As technology continues to advance, businesses need more efficient and affordable ways to deliver cutting-edge solutions. Turkey, with its dynamic tech ecosystem, skilled talent pool, and strategic geographic location, is increasingly becoming a preferred destination for nearshore software development.
In the upcoming article, we delve into the compelling reasons that position Turkey as a strategic hub for software development outsourcing. Read on to also gain valuable insights into selecting the right tech partner for your business.
Methodology in short
We created this ultimate guide by analyzing such sources of information as A. T. Kearney, Glassdoor, Deloitte, TÜBİSAD, and more to help you make well-grounded decisions and offer actionable recommendations.
A strong pool of IT specialists
Outsourcing to Turkey provides access to a pool of qualified and experienced developers. Computer science is one of the most demanding majors, and Turkish universities grant degrees to students in 41 engineering majors that require the highest scores. Meaning that future specialists have to put in the work to graduate. At the same time, there were 140K software developers as of 2020 with a 10K annual increase, so the high standards don’t deter aspiring specialists from tackling education.
Turkish developers are also quite proficient in English. According to the EF English Proficiency Index, the country is #66 out of 113 nations, which is a progress indicator compared to its 70th position in 2021.
Good cost-to-quality ratio
Turkey offers a cost-effective solution for outsourcing development without compromising on quality. With a competitive labor market and lower operational expenses compared to many Western countries, your business can achieve significant savings while maintaining high standards of work. This cost advantage allows companies to allocate resources more efficiently and invest in other critical areas of their operations.
We compared the average yearly salaries of senior IT specialists based on data given on Glassdoor and our market research findings:
Strategic location and convenient time zone
Located at the intersection of Europe and Asia, Turkey’s strategic position provides logistical benefits for businesses with global operations seeking to optimize their software development and collaborate seamlessly with their tech teams.
Proximity to major markets enables efficient communication and reduces time zone differences. At the same time, the time difference leads to faster development and delivery times. Furthermore, it may ensure 24/7 support for your project.
Cultural compatibility and government support
Cultural compatibility is a crucial factor in successful outsourcing partnerships. Turkey offers a unique blend of Eastern and Western cultures, making it easier for businesses from various regions to collaborate seamlessly. Shared work ethics, communication styles, and a focus on building strong client relationships contribute to a positive outsourcing experience.
Moreover, culturally diverse teams enhance problem-solving abilities and adaptability in the global environment. Incorporating developers from Turkey adds programming skills and a fresh perspective for global competition.
With a strong commitment to fostering a business-friendly environment, the Turkish government actively supports the development of the technology sector. For example, in October 2020, the Turkish Ministry of Treasury and Finance introduced a dedicated technology and innovation fund that aims to empower businesses investing in new technologies and R&D projects.
Turkiye’s tech industry is thriving due to strategic government investments and incentives that promote entrepreneurship. Organizations such as Teknoparks (Technology Development Zones which are collaborative efforts involving the government, universities, technology institutes, and R&D centers, integrating academic, economic, and social structures) and the Technology Development Foundation are actively supporting the growth of the tech sector.
A promising market for technology innovation
The Kearney Global Services Location Index for 2023 ranks Turkуe 26th and has held that spot for a while, demonstrating its appeal as an outsourcing location. The Turkish tech market is also booming, with a $233.18 million revenue as of December 2023, based on Statista’s data. It encompasses Business Intelligence, CMS, CRM, eCommerce, EPM, ERP, Supply Chain Management, and other enterprise software.
The enterprise software market in Turkey is experiencing significant growth due to rising demand for cloud-based solutions, a shift towards Software-as-a-Service (SaaS), and government initiatives promoting digital technologies. According to a Deloitte 2022 study of the Information and Communications Technologies Industry, over 50% of enterprises are projected to leverage industry cloud platforms to expedite their business initiatives by 2027. The trend also shows a preference for mobile-friendly solutions, aligning with the modern workforce’s need for accessibility and flexibility.
The IT outsourcing market in Turkey has generated $0.69 billion in 2023 and is expected to almost double by 2026.
Turkey’s Investment Office states that there are over 1,200 R&D centers. The Deloitte 2022 study of the Information and Communications Technologies Industry suggests that there are 8972 companies in the ICT sector. Predominantly, these businesses operate in fields such as AI, business intelligence, banking and finance, web technologies, Telecom and network applications, cybersecurity, and gaming.
Although different sources provide varying estimates, Statista, Gartner, and IDC all convey a positive outlook for the market. There is an upward trajectory in the average spend per employee, indicating an increasing investment in sophisticated software solutions.
All in all, Turkey offers a blend of stability, innovation, and strategic growth opportunities. As the nation continues to evolve as a software development powerhouse, businesses that leverage Turkiye’s potential stand to gain a distinct competitive advantage in the ever-evolving digital landscape.
“Turkey boasts a growing pool of strong IT specialists. Additionally, thanks to my country’s strategic location in the region, convenient time zone, unique blend of Eastern and Western cultures, promising market for technological innovations, and government support, Turkiye stands as an excellent option for nearshore technology team building.”
Zoolatech Country Manager, Turkey
Turkey has a growing and skilled pool of IT professionals. Many software developers in Turkey are well-educated and have expertise in a wide range of technologies and programming languages. This skilled workforce can contribute to the successful execution of software projects. However, it’s good if your choice of a particular provider relies on certain criteria.
Essential Criteria for Choosing a reliable Software Development nearshoring partner in Turkey
1. Efficient recruitment process and established employer brand
This ensures that they can attract the right talent swiftly and painlessly. Global hiring capabilities further enhance their ability to assemble diverse and skilled teams, providing a broader talent pool to meet specific project requirements.
2. Sustainable and strategic thinking with the team rooting for your success
A proactive approach, where a provider asks questions, seeks to understand your goals, and actively offers improvements, demonstrates a genuine commitment to your project’s success.
3. Flexible cooperation models and customized approach
A reliable provider will analyze your requirements and recommend the most suitable cooperation model for your business objectives. This personalized approach guarantees the most effective and customized solutions.
4. Investing in professional development, retention, culture, and diversity
Professional development and retention of talent are important to a forward-thinking software development provider. The commitment to ongoing learning and development ensures that the team stays ahead of industry trends, delivering innovative and cutting-edge solutions.
For instance, ZoolaTech invests in fostering a positive and diverse company culture with developers across 20 nations. Moreover, we have a diverse talent pool, with 24% of female specialists and 50% women in leadership roles.
5. Transparent process and communication
Transparent procedures and clear communication guarantee that you have a comprehensive understanding of the development lifecycle, enabling you to make informed decisions and promptly address any concerns.
Choosing the Right Collaboration Model
Choosing the right collaboration model is crucial for successful product development. Here are three distinct models tailored to specific needs:
1. Offshore Development Center (ODC)
This model is perfect for those who want self-sufficient offshore teams to handle a portion of their product development. Focused on long-term cost-efficiency, we assist in swiftly building and seamlessly integrating tech teams into your delivery process. This model ensures full transparency, painless scalability, and flexibility.
2. Team Extension
If you want to augment your in-house team with skilled software engineers quickly, the team extension model is the way to go. This approach facilitates easy scaling up and down, saving costs and time by eliminating recruitment, HR, and administrative overhead.
3. Managed Delivery
Opt for managed delivery if you have a groundbreaking idea and want a dedicated team committed to your product’s success. From concept to a fully developed solution, we guide you at every step, minimizing risks, reducing costs, and aiding in future-proof decision-making.
Legal aspects to consider
Regardless of the chosen contract type, specific legal aspects must be considered to mitigate risks. These include deadlines for invoicing and payments, liability clauses, warranty clauses for service quality, notice periods for project kick-off and team scaling, data protection rules, client ownership of code, and agreement on the law that governs international contracts.
Knowledge transfer plan
Sharing knowledge can save money on IT outsourcing projects. Whether transferring knowledge from a client to a vendor or between vendors, a structured knowledge transfer plan is essential. Starting with a demo and investigation, the process concludes with setting up environments, taking over business-as-usual, and achieving the first successful release.
A good plan for sharing knowledge makes sure that the business selling the product knows everything about it, how it works, and who does what. This helps make the outsourcing process smooth and secure.
- ZoolaTech is a global software development company with offices in Turkey, Poland, Mexico, Ukraine, and the USA.
- Flexibility of cooperation models: ODC, Team Extension, Managed Delivery, or mixed
- 96% – client retention rate
- 60% – senior software engineers
- When starting cooperation, we provide you with a team of experts with 5+ years of experience
- Trusted by Fortune 500 companies.