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Why Do Tech Companies Face Difficulties Finding Software Developers In Eastern Europe?

Article by - 9/13/2021

Recent worldwide trends in the technological forum have enforced upon us the idea that software development is best when outsourced. Companies find it convenient to outsource all development responsibilities to dependable vendors and focus on core responsibilities. This has helped many organizations reduce their labour costs, boost operational processes and preserve competitiveness in the development market.

Shortage of software developers

Organizations often face a shortage of experienced and skilled software developers in the locations they are familiar with. Hence they are forced to look elsewhere for fulfilling their outsourcing requirements.

Eastern Europe has been a popular place for sourcing tech talent given relatively low cost, but it has its own challenges too. Let us understand in brief the reasons why procuring software developers in Eastern Europe is not as easy as it sounds.

1. Shortage of local talent

The IT boom in the last two decades has resulted in numerous software development jobs created across the globe. Covid not only increased the demand in tech talent, but also introduced a remote working model which allows companies hire in low-cost locations such as Eastern Europe. The available tech talent pool, however, cannot satisfy this demand which created a high competition between companies in sourcing strong talent in Easter -European countries.

2. High salaries

Eastern Europe has been keen on upskilling its software developers for the last few years. This has led to a sharp increase in the quality of IT talent in east European countries such as Hungary and Poland. The highly skilled IT developers demand high salaries in exchange for their software development efforts. In 2019, the average salary of software developers had increased thrice as that of 2016. This higher wage can pose a problem for organizations looking to acquire cheap development labour. East Europe countries such as Ukraine boasts off a 200K tech pool enabling them to provide high end software development services. Senior software developers in east European countries like Ukraine earn more than $4k per month.

3. Surge in demand

Although East European countries have been lacking in quantity in terms of software developers they don’t lag behind in quality. In fact, east European software developers are mostly in demand in the present market scenario. The software developers in east European countries have aggressively skilled themselves in software development and become proficient in recent years. Poland and Ukraine take the top ranks when it comes to software development talent. Ukraine alone boasts off more than 700 IT companies making it the 6th fastest growing tech hub in the world. Their software development talent is in high demand. Now organizations looking for talent in east European software development face difficulties in acquiring the same due to high demands. This sudden surge in demand is not properly fulfilled by the relatively low numbered software developers in east Europe.

Conclusion

East European software developers are steadily rising in quality and quantity. They are becoming very popular between big tech companies which creates a high demand and drives the salary up.

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