IT outsourcing in Hungary. In this article, we're going to touch upon everything you need to know about the Hungarian IT market, IT salaries, and staffing solutions.
A Brief Overview Of The Hungarian IT market
1. General Info
Hungary is located in Eastern Europe. Its beautiful capital and largest city is Budapest.
Hungary's official language is Hungarian and its currency is the Hungarian forint (HUF). Hungary is a member of the OECD, NATO, EU, and it's included in the Schengen area.
The country has a population of about 9.8 million, a stable economy, and a high level of foreign trade. It has a well-educated workforce and a strong tradition of innovation and technology.
2. Pioneers in Information Technology: Famous Hungarian Engineers and IT Personalities
Hungary boasts many famous computer scientists and IT personalities:
3. Multinational Companies with IT activities in Hungary
Hungary is a very popular location for multinational companies. The strong Hungarian expertise, reliability, cultural values, and competence of Hungarian professionals are and have been a magnet for the largest and most successful companies.
Let's look at some examples!
An American multinational investment management corporation and the world's largest asset manager.
Engineering & Technology
A German multinational engineering and technology company with diverse operations including mobility solutions, industrial technology, and consumer goods.
Banking & Finance
The consumer division of financial services multinational Citigroup.
An American multinational technology company providing IT services, including digital, technology, consulting, and operations services.
A German multinational automotive parts manufacturing company specializing in brake systems and other parts for automobiles.
A Swedish multinational networking and telecommunications company.
An American multinational conglomerate that operates in aviation, healthcare, power, renewable energy, digital
An American multinational technology and consulting company with a large portfolio that spans the IT spectrum.
An Indian multinational corporation that provides business consulting, information technology and outsourcing services.
A leading airline IT provider offering consulting and IT services for the global aviation industry.
An American multinational technology company known for its software products.
A Finnish multinational telecommunications, information technology, and consumer electronics company.
A German multinational software corporation that makes enterprise software to manage business operations and customer relations.
A German multinational conglomerate company and Europe's largest industrial manufacturing company.
A German global IT services and consulting company, and a subsidiary of Deutsche Telekom.
Banking & Finance
An Italian global banking and financial services company with numerous branches across 17 countries.
4. Well-Known Companies Founded in Hungary
In addition to major IT companies from abroad, Budapest is home to a number of highly successful Hungarian-founded companies.
Autonomous Driving Technology
Founded in 2015, AImotive develops advanced self-driving technology and has a presence in several countries including the USA, UK, and Japan.
Established in 2000, Balabit is a leading provider of Privileged Access Management and Log Management solutions. The company was acquired by One Identity and operates internationally.
Architecture & Engineering Software
Founded in 1982, Graphisoft is known globally for ARCHICAD, a 3D architectural design software. The company has offices worldwide.
Software & IT services
Established in 2003, LogMeIn provides software as a service and cloud-based remote connectivity services for collaboration, IT management, and customer engagement. The company has numerous offices around the globe.
NNG is a global leader in automotive navigation software, providing solutions for more than 30 car brands worldwide. They have offices in 13 countries.
Prezi is a cloud-based presentation software company founded in 2009. Their innovative zooming user interface has disrupted the presentation market and gained global popularity.
Cloud-based storage & Security
Tresorit is a secure cloud storage service providing encrypted storage solutions. Founded in 2011, it now operates globally.
1. Reliability, trust
Trust plays a pivotal role in outsourcing IT projects to Hungary, as it ensures a smooth working relationship between the outsourcing company and the Hungarian IT teams. Hungarian IT companies have earned global trust due to their adherence to international standards, transparent processes, and consistent delivery of quality work.
Hungarian IT professionals are recognized for their integrity and reliability, fostering trust and promoting long-term partnerships. Outsourcing IT projects to Hungary is not just about accessing technical expertise; it's about forming a trust-based relationship that can drive your business toward success.
Hungary operates in Central European Time (CET), which is generally 6 hours ahead of Eastern Standard Time (EST) in the US.
This time difference can actually prove advantageous for IT outsourcing as it allows for round-the-clock productivity, with teams working in alternating shifts. Despite the time difference, there are ample overlapping business hours, especially with the East Coast of the US, allowing for real-time collaboration and communication.
For Canadian companies, especially those on the eastern side, the timezone compatibility with Hungary is also favorable, facilitating seamless project management.
When it comes to European countries, Hungary's timezone is either the same or has a minor difference of one or two hours, providing almost perfect synchronization for businesses. This close timezone alignment with the EU makes Hungary an attractive destination for IT outsourcing within Europe, enabling real-time collaboration and faster turnarounds.
The manageable timezone difference between Hungary and the US/Canada also makes it feasible for occasional face-to-face meetings, further strengthening the outsourcing relationship.
Therefore, despite initial perceptions, Hungary's timezone offers a strategic advantage for companies in the US, Canada, and Europe looking to outsource their IT projects.
3. Culture and values
When outsourcing IT projects to Hungary, you'll find a culture that highly values innovation, technical expertise, and a robust work ethic. The Hungarian culture places a strong emphasis on meticulousness and quality, making them a reliable choice for projects that require close attention to detail.
In Hungary, there's a deep respect for deadlines and commitments, ensuring that your projects are delivered on time without compromising on quality. The Western-oriented culture of Hungary aligns well with many international businesses, reducing potential cultural friction and making collaboration smoother.
Hungarian IT professionals value clear communication and transparency, leading to an efficient, productive working relationship. Respect for privacy and data security is deeply ingrained in the Hungarian culture, providing reassurance for companies concerned about the safeguarding of their sensitive information.
The country's culture encourages continuous learning and adaptability, vital attributes in the ever-evolving tech industry. Lastly, a sense of teamwork and collaboration is a cornerstone of Hungarian work culture, ensuring a synergistic partnership when outsourcing IT projects to this Central European nation.
4. Diverse pool of high-quality IT talent
Hungary offers a diverse pool of high-quality IT talent, making it a preferred destination for outsourcing IT projects. This diversity spans various IT domains, from software development and systems integration to data analysis and cybersecurity, thereby catering to a broad range of outsourcing needs.
Professionals in Hungary are not just limited to traditional IT roles but are also proficient in emerging tech fields like artificial intelligence, machine learning, and blockchain technologies.
The Hungarian developers are talented, experienced and diligent. The country also offers and a favorable cost structure for outsourcing, with lower hourly rates than other outsourcing hubs like the US and UK. This makes Hungary an attractive destination for companies looking to maximize their IT budget without compromising on quality.
5. High level of soft skills
When outsourcing IT projects to Hungary, one will quickly notice the exceptional level of soft skills present among IT professionals. Hungarian IT specialists are known for their excellent communication skills, ensuring clear and effective exchanges of ideas and information.
Their strong teamwork abilities enable them to work seamlessly within diverse and geographically dispersed teams, a crucial aspect of successful outsourcing relationships. In the dynamic IT environment, the ability to adapt to changing circumstances is a valuable soft skill, and Hungarian IT professionals have proven to be exceptionally flexible.
Problem-solving, a critical soft skill in IT, is another area where Hungarians excel, often finding innovative solutions to complex technical issues. With a strong orientation towards customer service, they strive to understand the client's needs and work diligently to meet, and often exceed, these expectations.
Their leadership abilities are commendable, with many capable of overseeing projects and leading teams to ensure goals are met effectively and efficiently.
6. International experience
International experience plays a pivotal role in IT outsourcing to Hungary, offering a blend of global perspectives and local insights. Many Hungarian developers and IT experts have gained extensive international experience by collaborating with multinational companies, bolstering their skill sets and understanding of diverse business cultures.
This international exposure equips Hungarian IT specialists with the ability to adapt to various project requirements and effectively handle the complexities of global operations. Such experience fosters an understanding of global best practices in IT, which Hungarian professionals incorporate into their project management and operational processes. Companies that outsource IT projects to Hungary can benefit from this wealth of international experience, gaining innovative solutions tailored to a global market.
The international experience of Hungarian IT professionals also aids in smooth communication, as they are familiar with working in multilingual and multicultural environments. These professionals can navigate the nuances of international business relations, which is critical in ensuring the success of outsourced IT projects.
7. Strong work ethic, lifelong learning
When outsourcing IT projects to Hungary, companies will notice the distinct advantage of working with professionals who possess a strong work ethic. Hungarian IT experts are known for their diligence, responsibility, and commitment to delivering high-quality work on time.
Their strong work ethic also extends to their pursuit of lifelong learning, constantly striving to improve their skills and stay updated with the latest technology trends. Hungary's IT professionals are firm believers in the concept of continuous education, ensuring they're always at the forefront of innovation.
Even beyond formal education, these professionals are active in attending webinars, workshops, and conferences to further refine their skills. Lifelong learning is deeply ingrained in the culture of the Hungarian IT sector, which believes that continuous improvement is the key to meeting and exceeding client expectations.
This dedication to constant learning makes Hungary a reliable outsourcing destination, as it can adapt to new technologies, methodologies, and project requirements swiftly.
8. Excellent language skills
Excellent language skills are crucial in IT outsourcing, and Hungary shines in this regard, reducing potential communication barriers that can arise in international collaborations. Hungarian IT professionals exhibit high proficiency in English, often considered the global language of business, ensuring smooth and effective communication in outsourced projects.
The importance of these language skills cannot be understated, as clear communication is vital in explaining technical nuances, understanding project requirements, and executing tasks efficiently. Hungary's emphasis on language education in its academic institutions means that its IT workforce is well-prepared to engage in a global work environment.
Apart from English, many Hungarians are also multilingual, with proficiency in German, French, and other European languages, thus broadening the possibilities for international cooperation.
This linguistic proficiency adds to the ease of project management, mitigating misunderstandings and facilitating clear, concise instructions, leading to a better quality of work. It also ensures that Hungarian IT professionals can easily adapt to the language and communication style of their international clients, enabling them to fit seamlessly into diverse project teams.
9. Labor costs
Despite having a highly skilled IT workforce, Hungary boasts competitive labor costs, providing cost-effective solutions without compromising on quality. When you outsource IT projects to Hungary, you save on expenses like salaries, benefits, and overhead costs, allowing you to allocate resources more efficiently.
Lower labor costs in Hungary are a product of the country's lower cost of living, making it possible to hire top-tier talent at a fraction of the cost found in the US or Western Europe. It's important to note that lower labor costs don't imply lower quality, as Hungary's IT professionals are known for their expertise and high-quality output.
The lower labor costs in Hungary offer significant financial advantages for businesses, making it an attractive destination for IT outsourcing.
IT Salaries in Hungary
The Bluebird IT Salary Guide (as one of Hungary's leading salary guides) is an annual publication aimed at providing up-to-date information on IT salaries in Budapest.
The publication covers the most significant job categories and salary ranges in the IT field. The salary ranges are shown by seniority (junior, mid-level, and senior categories).
The salary information presented in the salary guide is gross average salary, which is subject to additional employment taxes in Hungary.
John von Neumann: https://www.theguardian.com/technology/2012/feb/26/first-computers-john-von-neumann
John G. Kemeny: https://medium.com/interesting-histories/john-g-kemeny-inventor-of-basic-f0d118c9f2f4
Gabor Dennis: https://www.bbvaopenmind.com/en/science/leading-figures/dennis-gabor-father-of-holography/
Andrew S. Grove: https://www.anandtech.com/show/10180/andrew-s-grove-former-ceo-and-chairman-of-intel-passes-away-aged-79