Over the last several years, Eastern Europe has transitioned from a popular outsourcing destination to a strategic hiring region for companies in technical industries. More and more employers across the U.S., U.K., and Western Europe are turning to Eastern European countries to build workforces with advanced technical skills while keeping labor costs low.
But where cost-efficiency was once the primary driver for companies looking to outsource, it’s no longer their chief aim. Deloitte’s 2024 Global Outsourcing Survey found that companies are most motivated by improved access to talent (42%), followed by increasing customer demands (35%) and spend optimization (34%).
If you’re hiring internationally, Eastern Europe offers access to highly skilled professionals with strong technical backgrounds, English proficiency, and experience working for multinational companies.
5 Key Reasons Companies Hire in Eastern Europe
Eastern Europe stands out for its combination of technical expertise, competitive labor costs, strong English proficiency, and convenient time-zone overlap with Western markets.
Here are five reasons the region has become a go-to hiring destination for companies building technical and distributed teams:
1. Strong Technical and Engineering Talent
Eastern Europe has developed a large, rapidly growing workforce across fields such as software development, engineering, cybersecurity, AI, product development, and information and communication technology.
A long-standing emphasis on STEM education, combined with free or low-cost university programs in computer science, data science, and AI, has helped create a deep bench of skilled professionals throughout the region. As a result, employers can access candidates with strong technical expertise and specialized knowledge across a wide range of disciplines.
Coursera’s 2025 Global Skills Report ranks Eastern European countries in the top third globally for skill proficiency across business, technology, and data science. Poland and Hungary both rank in the top 10 locations for companies investing in global business services models, according to Deloitte’s 2025 Global Business Services Survey.
Poland, in particular, is a digital economic powerhouse. According to data from the International Trade Administration, the Polish Digital Economy market is estimated at $123 billion in 2030, representing 9% of the country’s GDP.
2. Lower Hiring Costs Without Sacrificing Quality
Hiring in Eastern Europe gives employers the opportunity to optimize their hiring budgets without compromising talent.
The lower cost of living means salaries are significantly lower than in North America and Western Europe.
For a software engineer role, we’re talking USD 170,000 on average in the U.S. and USD 160,000 in Switzerland, compared to around USD 50,000.
When you hire Eastern European tech talent, you can offer top-tier salaries for the region, while keeping your company payroll totals lower. You then have the flexibility to reinvest those savings into other crucial operational areas, such as customer support and finance.
3. Time Zone Alignment With Europe and North America
Employees in Eastern European countries can work in real time with European headquarters and customers, while maintaining partial overlap with U.S. and Canadian teams. Having such a substantial time zone crossover sets everyone up for success; it requires less day-to-day coordination for catchups and leaves unstructured time for collaboration.
4. Strong English Proficiency and International Work Experience
When companies hire Eastern European talent, they’re less likely to deal with language barriers and cultural gaps. Not only is English the international language of software development and AI innovation, but nearly all countries in that region incorporate English into the standard school curriculum.
As a result, most people have at least a decade — if not two — of English language experience by the time they start their careers. According to EF’s 2025 English Proficiency Index, Poland ranks 15th in the world for English language proficiency, with Bulgaria and Hungary ranking 18th and 22nd, respectively.
Plus, thanks to Eastern Europe’s reputation as an outsourcing hotspot, most professionals there already have experience working for international businesses and interfacing with global teams.
5. Expanding Startup and Innovation Ecosystems
The region’s major urban areas are becoming impressive startup hubs, growing rapidly and attracting entrepreneurs and venture capitalists from all over the world.
In fact, seven Eastern European countries rank among the top 50 worldwide for their startup ecosystems and growth, according to StartupBlink’s Global Startup Ecosystem Index 2026. Estonia comes out on top in 12th place, but Poland (33rd) and Bulgaria (40th) show even higher annual growth rates: 29% and 25%, compared to Estonia’s 9%.
Cities like Bucharest, Warsaw, Sofia, Prague, and Budapest offer Old World charm and modern city life at a much lower cost than, say, Paris, London, New York City, and Toronto.
As these hotspots attract more venture capital and job opportunities, they’re not just expanding the talent pool; they’re reshaping it. As startup ecosystems expand across the region, employers gain access to professionals who are accustomed to working in fast-growing companies, wearing multiple hats, and adapting quickly to change.
The Eastern European Countries Seeing the Most Hiring Growth
Several Eastern European countries have emerged as leading hiring destinations for global employers. Here are some of the top countries to consider:
Poland
Poland is among the largest and most mature tech hiring markets in Eastern Europe.
Best known for: Skilled professionals; extensive experience exporting; proven track record in software engineering, fintech, manufacturing, and shared services
Major cities: Warsaw, Kraków, and Wrocław
Romania
Romania has seen steady growth in IT outsourcing, cybersecurity, and customer support roles.
Best known for: Tax advantages for companies in software development; availability and low cost of IT employees
Major cities: Bucharest and Cluj-Napoca
Bulgaria
Bulgaria is another cost-effective hiring destination for technology, customer support, finance, and operations teams.
Best known for: High English language proficiency; high number of computer science graduates; advanced IT infrastructure; tax advantages for companies
Major cities: Sofia and Borovets
Czech Republic
With a strong economy and highly educated workforce, the Czech Republic is expanding beyond its manufacturing and engineering sectors into software development, fintech, and R&D.
Best known for: High number of computer science and data science graduates; leader in the automotive industry; home to lots of established tech companies, including Microsoft, Google, and Cisco
Major cities: Prague, Brno, and Pilsen
Hungary
Hungary is developing rapidly in sectors such as engineering, manufacturing, and IT.
Best known for: World-class universities producing STEM-minded graduates; low corporate income tax rate; top IT outsourcing destination
Major cities: Budapest and Debrecen
Ukraine
Even amid geopolitical conflict, Ukraine remains one of the largest and most experienced IT and engineering hubs.
Best known for: Continually growing IT sector; high-ranking IT universities; birthplace of unicorn startups like GitLab and Grammarly
Major cities: Kyiv, Lviv, Kharkiv, Dnipro, and Zaporizhzhia
Top 5 Industries Accelerating Hiring Growth in Eastern Europe
These are the industries pushing multinational teams to Eastern Europe for talent:
- Software development and IT services: SaaS companies need help with software engineering, web development, DevOps, AI, cloud infrastructure, and cybersecurity.
- Fintech: As digital banking becomes the norm, companies are looking for more engineers, compliance professionals, analysts, and product specialists.
- Customer support and shared services: Global enterprises need multilingual support centers and business process outsourcing operations.
- Manufacturing and engineering: Manufacturing, automotive, and industrial engineers are always in high demand.
- Cybersecurity and AI: As AI advancement continues at lightning speed, companies across industries need AI engineers, machine learning specialists, and security professionals.
Why Eastern Europe Will Continue to Grow as a Global Hiring Destination
Demand for software developers, cybersecurity specialists, AI engineers, and other technical professionals continues to grow worldwide. Eastern Europe is well-positioned to meet that demand thanks to its strong STEM education systems, growing startup ecosystems, and continued investment in technology and innovation.
Challenges Companies Should Consider When Hiring in Eastern Europe
The region offers access to highly skilled professionals across a range of technical fields, but employers should also be aware of several challenges as hiring demand continues to grow throughout the region.
Growing Competition for Skilled Professionals
As more companies turn to Eastern Europe for software developers, engineers, cybersecurity specialists, and other technical roles, competition for top candidates continues to increase. In some markets, this can lead to longer hiring timelines, higher compensation expectations, and more aggressive recruiting efforts from competing employers.
Retention and Employee Experience
Attracting employees is only part of the equation. Retaining them often requires competitive compensation, meaningful benefits, and clear career growth opportunities. Flexible work arrangements, professional development programs, equity offerings, mental health support, and generous parental leave policies can all help employers stand out in a competitive market.
Country-Specific Employment Requirements
Hiring across Eastern Europe also means navigating each country's employment laws, payroll requirements, tax obligations, and worker classification rules. What works in Poland may not apply in Romania, Bulgaria, or Hungary, making local expertise especially important for companies building teams across multiple markets.
How Employer of Record Services Simplify Hiring in Eastern Europe
The most straightforward way to hire global employees is to partner with an Employer of Record (EOR). Working with an EOR lets you hire global talent without needing to establish a legal entity.
EORs handle every behind-the-scenes task in the hiring process, from creating legal employment contracts to onboarding new employees. They also set up payroll, administer employee benefits, remit local tax withholdings, and ensure your company abides by local labor laws.
If you’re testing a new market or trying to build a distributed team on a tight timeline, an EOR can help you reach your goals faster and with less hassle. At RemoFirst, we help companies hire, onboard, and manage employees across Eastern Europe, and around the world, reducing your compliance risks and administrative overhead.
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