Favorable Economic Climate
Hungary’s economy has shown significant growth over the past few years. Particularly significant dynamics are observed in the field of IT outsourcing. Software development in Hungary makes a significant contribution to the country’s economy, making up about 6% of its GDP. In many ways, this is ensured by nimble economic prerequisites and a smooth transition to a free market economy. Hungary maintains an IT-friendly policy, and its government provides financial support for R&D practices. This systematic work of supporting the IT industry ensured the arrival of Siemens, Microsoft, Deloitte, Nokia, and other leading corporations to their market and the creation of many research centers in the country.An equally important aspect is the fact that Hungary is part of the EU and its labor legislation fully complies with European laws and standards. It’s especially beneficial for companies in the region. However, if you want to hire people in Hungary for a project in a country that is not a member of the EU, learn more about its tax system, as this inevitably affects your project cost.Reasonable Rates
IT outsourcing in Hungary also has its drawbacks, as local companies are usually asking a pretty penny for their services, and local specialists have higher rates compared to neighboring countries. According to Accelerance 2023 Guide to Software Outsourcing in Eastern and Central Europe, the average rate of senior developers in Hungary is $75 per hour, Senior QA (manual) asks $55 for its services, Project Manager – $65, Business Analyst – $55.Convenient Time Zone
Hungary is in a relatively convenient time zone, which is 6 hours ahead of EST. If your company is from Western Europe, it’s even easier. In this case, you can enjoy not only the almost complete absence of time difference but also the opportunity to visit your team and get to know them better.Developers from Hungary fit well into international teams as well as possible because the population of Hungary is well-integrated into the European environment. Hungary also has a high level of proficiency in the English Proficiency Index (593 on an 800-point scale) with English widely spoken in the country’s business circles.High Level of Technical Education in the Country
According to the European Commission, ICT Specialists account for 4.9% of the workforce in Hungary (3.7% in the EU). The Daily News Hungary reports, there are 53 universities and colleges in Hungary and 287,018 students, over 20,000 of which study Information Technologies. Hungarian universities annually graduate more than 3,000 IT specialists who, as a rule, find a job very quickly, or work during studying. The state promotes the employment and internship of young talented graduates. For example, the Ministry of Technology and Industry in Hungary recently launched a program to provide financial support to companies or public institutions that offer part-time employment to students from 16 to 25.IT Outsourcing in Hungary vs Poland: What Is the Better Choice?
Earlier in our blog post dedicated to software development in different countries, we mentioned Eastern Europe as the region that holds its position as the top location for software development. However, global competition for the right to be called the best tech hub in the world exists not only among regions but also among countries within them. Some states, especially in Eastern Europe, are becoming highly competitive in the software development arena. The most popular destinations for software development, not only in their region but also globally, are Ukraine and Poland. However, Hungary, the Czech Republic, Bulgaria, and Romania begin to slowly nip at their heels. The difference between development in these countries lies not only in price but in many aspects. To make things clear, let’s compare Hungary and Poland and see why Poland, for example, is now slightly more popular in software development tops.
[table id=28 /]
Source: Clutch, International Trade Association, Infoshare, Accelerance
Before speaking about how to hire a remote developers team in Hungary, it is worth mentioning that there are several major tech hubs in the world of outsourcing. They include gifted minds that stand behind the products of leading corporations. Within their countries, they introduce high-quality products and create a favorable climate for product development for quite reasonable prices. These countries also have a large number of top-notch specialists with rich educational backgrounds in technology and a high level of English proficiency. All of this is in place with Hungary – 5th country with the best developers worldwide, according to Budapest International College. It’s not yet the first among software development countries in the world but certainly not the last in terms of digital innovation and rapid growth. If so, what holds it back? We continue researching the most promising countries for hiring software developers and moving to Hungary – the spot that shouldn’t slip away from your attention.
[table id=28 /]
If the company has a strong in-house team but lacks some extra capacity with proven expertise in the domain, the wiser option is to involve professionals with specific industry knowledge instead of establishing a new team. Among the different software development models, IT outstaffing stands out as an approach that allows the client closer cooperation with the professionals they hire. IT staff augmentation companies allow one to hire a team in neighboring countries which is called nearshore staff augmentation; or choose professionals in any county of the world.An IT outstaffing company gives the client more control over the project and access to skilled developers, engineers, testers, and other resources. All of them act as a full-fledged part of the team. Among others, outstaffing is a perfect option for clients who need to: 
A dedicated team is a collaboration model that can be useful for those who want to build a team from scratch. However, unlike the traditional approach to outsourcing developers, dedicated teams do not work on multiple projects from different clients. With a dedicated team, the client also has more control over its remote employees and both parties work closely together in the development process. DT is ideal for long-term projects that may have unclear requirements. A dedicated team, by definition, is better in situations where there is a long-term collaboration ahead that requires the participation of many specialists and a large amount and expertise to be accumulated.
Key Takeaways
