Why outsource software development to Czechia in 2025?

Traditionally, Czechia has been a magnet for numerous tourists, fans of medieval architecture, and craft beer lovers. Yet, recently, the country has also caught the attention of IT businesses as one of the best software development outsourcing destinations in Central Europe in 2025.

What makes the Czech Republic so attractive for both IT giants and startups? While costs here are lower than in Western Europe, the USA, or Canada, this isn’t the only reason. A skilled tech workforce, a favorable business climate, innovation, high-quality services, a Western-oriented culture, and many other aspects contribute to this.

If you are planning to launch a new tech initiative, hiring developers in Czechia might be a smart move. Stay tuned to learn more about the Czech IT outsourcing market.

Czechia in 2025: A brief overview of the local IT outsourcing market

The Czech IT outsourcing market has been growing rapidly in recent years. In 2025, the revenue in this sector is targeted to reach USD 2.42 billion. Moreover, the market is anticipated to continue expanding at an annual growth rate of 6.39% between 2025 and 2030.

Top macroeconomic factors that drive boom in IT outsourcing to Czechia:

• Czechia has strong economic growth and a stable political environment. The nominal GDP per capita in 2024 was $31,365, ranking 38th globally.
• The most recent political stability index value, recorded in 2023, stood at 0.97, compared to a global average of -0.06.
• As for country risk and business climate, Coface assesses them as A4 and A2, respectively.

Czechia’s membership in the European Union since 2004 has also made it attractive for foreign IT investment, while its well-developed infrastructure and skilled workforce have positioned it as a preferred destination for IT outsourcing.

Alongside ambitious startups turning to Czechia for affordable, high-quality services, known IT giants like IBM, Microsoft, Oracle, and Red Hat have established R&D centers in the country to support their operations.

Geography is another important factor. The country is located in the CET time zone, which enables companies in Western Europe to easily collaborate with their local outsourcing partners.

In fact, outsourcing nearshore development to Czechia is one of the key trends in the market. Businesses operating in Western Europe choose Czechia to benefit from IT outsourcing without the challenges related to time differences or cultural misalignment.

A highly professional, English-speaking tech workforce and a focus on innovation are also important factors. This is mainly thanks to top-tier technical education and significant government support. For example, in 2025, Czechia increased its budget for science and research by nearly 8%, reaching €1.72 billion.

All in all, Czechia has a lot of solid advantages that make it one of the best countries to outsource your software development in 2025.

Price policy: A cost-value balance

Price isn’t the only factor when choosing an outsourcing vendor, but it often carries the most weight.

While rates in the Czech Republic are higher than in Eastern European countries, such as Ukraine or Romania, they remain much lower compared to those in Western Europe, nordic countries, and the United States. This difference, as well as access to extensive, highly professional talent, makes the Czech Republic appealing to Western companies. Again, let’s also not forget about political and economic stability in the country, which helps avoid risks of service disruptions.

In short, though Czechia may not be the cheapest option, you definitely get the most bang for your buck when it comes to service quality and reliability.

So, how much does it cost to hire developers in Czechia? The range is wide - from $32 to $100. The final price depends on the skillset and seniority of a particular developer, project complexity, and your knack for getting a good deal.

If you’d like to get exact numbers tailored to your project needs, feel free to request a custom quote from us.

The melting pot of talent as a compelling reason for hiring developers in Czechia

The workforce is Czechia’s treasure. The country has a rich talent pool. According to Dreamix, there are more than 217,000 ICT specialists in the Czech Republic.

The Czech Technical University in Prague (CTU), the Brno University of Technology (BUT), the Technical University of Ostrava, and some other prestigious universities serve as educational hubs that prepare highly qualified and ready-to-work tech specialists.

Data from the Czech Statistical Office shows that in 2023 alone, about 3,947 ICT students graduated from local universities.

Yet, apart from a plethora of newcomers, the country also has many senior software developers and full-stack engineers. The local talent pool comprises seasoned specialists in data science, cybersecurity experts, backend developers, frontend, enterprise software, and AI/ML engineers development.

Among all programming languages Java, JavaScript, PHP, C, C++, C#, Python, Ruby on Rails, and Swift are the most popular.

Let the Devico team know your requirements, and we’ll quickly match you with appropriate developers – Czechia is simply spoiled for choice.

Supportive business environment - a smooth landing for international collaboration

Price, service quality, and communication are traditionally the Holy Trinity of factors when choosing a software development destination. However, the recent geopolitical situation in the world has shown that the business environment should also be considered. When it comes to Czechia, the country strives to provide favorable business conditions for IT outsourcing.

The local policies encourage international cooperation and even offer tax incentives for R&D activities. For instance, up to 100% of specific R&D costs for a particular tax year may be deducted from the tax base as a special tax allowance. This is applicable for local businesses and branches of foreign companies, if their R&D activities are carried out in the Czech Republic.

Executing cooperation contracts with Czech outsourcing vendors is also hassle-free. You won’t encounter unnecessary bureaucracy or red tape. No wonder the country holds the 41st position in the Ease of Doing Business rankings.

The aforementioned fact that Czechia is an EU member also simplifies security-related things. Local software development vendors adhere to GDPR, and their clients benefit from robust IP protection laws, legal clarity, and alignment with EU commercial regulations, which mitigate the risk of legal or operational complications.

Additionally, the local government fosters innovations and creates a supportive startup ecosystem. As a result, the country ranks 30th among world economies according to innovation capabilities. High rate of contactless payments and digital banking adoption makes Czechia a fertile ground for fintech innovation. Smart City initiatives in Prague and Brno make the lives of locals much easier. €1.9 billion of Czechia’s Cohesion Funds is allocated to advancing the country’s digital transformation.

Finally, closely tied to its stable business climate, the political situation in the Czech Republic is also stable, especially compared to other outsourcing destinations in Eastern Europe like Ukraine or Belarus, where operational risks are high due to ongoing instability.

Czech software engineers = efficient communication + cultural alignment

Beyond having solid hard skills, Czech software engineers also excel in soft skills, which facilitate efficient collaboration. Hard work, direct communication, a strong problem-solving mindset, responsiveness, and reliability, all of these are about local teams. You won’t get vague answers or unnecessary sugar-coating, but just clear, actionable feedback.

Additionally, most IT specialists here speak English fluently. In fact, the EF English Proficiency Index ranks Czechia in the ‘high proficiency’ category.

From a scheduling perspective, you get a full workday overlap with EU clients and 2–6 hours of real-time collaboration with U.S. teams, depending on the coast. You can forget about middle-of-the-night meetings and the need to wait for a reply the whole day. This opportunity to communicate in real time is particularly important for agile teams.

It’s also worth mentioning that since the pandemic, many local teams have adopted a remote-first or hybrid approach, making it easy to plug into distributed agile projects across Europe and North America.

The Western-oriented culture of the Czech Republic also drives efficient collaboration. Software developers in Czechia are familiar with international business norms, communication styles, and work expectations. This helps reduce friction in day-to-day collaboration so that projects move forward with fewer misunderstandings or delays.

So, whatever project you have, working with Czech developers often feels less like outsourcing and more like expanding your in-house team.

Is Czechia the right choice for your next development project?

Choosing an outsourcing destination is a strategic move, and Czechia definitely deserves a stop among your options.

The country hits a bingo with the right balance between cost, quality, and operational stability. With a highly skilled tech workforce, moderate pricing, a stable political and economic situation, and full EU compliance, it offers an outsourcing environment that’s both efficient and low-risk.

Software development outsourcing to the Czech Republic is especially well-suited for:

AI/ML product development

With a substantial academic foundation in math, data science, and engineering, Czech teams are well-equipped for developing intelligent systems, from recommendation engines and predictive analytics platforms to computer vision apps.

Enterprise software modernization

Czech developers also excel in working with legacy systems and modernizing enterprise platforms, whether it’s ERP, CRM, or custom business apps. Their ability to handle complex business logic and apply modern architecture makes them especially suitable for large-scale transformation projects.

Building full-cycle product teams

With its extensive talent pool, Czechia can support full product lifecycle development. In addition to software developers, local teams can provide PMs, DevOps specialists, automation QA engineers, and UX/UI designers, making it easy to build and scale, working with one coordinated partner.

So, is Czechia right for your next project? Even with all its advantages, no outsourcing destination is a one-size-fits-all solution. To make the right decision, ask yourself what matters most for your team. Is it cost-efficiency, senior-level expertise, or scalability?

If you’re looking for the happy medium, Czechia might be exactly what you need.

Conclusion

Outsourcing software development to Czechia in 2025 offers everything you need to succeed: brilliant talent, a favourable business climate, economic and political stability, efficient communication, and cultural compatibility.

And though Czechia isn’t the cheapest option, it might be the smartest choice for software outsourcing to Central Europe due to offering the right cost-to-value balance.

Want to give it a try? Let’s talk, we offer free consultations and can help find the right developers in Czechia to match your needs.