Starting a new tech initiative but noticing skill gaps within your internal team? Hire developers in Hungary-a recognized outsourcing location boasting a talent pool of over 180K engineers. But what sets Hungarian IT professionals apart in Europe's competitive tech scene? And how do IT outsourcing services in Hungary compare to other popular outsourcing locations?
Read on for valuable insights into the local market and practical advice on how to find top-tier Hungarian talent, extend your team effectively, and securing favorable contract terms.
Five compelling reasons to hire developers in Hungary
Hungary ranks among the top five IT outsourcing destinations in Central and Eastern Europe based on IT market capacity, with the sector projected to grow at 11.41% to reach $60.4B by 2030. Beyond steady growth, several other factors make many of the world's leading enterprises hire developers in Hungary. Below are five compelling reasons why the country's software development industry continues to draw global attention:
1. Stable business climate
The economic outlook of your outsourcing destination directly impacts project success. The country offers a stable and gradually improving economic environment for businesses looking to hire developers in Hungary. Hungary's GDP growth is forecast to rise to 3.1% in 2026, driven mainly by strong consumer spending. Inflation is set to ease from 3.8% to 3.2%, while unemployment is expected to decline slightly from 4.5% to 4.1%. Hungary's large talent pool and established tech ecosystem make it a promising location for outsourcing. The digital economy contributes 6.7% to Hungary's gross value added, reflecting the country's growing tech sector.
2. Business-friendly governmental policies
The Hungarian government actively supports the growth of the country's digital economy, which contributes up to 10% of the GDP. Backed by the National Digitalization Strategy 2022-2030, Hungary aims to exceed the EU average in digital development and become one of the top 10 EU countries in digitalization by 2030. This strategy focuses on improving digital infrastructure, skills, public services, and business digitalization.
Hungary provides research and development (R&D) tax benefits to stimulate innovation, including income tax deductions, relief on innovation contributions, development incentives, and exemptions under the KIVA system for small businesses. The country offers a notably business-friendly 9% corporate tax rate, among the EU's lowest. These incentives have encouraged major global players such as Siemens, Microsoft, Deloitte, Ericsson, Nokia, and TATA to open R&D centers in the country. Furthermore, the Recovery and Resilience Plan (RRP) allocates $1.85B to support digital transformation across public services, education, and industry.
3. Strong ICT market
Hungary's ICT sector demonstrates substantial market strength, employing around 180K professionals (3.9% of the workforce). The sector generates $2.85B in service exports. According to the Future of IT Report, Hungary ranks 5th in the IT Competitiveness Index, supported by the country's robust digital infrastructure, which ranks 2nd in emerging Europe for broadband speed. Hungary's innovation ecosystem comprises over 1,500 startups with a combined valuation of $2.6B, a figure that has quadrupled over the past five years.
4. European time zone advantage
One of the major benefits for European organizations that want to nearshore their software development to Central Europe and Hungary, in particular, is a full overlap in time zones. For US-based companies, the time difference is manageable, with Hungary being 6-9 hours ahead of the US depending on the specific time zone. This allows for at least partial overlap in working hours, enabling real-time communication during mornings in the US and afternoons in Hungary.
In addition, Hungary's central location in Europe means that the average flight time from major European business centers is only 2-3 hours, and from the United States to Hungary is around 9-10 hours-this geographical accessibility makes potential business trips convenient for in-person meetings when necessary.
5. Robust education system
What helps Hungary sustain the high quality of its tech talent amid growing demand? The answer is a strong education system focusing on STEM fields that ensures a constant inflow of qualified experts. Hungary has a long tradition of excellence in mathematics, physics, and computer science education. The country boasts prestigious technical universities such as the Budapest University of Technology and Economics, Eötvös Loránd University, and the University of Debrecen.
The talent pipeline remains strong, with around 24K ICT students and 4K annual graduates, representing a 135% increase since 2015. Hungarian universities are known for their rigorous curriculum and practical approach to teaching computer science and related disciplines, producing well-prepared graduates for the demands of the global tech industry.
Hungarian tech talent pool: Key highlights
Hungary is a popular location for businesses aiming to expand their tech capabilities and close talent gaps with the right expertise. So, what motivates companies to look beyond their local markets and bring Hungarian developers on board?
An abundance of software developers
Hungary offers access to over 180,000 tech specialists-a notable figure for a country of its size. Most developers are based in key engineering hubs such as Budapest, Debrecen, Szeged, and Gyor. With around 700 tech vendors operating nationwide, finding skilled professionals is relatively straightforward. To streamline the process and ensure reliable results, consider partnering with an experienced software development company in Hungary like N-iX.
Diverse tech specialization
The wide skill range of Hungarian IT experts makes the country a perfect destination for filling your expertise gap. Based on the StackOverflow survey, JavaScript is the most popular programming language among developers in Hungary, with the highest usage percentage. It's followed closely by HTML/CSS, which take second place in popularity. SQL ranks third, maintaining a significant presence in the Hungarian development community.
TypeScript and Java occupy the middle tier of popularity, with Python following closely behind them. C# and Bash/Shell scripts show moderate usage among Hungarian developers. PHP has less adoption but still maintains a notable presence. At the lower end of the popularity spectrum are PowerShell and C++, which have the lowest usage percentages among the languages tracked.
This distribution suggests that web development is particularly strong in Hungary, given the dominance of JavaScript and HTML/CSS. At the same time, database administration (SQL) also forms a substantial part of the development process.
There's a notable shift in database preferences, with MongoDB and MySQL usage declining while Redis and Microsoft SQL Server gained popularity. Among desired technologies, developers showed increasing interest in learning Microsoft SQL Server and Apache Cassandra, reflecting efforts to keep pace with evolving market demands.
Excellent English skills
Hungarian tech specialists are known for their strong command of English, with the country placing 17th worldwide on the EF English Proficiency Index. This enables effective collaboration on international projects and facilitates seamless interaction within multicultural teams.
Additionally, due to Hungary's position in Central Europe, many developers speak German, which is particularly valuable for collaboration with businesses from German-speaking countries.
Building a remote tech team in Hungary:
Hiring developers in Hungary can be a smart move for companies seeking skilled engineers within the EU. While each project is unique, assembling a remote development team follows a standard procedure. Here's how to get started:
1. Define your talent needs
Start by outlining the technical roles you're looking to fill, the number of specialists, and the level of experience required. Include key competencies, certifications, and domain-specific knowledge (e.g., fintech, healthcare, logistics) that might be beneficial. Be clear about your timeline, budget, and compliance needs to help your future partner identify the right fit.
2. Research and shortlist local tech providers
Hungary offers a large pool of IT service vendors. To narrow your options, refer to B2B platforms like Clutch or GoodFirms and focus on companies with more than 250 engineers on board. These vendors are more likely to have established development processes and quick access to top the required talent. Review case studies, customer feedback, and areas of expertise to identify reliable partners with proven experience in your technology stack.
3. Pick the right collaboration format
Selecting the right engagement model is key to a successful outsourcing experience. If you want to boost your internal team with specific tech skills while keeping complete control over project delivery, Staff Augmentation is the way to go-your partner takes care of hiring and HR processes. For more complex projects requiring dedicated resources, the Managed Team model provides a full team that works exclusively on your tasks while the vendor oversees day-to-day operations. If you're looking to build a solution from scratch, Custom Solution Development is the best fit, with your tech partner handling everything from planning and development to testing, deployment, and maintenance.
4. Establish strong communication protocols
Effective remote collaboration requires structured communication. Adopt project tracking tools (e.g., Jira, Trello), messaging platforms (e.g., Slack, MS Teams), and video conferencing software to stay aligned with your development team. Define expectations for updates, set meeting schedules that consider time zone overlaps, and ensure transparency across all project stages.
Read more: Top Destinations for Software Development: Ukraine vs Hungary
Why should you choose N-iX to hire developers in Hungary?
Hungary's growing appeal as an IT outsourcing destination is built on the foundation of its technical talent, fostered through a solid education system, with the advantages of strong English skills and government-backed investment incentives. The country's tech landscape extends far beyond Budapest, with multiple engineering hubs and a workforce that aligns well with Western work culture and standards. For businesses looking to hire developers in Hungary, these strengths translate into reliable collaboration and access to specialized expertise.
N-iX stands out as a strategic outsourcing partner in Hungary, offering extensive experience across the region, strict adherence to global security and compliance standards, and a successful track record of working with Fortune 500 companies. With a network of [professionals: count] engineers across 25 locations in Europe and the Americas, N-iX combines a strong local presence with global sourcing capabilities, making it a trusted partner for companies seeking to hire developers in Hungary.
Have a question?
Speak to an expert
