talent.

Whether you’re looking to build a dedicated team or expand your existing capabilities, 112Hub is your trusted partner in navigating the dynamic IT markets of Romania and Portugal.