In Europe, Nearshore Software Development Is Booming. Here Are the Top Locations

For companies operating in the EU, here’s some good news: in Europe, nearshore software development is simple. Let’s break down why.

• Europe makes working together easy. Shared business cultures, aligned laws, and common legal rules like GDPR make compliance hassle-free. These common standards create smooth and reliable partnerships.
• Europe is diverse. Here, you can outsource to regions with top-quality talent at a much lower cost. Nearshoring here strikes the perfect balance — you get expert skills without breaking the bank.
• Europe has proximity and great connections on its side. With short distances and plenty of direct flights, you can typically travel anywhere within 2-3 hours. This makes meetings quicker, collaboration smoother, and problem-solving faster.

Building a nearshore software development team in Europe is straightforward. Ready to explore the top outsourcing locations in Europe for your next project? Then read on.

And if you’re still looking for reasons to hire a nearshore outsourcing web development team, check out our blog for insights and ideas.

For our research on nearshore software development in Europe, we’ve pulled data from open sources like Statista, the Future of IT report, and the 2025 Global software outsourcing rates and trends guide by Accelerance. Here’s a quick look at our key findings.

400.000+ developers (Statista)
Hourly rate for software engineer: €43-€60 (2025 Global software outsourcing rates and trends guide by Accelerance)
General ITO services ranking: #1 in emerging Europe (#3 in global ranking)
Talent component in the IT competitiveness index: #1
English proficiency: Very high

Poland regularly tops the list of the most popular outsourcing destinations. The main reasons are its skilled workforce, rapidly developing IT infrastructure (including lower costs for connectivity and high-speed internet), and a favorable business environment.

In Europe, a nearshore software development team from Poland is a smart choice for businesses looking for cost-effective solutions. Polish software engineers are ranked #1 in the region for software development services, technical support, and data analytics, making it a go-to destination for businesses looking to scale efficiently.

130.000 developers (Statista)
Hourly rate for software engineer: €43-€60 (2025 Global software outsourcing rates and trends guide by Accelerance)
General ITO services ranking: #2 in emerging Europe (#7 in global ranking)
Talent component in the IT competitiveness index: #14
English proficiency: High

The Czech Republic is another top spot in the CEE region. With pay rates about half of what you’d find in Western Europe, it’s a magnet for companies from the UK, Germany, and the Netherlands looking for software outsourcing services. The country is particularly known for robotics, automation (RPA), and general ITO services.

But it’s not just about tech. The Czech Republic also performs really well in areas like the International Property Rights Index and Regulatory Quality Index, where it ranks second.

105.000 developers (Statista)
Hourly rate for software engineer: €43-€60 (2025 Global software outsourcing rates and trends guide by Accelerance)
General ITO services ranking: #5 in emerging Europe (#16 in global ranking)
Talent component in the IT competitiveness index: #3
English proficiency: High

Hungary, with its 9+ million people, is growing its IT workforce through the Digital Workforce Programme. Over 81% of people use public services online, well above the EU average of 65%. The country also has strong IT infrastructure, including fast internet.

For Europe, a nearshore software development team from Hungary offers a business-friendly environment with tax incentives for foreign investors, including a low 9% corporate tax rate, one of the lowest in the EU.

139.000 developers (Statista)
Hourly rate for software engineer: €43-€60 (2025 Global software outsourcing rates and trends guide by Accelerance)
General ITO services ranking: #4 in emerging Europe (#13 in global ranking)
Talent component in the IT competitiveness index: #5
English proficiency: High

Romania is going through a rapid digital transformation, with technology becoming a bigger part of its economy and GDP. In 2021, ICT exports made up 2.91% of the GDP. The country also boasts the fastest broadband speeds in emerging Europe.

When it comes to software development, Romania ranks second in the region, right after Poland. While it still has fewer engineers than some other countries, the Romanian government is actively working to bring more students into technical universities.

Since 2010, Digiteum has been delivering custom web development services for companies in the UK, Switzerland, and beyond. Our partners trust us — here’s why:

• We have expertise in data-sensitive and highly regulated fields like healthcare, logistics, and education, ensuring every project is delivered to the highest standard.
• To stay competitive in Poland’s outsourcing market, we constantly push ourselves to go further. This drive has earned us recognition from clients and platforms like Clutch.
• Over 15 years, we’ve improved our processes to make our work transparent and efficient.