CEE developers offer better value than Western Europe
Central and Eastern Europe (CEE) continues to offer better value than Western Europe on software development costs, with rates as low as USD 20 per hour in Romania and Bulgaria compared to USD 50-300 in Germany, France and the UK, according to TechBehemoths.
Research by the technology website shows that strong education systems, multilingual talent pools and EU-level legal protections keep CEE competitive for global tech outsourcing and nearshoring, even as AI, war and supply-chain reconfiguration reshape the market.
Romania, Poland, Bulgaria gain from wage flexibility
Developers in Ukraine, Moldova, Romania, and Bulgaria typically charge under USD 26 per hour. Poland and Hungary command the highest CEE rates at USD 51-103, reflecting stronger wage growth and established export markets, TechBehemoths writes, citing Statistica. The market’s revenue will be approximately USD 11.3bn in 2026, with a rate of growth per year of 14.84%, the report adds.
By contrast, software development rates in Western Europe are far higher: USD 50-199 in Germany (average USD 61), USD 50-149 in France, USD 55-300 in the UK (average USD 93) and USD 50-149 in the Netherlands (average USD 69). Senior specialist roles in the UK and Germany can reach USD 150-300 per hour.
Pandemic, Ukraine, AI accelerate nearshoring to CEE
Companies have increasingly shifted to nearshoring since the COVID-19 pandemic, Russia’s invasion of Ukraine, and the emergence of AI development hubs. Timezone alignment with Western Europe and compliance with EU data protection rules have further strengthened the region’s position.
While EU accession candidates Ukraine and Moldova have an increasingly high profile, many firms still favour Romania, Hungary and Slovakia due to lower security risks and clearer legal frameworks.
National ministries such as the Polish Development and Technology Ministry and the Romanian Research, Innovation and Digitalisation Ministry support software developers through tax incentives and Recovery and Resilience Facility (RRF) funds for tech upskilling.
CEE tech sectors forecast continued growth
Eurostat wrote on 15 July that some CEE countries, including Czechia, now match or exceed the EU average for basic digital skills among young workers. Poland’s ICT exports were USD 16.85bn in 2023, up from USD 13.48bn in 2022, according to the Polish ICT Sector Report 2025.
"The rising tech influence of Eastern Europe can be a strong rival for the major tech market of Western Europe. EE has lower hourly fees, a big talent pool, new perspectives, and is budget-friendly, while Western Europe’s Developers provide high performance, an outstanding work ethic, and English proficiency," TechBehemoths concluded.