A recent report by Qubit Labs reveals that the majority of technology firms are heading east. They choose Central and Eastern Europe (CEE) and Southeast Asia (ASEAN) as their preferred regions to recruit the best experts. The main reasons are attractive rates, supportive government programmes, tax incentives, and a well-educated workforce with strong technical expertise and excellent communication skills.

Cost efficiency and high quality make these regions stand out

The United Kingdom is renowned for its highly skilled professionals across a wide range of industries; however, talent in this country often comes at a premium. The remuneration of a mid-level software developer in the UK per year is ~48-64% higher than in Bulgaria or Vietnam. This fact forces lean startups to turn to more affordable talent markets that still offer solid technical proficiency and timely delivery.

By comparing the average annual compensation of Python developers, it can be stated that in the UK, the average is approximately $75,000. In Bulgaria, with an average salary of $36,000, the rates are 52% lower than in the UK. Vietnam offers $33,600 annually, which is ~55.2% lower than in the UK. This strategic advantage enables startups to allocate their resources wisely, thereby accelerating their time-to-market and gaining a competitive edge.

“For UK tech leaders, hiring from Eastern Europe or Central Asia often starts as a budget-conscious decision but evolves into a strategic advantage. The talent pool is deep – many developers are educated in strong STEM programmes and bring experience from both startups and enterprise-level projects. Our teams in Romania and Moldova, for example, have consistently delivered code that’s clean, scalable, and fast. The proximity to the UK also means easier travel for in-person sprints when needed,” says Marin Cristian-Ovidiu, CEO, Online Games.

Millions of developers cover diverse industries

A vast pool of software engineers with knowledge of both popular and niche technologies, as well as experience working with international companies, drives startups across different verticals to shift east.

The CEE region is the top outsourcing destination for UK businesses due to its cultural and time zone proximity. It also offers an impressive pool of 1.2 million developers proficient in Java, Python, JavaScript, C#, React, and Angular. Local specialists provide world-class solutions in the AI, gaming, and fintech industries.

ASEAN is renowned for its rapidly evolving tech ecosystem and various projects that power the region’s digital transformation. There is a talent pool of 1.3 million skilled programmers proficient in Python, Java, JavaScript, PHP, .NET, and Node.js. Engineers in Southeast Asia deliver high-quality solutions across various fields, including AI, IoT, e-commerce, blockchain, and fintech.

“While the UK certainly has skilled developers, the demand is high, and finding specialists in niche technologies or with specific experience can be time-consuming and expensive. Outsourcing allowed us to quickly scale our development capacity with highly skilled individuals without the overheads associated with permanent hires in London. The developers we've brought on board are highly skilled, communicate effectively, and have quickly become integral to our project teams,” says Shantanu Pandey, Founder and CEO of Tenet.

Robust infrastructure and favourable business climate drive outsourcing

Modern tech ecosystems ensure development is fast and secure, and attractive incentives attract foreign investment, helping companies scale efficiently. Europe is at the forefront of e-government innovation and offers numerous support programmes for SMEs, fuelling their rapid expansion.

Southeast Asia is a dynamically evolving tech hub with reliable Internet infrastructure. The region’s diverse digital transformation initiatives, including Vietnam’s nationwide programs and Indonesia’s 1000 Digital Startups Movement, foster innovation and growth. Additionally, tax breaks for tech startups in Malaysia contribute to the region’s expanding startup ecosystem.

“Shifting 40–60% of hiring needs to Eastern Europe and Southeast Asia has moved beyond trend status; for many startups, it’s now a strategic competitive edge,” says Iva Kozlovska, CEO, Qubit Labs.

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