Outsourcing software projects to Czechia. A complete guide

To stay within tight budgets, many businesses are turning to outsourcing as a more budget-friendly way to get things done well. Meanwhile, as Eastern Europe grapples with political instability and ongoing conflicts, Central Europe is turning into a prime outsourcing destination, with the Czech Republic taking a leading role.

Are you also looking at Czechia as your potential next outsourcing spot? Good call! Yet, if you still have doubts or don’t know where to begin, we’ll guide you through the whole process, from recognizing why Czechia could be a good choice to selecting a reliable outsourcing partner and getting your project off the ground with a Czech team.

Czechia as a leading outsourcing destination in 2025

As mentioned, Central Europe as a whole is becoming more appealing for business. But what makes Czechia special in the region? Why outsource software development to Czechia in 2025? The answer - the country offers a unique mixture of favorable conditions that encourage international collaboration and business running.

Economic and political stability - an important aspect in the time of global turbulence.

A stable economic and political situation nurtures a favorable business climate in the country. The Czech Republic has a steadily growing GDP, 41st in the world, and one of the lowest unemployment rates in the EU - ​​2.8%.

As a member of the European Union, Czechia uses EU financial and legal frameworks, offering transparent regulations and investment protections.

Local government also support foreign investment and tech development through grants, substantial tax reliefs, and R&D incentives, supporting international outsourcing arrangements. The best proof that the conditions are indeed ideal is that global tech giants like Google have their R&D centers there.

Finally, the Czech Republic is one of the safest countries in the world. It offers a secure and predictable environment, which is so important for long-term partnerships. According to the 2024 Global Peace Index, the country holds the 12th position.

Strong tech ecosystem with a vibrant startup scene – a powerful driver.

Czechia’s tech ecosystem is based on robust infrastructure and a growing startup scene.

In terms of infrastructure, 5G coverage is nearly universal, according to the Czech Republic 2025 Digital Decade Country Report.

Also, Czechia is advancing in the AI field thanks to the updated National Artificial Intelligence Strategy 2030. Apart from AI, a great emphasis is also placed on cybersecurity, robotics, medtech, and automation.

What about a startup scene? Czechia is ranked within the top 40 startup ecosystems globally. According to Startupblink, there are 714 tech startups and 1 unicorn originated from Czechia.

Startups thrive here for a number of reasons:

• Active incubators and accelerators like StartupYard, JIC, and CzechInvest.
• Access to venture capital with funds like Credo Ventures and Rockaway Capital.
• Funding programs for research and innovation, like Horizon Europe.
• R&D tax incentives.
• Ease of doing business and startup-friendly regulations.
• EU digital compliance and protections.

Cost-efficiency and Western work culture - a perfect combo

Cost reduction is one of the top reasons companies outsource, and Czechia offers a chance to significantly cut expenses by providing competitive rates without compromising quality.

Thanks to a reasonable cost of living, developer salaries here are lower than in Western Europe, Scandinavia, or North America, though maybe a bit higher than in some parts of Eastern Europe. But look, you get what you pay for, highly professional talent with strong work ethics.

By hiring Czech software developers, you not only benefit from affordable pricing but also get tech proficiency and cultural fit, which is like getting fries with your burger, together they just work better.

Located in the heart of Europe, Czechia knows the Western way of doing business. Having worked with American and European teams, local developers are familiar with Western workflows and communication styles and speak your language both literally and professionally.

Location in the CET time zone - a sweet spot

Time is money. Agile projects strive to solve urgent issues quickly, which makes real-time communication a must. With projects outsourced to the Czech Republic, this isn’t a problem at all.

Thanks to the CET time zone location, its EU-based partners enjoy full working-day overlap that makes collaboration easy and efficient.

And U.S. companies don’t need to worry either – there’s partial overlap. Many Czech teams routinely shift to a late‑start/late‑finish day (11 a.m.‑7 p.m.) to stretch overlap to 4–5 hours with East Coast clients and 2‑3 hours with Pacific clients. That’s what we call a client-oriented approach.

What the Czech outsourcing talent pool has to offer

Outsourcing software projects to Czechia suggests not only getting a team that’s easy on the budget but also gaining access to well-rounded and highly skilled developers.

The proficiency of local software developers stems from solid tech education. Czech developers don’t just learn on the job but come with strong academic foundations.

The country has several prestigious tech universities that focus on both the theory and the hands-on skills required in real-world software development. CTU in Prague, Brno University of Technology, and the Technical University of Ostrava turn out sharp, highly capable engineers annually.

It’s worth mentioning that you won’t be stuck dealing with language barriers when working with the Czech Republic software engineering talent. Most local developers speak excellent English. The country ranks 25th worldwide in the EF English Proficiency Index, classified as ‘high proficiency.’

Local IT specialists also have extensive international experience working with Western clients. They’re familiar with leading international tools, methodologies, and work standards, so onboarding and collaboration are usually smooth from day one.

Software development in the Czech Republic emphasizes quality code, documentation, and agile collaboration. Clean code, good test coverage, comprehensive documentation, and a strong handle on agile processes like Scrum or Kanban are what you can expect from local teams that strive to build solutions that are not only operational but also maintainable and scalable.

Finally, developer profiles here cover all the bases. Need to hire full-stack developers? Looking for [available backend engineers](/hire/back-end-developers? Someone who can handle DevOps, AI/ML, or lock things down on the cybersecurity front? In Czechia, you can find all these specialists. The local talent pool is broad and diverse. Working across startups, enterprise systems, and global projects, Czech developers know how to work with different tech stacks and are quick to adopt new technologies.

How much does it cost to hire developers in Czechia?

No matter how you slice it, price is always a hot topic. So, how much does it cost to hire developers in Czechia? It mostly comes down to the proficiency level of a software developer. Here is the hourly rate range you can expect:

• Junior developer: €28-38 per hour
• Mid-level developer: €45-65 per hour
• Senior developer: €75-95 per hour
• Tech lead: €90-115 per hour (yes, that brainpower costs a bit more)

Are these rates competitive? A quick comparison across regions can help you see the big picture.

As you see, rates in the Czech Republic are higher than in popular outsourcing destinations in Eastern Europe like Ukraine or Poland. Yet, that difference isn’t huge, and the value you receive from working with Czech software outsourcing companies is worth this cost.

Compared to Western Europe, local rates are indeed attractive. By outsourcing to Czechia in 2025, Western businesses can save a fortune. That’s why nearshore software development in Czechia is picking up steam.

For U.S. companies, IT outsourcing to the Czech Republic is also a major cost-saving opportunity. In many cases, they end up paying about half of what they would at home.

However, hiring software developers in Czechia is not only about cost saving but also long-term value:

• High retention: Czech developers tend to stick around. Over 50% remain on the job for at least 4 years. For clients, that means fewer disruptions, less time spent onboarding newcomers, and more continuity on your projects.
• Strong delivery culture: Local talent is known for its delivery mindset. Developers are proactive, results-oriented, and don’t need to be spoon-fed every task. They offer solutions, raise red flags, and take real ownership of quality and deadlines.
• Low rework: Quality-focused Czech developers are less likely to cut corners. This results in clean code, fewer issues, less rework, and less wasted budget – basically, everything any CTO dreams of.

Outsourcing costs go beyond rates

We’re not trying to be backseat drivers here, but we do want to remind you that outsourcing isn’t just about investing money, it’s also about investing your time.

To get a remote team up to speed, be ready to tweak some of your internal processes and management strategy, put together project docs, and share the know-how the team will need to hit the ground running. And once things are moving, you’ll need to participate in regular check-in meetings and discussions with the team to keep the development process on track.

How legal, compliance, and IP protection are handled in Czechia

Security shouldn’t be an afterthought when it comes to IT outsourcing services. Compared to non-EU destinations, the Czech Republic is a clear winner. As a member of the European Union, it ensures full GDPR compliance, transparent contract law, and IP safety. What does it mean in practice?

1. GDPR compliance = safer data handling

• Any personal or customer data processed by your Czech development team is protected under one of the world’s strongest data privacy laws.
• Your vendor is legally obligated to handle data responsibly. Shady third-party transfers or misuse are unacceptable.
• A Data Processing Agreement (DPA) that ensures compliance with data protection laws like the GDPR is usually signed as part of the contract, giving you peace of mind.

2. Transparent contract law = legal clarity and enforcement

• Contracts like NDAs, SLAs, and IP assignment agreements are legally recognized and enforceable.
• You won’t face legal loopholes – everything from payment terms to deliverables is clearly outlined and backed by law.
• If disputes arise, you can resolve them under EU arbitration norms or local courts that protect foreign business interests.

3. IP safety = your work stays yours

• Any piece of code, designs, or inventions created by an outsourced team for your project are contractually assigned to you with full legal backing.
• Czech IP law protects against misuse or unauthorized reuse of your proprietary software or assets.
• IP clauses are standard in contracts, ensuring you own everything you pay for. You get not only the output itself but also the rights to use and modify it.

Common legal practices in outsourcing engagements with Czech vendors

The membership of Czechia in the EU is a solid ground, but common legal practices also suggest signing a number of contractual agreements that carry real weight.

Non-disclosure agreement (NDA)

NDAs are widely used. To be fully enforceable under Czech law, such an agreement should meet key requirements:

• Identifying both parties
• Clearly defining what is considered confidential
• Clearly outlining obligations and consequences in case of a breach.

Value: Outsourcing clients can confidently share sensitive project information, customer data, or business strategies without worrying about misuse or leaks.

IP assignment clauses

Czech law supports intellectual property protections, including the ability to assign IP rights contractually for any work done during the project and clearly define who owns the output.

Most vendors include standard IP assignment clauses to transfer full ownership of deliverables to the client.

Value: Without proper IP clauses, you risk ending up in gray areas where ownership isn’t clear.

Service level agreement (SLA)

SLAs are a staple in Czech outsourcing contracts. They help with managing performance metrics, roles, responsibilities, response times, penalties for underperformance, etc.

Apart from clarifying your expectations, such agreements put you in a stronger position if things don’t go according to plan.

Value: SLAs ensure your outsourced team stays aligned with your goals and timelines and protect you if things go off track.

Czechia is all about easy cross-border contracting

The country supports international collaboration and ensures hassle-free cross-border contracting. For outsourcing clients, this means fewer admin headaches, a faster onboarding process, and better financial clarity.

In fact, there are two prominent factors contributing to this:

Transparent contracting practices

Czech law, rooted in EU civil law, supports clear, enforceable contracts. Outsourcing vendors in Czechia are used to working with international clients, so you can expect:

• Bilingual format (Czech + English)
• Standardized terms that cover payment schedules, IP rights, SLAs, liability, and dispute resolution
• Alignment with your preferred legal structures, including incorporation of EU-wide contract standards

It’s also worth mentioning that many Czech vendors are familiar with working under U.S. or UK-style MSAs and NDAs.

Double taxation treaties

Czechia has signed double taxation agreements (DTAs) with over 80 countries, including the USA, the United Kingdom, and most European countries. Why does this matter?

• You won’t get taxed twice on the same income.
• Your Czech outsourcing partner can invoice you cleanly and transparently, with no hidden tax obligations or legal ambiguities.

Czechia is open, cooperative, and legally well-prepared for international outsourcing. All you need to do is take the first step.

Engagement models offered in software outsourcing to Czech

Outsourcing can be shaped in different ways. Client-oriented Czech software outsourcing companies usually offer several engagement models so that you can choose one based on your needs, project scope, and budget.

1. Team extension / staff augmentation

With staff augmentation, you can bring in a skilled developer(s) from Czechia to your in-house team to plug in extra brainpower exactly where you need it. This external developer works under your direction and follows your processes and timelines.

Best for:

• Filling skill gaps without hiring full-time employees
• Scaling quickly
• Staying in control of daily operations

When to go with it: You have a core team but need to scale up or bring in niche expertise.

2. Dedicated development teams

This model enables you to get a self-managed, fully fledged, full-time team working solely on your project. It’s your outsourcing partner who handles recruitment, HR, and admin. You control direction and priorities.

Best for:

• Projects with unclear scope and timelines
• Startups that need a product team but don’t want to build it in-house

When to go with it: When you need full ownership of the roadmap but want to avoid overhead and focus on outcomes.

3. Project-based delivery

Using this model, you provide project requirements, and your Czech outsourcing partner delivers the entire solution. They take full responsibility for scope, deadlines, delivery, and quality.

Best for:

• Small projects with clearly defined, fixed scope
• MVPs, app redesigns, feature modules
• Short-term work with a defined timeline

When to go with it: You have well-defined project specs and want to hand off development to a reliable external vendor.

4. Hybrid models

This model blends remote and on-site efforts, facilitating tailored collaboration and catering to project needs and team dynamics. For example, your product team might handle discovery, UX/UI, and vision, while the Czech partner handles execution, testing, and delivery.

Best for:

• Companies aiming for flexibility and adaptability
• Companies that want to keep strategy internal but outsource execution
• Complex products with evolving features and multiple release cycles

When to go with it: You want to retain creative and strategic control but need an external team to implement ideas.

What makes an outsourcing partnership thrive?

A thriving outsourcing partnership is all about clear goals, mutual trust, and efficient collaboration. Do not expect to receive the desired results by micromanaging or throwing tasks over the wall.

If you’re set on outsourcing, here are a few nuggets of wisdom to help make it a success:

Set clear deliverables

‘Build me a cool app’ isn’t a plan. Any developer, in-house or outsourced, can’t read your mind. That’s why clearly set deliverables: what’s expected, when it’s due, and how you’ll measure it. Give your Czech team a clear target, and they’ll hit the bullseye, maybe even with extra features you didn’t think of.

Use Agile and keep sprints snappy

Most Czech teams are big on Agile. Sprints, standups, and retros are all part of their work routine. Agree on sprint length (2 weeks is the sweet spot), do regular demos, and don’t skip retros.

Settle on a tech stack

Align ahead of time on the languages, frameworks, and tools you’ll use. Czech teams excel at a variety of programming languages and frameworks and commonly use Jira for work tracking, Slack for team chat, GitHub/GitLab for version control, and Confluence, Miro, or good ol' Google Docs for documentation.

Ensure smooth and fast onboarding of outsourced developers

Onboarding not only demonstrates the maturity of your company but also sets the tone for the whole following collaboration. From a practical perspective, a fast, structured onboarding process saves weeks of confusion later.

• Prepare onboarding materials.
• Set up necessary accounts.
• Define communication protocols.
• Provide access to development environments, repositories, and relevant documentation.
• Share knowledge.
• Foster a sense of belonging.

Step-by-step guide to outsource a project to Czechia

Outsourcing to a new country can feel like a big leap, but take the right steps and you’ll nail it.

Step 1. Define your needs and requirements

First of all, you need to get prepared. Yeah, we know that this stage is rather boring but essential.

Know your needs:

• Define what problem you’d like to solve by outsourcing to Czechia (e.g., capacity, cost, speed, skills) and choose the most suitable engagement model.
• Decide which tasks or roles to outsource (e.g., backend development, frontend developers, tech debt management).
• Estimate your timeline and budget accurately and pad them by at least 30%. Unexpected hiccups have a habit of showing up uninvited.

Define scope and requirements:

• Draft high-level project goals and business outcomes.
• List required skills, expertise, and technologies.
• Clarify deliverables (e.g., functionalities and features), deadlines, constraints, and applied industry or state regulations.

Step 2. Select the right vendor

Choosing the right outsourcing partner is half the battle. Invest time in proper research and vetting, and it’ll pay off big time. There is a long list of what to pay attention to:

• Domain expertise
• Tech experience
• Reputation
• Awards and certificates
• Client testimonials
• Scalability
• Price policy
• Communication style, etc.

To understand whether you can trust an outsourcing company, you need to know everything about it. So check reviews, read case studies, check Clutch/G2 ratings, and request references, if needed.

Step 3. Request a proof of concept

Once you’ve chosen your partner, request a proof of concept. We all know actions speak louder than words, and a PoC is the best way to see your potential team in action. It helps you:

• Validate technical feasibility
• Evaluate communication and collaboration
• Test the team’s problem-solving approach

A PoC might include a prototype or a limited-scope feature, and you’d better keep it time-boxed.

Step 4. Proceed to contract execution

If you are happy with the results of the PoC, it’s time to close the deal. Move forward with signing the key agreements we mentioned:

• NDA
• MSA
• SLA

Before putting pen to paper, double-check the responsibilities of both parties, payment terms, termination conditions, penalties, and ownership clauses.

Step 5. Onboarding

Onboarding does take a bit of prep on your end. Write onboarding materials, set up accounts, and share access to repos, environments, and any tools your team uses.

On day one, schedule an intro call to introduce the Czech team to your in-house folks. Go over who’s doing what, how you’ll stay in touch, and when regular check-ins will happen.

Give the new team some time to get familiar with your processes, documentation, and the product if it's already in motion.

Final tip: treat your outsourced team like an extension of your in-house team from the start to build trust, speed things up, and make working together way easier.

Step 6. Kick off the project and track progress

Hurray! The ball is set in motion. Your key goal is to keep everyone aligned so that the project stays on course. Regular check-ins and short feedback loops are key.

Another important aspect is tracking the team’s progress and performance. There are many metrics you can use to evaluate the way things are going:

• Code quality
• Defect density
• Velocity
• Lead time
• Sprint goal completion rate, etc.

The approach we use at Devico

As a software development outsourcing company with years of expertise, we know how the initial steps can be overwhelming for clients, especially for those who are new to outsourcing. That’s why we do our best to ensure a smooth start and build trusted relationships from the very beginning. Our approach includes the following:

1. Initial consultation

An initial consultation is an opportunity to know us better and get answers to your questions. For us, it’s a way to understand your business needs, project goals, and expectations. Based on this, we give honest output and tailored recommendations.

2. Team setup

Based on your tech stack, project scope, skill gap, and preferences, we assemble a dedicated team that fits like a glove, whether it’s one specialist or a squad.

3. Onboarding support

Assigning developers to your projects and disappearing isn’t about us. We help set up communication channels, recommend which tools and systems need access, and make sure your new team integrates smoothly into your workflow.

Our customer success manager stays in touch with you throughout the project to quickly step in if anything needs adjusting.

Conclusion

There are many outsourcing destinations, but Czechia deserves your particular attention. It combines affordable rates with access to a highly skilled tech workforce. Among a variety of Czech software outsourcing companies, you can find a strategic EU-based tech partner who will help you with a fast, reliable delivery at scale.

But why look elsewhere? Explore our Czechia-based talent pool!