The European Market Potential for Software Development in 2022

The world is shifting to digitalization. All industries are using software to solve problems in traditional systems, which has increased the demand for software. While the demand for software worldwide has grown exponentially, the demand for software in Europe is also growing rapidly, and many software development companies in Europe have sprung up.

These software development companies are also insufficient to meet the demand for software. Therefore, outsourcing is being done to meet the demand for software. The highest demand is for digital transformation and automation in industries, which have risen sharply since the lockdown of COVID-19.

At the same time, the demand for cybersecurity has grown exponentially, as companies prefer to keep their data in the cloud instead of saving it to a local hard drive. New outsourcing vendors are helping companies with this and helping with digitization, automation, and transformation.


Software tells a computer or any electronic device how to work. It is a collection of data, instructions, and programs.

There are 3 types of software

  •   System software
  •   Application software
  •     Programming software

Providing software development services is very important in outsourcing. At Altamira, you can get all kinds of software services from us.


In the current situation, Europe is facing a severe shortage of software developers, as the demand for digital transformers is growing rapidly. Almost all companies need software. But because not all companies can afford to hire a software team, and many companies do not want to bear the cost of setting up a software house. Therefore, software development outsourcing is one of the most widely used outsourcing in the world.

Europe’s IT outsourcing market is growing rapidly. According to a survey, about 34% of companies intend to outsource software, and 38% want to outsource at the same rate, while only 15% intend to outsource less.

The number of software developers in the European market is less, while the job of software development is highly posted in the European market. In 2014, it was predicted in the European market that Europe could face a shortage of software developers in the coming years.

You can estimate the shortfall of software developers in Europe from this. In 2020, many companies in the Netherlands were looking for ICT, and they were facing a lot of difficulties in this.

The population of European software developers is growing, but it cannot keep up with the demand because as the population of software developers grows, the demand for software development is also increasing. You can estimate this by the fact that in 2019 the demand for software developers in Europe increased by 7%. The western market has grown by 10%. In 2020 and 2021, this demand has further increased by 20%.

To come out from this shortage, many European companies have begun hiring software developers from the Middle East and other countries. Many European countries have been affected by the decline of software developers. Companies are still hiring many software developers from other countries to come out of this shortage.

The easiest way to fill in the gaps is to outsource the software developers. Lockdown has created more innovation in this thinking. People are preferring to work from home. That way, companies don’t have to worry about heavy pay, and many things get done easily. While remote working has gained worldwide prominence since COVID-19, it has also grown rapidly in outsourcing software development.


The biggest benefit to companies is that they do not have to hire software developers for in-house jobs; they have an interest in outsourcing the skills they need. The best skills and knowledge are required for software development, and software developers must know what tools they can use to create the best software. The security of the software also plays an important role in this as it protects the data of the companies from being stolen.

With the help of outsourcing, companies hire experts, and instead of focusing on complex processes like software development, they focus on their business and focus only when they need to focus on it.

Outsourcing is also helping to recover from the devastation of Covid-19. Companies need staff to carry out their activities or to run their business, but firing someone in a situation like Covid-19 can be a daunting task. Outsourcing plays an important role in this and helps companies to perform better in all situations.


It costs a lot to develop software. It is one of the reasons that companies outsource software development services to reduce the cost of software development. In developing countries, software developers generally charge much less than as compare to developed countries. Due to this, companies prefer to outsource software development from underdeveloped countries. Therefore, they take the path of outsourcing software development.

Almost all the companies have faced severe financial problems due to Covid-19, which is why companies have chosen developing countries for outsourcing because they can get quality work at a very low cost.

But if someone is providing their services at a very low cost, it can be detrimental because European buyers may think that the quality of your work is too low.


European companies often prefer to affiliate with outsourcing providers within their own country. But if it is not available in their country, then they try to find it in nearby countries because it involves factors like language, culture, and time difference.

Software development projects are usually very complex and require a lot of time to complete, which requires good communication between the outsourced company and the outsourcing company, and both understand the needs of each other.

The countries with the most software development in the market include Western and North European countries, and they have the most Central and Eastern European countries from where they can best outsource for software development, like Altamira company.

This not only benefits them but also allows many countries, which are also members of the European Union, to conduct contracts and payments in a very reliable and secure manner.

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