What is Offshore outsourcing? Top 10 offshore outsourcing countries 

Currently, more and more businesses see offshore outsourcing as a potential solution to reduce costs and streamline their operations. So what is Offshore Outsourcing? In this article, let’s learn the concept of offshore outsourcing as well as take a look at the top 10 leading offshore outsourcing countries. 

I. What is Offshore Outsourcing? 

Offshore Outsourcing is the process of outsourcing IT or IT-enabled processes and services to a service provider in another country. 

As such, Offshore outsourcing is a form of the outsourcing process, using a service provider not located in the same country as the company paying for the services. 

Offshore outsourcing

Offshore outsourcing is a form of outsourcing a service provider in another country – Image: tatvasoft.com

II. Benefits and Limitations 

1. Benefits 

  • Cost savings 
  • Access to a highly skilled workforce 
  • Improve focus on core business tasks for the enterprise 

2. Limitations 

  • Language barriers and cultural differences 
  • Time difference 
  • Less control over your operations 

III. Top offshore outsourcing countries 


India is the top destination for outsourcing. With technological excellence, the same low cost human resources but high technical level and good English. This has made India an ideal offshore outsourcing option. 


The Philippines is known as the “BPO Capital of the World”. BPO is Business Process Outsourcing, which includes outsourced IT and software development. 

Besides, with fluent English and favorable tax laws, the outsourcing industry in the Philippines has attracted many famous enterprises in the world. Examples: Microsoft, IBM and Wells Fargo. 


Ukraine is considered the country with the largest number of IT professionals in Europe. There are more than 1000 technology companies and 2000 domestic startups ready to participate in outsourcing activities. The government of Ukraine is also making efforts to become a leader in IT in the field of outsourcing in the future. 

outsourcing to ukraine

Ukraine has a large number of outsourcing providers available for small and medium enterprises – Image: linkedin.com


Bulgari has developed into an ideal outsourcing destination. It provides a good business environment. Besides, there is a team of IT experts with a solid background in science and technology, fluent in foreign languages and ready to work in different time frames. 


Poland is one of the countries with the largest IT market for outsourcing services in Eastern Europe. It offers good quality work with low labor costs. Moreover, there are many good programmers in the country that are ranked 5th in the world in the Top Coder ranking. 


A PwC report has shown that more and more IT companies are being established in China. The market size of efficient software development services is estimated to be over 30,000 professionals with excellent skills according to HackerRank Programming Olympics. 


Pakistan has also grown into a popular IT destination. It is the 3rd largest English speaking country in the world. In particular, Karachi, the 7th largest city in the world, attaches great importance to technology education. Its favorable business laws have made Pakistan business-friendly and attractive to international companies. 

offshore outsourcing in pakistan

Pakistan has more than 2000 IT companies and many startups are established – Image: absoluit.com


With economic stability, large market size and low investment and labor costs, Russia has developed into a popular offshore outsourcing destination. The relatively good education system has also created conditions for this place to train highly skilled engineers and good IT experts. 


Malaysians ranked third on the English proficiency index in Asian countries in 2021. High foreign language proficiency has created favorable conditions for Malaysian talents to provide outsourcing services to countries with English-speaking target audiences.  


Although IT outsourcing services in Vietnam are still quite young. However, Vietnam is proving to be one of the best offshore development destinations. 

In particular, the average offshore software development cost in Vietnam is more reasonable than in other countries while businesses can access top-quality engineers. 

Learn more about the leading offshore companies in Vietnam here. 

offshore outsourcing in vietnam

Vietnam has an interesting IT outsourcing market – Image: frontline.com.sg


Hope this article can help you understand “What is offshore outsourcing?”. Above are 10 popular outsourcing countries that you can refer to. Not only the above countries but also many other ideal places. However, the choice of offshore outsourcing location depends on the needs of the customer. From location to cost, political stability and technical capabilities. A lot of different aspects to consider before choosing the right provider.