7 Reasons to Outsource Software Development to Hungary in 2022

Budapest, Hungary

While Poland & Ukraine have historically been the most popular software development outsourcing destinations in Central & Eastern Europe, Hungary is emerging as one of the best countries to outsource software development. Quietly, Hungary’s talent pool has been steadily increasing over the past few decades. Compared to Eastern Europe software development outsourcing, Hungary also offers the westernized culture of a Central European country. This has attracted many US companies to establish Hungary as their primary offshore software development destination.

Hungary: The Alternative to Software Development Outsourcing in Eastern Europe

Recent regional instabilities in the Eastern European region have highlighted the need for managing political risks when outsourcing to Eastern Europe Software Development Companies. As a member of the EU & NATO, Hungary provides the stability to safely invest in an offshore development team.

Why Hungary Has Become a Top Offshore Software Development Destination

  1. Tech Talent Ranked 3rd in all of Europe
  2. Largest IT Talent Pool in Central Europe
  3. Developers are Fluent in English (Ranked 2nd in Central & Eastern Europe)
  4. Hungary a Member of the EU & NATO
  5. Labor Laws Comply with European Standards
  6. Low-Context Communication Culture Matches Western Countries
  7. Low Attrition Rates for Developers

Hungary’s Tech Talent Ranking

Hungary ranks near the top of all European countries for developer skills, according to a 2021 HackerRank study.

2Czech Republic93.38

Hungary Has a Large Developer Pool

Hungary has been steadily building its IT Talent Pool over the past few decades & now has the largest number of developers in all of Central & Eastern Europe. Here are the top 5:

2Czech Republic10.5M150,000
Developer Talent Pool

All Engineering Classes in Hungary are Taught in English

Agile requires Technical English Proficiency. If you are looking for developers who can communicate complex technical concepts in English “at speed”, then Hungary should be at the top of your list.

All engineering classes in Hungary are taught in English & students must pass the IELTS test in order to enter Engineering School. According to EF EPI, the preeminent English Proficiency rating body in the world, Hungary’s English proficiency is rated as “Very High”.

Hungary holds EU & NATO Membership

Often overlooked when choosing a Central or Eastern European development partner is the political stability of the country. Being a member of both the EU & NATO, Hungary is considered a stable outsourcing destination.

Hungary Has Favorable Euro-Centric Labor Laws

Bureaucratic labor laws can make it difficult to do business in some Eastern & Central European countries. Hungary’s labor laws are in line with European Union standards.

Hungary has a Low-Context Communication Culture

In her groundbreaking book, “The Culture Map”, Erin Meyer outlines the importance of having a low-context communication culture when blending multi-cultural, geographically dispersed teams. Hungary has a similar “low-context communication culture” to North America & Europe, which makes communication efficient & crisp.

Hungary Has Low Developer Turnover Rates

Hungarian software development companies have developer turnover rates below 10%, far below most Central & Eastern European countries. Compare that to 22% turnover rate in India & 12% in Latin America.


Once you realize the rich developer talent in Hungary & consider all of the other important variables for choosing an offshore software development destination, the decision is clear. Hungary belongs on every tech manager’s list of potential outsourcing destinations.

About Cloud App Developers, LLC

Cloud App Developers, LLC offers Software Staff Augmentation & Custom Software Development Services from Hungary, Latin America & India. Our Offshoring & Nearshoring Software Development is built upon a foundation of English & Communication Excellence. Visit our About Us page for more information.

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