Stats and Figures
Belarus. Have you heard the name? Nowadays Belarus is considered by many IT professionals as one of the most attractive places for the industry. If to talk about the IT industry itself, it’s developing at an intensive pace. Its growth rate increased to 114 % and CAGR constituted 30 % over the last five years. The world-known brands like World of Tanks, Viber or MSQRD serve as success stories for more and more Belarusian startups. The name of the country has became recognized, and this time not for political reasons. By the end of 2016,
Now and Then
This title didn’t come out of blue. As a matter of fact, Belarus (or BSSR back then) was the most developed republic of former Soviet Union in terms of technology and education. For instance, Belarus covered over 60% of the USSR’s demand for computers (IBA’s report, 2013). After the fall of Red Empire, the republic has inherited all the expertise and experience in the field of technology. In addition, the educational process was notably improved to fulfill the need for IT professionals. Finally, the creation of High Technologies Park (HTP) in Minsk gave a solid boost to IT technologies and attracted both Belarusian and foreign companies to the IT sector.
Currently, the Belarusian IT industry benefits from governmental support in terms of simplified process to set up a business and privileged taxation regime, including exemption from VAT, profit, and real estate taxes. This beneficial business climate brings several bonuses with regard to stability, security and cost advantages.
Some figures to examine
(courtesy of dev.by, the leading IT portal in Belarus):
- IT‐companies are mostly located in Minsk – the capital city (more than 90%).
- As in December 2016, 164 companies operated in HTP. Classifying HTP resident companies by the origin of attracted investments, 72 companies (41 %) were founded by Belarusian investors, 54 companies (35%) were set up by foreign investors, 38 companies (24%) were joint ventures.
- According to the official statistics, the IT‐services production and sales revenue of HTP Belarus resident companies amounted to about USD 770 million, which established annual growth rate of 119%
- The share of IT sector in the national export is about 2,7%.
- In 2015, more than 90% of Belarusian IT‐companies developed customized software, which confirms the absolute advantage of this type of activity in the Belarusian IT‐market.
It takes about 3 hours by plane from any European capital to reach Minsk, the capital city. The other good news is that the government got rid of visas for foreign visitors from 80 countries in 2017. Visa-free entry will apply to citizens of 39 European states, including all EU countries, as well as to Brazil, Indonesia, the USA, Japan and other states.
UTC+3 time zone
Thus, it’s feasible to work with American and European customers during overlapping working hours.
In May 2015 Belarus officially joined the Bologna Process – the European Higher Education Area. At the beginning of 2016, 336.4 thousand students were enrolled in 52 higher education establishments in Belarus. The fifth part of them chooses to study technology and engineering. The educational process is rigorous, but the graduates understand the price of their efforts. The need for developers is permanent, so the Belarusian IT industry is ready to employ them as soon as they feel ready to work.
Competitive IT Service Prices
Naturally, developers’ rates for outsourcing depend on a wide range of factors such as complexity, project size, delivery model, etc.
Ranging from $25 to $40 per hour, the current median is at a level of $35/h
The United States, the UK, Germany, Finland, Ireland, the Netherlands, Switzerland, and Israel.
Summing up all these insights, it’s fair to say that clients working with outsourcing companies in Belarus appreciate the fact that they are getting exceptional skills and expertise at an affordable price. And it doesn’t concern solely startups – even the world-known companies like Siemens, Toyota, Sony, Warner Music or Microsoft have already worked with Belarus specialists. Our developers provide realistic estimations and work with a sense of urgency. Considering all these facts, it’s no brainer to conclude why both big corporations and startups choose Belarusian companies as their technological partners. All these factors introduce Belarus as a favorable place for those who consider outsourcing their software development projects in 2017.