For years, Belarus has hovered below the radar of most IT executives in Western Europe. Although other countries in the Central and Eastern Europe (CEE) region have risen in prominence, thanks to their expertise in IT outsourcing and business process outsourcing (BPO) services, Belarus has received almost no attention.

On the other hand, Belarus is extremely well connected and has nurtured a culture of science, technology, engineering, and mathematics (STEM) education for many decades. During the Soviet era, Minsk was designated as the USSR’s technology hub and, as many visitors have observed, this focus on technology still resonates today. There are an estimated 100,000 IT professionals living in Belarus. 

The average salary of a web developer in Belarus is around $1000/mo, which is among the highest in the country. Also, Belarus is a cheap European destination for web projects, as the hourly rate of a developer reaches 6-11 USD. With the extra price of a company, you could contract a web agency for a price of  $9-19/hour, according to salary explorer. 

At the same time, Belarus has a very high percentage of the public sector in the economy - about 50%. Small and medium-sized businesses are developing quite steadily, although at a slow pace. The main part of them consists of companies operating in the industrial and service sectors. The latter, which includes IT companies, make a significant contribution to the country's economy. In 2022, the share of the IT sector was 6.6% of GDP. Companies operate mainly in external markets - the CIS countries (leader is Russia), the EU (leader is Germany) and the US - states Mikalaj Tamaszevicz from PRAS

Why you should work with a Belarusian web agency? 

Even if the price range is lower than the European average, the services you get in exchange are comparingly good with other countries in the region. Nonetheless, Belarus positions as a new startup hub in eastern Europe, and companies have a healthy competitiveness potential. 

What you should be aware of when working with Belarusian companies?

Even though progress was made in the IT field, the legal framework and background remained the same from the soviet union, with a slight adjustment. If contracting a Belarusian company, you may want to check the jurisdiction of the ruling laws over the contract, as it may get tricky.  Also, lower prices offered by Belarusian companies are connected with product quality, management, and software piracy. 

Are Belarusian companies Reliable? 

Belarus has been in the last year a great destination for outsourcing and as well as local professionals and businessmen managed to create and adjust their own IT infrastructure and environment to the latest standards. Based on Belarus Statistics Agency, in 2019 the total amount of foreign investments in IT was estimated to $295 million. 

As for companies, there is a relevant trust connection between Belarus-based and global markets, and the bigger the price/hour of services provided, the more responsible companies are.

How Belarus IT infrastructure relates to its neighboring countries?

Taking only the price into account, the services of Belarusian IT companies are cheaper than in the neighboring EU countries (Lithuania, Latvia, Poland), but more expensive than in Russia and Ukraine. The average rate is $25-35 per hour. As far as quality is concerned, one has to look at each specific company, but, in general, Belarus is ahead of Russia.

What Makes Belarus Attractive for International IT Companies?

Belarus is attractive because the High Tech Park (HTP) has been operating in the country since 2006, whose residents can enjoy tax incentives. Among other things, this includes a zero rate of VAT and profit tax, and a reduced rate of income tax. Due to this, the tax burden on IT companies in Belarus is lower than in neighboring countries. In addition, Belarus is known for the high quality of IT staff training. Therefore, if you want to open an office in Belarus, you can hire local specialists rather than relocate a team from abroad.

EPAM Systems and IBA Group - Dominant IT Companies in Belarus

 These are the best-known companies with Belarusian roots. EPAM Systems is the leader in Belarusian IT in terms of the number of employees. IBA Group is one of the pioneers of Belarusian IT and one of the largest companies in the country's market

The Ease of Opening an IT Company in Belarus

The business climate is generally favorable for opening new IT companies in Belarus, but two factors should be taken into account. The first one is the large number of bureaucratic procedures when registering a company and the second one is the possible difficulties with international payments, as some banks are under sanctions.

How Belarus Authorities Encourage the IT Sector?

In 2006, the HTP was established in Belarus. The tax incentives regime for its residents attracted foreign IT companies to the country and also increased the inflow of foreign investments. In 2017, a decree on the development of the digital economy was adopted, which legalized the development of the crypto-industry in the country and the use of smart contracts.

Minsk - The Only Best Place For IT Companies in Belarus

Minsk is the economic and financial center of the country, and the city is home to the main training facilities for qualified IT staff. There are also no problems with access to high-speed internet and office rentals in the city. The service sector is well developed.

About Belarusian IT Talent Pool 

The IT sector is very popular as a future workplace among school and university students as well as people who decide to change careers. This is mainly due to the high salaries compared to other sectors of the economy. The average salary in IT in Belarus is $2,000, which is four times the average salary in the country. The system of higher IT education is well-developed in the country and there are many IT courses in different areas. The level of training is quite high, which is noted by many foreign companies where Belarusian IT specialists come to work.

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This article was created together with prominent figures and professionals coming from reputable Belarusian IT companies. Special credits: Mikalaj Tamaszevicz

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