6 Reasons to Outsource Software Development to Central Asia
The only way to grow and develop your business in today’s modern world is with the application and integration of advanced technologies. That leaves a company with the option of hiring an expensive in-house team to put in place these technologies. Or they will need to work with freelancers that often do not understand the company goals. The last option is to contract with an outsource company that will save time and money. Going forward with it, there are many reasons to integrate outsourcing to Central Asia as part of a company’s business strategy. Not only it helps a business grow and develop, but also it allows a business to stay competitive in the current marketplace.
Over the past years, Uzbekistan and other parts of Central Asia have grown in popularity. They have become a natural resource for outsourcing, mainly because of the talent and affordable pricing. This former Soviet Union country is no longer an industry secret. Compared to other countries in the region, Uzbekistan has seen the highest increase in terms of the population since the 90s. This creates an opportunity for a solid sector of younger workers. This sector is eager to develop careers in rewarding sectors like IT.
That is why the Uzbekistan government has focused on incentives. In that regard, they are offering tax breaks and support for the IT sector, including software development. Many U.S. and European companies face uphill challenges for staffing and IT services. Therefore, leaders and workers in Uzbekistan are positioning themselves to fill in those remote gaps. They have met the global pandemic challenge with expert workers. They are capable of continuing and increasing productivity in software development.
In 2022, Uzbekistan set digital transformation as a top strategic goal. They use the IT sector as a foundational tool to make this transition possible. This has led to government-funded initiatives. Each one is meant to strengthen digital skills and create jobs throughout Uzbekistan. This will meet or exceed international expectations. It opens new doors to qualifications, certifications, and raw talent.
Infrastructure and skills are increasing in Central Asia. Countries around the world like the U.S. and Europe are taking notice. This provides the opportunity to leverage professional and experienced teams at a fraction of the cost of an in-house group.
The Benefits of Outsourcing to Central Asia
- Tech Talent in Uzbekistan
- Cost Effectiveness
- Availability of Hardworking Talent
- Faster Start of an Outsource Project
- Higher Retention Rates
- Professional Service Delivery
1. Tech Talent in Uzbekistan
Uzbekistan is rising as an alternative to Eastern Europe for outsourcing from the U.S. because the tech sector in the country is blossoming. Many tech incubators are helping younger workers develop skills, certifications, and qualifications. This helps in working with foreign companies. This includes creating the infrastructure for such talent in places like the IT Park in Tashkent opened in 2019.
This new facility has partnered with many international IT startups. Some are mentoring projects, including software development parks in India, the UK, and more. This will encourage creating more IT sector opportunities for workers. The IT sector pays well and has received tax breaks from the government. This is a high in-demand industry for new growth in the job market.
All residents are exempt from paying taxes and enjoy the international space for innovation. There is even a program focused on providing free online courses for anyone over 13, with a goal of raising one million coders. Initiatives like this have led to new recognition from the World Bank. They have ranked Uzbekistan among the world’s most improved economies for ease of doing business since 2020.
2. Cost Effectiveness
Uzbekistan, as an alternative to Eastern Europe for outsourcing from the U.S., is attractive because it is far more affordable. For example, an IT Manager in Tashkent, Uzbekistan can expect a median salary of $6,798 USD compared to $31,855 in Hungary or $26,400 in Ukraine. That is a dramatic saving for a U.S.-based company that faces an average salary of $106,816 for an in-house American software developer.
Admittedly, when a U.S. based company hires local talent, they usually incur extra costs. This could be insurance, taxes, and other expenses. All this makes development prohibitive. Yet, outsourcing to Central Asia will result in the same, if not better, quality of work for a fraction of the price, which allows a company to refocus its financial resources. Now, they can focus on product development, customer relationships, and other aspects. Instead of worrying about employee operational costs.
For example, a quality outsourcing company like TechCells does all the recruiting and detail work for you. There is no need to spend time and money on an expensive recruitment process or create a secondary HR team to manage your IT staff, as everything gets done through one central point of contact.
3. Availability of Hardworking Talent
Uzbekistan and Central Asia are well aware of the opportunities for U.S. companies to invest in their job market. That is why there is such a surge of new talent entering the marketplace. This emerging market is soaking up new skills and tools that make the hiring prices so much simpler for advanced technology stacks. The diversity of the developer pool is the result of a culture that values a strong work ethic.
To illustrate further, big companies like Exadel, Sigma, Forte, and EPAM have already jumped on board. They like the idea of Central Asia as an alternative to Eastern Europe for outsourcing from the U.S. That is why they have invested in the local economy. They are helping the IT job market by creating training centers focused on modern technologies. These international companies recognize the benefits of working with talented Central Asia citizens. These workers are eager for the opportunity to excel in their careers.
4. Faster Start of an Outsource Project
The average time for a U.S. startup to go from idea to project launch is 6 months to 1 year. That can result in significant losses while a company builds out the team around every development phase. Outsourcing to Uzbekistan shortens this time frame. It refocuses project phases and development on specialized workers. Companies will not have to spend endless hours prepping an in-house team with multiple tech stacks. They can hire a direct team that will integrate into the current process. These workers already understand their role and will reach completion a lot quicker.
This allows companies to move U.S. human assets away from tasks that need a lot of time. They can distribute them among the other necessary startup processes more aligned with their skills and talents. IT outsourcing allows your team to start the development work as soon as possible. This cuts down the time it takes to market, which is a fundamental competitive advantage in today’s fast-paced and dynamic marketplace.
This also lowers company risk. Freelancers are not considered as reliable as outsourced workers, as they often do not have the level of expertise, experience, or ability to meet deadlines as a fully developed outsourced team. IT outsourcing and software development are highly specialized skills that use specific technologies. They need efficient workflows that must be developed over time. That is precisely what Uzbekistan teams have been focused on learning and creating over the past few years. They are primed right now for the investment of U.S. startups.
5. Higher Retention Rates
A significant problem in the U.S. is the high turnover of IT professionals. Statistically, close to 94% of surveyed employees would stay at a company if it invested in helping them learn more skills. Unfortunately, that is not the atmosphere in the United States. The culture focuses on the idea of “pulling yourself up by your bootstraps” and seeking the information on your own, which leads to poor performance and employee satisfaction, hurting retention rates.
In stark contrast, Uzbekistan is the exact opposite. There is a strong connection between local developers with the goals, ideas, and values of the companies they work with. This is a flexible culture that enjoys a sense of being part of something greater than themselves. They often develop habits that improve the innovation, communication, and development of projects. Uzbekistan is home to more than 40 nationalities, all living in peace. That requires a deep sense of collaboration and trust that is rewarding. The Uzbek people want a workplace that celebrates their passion. Therefore, the tech industry is one of the leading government-backed initiatives in the country supporting this idea.
6. Professional Service Delivery
Central Asia understands the importance of taking service delivery seriously. Uzbekistan and other former Soviet Union nations have faced international branding issues before. They know that the quality of their work and professional interactions are the best ways to overcome these issues.
Companies are investing in the future of Uzbekistan, since they see it as a new resource for technology, software development, help desks, cyber security, and more. Teams in this region are meeting the demands of U.S. companies. This includes timescales, deliverables, and processes. Uzbekistan allows its economy to be integrated into the IT sector. Everyone, even a young student learning a tech stack, is on board. Obviously, this growing industry will further cement Uzbekistan’s tech infrastructure.
An example of this dedication to professionalism came in 2022. That is when all government agencies must have all new hires know at least one foreign language. Most of the time, that language is English. Besides, the government selected 10 languages expected to rise in competitiveness among Uzbek citizens. English is top of the list. Closely followed by Russian, German, French, Chinese, Korean, Japanese, Turkish, Arabic, and Farsi.
To put it simply, this is a country and region on the precipice of significant development, and IT is leading the charge.
Is it a Smart Choice for U.S. Based Companies to Outsource to Central Asia?
Yes, it is. Firstly, the infrastructure inside the country is advancing so that communication is easier now than ever. Moreover, they have already dedicated themselves to adjust their work schedules. This way, all communication and project work functions in real-time with U.S. companies. In addition, the infrastructure inside the country is advancing so that communication is easier now than ever. The pool of talent is as qualified as many American-based applicants.
This is an excellent way to lower the operating costs of your next company software project. Besides, it will not require sacrificing quality or professional delivery of services. The Uzbek people are well known for their commitment to exceptional work. They are loyal to a company that invests in their future, making them ideal for collaboration.
Currently, many U.S. companies are struggling to overcome the issues of the global pandemic. Hence, it only makes sense to work with international partners, who are willing to step in and fill in those necessary gaps in talent.
Where to Get Started
In short, Central Asia is an excellent alternative to Eastern Europe for outsourcing from U.S.-based companies, and TechCells is here to help you get started. We provide cost-effective software solutions and flexible IT services. This includes outsourcing to clients all over the world since 2015.
Our goal is to develop the platforms that help you succeed and the global partnerships that will enhance your company’s capabilities. We offer everything from full-stack engineers to IT staffing augmentation. We have both in-house expert teams and outsourcing talent. Contact us today to get started and experience the many benefits of outsourcing your next project to experts in Central Asia.
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1827 Walden Office Square, Schaumburg, IL 60173
+1 (916) 913-9878
Labzak 64, Toshkent, Uzbekistan 100128
+998 (93) 440-0261