“The real power of outsourcing is its ability to increase an organization core capacity for change and growth. The business challenges over the next decade& are going to be very different than anything we’ve seen so far and the companies that weave a powerful network of global partners through outsourcing will be the winners. Michael Corbett, Chairman of the IAOP
Outsourcing is an inevitable part of the modern business world. It helps companies overcome current obstacles, plan their growth, and improve their products and services. Research shows that around 89% of the clients are satisfied with their cooperation with European outsourcing service providers. Moreover, 80% of the respondents confirm that they will continue to outsource at the same rate or more. So how do you find the right partner among the thousands of software development outsourcing companies in Europe? In this article, we are going to look at:
- Software development market in Eastern Europe;
- 10 trusted software development companies in Europe;
- Bonus list: 5 small and midsize software development companies in Europe;
Software development market in Eastern Europe
Software development in Europe is a huge market with a distinctive potential for growth. With a little over $100B revenue in 2016, it is supposed to reach $127.4B in 2021.
The overall number of professional software developers in Europe has reached 6.1M (compared to 4.3M in the US). Germany, the UK, and France are the top three locations by the number of professional developers, but these countries are also the ones with the most fierce competition for this talent.
Software development outsourcing companies in Europe: Statistics
The estimated number of software development companies in Europe varies between 4,000 and 6,000 vendors. For example, Clutch lists almost 4,500 vendors that provide IT outsourcing services. Let’s take a look at the breakdown of these companies by their country. 
However, it is important to understand that the majority of these companies are small vendors comprising 50 people or less. If we filter the results, showcasing only midsize and large firms, the final picture will be quite different.
Now, the overall number of companies hardly reaches 1,300. But it’s still a lot of firms to choose from. So how can you find the most reliable vendor to become your reliable partner?
Best software development companies in Europe: What should you look for?
With that many companies to choose from, how do you find the one that will be the most reliable partner that will help your business thrive? In our article 15 сriteria for choosing a software development company, we have discussed the myriad of factors that can help you make a well-grounded desicion. However, let us recap the main aspects here. Looking for the best vendor among the software development outsourcing companies in Europe, you should consider the following criteria:
- Location of the company’s delivery centers and headquarters;
- Expertise in your domain and technology, as well as overall experience on the market (very young companies are more likely to have less experience);
- Its portfolio, case studies, and client references;
- Available resources to scale your team if needed (thus, the number of employees is important);
- Industry recognition and awards.
We have selected the strongest European software development outsourcing companies listed in the Top IT Outsourcing Companies and Top Custom Software Development Companies on Clutch.co. Thair selection methodology is based on service providers’ areas of focus, their client reviews, and proven ability to deliver. We have considered the companies featured in the Global Outsourcing 100 ranking by IAOP and other industry awards. Additionally, we’ve examined the company’s websites and Linkedin profiles to provide essential information about the companies such as the number of employees, major clients, years on the market, key services and industries.
10 trusted software development companies in Europe
Compiling our list of IT outsourcing vendors with development centers in Europe, we’ve gathered all this information to choose the best companies. We've analyzed many vendors to define whether their European development centers have enough capacity to deliver top-notch solutions to their customers. To shortlist the pool of potential vendors, we have:
- Analyzed over 100 software development companies in Europe. They all were either established in Europe or have a significant presence in the region, as well as development centers in one or several European countries.
- Selected the companies with 1,000+ employees or companies reaching those numbers, as they have established processes, capacity, and scalability to work on the solutions of any complexity.
- Examined the vendors' technical competence, industry expertise, and portfolio using the public information on their websites, social media, news, etc.
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N-iX
N-iX is one of the leading Eastern European software development outsourcing providers with more than 18 years of experience and over 1,000 tech experts on board. N-iX has solid expertise in custom software development, Cloud solutions and DevOps services, Machine Learning and Artificial Intelligence, Big Data analytics, data science, BI, VR & AR, enterprise mobility, embedded software, and much more.
N-iX partners with midsize and enterprise-level businesses to provide all-time support on their digital transformation journey. The company’s track record encompasses long-term cooperation with over 50 clients across the globe, including technology leaders such as Lebara (renowned telecom brand), Currencycloud (global payments platform), Gogo (world’s leading in-flight connectivity provider), HotSchedules (US hospitality leader), and many others.
The company was featured among Top 100 Global Outsourcing companies by IAOP and European IT & Software Excellence Award by IT Europa, as well as shortlisted for the Global Sourcing Association UK Awards. It is also regularly listed in the Clutch Leaders Matrix in different categories.
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Itransition
The software development company delivers full-cycle software development services to customers in over 30 countries worldwide. Its services range from customization and integration of enterprise-level solutions to web & mobile application development.
This company partners with midmarket and small companies representing healthcare, retail, telecom, and finance industries. Their client list includes such names as Expedia, Xerox, Toyota, eBay, Shell, and others.
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ELEKS
Headquartered in Lviv, Ukraine, the company provides a variety of software engineering and consultancy services. ELEKS has several delivery centers across Eastern Europe and sales offices in Europe, the US, and Japan. This vendor specializes in Data Science, mobility, QA and testing, IoT, and technology consulting, with around 50% of projects related to financial and retail industries. The company designs, builds, and delivers products to Fortune 500 companies, enterprises, and other technology organizations.
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IBA Group
This award-winning company was founded in 1993 and has more than 2,500 professionals abord. Headquartered in Prague (the Czech Republic), IBA Group has software development centres in Belarus, the Czech Republic, Slovakia, Ukraine, and Bulgaria. This vendor specializes in custom software development, managed IT services, mobile app development, and Cloud computing.
This vendor partners with companies from the USA, Western Europe, Belarus, and CIS, helping the companies in finance and banking, telecom, manufacturing, and transportation industries. The list of their clients includes Coca-Cola, McBride, Panasonic, T-Mobile, and Belavia.
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Cegeka
With their HQ in Hasselt (Belgium), this European software development outsourcing company has offices and delivery centers in Austria, Czech Republic, France, Germany, Italy, Netherland, and Romania. Their expertise includes Cloud Consulting, CRM Consulting, IT managed services, and Blockchain.
The company partners with companies from different industries, including energy and utilities, healthcare, banking, retail, telecom, etc. Their work with small and midsize European companies.
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iTechArt Group
This vendor has been on the market since 2002, helping startups and fast-growing tech companies build custom software solutions. Their portfolio includes custom software development, web and mobile application development, QA,DevOps, and Cloud computing.
It has over 200 active clients and focuses mainly on software development for financial services, healthcare, medical services, and real estate. The list of their clients includes ClassPass, ZEFR, Gain Capital, Merkle, Barchart, CareDox, BuildingLink.
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EPAM Systems
Founded back in 1993, this is one of the oldest software development outsourcing companies in Europe. Its expertise includes software product development, IoT, application & Cloud management, as well as IT consulting services. It has development centres in Ukraine, Poland, the Czech Republic, Bulgaria, Belarus, and Hungary.
This company works with a variety of clients in industries, such as fintech, media and entertainment, hi-tech, travel, automotive, and others. Among their clients are such companies as Ansel, Edmunds, Liberty Global, RaySafe, Sephora, and Telefonica.
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Godel Technologies Europe
This European software development outsourcing company has several delivery centers in Belarus and is headquartered in Manchester (UK). Their technical expertise includes software development across .NET, Java, and PHP, quality assurance and test automation, DevOps, Cloud migration, as well as Data Science and Business Intelligence. This vendor works primarily with small and midmarket companies. Key clients are Virgin Holidays, The White Company, Jet2.com, Intelliflo, Feefo, Boden Clothing, Shell Energy, and OEConnection.
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p3 Digital Services
Headquartered in Düsseldorf (Germany), this vendor also has a delivery center in Romania. With over 20 years of experience on the IT market, this company developed strong expertise in mobile app development, cybersecurity, Cloud consulting, and system integration.
This vendor works with companies of various sizes, helping companies in energy & natural resources, aerospace, telecom, automotive, and public sectors. Their client list includes Volkswagen, Deutsche Bahn, Vodafone, Sodexo, and Heat NL.
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Coherent Solutions
Founded in 1995, this company specializes in software product development and consulting. They also specialize in Big Data, Quality Assurance / Testing, mobile app development, DevOps, and Blockchain.
Working mainly with midsize clients and enterprises, this vendor developed strong industry expertise in healthcare, manufacturing, and e-commerce. Among their clients are such companies as LifeTime Fitness, WEX Health, MTS Systems, LiquidSpace, Wildflower Health, and Anytime Fitness.
Bonus list: 5 small and midsize software development companies in Europe
There are also a few honorable mentions that didn’t make it to the original list because of their size. They’ve built strong expertise and an excellent reputation. Let’s take a look at these companies.
STX Next
Despite its relatively small size (350 experts), this vendor has been recognized by Clutch in the European Leaders Matrix as a reliable and trusted partner. Based in Poland, this software development outsourcing company provides full-stack web development and cross-platform mobile app solutions. Their expertise also includes DevOps, Machine Learning, Data Engineering, and QA. This vendor cooperates with clients from the US, Canada, South Africa, Australia, the Middle East, and Western Europe.
Qulix Systems
This European software development outsourcing company has over 400+ IT professionals.
This vendor is particularly known for its strong expertise in the finance and banking sector. Additionally, nearly a third of the company’s services are related to IoT application development. Company’s teams have already created IoT solutions for smart homes, telematics, connected cars, wearables, AI, and e-health.
This vendor works with different customers, from small businesses to enterprise-level corporations. Their key clients are Societe Generale, BNP Paribas, Vodafone, Mozido, iHeartMedia, Alcatel-Lucent, UNICEF, and others.
MentorMate
Having more than 18 years of experience, the company provides native and hybrid mobile and web application development services to its international clients. With the European offices in Sweden and Bulgaria, this vendor manages all stages of the software lifecycle, including ideation, architecture, design, development, and quality assurance.
Over 40% of the company’s services are focused on developing solutions for the healthcare industry. This software development outsourcing company works with mid-market and enterprise-level clients, and their portfolio includes software development outsourcing company AstraZeneca, Jostens, SafetyNet, World Marrow Donor Association, Questar, R POPS! Diabetes Care, and Societe Generale.
Intellectsoft
This is one of the youngest firms on our list, with a little over 13 years on the market. This vendor was shortlisted among leading companies in the Global Outsourcing 100 by IAOP and Inc. 5000. The company specializes in custom software, web, and mobile app development. This vendor’s industry expertise covers hospitality and leisure, Information technology, and financial services. Having established seven development centers, the company has helped over 300 international clients improve their products and bring new solutions to market.
Exadel
Concluding our list of software development outsourcing companies in Europe, this vendor has over 20 years of experience. The company provides digital transformation and enterprise software development services to a number of market leaders. Its services range from initial system architecture, DevOps, UX/UI, to Big Data, QA, and application support.
Almost half of the company's projects are related to developing healthtech and fintech solutions. Among their clients are McKesson, Dun & Bradstreet, Hunter Douglas, and Trek Bicycle Corp.
Without any doubt, these are some of the best software companies in Europe. The main challenge rests in choosing the best one for your specific business needs. We hope this list has helped you on your journey to finding a reliable partner.
