While the United Kingdom is renowned for its innovation in the IT industry, it might not immediately come to mind as a software development outsourcing destination due to higher costs and talent competition. However, forecasts indicate that the revenue within the IT outsourcing segment of the UK's IT services market is set to experience substantial growth, projecting an overall increase of $18.7B (+58%) between 2023 and 2028. Software development companies in the UK mainly serve domestic clients, but overseas businesses can also benefit from the UK's advanced tech infrastructure, skilled workforce, and favorable business environment. In light of this, what factors make the UK a compelling outsourcing destination? Why might businesses seeking software development services choose UK-based software companies?
To begin with, the UK boasts a strong and diverse pool of technical talent. Partnering with a UK-based software development company provides access to highly skilled professionals with a reputation for innovation and expertise in various technologies.
Secondly, companies in the UK are often accustomed to working with international clients and partners, which gives them a deep understanding of the challenges and opportunities of doing business in different markets.
Another important reason is the well-established legal and regulatory frameworks that ensure data security, privacy, and intellectual property protection. Partnering with a UK company or one that has a legal entity within the UK can ensure that projects are conducted within a reliable legal environment for the following reasons:
- The UK has a strong rule of law and a well-established legal system. This means that there are clear laws and regulations governing business activity, which are enforced fairly and consistently.
- UK GDPR is the UK's post-Brexit version of the EU GDPR. Similarly to EU regulation, it imposes comparable obligations on controllers and processors.
- Intellectual property rights (IPR) are well protected and enforced under the UK legal system.
- A UK chapter of the Global Outsourcing Association (GOA) promotes best practices in outsourcing and provides research and information to companies and managers.
With these benefits in mind, it’s time to learn about the UK's most reliable software development companies. Let's explore the UK software development outsourcing scene together.
You may also be interested in: The ultimate guide to outsourcing software development services
A quick look at the UK IT industry
With a contribution of over 25% to the economy's growth from 2010 to 2019, now totaling over $191B, the UK's tech sector stands as one of the nation's most valuable economic assets and leads Europe's tech industry. For instance, in 2022, UK tech companies raised $30.44B in venture capital funding, more than France $14.96B and Germany $11.54B combined. Moreover, outsourcing is the IT sector’s primary revenue generator, projected to reach $32.2B in 2023. Therefore, it is no surprise that many international rankings recognize the country's high business potential. The UK holds 4th place in the Tholons Global Innovations ranking and WIPO Global Innovation Index. Also, it ranks 5th in the Kearney Global Services Location Index. According to the GSLI, science and technology are the UK's strengths. The country has the highest number of technology patents filed in emerging fields such as AI/ML, automation, blockchain, robotics, and others. As a result, the UK boasts a $1T tech sector.
Numerous technology companies with branches in the United Kingdom offer access to professionals from other regions. As a result, you can accomplish two goals at once: tap into global talent while managing your project within the UK's legal framework.
Approximately 1,330 software development firms are listed on Clutch in the UK, representing a range of sizes and specializations. To assess IT outsourcing in the UK in more detail, let's examine the local technology providers using a variety of criteria, such as their size, industries served, and services provided:
The UK's top IT companies: a size comparison
One of the most crucial factors in deciding on an outsourcing firm is its size. Larger companies have more employees to dedicate to projects, which can lead to faster completion times. In addition, these companies usually have streamlined development processes, resulting in efficient execution of projects. That is why tech vendors with more than 250 specialists are worth considering.
Most software development companies in the UK are small and medium-sized, making up 72% of the market. There are also 100 large vendors offering their services in the UK that employ over 250 specialists.
The UK software sector: a look at the industries it serves
Software development companies in the UK serve a wide range of industries. Financial services are at the top of this list, with over 25% of tech companies engaged in the financial industry.
Business services are also heavily represented, with 314 vendors handling related projects. Information technology, e-commerce, healthcare, retail, consumer products & services, education, manufacturing, and hospitality & leisure also make the top ten industries serviced by the software companies in the UK.
UK tech companies by service
Engineering providers from the UK are well-equipped to meet a variety of your organization's requirements, regardless of their complexity. In the UK, IT outsourcing companies offer various services, including web and mobile app development, UX/UI design, IT strategy consulting, and many other services. Notably, a substantial number of British enterprises (over 270) extend support for e-commerce development, while cloud consulting and AI development are covered by approximately 134 vendors each. Furthermore, IT staff augmentation is facilitated by more than 100 companies. Additionally, UK tech entities provide IT-managed services and BI and Big Data consulting with 110 and 88 firms specializing in these domains, respectively.
Top software developers in the UK: selection criteria
The UK is home to more than 1,300 engineering enterprises, spanning a variety of sizes and specializing in different industries. To assist in finding a reliable engineering firm with a UK entity that meets your business requirements, we have compiled a list of the most dependable software development companies in the UK. During the selection process, we turned to Clutch, a credible source of reviews for IT organizations across the globe, and used the following methodology:
- The list includes only large tech companies with at least 250 employees.
- To provide you with the most reliable IT outsourcing companies in the UK, we only selected vendors with at least 15 Clutch reviews. Additionally, all enterprises on our list have high reviews (4.8-5).
- Only outsourcing companies with 5+ years of experience are listed.
- IT companies in our selection have offices in the UK and worldwide.
- These tech vendors have proven records of successful cooperation with well-known clients.
An important note to consider: we created this list with companies that have a presence in the UK and act within the legal system of the UK but can also hire talent within other regions as well to ensure fast and effective staffing and access to the top tech talent.
Software development companies in the UK: a list of trusted tech vendors
1. N-iX
N-iX is a reputable global software development firm with an extensive 21 history in the international market. Throughout this period, the engineering vendor has increased its presence across eight strategic locations, encompassing R&D centers in Colombia, Poland, Ukraine, and Bulgaria and establishing a presence in the UK. This setup facilitates the establishment of a partnership with N-iX while adhering to UK corporate regulations.
The company boasts a proficient team of over 2,200 skilled technology experts providing comprehensive solutions across various sectors, including manufacturing, logistics, retail, fintech, telecommunications, and numerous other domains. Industry giants like eBay, Siemens, and several Fortune 500 companies are among its customers.
Thanks to its dedication to quality service and a reputable employee reputation, N-iX has garnered widespread global acclaim. Notable achievements include prominent positions in the EMEA 50 Inspiring Workplaces list, IAOP Global Outsourcing 100 selection, and others. The vendor was recognized among the top Solution Provider 500 in 2022 by the esteemed CRN award.
2. Unosquare, LLC
Founded over 15 years ago, this software development vendor operates internationally. The company's development team offers various services, including custom software development, web development, application testing, etc. Over 1,000 IT experts work for the vendor to deliver innovative solutions in advertising, marketing, automotive, business services, and education sectors.
3. Tkxel
Adding another impressive vendor to the list, this one has 700+ skilled professionals on its team. Founded over 15 years ago, it serves clients in the IT, education, financial services, hospitality, and healthcare sectors. Its expertise includes custom software development, CRM consulting and SI, and web and mobile app development.
4. One Beyond
This experienced enterprise collaborates successfully with businesses, non-profits, government organizations, and funded start-ups in hospitality, education, healthcare, and finance. The vendor’s team comprises 200+ tech professionals well-versed in custom software development, web, and mobile app development. During almost 30 years on the market, the company has opened offices in the UK, Spain and Hungary.
5. Apadmi
This digital solutions company has a team of over 250 in-house experts. The company was established over 12 years ago and delivers projects for clients in financial services, hospitality, retail, healthcare, media, real estate, and other sectors. It focuses primarily on mobile app and web development, custom software development, and IT-managed services.
6. Debut Infotech
Founded over ten years ago, this full-service software development organization works with clients across various industries, from healthcare to financial services. This vendor's primary area of focus is blockchain, but it also offers mobile web development, custom software development, and IT-managed services.
7. Altcom Software & Consulting
This technology company has been in business for over 20 years and is based in the UK, Poland, Germany, and Saudi Arabia. The company's main clients are financial institutions, fintech, and insurance companies. Its team of over 200 engineers assists in custom software development, mobile application development, and cloud consulting, among other services.
8. Systango
With 15+ years of experience, this London-based digital engineering company handles projects for financial, educational, and hospitality clients. It has over 300 skilled professionals, offering services such as blockchain, mobile app development, business intelligence and Big Data consulting, custom software development, and generative AI.
9. Vention
Hailing from the early 2000s, this custom software development heavyweight provides access to over 3,000+ specialists. Its engineers are adept in UI/UX development, cloud development, QA & testing, among other services. With offices in Europe and the US, this tech vendor caters to clients in fintech, healthtech, e-commerce, and cybersecurity.
10. 10Pearls
This global business, with offices in the United States, Costa Rica, Colombia, the United Kingdom, Pakistan, and Peru, was founded almost 20 years ago. The company employs over 1,000 engineers and has AI, IoT, voice & language processing, and data analytics expertise. Its customers include firms from the financial services, energy, healthcare, education, and telecommunications sectors.
11. Andersen Inc.
Spanning 13 time zones, this large tech company employs over 3,500 professionals and serves large enterprises and SMEs. It provides services to companies in various industries, including financial services, logistics, and healthcare. Founded more than 15 years ago, the company has a presence in the UK, Germany, Poland, Lithuania, Ireland, Hungary and the US.
12. CSHARK
This vendor relies on .NET and .NET Core, among other technologies, to deliver digital solutions for companies from the financial services, healthcare, entertainment, and energy industries. It employs over 250 specialists in the UK, Poland, Canada, and Singapore. Mobile app development, UX/UI design, and enterprise app modernization are some of the services provided by this vendor.
Wrap-up
The UK is a good option if you are considering outsourcing software development. The country has a top-notch IT sector, a favorable business environment, and a reliable legal system. Whether you are a startup or an established enterprise, software development companies in the UK offer a wide range of services to cater to your specific needs. If you're looking for a trusted and experienced software development partner in the UK, consider exploring the services offered by industry leaders like N-iX. Our proven track record and global recognition in the tech industry can ensure your project's success. Get in touch with N-iX today to discuss how we can become your reliable software development partner in the UK.
References:
- Global Innovation Index 2022 - UNITED KINGDOM
- Competition for talent will remain fierce in the UK despite economic uncertainty
- IT-infrastructure outsourcing services market revenue in United Kingdom 2019-2028 | Statista
- A UK Tech Plan 2023
- 2023 Global Software Outsourcing Trends and Rates Guide
- Software engineering nearshoring 2023
- UK tech sector retains #1 spot in Europe and #3 in world as sector resilience brings continued growth - GOV.UK
- Digital economy in the United Kingdom (UK) - statistics & facts | Statista
- United Kingdom Ease of Doing Business 2020
- IT Outsourcing - United Kingdom | Statista Market Forecast
- Global Innovation Index 2022
- UK IT sourcing study 2022 | PA Consulting
- Regenerative talent pools - Kearney