Ranked among the top 10 most popular programming languages worldwide, PHP holds a strong position in Eastern Europe—home to 1.5 million skilled professionals. Moreover, the 5 best countries for nearshoring and offshoring are situated in Eastern Europe. No wonder outsourcing software development to Eastern Europe is becoming a growing trend. But how to make outsourcing PHP in Eastern Europe a breeze and know if cooperation with outsourcers is worth the candle?
Speaking about outsourcing agencies, they usually step in to offer access to the best talent. However, they now face new competitors. Companies offering more than just traditional tech outsourcing are gaining more attention. For instance, Alcor, a leading software R&D accelerator, provides a one-stop solution, not only hiring 100 Silicon Valley-caliber developers in just 1 year but also offering full Employer of Record (EOR) and operational support across both Latin America and Eastern Europe. But let’s hold off on that for now—we’ll dive into it soon!
Today, we’ll explore why some companies opt for outsourcing PHP development to Eastern Europe, the potential risks involved, and how to select a reliable PHP outsourcing partner who can skyrocket your product development to new heights.
Reasons for Outsourcing PHP to Eastern Europe
Access to highly skilled talent
Eastern Europe boasts a strong pool of tech professionals. For example, Poland is home to over 607,000+ IT specialists, Ukraine offers more than 300,000, and Romania provides 240,000+ tech specialists, many of whom have over six years of experience.
PHP is one of the primary programming languages for many of these professionals, making these destinations highly attractive for companies seeking PHP outsourcing to Eastern Europe. In addition to PHP, tech engineers also excel in JavaScript, Python, C++, TypeScript, and HTML. According to the 2024 Coursera Global Skills Report, these countries continue to lead in tech education, driving the growing demand for IT outsourcing to Eastern Europe.
Top-notch tech education
Eastern Europe is renowned for its high-quality STEM education, with countries like Poland, Ukraine, Czechia, and Bulgaria consistently ranking among the top 30 globally for technology skills. Around 134 universities in Eastern Europe are included in the QS World University Rankings, indicating that programmers from this region receive the best technical education.
Competitive and cost-effective salaries
Another compelling reason to choose outsourcing PHP to Eastern Europe is the opportunity to save costs without compromising on quality. For instance, in Poland, the annual salary of a senior PHP developer is $75,600, while in Bulgaria, it’s $66,000. Ukraine offers the most competitive rate at just $60,000, which is, on average, 40% lower than in the US. That’s why American companies that opt for outsourcing PHP development to Eastern Europe or build their development teams there can invest the saved funds into other no less important business needs.
Time zone compatibility
Countries like Poland, Romania, and Ukraine share overlapping working hours with Western Europe, ensuring seamless communication. If you’re an American company, you can benefit from the time zone difference when outsourcing PHP development to Eastern Europe, enabling a continuous workflow. As your US team wraps up their workday, developers in Eastern Europe can pick up tasks, keeping your project moving around the clock.
PHP Outsourcing to Eastern Europe: Main Risks
Despite the significant advantages and reasons to outsource PHP development to Eastern Europe, it’s essential to consider the challenges that may hinder the quick and efficient development of your product:
Geopolitical challenges
Some regions face instability, which might raise concerns while choosing your ideal destination for outsourcing PHP in Eastern Europe. Take russia’s full-scale invasion of Ukraine, for example. On the one hand, it puts nearshoring and offshoring in this European country at risk. On the other hand, thanks to resilience, flexibility, and improved infrastructure—such as reliable shelters and constant Internet connectivity—238,000 out of 302,000 Ukrainian tech specialists are still based in Ukraine, with their share in product IT companies increasing from 35% to 45% between 2022 and 2024.
Despite seemingly challenging conditions, major players like Samsung, Grammarly, and People.ai continue to operate offices in Ukraine. They not only sustain substantial profits but also actively hire local specialists. Moreover, new companies are entering the market. For instance, the prominent fintech company Wirex opened an additional R&D office in Lviv in March 2022, and the Japanese tech giant Rakuten announced plans to establish an office in Kyiv in the near future.
Business and tax difficulties
According to the2023 Global Business Complexity Index, Poland ranks 4th in Europe in terms of business difficulty, facing challenges such as complex reporting standards, constantly changing regulations, legal barriers to investment, and complicated HR and payroll rules. Similar issues affect other countries in the region. Despite the attractive tax incentives for tech companies, frequent legislative changes in Romania, like the 2024 Fiscal Code updates, make it crucial to stay up to date with local regulations when expanding to this vibrant EE hub.
So, if you want to outsource PHP development to Eastern Europe successfully, it’s crucial to choose a partner who can offer a compliant employment solution like an Employer of Record, eliminate the need to establish your legal entity, and provide top-notch legal support to mitigate any risks.
How to Choose a PHP Outsourcing Partner in Eastern Europe
To help you make the right choice of the best outsourcing provider for a seamless experience of outsourcing PHP development to Eastern Europe, we’ve prepared a checklist of tips to help you with this.
Check independent review platforms
Choosing the right partner for PHP outsourcing to Eastern Europe can sometimes feel overwhelming. Evaluating factors like cost, developer skills, and service quality can make the decision-making process challenging.
Tip: Rely on reviews to gain a clearer perspective. Trust reputable platforms like Clutch and GoodFirms, where you can explore detailed insights into client experiences and satisfaction. Additionally, seek recommendations from other companies in your industry or niche—they can share their own experiences and guide you toward trusted partners who meet your specific business needs.
Read case studies about cooperation with previous clients
Once you’ve shortlisted the best agencies for your PHP outsourcing to Eastern Europe, learn about their collaboration with clients from case studies. These case studies provide valuable insights into how the agency approaches projects, solves challenges, and delivers results.
Tip: Complement this research by directly requesting references from previous clients to gain firsthand accounts of their experiences. Focus on agencies with a solid track record in outsourcing PHP in Eastern Europe and proven expertise in managing complex projects with skilled developers. This way, you can make an informed decision and ensure your project is in capable hands.
Make sure they have transparent pricing
Certain IT outsourcing providers inflate their service costs by over 50%, often without clients realizing it. This practice significantly undercuts the compensation developers deserve for their hard work. Even more concerning, some companies charge senior-level rates while assigning mid-level developers to projects, prioritizing profit over quality.
Tip: When you decide to outsource PHP development to Eastern Europe, always choose a provider that offers transparent pricing and a clearly defined fee for their services. This way, you can avoid overpaying and ensure that the developers working on your product receive fair compensation for their work.
Ensure data security
When outsourcing your product development to external teams, the lack of direct control over the process and the involvement of third-party developers can increase the risk of data leaks related to your product.
Tip: To prevent this, make sure your partner complies with established data protection standards, such as GDPR. Always sign an IP rights agreement and a comprehensive NDA (Non-Disclosure Agreement) to safeguard your product’s sensitive information and intellectual property while PHP outsourcing to Eastern Europe. Additionally, clarify security protocols and access controls to maintain transparency and minimize risks
Prioritize cultural fit and work ethics
When you decide to outsource PHP development to Eastern Europe, aligning work culture and ethics with your company’s values is crucial. A shared culture fosters better communication, stronger collaboration, and greater project efficiency. For instance, many Eastern European companies are known for their transparency, reliability, and focus on timely delivery.
Tip: When considering PHP outsourcing to Eastern Europe, opt for a partner who shares your work culture and communication style. Schedule introductory meetings or interviews to gauge their team dynamics and approach to problem-solving. Look for traits like responsiveness, adaptability, and a commitment to high-quality results. A partner with strong cultural alignment will not only make the development process smoother but also ensure a more enjoyable and productive partnership.
Better Solution Than Traditional Outsourcing
To harness the full potential of outsourcing PHP in Eastern Europe while avoiding the common pitfalls of this strategy, it’s crucial to choose a provider that guarantees cost-effective and high-quality development. That’s where software R&D accelerators like Alcor step in.
Alcor is a dedicated tech recruitment, EOR, and operational support provider in LATAM and Eastern Europe. With them, you can gain access to the top 10% of tech talent with up to 40% cost savings compared to traditional outsourcing companies. Their EOR package covers everything from onboarding and payroll to employee benefits, with 24/7 support from an experienced account manager. Alcor also handles back-office tasks like office leasing, employer branding, equipment procurement, and stock option plans—all with no buy-out fees or need to register a legal entity.