Scaling a tech team in the U.S. has never been harder. Rising salaries, talent shortages, and high turnover make hiring locally a challenge. But what if you could access the same high-quality engineers without the overhead?

While many U.S. companies are starting to struggle to keep up, Europe has developed a tech ecosystem that is thriving. The EU is home to some of the world’s best developers, data scientists, engineers, and digital professionals – and they’re ready to work remotely for a fraction of U.S. costs.

There is an immediate opportunity for the U.S. to tap into Europe’s software development talent.

Hiring software engineers from Europe allows U.S. firms to access top-tier talent, optimize budgets, and foster innovation. And for some US emerging markets, this may be key.

Texas, for example, has been established over the last decade as a leading tech hub, with cities like Austin, Dallas, and Houston attracting major industry players. The state is seeing a surge in startups and enterprise-level expansions, increasing demand for software development talent. Hiring in Europe can provide companies with the high-quality engineers needed to sustain growth without the constraints of local talent shortages. Here’s why.

Benefits

1. Access to a Highly Skilled Workforce

The EU places a strong emphasis on STEM education, producing a steady stream of skilled software engineers every year.

Countries like Portugal and Poland have become hotspots for world-class developers, and many of these professionals even have experience working with U.S. companies and global tech firms, making them highly adaptable. Many also speak multiple languages fluently, including English. In Malta, for instance, English is not only widely spoken, but an actual official language. This makes it easier than ever to build an international, agile workforce.

Additionally, the EU Blue Card Directive simplifies the mobility of highly skilled non-EU professionals, allowing them to work across member states with ease (European Commission). This means that the EU software development talent pool is both highly diverse and internationally competitive, with worldwide talent readily available in the region.

2. Cost Efficiency Without Compromising Quality

Despite the quality of the talent, hiring software engineers from Europe can lead to significant cost savings. Developers in countries like Poland, Hungary, and Bulgaria offer comparable skills to U.S. engineers at 40-60% lower salaries. Since the cost of living in many EU countries is lower, US companies can provide competitive salaries, attracting top talent while still optimizing budgets.

For example, while the average annual salary for a senior software engineer in Texas can exceed $130,000, equivalent talent in Romania can often be hired for around 58k , without compromising quality or expertise. This substantial cost differential makes Europe an attractive hiring destination for U.S. firms looking to scale efficiently.

3. Time Zone Advantages for U.S. Companies

A major benefit of software development in Europe is the time zone overlap with the U.S. For companies on the East Coast, working with European software developers allows for several hours of real-time collaboration. This overlap improves productivity and efficiency, making remote development teams more manageable.

For firms based on the West Coast, working with European developers enables a follow-the-sun model, where work continues outside U.S. business hours, leading to faster turnaround times.

4. A Remote Workforce Ready to Go

The European tech industry is built for remote work, with some of the best digital infrastructure, government-supported innovation programs, and an adaptable workforce. Remote work isn’t just a trend in Europe, it’s a way of life.

5. Cultural Diversity Enhances Innovation

Europe fosters a wealth of cultural diversity, which brews creativity and problem-solving – crucial skills for tech-driven businesses. In fact, McKinsey reports “a 39 percent increased likelihood of outperformance for those in the top quartile of ethnic representation versus the bottom quartile”.

Of course, you should take into account that while most EU developers are fluent in English, cultural differences may still cause conflict and miscommunication. Prioritize teams with prior experience working with U.S. companies or hiring in countries where English is widely spoken, and make sure your recruitment processes analyze cultural fit.

6. Legal and compliance advantages

EU professionals are well-versed in GDPR (General Data Protection Regulation) and other regulatory frameworks, reducing the risks associated with data security and compliance. In fact, The EU’s strict data privacy laws are setting the global standard for cybersecurity and compliance. Hiring European professionals ensures your business meets international regulatory requirements, reducing risk when handling sensitive customer data.

Potential roadblocks

While hiring software developers in Europe has clear significant benefits, U.S. companies must also be aware of potential challenges:

1. Legal & Tax Considerations

Navigating EU employment laws can be complex, so make sure to work with services or outsourcing firms that can also manage compliance for you.

2. Managing Remote Teams

Some companies struggle with managing distributed teams. Utilize remote work best practices, collaboration tools, and structured check-ins, or work with outsourcing companies who prioritize building a high-performance location-agnostic culture.

3. Retention & Long-Term Commitment

Retaining top EU talent in a competitive market can be difficult. Offer competitive salaries, career development opportunities, and strong company culture to increase retention rates.