The Belitsoft custom software development company reports the trend: many U.S. and Western European businesses are looking to nearshore locations to meet their software needs as global IT budgets soar in tandem with digital transformation and AI adoption. According to Gartner, the growing need for development talent will drive an 8.7% increase in Europe's IT spending in 2025, to reach $1.28 trillion. At the same time, domestic talent shortages are pushing CIOs to look abroad.

According to Deloitte, 76% of IT leaders currently work with offshore development teams, and many are moving toward nearshore providers in an effort to increase agility and collaboration. These projects frequently center on Python, the language of artificial intelligence, data science, and web backends. According to a JetBrains survey, more than half of all programmers worldwide currently use Python, confirming its meteoric rise in popularity. Businesses are increasingly looking to Eastern Europe (nations like Poland, Romania, the Baltics, etc.) as a strategic nearshore hub to meet demand for Python and AI/ML expertise.

Among the main benefits of nearshoring in Eastern Europe are:

• Access to Deep Talent Pools: Eastern Europe has become a major software talent center thanks to decades of STEM focus. Eastern Europe currently has one of the highest percentages of STEM graduates worldwide, according to the World Economic Forum. Millions of IT professionals have resulted from this; by 2025, there will be over 3.5 million ICT specialists in the area. Nearly 30,000 tech startups in Eastern Europe are listed by VentureBeat, with the majority aiming for international markets. For instance, there are thousands of highly qualified engineers and IT specialists in Warsaw alone. In summary, a large pool of developers with deep expertise in AI/ML and fluency in Python and cutting-edge technologies can be found in Eastern Europe (according to Deloitte, 57% of companies forming new development relationships are emphasizing AI skills).

• Cost-Performance Efficiency: According to Statista data, the Eastern European IT outsourcing market is projected to grow from $5.32 billion in 2025 to $7.17 billion in 2029. The major cost advantage allows companies to quickly build larger teams without spending a prohibitive amount of money. Hiring developers in Eastern Europe provides excellent value for your money. Even though their skill level is very high, the cost of hiring them is much lower than in the U.S. or Western Europe. Belitsoft's case studies show that developer rates in Eastern Europe are generally between 30% and 50% lower than those in the US or Western Europe while still retaining a high standard of quality. Businesses now balance the need for skilled talent with agility, or the ability to act quickly, when they outsource, according to the consulting firm Deloitte. Eastern Europe does well on all three of these fronts. Companies report that high-quality developers in Eastern Europe often complete work faster and with fewer mistakes. This leads to a better return on investment (ROI) in the long run. For example, one company running a cloud rendering operation found that they had to do much less code rework after they switched from low-cost offshore teams to more experienced engineers in Eastern Europe.

• Cloud-Native and Modern Tool Expertise: Eastern European developers are well-versed in cloud platforms, containers, DevOps and AI toolchains. A recent CNCF report finds that 93% of developers now deploy to cloud infrastructure in some capacity – reflecting global norms that Eastern Europe teams follow closely. In fact, Kubernetes is already used by about 25% of AI/data science developers, demonstrating the widespread use of contemporary cloud-native techniques. Developers from Poland, Romania, and the Baltics use cutting-edge stacks (from Python frameworks to Kubernetes and TensorFlow) and actively participate in open-source projects. This means a nearshore Python team can seamlessly adopt your cloud architecture and best practices. The presence of sizable R&D facilities in the area by major tech companies (Google, Microsoft, Amazon, Oracle, etc.) is more proof that local engineers are adept at enterprise and innovations.

• Security, Compliance and Quality Standards: For Western companies, data security and IP protection are paramount. In general, Eastern Europe provides a strong legal system on par with the West. EU member states like Poland, Romania, and the Baltics enforce GDPR and have strong IP laws – much like their Western counterparts. Eastern European teams usually possess international certifications (ISO 27001, SOC 2, etc.) and have experience in security-sensitive industries (finance, healthcare, defense). The region's compliance is cited by many businesses as a benefit over certain offshore markets. In actuality, nearshore development in Eastern Europe reduces risk while utilizing the talent pool by protecting your code, data, and patents under well-known standards.

• Time Zone and Cultural Alignment: Countries like Poland and Romania are only 5-6 hours ahead of the U.S. East Coast, which means that they can collaborate in real time for 4-5 hours of the day. Compared to Asia, this overlap is much larger, allowing for quick communication and agile development. Eastern Europe is also culturally aligned with Western customers. Most developers in the region speak English at "High" proficiency levels: for example, Wikipedia’s EF index shows Poland (score 588) and Romania (593) both rate as High proficiency. This language skills profile, along with business norms and EU-influenced corporate culture, means nearshore teams easily integrate with North American and Western European processes. Eastern Europe's "strong English language proficiency and cultural alignment with Western Europe and North America" contribute to its allure as a development hub, according to Deloitte.

In conclusion, the trend toward nearshoring from Eastern Europe is being driven by certain strategic advantages. Businesses are striking a balance between cost, quality, and innovation as Gartner observes that technology budgets are growing. Startups outside the region that overlook Eastern Europe run the risk of "paying over the odds" for local talent or limiting their growth, as one industry founder stated. Instead, because of the region's technical depth and collaborative culture, top companies are increasingly integrating Python developers from Eastern Europe into their product teams.

By 2026, this shift will only accelerate. The governments of Eastern Europe are still making investments in STEM education and innovation, and as a result, the region has some of the highest rates of STEM graduates worldwide. Additionally, local ecosystems continue to produce innovative projects and unicorns. Combined with Western firms’ needs for AI-driven solutions and cloud-native applications, the result is a nearshore boom. Businesses that use Python developers in the Baltics, Poland, and Romania report improved product quality, quicker time to market, and cost savings. Eastern Europe is emerging as a key partner in this space, according to Deloitte, which claims that outsourcing models are changing into value-based partnerships that place an emphasis on innovation.

About the Author:

Dmitry Baraishuk is a partner and Chief Innovation Officer at a software development company Belitsoft (a Noventiq company). He has been leading a department specializing in custom software development for 20 years. The department has hundreds of successful projects in AI software development, healthcare and finance IT consulting, application modernization, cloud migration, data analytics implementation, and more for startups and enterprises in the US, UK, and Canada.

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