A Snapshot of the Global Software Outsourcing Market in 2025

Software outsourcing is the practice of hiring an external team or company to handle specific software development tasks. Instead of building and maintaining a large in-house team of developers, a business can delegate projects to a specialized partner.

The market for these services is expanding rapidly; global revenue for IT software outsourcing is projected to reach US$591.24bn in 2025, with the software outsourcing segment growing at a Compound Annual Growth Rate (CAGR) of 11.5%.

This rapid growth is is a reflection of a fundamental shift in how modern enterprises build and scale their technical capabilities. The decision to outsource is primarily influenced by financial, talent-related, and operational factors. These key drivers show why more companies are choosing external partners to stay competitive.

To Reduce Costs and Optimize Resources For 70% of companies, cost reduction is a primary objective. Outsourcing converts the fixed costs of full-time employee salaries into more flexible, variable expenses.

This model can lead to significant savings, with some businesses cutting operational costs by up to 70% by leveraging global talent pools where labor costs are more competitive.

To Access Specialized Skills and Talent Outsourcing provides immediate access to a global pool of specialized talent that may be scarce or expensive to hire locally.

A significant talent shortage is driving this trend, as 50% of companies report being unprepared for skill shortages in next-generation technologies like Artificial Intelligence (AI) and data science. Outsourcing allows them to bridge this gap without the long and costly process of internal recruitment and training.

To Focus on Core Business Competencies By delegating technical development to an external partner, a company’s internal teams are free to concentrate on their primary business objectives.

This allows them to dedicate more time and resources to strategic activities like business planning, marketing, brand building, and customer service, ultimately driving growth and innovation in their area of expertise.

The global software outsourcing scene is wide-ranging, with each region bringing its own mix of costs, talent, and strategic benefits. While Asian countries have been the go-to for a while, Eastern European and Latin American nations are stepping up as serious contenders. Choosing the right outsourcing partner has become more about weighing the cost, talent, and focus against what each region uniquely offers.

India

India directly addresses the primary driver of cost reduction on a scale no other country can match. Its vast talent pool of over 5.2 million developers offers significant labor arbitrage, making it the default choice for large enterprises looking to optimize operational costs for large-scale projects.

The Philippines

The Philippines has carved out a strong niche by offering an ideal balance of cost reduction and specialized skills, particularly in communication. Its proficiency in English and Spanish, combined with low operational costs, makes it an attractive destination for companies that require seamless customer interaction alongside software development.

China

For companies driven by the need to access specialized skills at an immense scale, China is a formidable option. While its labor costs are rising, the country's unparalleled market size and vast pool of tech talent ensure it remains a key destination for complex, large-volume development work.

Poland

For businesses driven by the need for specialized skills and high-quality development, Poland's large pool of over 400k IT professionals makes it a top-tier nearshore choice. Its EU membership streamlines collaboration for European clients, mitigating risks often associated with offshoring and allowing internal teams to focus on core competencies.

Ukraine

Despite geopolitical challenges, Ukraine's IT industry continues to be a major global hub for companies seeking to access specialized skills. Its proven resilience, with 96% of customers remaining with their Ukrainian partners, demonstrates a profound ability to deliver high-quality, reliable services under difficult circumstances.

Romania

Romania is a strong and growing competitor, attracting businesses that value a supportive ecosystem for accessing skilled talent. Bolstered by government investments and a focus on building its IT infrastructure, the country offers a stable and cost-effective environment for tech development.

Bulgaria

Bulgaria has established itself as a formidable outsourcing destination for clients seeking a balance between cost reduction and specialized skills. Its combination of a highly educated workforce, excellent digital infrastructure, and EU membership makes it a reliable and cost-effective choice for nearshore software development.

Brazil

As the largest IT outsourcing market in the Western Hemisphere, Brazil's powerful combination of scale and strategic location allows clients to focus on their core business with seamless, real-time collaboration. Its time zones overlap with both North American and European business hours, making it a highly efficient choice for global partners.

Mexico

Mexico's key advantage is its position as a top nearshore destination for North American companies looking to focus on core competencies while maintaining close collaboration. The geographical and cultural proximity simplifies communication, making it an ideal choice for businesses requiring a deep understanding of the US market.

Argentina

Argentina has carved out an important niche as a high-quality hub for companies whose primary driver is accessing specialized skills. Despite its smaller market size, it is highly regarded for its strong educational system and excellent English skills, attracting clients who prioritize technical expertise and clear communication.

The decision to outsource software development has evolved far beyond a simple search for the lowest-cost provider. In today's landscape, it is a strategic choice aimed at gaining a competitive edge. The best approach for any business, especially a newcomer to this field, is to look for a true partner, not just a vendor.

The ideal outsourcing relationship offers the right balance of cost, specialized expertise, proven quality, and geographic proximity to align perfectly with a company's unique project goals and long-term vision.

Top 10 Software Development Outsourcing Companies in 2025

1. Brilworks

Specialization: Custom software development, web and mobile applications, AI integration

Location: India

Overview: Brilworks provides end-to-end software development services, including web and mobile apps, UX/UI design, cloud solutions, and AI/ML applications.

Their technical stack spans .NET, Java, Node.js, React.js, Flutter, and native mobile development. Clients appreciate Brilworks for their proactive collaboration, ability to deliver projects on time, and solutions tailored to business needs. They have extensive experience across fintech, healthcare, and e-commerce sectors.

2. Brainhub

Specialization: Web and mobile applications, digital acceleration

Location: Poland

Overview: Brainhub delivers custom web and mobile apps, UX/UI design, staff augmentation, and legacy modernization. They work with JavaScript, .NET, Node.js, and React.js, and are skilled in hybrid and native mobile apps, PWAs, and AI/ML integration.

Clients note Brainhub’s technical expertise, transparent communication, and consistent delivery, with projects for organizations like National Geographic and Jackbox Games.

3. 10Pearls

Specialization: Digital transformation, product innovation, cybersecurity

Location: Vienna, Virginia, USA (offices across North America, Latin America, Europe, and Asia)

Overview: 10Pearls offers custom software development, AI/ML solutions, DevOps, IoT, mobile and web development, and cloud computing. They employ a right-shoring strategy, combining offshore, onshore, and nearshore talent to ensure efficiency without compromising quality.

Their work spans Blockchain, AR/VR, and voice technologies, supporting major clients like Johnson & Johnson, PayPal, and Coca-Cola.

4. EPAM Systems

Specialization: Digital transformation, software product engineering

Location: Newtown, Pennsylvania, USA

Overview: EPAM provides software engineering, digital platform development, product design, and strategic consulting. They focus on cloud computing, data science, and AI.

With a global workforce exceeding 10,000, EPAM executes large-scale, complex projects, including enterprise cloud migrations and digital transformations for financial services companies.

5. BairesDev

Specialization: Nearshore outsourcing, full-cycle software development

Location: San Francisco, USA (development largely in Latin America)

Overview: BairesDev combines a top-tier Latin American talent pool with flexible engagement models for custom software development, mobile and web apps, QA, UX/UI, cloud, AI, and IT consulting. Working in shared time zones with U.S. clients allows real-time collaboration. They have completed over 1,200 projects and earned recognition such as the 2025 CIO 100 Award for innovation.

6. ScienceSoft

Specialization: Custom software, data analytics, cybersecurity

Location: Minsk, Belarus, and USA

Overview: ScienceSoft delivers application development, IT consulting, mobile apps, AI, cloud solutions, and enterprise software. With over 30 years of experience, they handle large-scale, complex projects and are known for fast response times. Clients include IBM, eBay, and NASA.

7. Cheesecake Labs

Specialization: Web and mobile development, product design

Location: Brazil and San Francisco, USA

Overview: Cheesecake Labs works on mobile and web apps, UX/UI design, business strategy, Blockchain, IoT, and Progressive Web Apps. Their team is recognized for strong product management and technical knowledge, consistently meeting deadlines across sectors including fintech, hospitality, media, and retail.

8. SoftServe

Specialization: Digital consulting, software development, AI solutions

Location: Austin, Texas, USA

Overview: SoftServe offers full-cycle software development, IT consulting, cloud solutions, big data, IoT, DevOps, and enterprise software. They have leveraged AI to enhance operations, including customer service and inventory management, while maintaining a global presence and focus on innovative solutions.

9. Miquido

Specialization: AI, ML, data science, digital transformation

Location: Cracow, Poland

Overview: Miquido provides web and mobile apps, product design, cloud deployment, legacy modernization, and AI solutions using technologies like Flutter, Swift, Kotlin, AWS, and Google Cloud. Recognized as the fastest-growing mobile development firm in Central and Eastern Europe in 2016, they are valued for quick onboarding, reliability, and consistent delivery.

10. Toptal

Specialization: Elite freelance network, software development, design, and finance experts

Location: Wilmington, Delaware, USA (fully remote, global talent pool)

Overview: Toptal connects companies with the top 3% of global talent, supporting short-term projects, prototyping, and specialized hires. Their rigorous vetting and fast onboarding allow businesses like Duolingo, Motorola Solutions, and Volvo to quickly access high-caliber professionals.

Let’s collaborate to address your technology goals and challenges together. Brilworks values open communication, thoughtful solutions, and a commitment to understanding your unique needs. If you’re interested in discussing your project or simply exchanging ideas, we’re here to listen and help you move forward, without any pressure.