IT Outsourcing Hungary: An In-Depth Look at the Country’s IT Capabilities

Hungary has become a reliable and practical choice for companies wanting to outsource some of their IT or software development tasks. The local market provides a mix of skilled engineers, fair rates, and benefits that come with operating within the EU’s legal and data protection rules. This is all without the pressure or hype that often surrounds larger outsourcing centers.

Industry data shows steady growth. The IT outsourcing sector in Hungary is expected to reach around US $800 million by the end of 2025, indicating a consistent upward trend. The overall IT services market is also forecasted to grow in the coming years, suggesting that international interest in Hungarian talent is strong.

In this article, we will explore what Hungary outsourcing really offers: the talent pool, pricing, industry specifics, legal aspects. We’ll also identify what companies should consider when selecting a partner.

Hungary as a Tech Destination: Why It Makes Sense for Outsourcing

Hungary is located in the heart of Central Europe, making it an easy choice for companies that want to grow their tech teams without going too far from home. A quick flight from major Western European cities and small time differences mean that working with Hungarian teams feels natural. It’s almost like collaborating across the hallway instead of across a whole continent.

Being part of the European Union adds more comfort for businesses. EU rules, like GDPR, help protect sensitive data and intellectual property. The country also maintains a generally stable political and legal environment, providing predictable conditions for foreign companies looking to establish outsourcing relationships.

Hungary’s membership in the Schengen Area further eases mobility and makes travel easier for workshops, meetings, or onboarding visits. This simplifies cross-border collaboration and reduces bureaucracy compared to some other regions. Altogether, these factors show Hungary as a practical, accessible, and reliable place to find tech talent. It is a place where international teams can work together efficiently and with confidence.

Hungary’s IT Industry Quick Overview

Hungary’s ICT and software development sector has been steadily growing and plays an important role in the country’s economy. Analysts estimate that the domestic ICT sector, which includes software and related services, contributes about 6% of GDP. The market for ICT services in Hungary is expected to grow to USD 60.4 billion by 2030. Growth is driven by increasing demand for software development, cloud services, and digital transformation projects from both local and international clients.

Key Hungarian Tech Hubs

While Budapest is the largest tech hub, the sector is now spreading to other cities, providing various talent pools and cost options hungary it outsourcing. Some main hubs include:

• Budapest: The capital hosts most of Hungary’s large software development companies, R&D centers, and international IT service providers. Areas like Infopark attract both startups and established tech firms with modern infrastructure and access to a skilled workforce.
• Debrecen: With strong universities and research institutions, Debrecen has developed a growing cluster of IT service providers and software companies. It is ideal for mid-sized projects and specialized teams.
• Szeged: Known for smaller IT clusters, Szeged benefits from academic programs that supply skilled graduates to local companies, especially in software development outsourcing Hungary.
• Győr and Pécs: These emerging tech centers focus on niche software development, IT operations, and hardware-related services. They offer alternative talent pools for businesses looking for regional teams outside the capital.

Hungarian IT ecosystem

Hungary’s IT landscape is supported by both active domestic companies and international players investing in the country. Local and each offshore company in Hungary contribute to market maturity and provide opportunities for collaboration. Together, they help position Hungary as a reliable outsourcing destination. 

Well-known local companies with global impact:

• Prezi: A global leader in visual presentation software, known for its non-linear approach.
• SEON: A fast-growing company focusing on online fraud prevention and digital identity verification.
• Bitrise: A platform for mobile continuous integration/continuous delivery (CI/CD), essential for app developers.

As for big international players, EPAM Systems, for example, operates multiple delivery centers in Budapest, Debrecen, and Szeged, while Ericsson maintains an Engineering Service Delivery Hub within the country. IBM has also established service centers in Hungary, contributing to the local technology and outsourcing market. Financial services giant Morgan Stanley runs operations here as well.

This mix of local tech innovators and confirmed international investors creates a diverse ecosystem that can support both enterprise-level outsourcing and specialized software development projects. Hungary’s growing talent pool, along with regional hubs outside Budapest, makes the country a practical and flexible choice for companies looking to expand or outsource IT operations in Central Europe.

Talent Pool and Education: Hungary’s Skilled IT Professionals

Hungary’s IT sector is fueled by a stable and well-trained talent pool, supported by both universities and specialized programming schools. As of 2021, the country employed around 180,00 ICT professionals, and approximately 4,000 new graduates enter the job market annually, ensuring a continuous supply of junior and mid-level developers. 

Education and Leading Educational Institutions

Hungary boasts a number of universities and programming academies that consistently produce technically skilled graduates:

• Budapest University of Technology and Economics (BME) offers programs in computer science, software engineering, artificial intelligence, and applied IT.
• Eötvös Loránd University (ELTE) is known for its courses in programming, data science, and artificial intelligence.
• University of Debrecen specializes in software development, IT infrastructure, and applied research projects.
• University of Szeged offers strong programs in computer science and cybersecurity.
• Programming schools like Green Fox Academy and Codecool offer accelerated, hands-on training in full-stack development, cloud platforms, and modern front-end technologies.

These institutions teach the basics of programming and expose students to real-world projects, internships, and collaborations with tech companies. They help graduates enter the job market with hands-on experience. 

Broad Technical Skillset

Hungarian developers cover a wide range of modern technologies, making them suitable for a variety of projects:

• Backend languages ​​and frameworks: Java, C++, C#, Python, PHP, Node.js
• Frontend/web development: JavaScript, TypeScript, React, Angular, Vue.js
• Full-scale development: a combination of backend and frontend frameworks
• Mobile development: iOS (Swift), Android (Kotlin), cross-platform frameworks (Flutter, React Native)
• Cloud and DevOps: AWS, Azure, Docker, Kubernetes, CI/CD pipelines
• Databases and data management: MySQL, PostgreSQL, MongoDB, Redis
• Emerging technologies: AI, machine learning, big data and cybersecurity

This range of skills ensures that Hungary can support projects ranging from enterprise software and SaaS solutions to mobile applications, cloud platforms and AI-powered applications.

English Proficiency and Work Culture

Hungarian IT professionals are also well-prepared for international collaboration. According to the EF English Proficiency Index, Hungary is in the “high proficiency” category, meaning that developers can clearly communicate with Western clients, document code, and collaborate in distributed teams. 

In addition to language skills, Hungarian developers are noted for their problem-solving abilities and adaptability. Their adherence to Western work practices makes international collaboration with any offshore company Hungary smoother and more productive.

It Outsourcing Hungary: Flexible Approaches for Every Project

Hungary’s IT market offers a variety of outsourcing models, enabling companies to choose the approach that best fits their needs. You can scale a team or complete a defined project. Moreover, there is an option of delegating ongoing IT operations.

Staff Augmentation (Dedicated Teams)

Staff augmentation allows companies to expand their internal teams with dedicated Hungarian developers. The client manages the team directly, while the developers are employed locally by a partner company. This model is ideal for:

• Extending in-house teams for large or long-term initiatives;
• Accessing specialized expertise for technologies like Java, Python, .NET, or React;
• Maintaining full control over workflows and project management.

Hungary’s growing regional tech hubs make it easy to build a custom team with diverse skill sets quickly.

Project-Based Outsourcing

For clearly defined projects, project-based outsourcing gives companies a single point of responsibility. Hungarian software providers can handle the project from planning to deployment, which is well-suited for:

• Developing MVPs or prototypes;
• Delivering specific features or applications within a set timeframe;
• Reducing administrative overhead for one-off projects.

Project-based engagements are particularly popular with startups and medium-sized enterprises that want predictable costs and timelines without building permanent teams.

Managed Services / End-to-End Solutions

Some businesses prefer to entrust entire IT operations or product development to a local partner. Managed services cover everything from development and testing to infrastructure management and maintenance. Companies choose this model when they want:

• Continuous development and iterative product improvements;
• Outsourced management of IT infrastructure or cloud services;
• A reliable partner for digital transformation initiatives.

Hungarian firms offering managed services typically provide structured processes, reporting, and quality standards aligned with international expectations. The client focuses on business strategy rather than day-to-day technical operations.

Advantages of IT Outsourcing in Hungary: Practical Business Benefits

Hungary offers a distinct combination of quality, cost-effectiveness, and regional convenience, making it an increasingly popular choice for IT outsourcing. Unlike many typical outsourcing destinations, Hungary combines Central European accessibility, skilled talent, and regulatory stability. It creates an environment where companies can confidently scale development.

Cost-Effective Without Compromising Quality

When you need to hire developers in Eastern Europe, Hungary strikes a balance between cost and quality. Average hourly rates for software developers typically range from $25 to $50 per hour, depending on experience and technology. It is significantly lower than rates in Western Europe or the United States, where similar developers can cost between $70 and $120 per hour. 

This cost advantage allows companies to scale teams without overspending. It is especially profitable for mid-sized projects or specialized development tasks.

High-quality Engineering Standards

Hungarian developers are known for their strong technical expertise and disciplined approach to software engineering. Universities and programming schools emphasize thorough training in algorithms and modern programming methods. Many local IT service providers have implemented ISO, CMMI, or Agile-based workflows. They aim to ensure predictable delivery, code quality, and adherence to best practices.

Time Zone Alignment and Accessibility

Hungary is located in the Central European Time Zone (CET/CEST), which provides excellent alignment with most European working hours. This facilitates real-time collaboration and faster decision-making compared to teams located in Asia or the Americas. For US-based companies, the overlap is less, but still manageable for key communications.

Cultural Fit and Professional Work Ethic

Hungarian IT professionals are often praised for their work discipline and clear communication. You can be sure of the seamless integration of teams with Western clients. The country’s shared European business culture means that approaches to deadlines and collaboration are familiar to many clients. It reduces friction and misunderstandings.

Regulatory Stability and GDPR Compliance

As a member of the EU, Hungary has a stable legal framework. IT vendors are fully compliant with EU requirements, including the GDPR on data protection. This reduces legal and operational risks for companies handling sensitive customer data. Projects meet internationally recognized standards for privacy, intellectual property protection, and cybersecurity.

Cost of Outsourcing Software Development in Hungary

When you start considering software outsourcing, the first question that almost always comes to mind is: “How much will it cost?” Nearshoring Hungary, along with its neighbours such as Poland, Romania, and Ukraine, offers excellent conditions: rates are more affordable than in Western Europe or the US, but the professionals are qualified and reliable.

But it’s not just an hourly rate. The final cost depends on who you hire (junior, mid-level, or senior developers), how complex your project is, and what type of outsourcing you choose. Understanding these nuances in advance helps you plan realistically and avoid hidden surprises in the future.

Typical Hourly Rates by Country and Seniority

To give you a clearer picture, here’s a snapshot of typical hourly rates in USD for developers at different experience levels. These numbers come from public salary data and industry surveys, so think of them as guidelines rather than fixed prices. Actual vendor quotes may vary depending on city, company, or project specifics.

Well, to hire developers in Hungary is not the absolute ‘low price’, but it strikes a balance: the rates are lower than Western Europe, yet you get a stable EU environment and high-quality talent.

Hidden Costs and Considerations

The base rate is just one piece of the puzzle. Other factors can significantly affect the total cost of outsourcing:

• Onboarding and ramp-up: Even skilled developers need time to understand your project and systems. Expect 5–15% overhead during the initial phase.
• Infrastructure and tools: Some projects require cloud services, licenses, or specialized software, which add to the cost.
• Project management and coordination: Remote or outsourced teams often need additional management time, which can add another 10–20% to total expenses.
• Turnover or staff changes: Dedicated teams might experience turnover, requiring replacements or training.

Ultimately, a well-planned outsourcing strategy can deliver both cost-effectiveness and high-quality results, making Hungary a smart option for companies looking for skilled technology professionals.

Legal, Tax, and Data Compliance Aspects

When outsourcing IT to Hungary, understanding the legal and regulatory framework is just as important as evaluating costs or talent. Proper compliance ensures your intellectual property is protected and your data is secure. You have to make sure your agreements with developers or vendors are enforceable.

Intellectual Property Protection and NDAs

Hungary enforces IP rights under EU law, covering patents, copyrights, trademarks, and trade secrets. For outsourcing, ensuring proper IP assignment and confidentiality in contracts is essential.

Key points to remember:

1. Include clear IP ownership clauses in contracts.
2. Use NDAs for sensitive information.
3. Establish dispute resolution procedures to protect your rights.

Courts and arbitration bodies in Hungary generally uphold these agreements, providing reliable protection for your software and proprietary knowledge.

GDPR Compliance and Cybersecurity Regulations

As an EU member, Hungary follows GDPR, which governs the processing of personal data. Vendors handling user or client data must comply with these regulations.

Critical considerations:

1. Define data processing roles (Controller vs. Processor) in contracts.
2. Include clauses for data security, breach notification, and retention policies.
3. Verify that vendors implement proper cybersecurity measures, including encryption and access controls.

Following GDPR protects your users and also shields your company from potential fines and legal issues.

Employment Law Basics and Contractor Options

Hungary’s employment laws provide structure for hiring full-time employees, engaging contractors, or using dedicated outsourcing teams. Choosing the right model affects compliance, payroll, and management.

Important points:

1. Full-time employees follow local labour laws (sick leave, working hours, and benefits).
2. Contractors/freelancers should have a clear scope, duration, and IP terms.
3. Vendor-managed teams shift legal and payroll responsibilities to the provider.

By understanding these options and drafting proper contracts, companies can securely manage teams while benefiting from Hungary’s talent pool.

Common Challenges and How to Overcome Them

Hungary offers a skilled IT workforce and a stable outsourcing environment, but like any market, it comes with some practical issues. Being aware of these and planning ahead helps you avoid delays, unexpected costs, and talent gaps.

Facing challenges in outsourcing is normal, but with careful planning and the right partner, Hungary’s IT talent can be a reliable extension of your team.

Comparing Hungary to Other Eastern European IT Outsourcing Destinations

When planning to outsource software development, many companies look to Eastern Europe because it combines technical expertise, cost efficiency, and proximity to Western markets. Hungary, Poland, Romania, and Ukraine all offer strong IT talent, but there are differences that can influence which country is the best fit for a particular project.

When Hungary is the Right Choice

Hungary is often the best fit if your company:

• Wants EU-compliant outsourcing without the premium of Western Europe.
• Requires skilled mid- to senior-level developers for complex projects.
• Plans long-term engagement and values team stability.
• Needs close time-zone alignment with Europe for smoother collaboration.
• Seeks access to R&D centers and specialized talent in AI, cloud, or enterprise software.

Case Studies and Success Stories: Outsourcing in Hungary

Hungary quietly delivers results that matter without making the headlines for tech outsourcing. Companies are building teams that contribute directly to products and innovation.

For example, Genesys expanded its Budapest R&D center in 2023, growing to nearly 200 engineers. The team contributes to the company’s cloud-based customer experience platform, delivering:

• Backend and full-stack features used by international clients.
• Data engineering pipelines supporting real-time analytics.
• QA and DevOps processes that improve deployment speed and stability.

Ericsson launched its 6G lab in Budapest in 2025. Hungarian engineers are actively developing next-generation mobile network software and cloud integration solutions. The team’s work contributes directly to global Ericsson R&D outputs, including network simulations, early 6G protocol testing, and proof-of-concept deployments.

Hungarian developers work across a wide range of technology stacks, including Java, .NET, Python, React, DevOps, and cloud solutions. Their contributions are measurable. They work on product functionality and support global R&D pipelines to deliver complex software solutions.

For companies evaluating Hungary, the bottom line is clear. The country provides a skilled, adaptable workforce capable of achieving meaningful results on large-scale software platforms, simulations, or specialized product modules. Teams are equipped to work efficiently and deliver results that directly impact products and services.

Setting Up Your Hungarian IT Team

Starting an IT outsourcing project in Hungary can seem straightforward, but thoughtful planning ensures better results and smoother collaboration. Hungarian teams are highly skilled and adaptable, but like any international partnership, success depends on clarity, preparation, and alignment. Follow the simple steps for successful IT recruitment in Hungary.

Step 1. Define your needs

Indicate the tasks, technologies, and skills required and decide whether you need dedicated teams, short-term specialists, or managed services.

Step 2. Choose a reliable partner

Look for companies with relevant experience, a proven track record of international clients, and clear communication. Recommendations or case studies will help you assess their capabilities.

Step 3. Establish agreements and legal details

Cover intellectual property protection, non-disclosure agreements, project milestones, pricing.. Clear agreements reduce misunderstandings and legal risks.

Step 4. Engage the team

Share project specifications, tools, and communication procedures. Use project management tools, define review cycles, and assign points of contact to ensure everyone is on the same page.

Taking these steps ensures that your Hungarian team is quickly integrated and delivers results effectively, giving your project a solid foundation from day one.

Tips for Choosing the Right Partner in Hungary

Finding a vendor that fits your team and project needs can make all the difference in a successful collaboration. Here is what you should consider when selecting one:

• Evaluate the vendor’s experience in your industry and project type.
• Check references and past client reviews to gauge reliability.
• Ensure they provide flexible engagement models (dedicated teams, project-based, managed services).
• Verify their technical expertise and stack coverage match your project needs.
• Discuss IP, NDAs, and compliance upfront to avoid legal issues.
• Start with a small pilot project to test communication and workflow before scaling.

Finding the Right Setup for Your Project with Mobilunity

At Mobilunity, we offer several ways for you to work with our talented developers in Eastern Europe, making it easy to match the team to your project’s needs. We handle HR, accounting, and support tasks so you can focus on managing your project and getting results.

Dedicated Development Team

You get full-time developers working exclusively on your project. We take care of HR, payroll, and helpdesk support.  You stay in control of workflows and priorities. This is our most popular option for clients who want a fully integrated remote team.

Part-Time Developers – Mobilunity FLEX

This model allows you to manage part-time developers while we handle all administrative work. It’s a convenient way to access high-quality developers without committing to full-time staff.

Recruiting Service

Our recruiting-as-a-service offering helps you find top-tier developers locally in Hungary. We use our network and expertise to hire the right candidates quickly, reducing the time and effort needed for talent acquisition.

Final Thoughts

Hungary combines strong technical talent with competitive costs and a stable business environment. Cities like Budapest, Szeged, and Debrecen host thriving tech communities where developers tackle projects ranging from complex software platforms to specialized simulations.

Partnering with Mobilunity gives you direct access to these skilled teams while we take care of administrative and HR tasks. By collaborating with us, you can scale your projects efficiently, without the hassle of managing local hiring or infrastructure.

Written by:

Anastasia Stefanuk

Market Researcher

Disclaimer: All salaries and prices mentioned within the article are approximate numbers based on the research done by our in-house Marketing Research Team. Please use these numbers as a reference for comparison only. Feel free to use the contact form to inquire on the specific cost of the talent according to your vacancy requirements and chosen model of engagement.