Hungary IT Outsourcing Guide – 2023

Balazs Refi

February 14, 2023

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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 East-Central 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.

If you want to know more, check these websites: Hungarian Central Statistical Office and Hungarian Export Promotion Agency.

You can also contact us for more information.

Hungary - IT Outsourcing Spot - Bluebird Blog

2. Pioneers in Information Technology: Famous Hungarian Engineers and IT Personalities

Hungary boasts many famous computer scientists and IT personalities:

  • John von Neumann laid the foundations of modern computing in 1945 by creating the von Neumann architecture.

  • John G. Kemeny, together with Thomas E. Kurtz created the BASIC programming language in 1964, for which he is best known. The language was designed to be simple to use and learn, and it became one of the most popular programming languages in the world almost immediately.

  • Dennis Gabor was an electrical engineer and physicist who received the Nobel Prize in Physics in 1971 for his invention of holography.

  • Andrew S. Grove is best known for his role as a co-founder and CEO of Intel Corporation, one of the world's largest and most successful technology companies.

John von Neumann - Bluebird blog

John von Neumann

John G. Kemeny - Bluebird blog

John G. Kemeny

Dennis Gabor - Bluebird blog

Gabor Dennis

Andrew S. Grove - Bluebird blog

Andrew S. Grove

3. Multinational IT Companies in Hungary

In recent years, Hungary's IT industry has played an increasingly significant role in the European IT sector. Household names like Siemens, IBM, T-Systems, Microsoft, GE, Oracle, Cisco, Ericsson, and Bosch are among the best known multinational IT and tech companies in Hungary.

In addition to IT companies, the number of multinational companies active in the non-IT sector operating in Hungary is also very high. Some examples: Audi, Daimler AG, Ford, Toyota, Samsung, and Blackrock.

Hungary IT Outsourcing - Bluebird blog

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. Just to name a few: Graphisoft, LogMeIn, and Prezi.

IT Professionals in Hungary

1. Number of IT Professionals In Hungary

The total number of software developers is expected to reach around 27 million in 2023. Of these, about 79,000 are Hungarian IT professionals. That's roughly 0.3% of all available developers.

That said, Hungarian IT professionals are highly skilled, and their salaries are lower than the European and American averages. (Check out my article on Python developer salaries.)

Hungary is very Budapest-centric, which means that the majority of IT professionals (including software developers, project managers, business analysts, testers, and operators) are from the Hungarian capital.

Number of Software Developers in Hungary - Bluebird blog


2. IT Salaries in Hungary - Bluebird IT Salary Guide

The Bluebird IT Salary Guide 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, medior, and senior categories).

The salary information presented in the salary guide is gross salary, which is subject to additional employment taxes in Hungary. On request, we are ready to give you exact calculations for specific job categories.

Bluebird IT Salary Guide 2023

3. Comparison Of IT Salaries In Budapest vs Other Major Cities

I compared salaries using Glassdoor data. I examined the senior gross salaries for specific jobs at various IT hubs. The outcome surprised me more than I had expected. The graphs below show that Budapest is significantly cheaper than any other city in Western Europe or the United States for each job category.

The difference is truly surprising – the charts speak for themselves:

(You can enlarge the pictures by clicking on them.)

Hungary IT Outsourcing - Senior Software Developers - Bluebird Blog

Senior Software Developers

Hungary IT Outsourcing - IT Project Managers - Bluebird blog

Senior IT Project Managers

Hungary IT Outsourcing - Senior IT Business Analyst - Bluebird Blog

Senior Business Analysts

Hungary IT Outsourcing - Senior Software Tester - Bluebird blog

Senior Testers

Business Opportunities - Hungary IT Outsourcing

We have worked with numerous international clients over the years. Except for the common goal of finding the perfect IT professionals for their tech teams, their needs and requirements are usually quite different.

The common thread is that salaries in Western Europe and the United States are so high that companies must find ways to reduce them. Hiring experts from Hungary can immediately reduce the costs involved, and in the case of an external client, it can push down the project’s price. It goes without saying that each reduction has a positive impact on competitiveness.

Let's take a look at some requests we've received so far and the solutions we had for them:

Option 1: Open an Office in Hungary

We've recently received multiple inquiries from Dutch and French companies planning to open offices in Budapest. The rationale for establishing an office in Budapest is straightforward: You want to hire software developers in order to reduce the unit cost of your software development activities.

What needs to be done in this situation?

  • A corporate lawyer is required to assist you in forming the company and interpreting local laws. He or she works on a retainer basis.

  • You will also require the services of a tax advisor or accountant. On the one hand, you'll need someone (preferably a reputable firm) to handle the company's accounting, and on the other hand, someone to interpret Hungarian tax laws.

  • You will need an actual office space, which will likely require the help of an office rental company.

  • This is followed by the hiring of IT professionals.

Hungary IT Outsourcing - Bluebird blog

The process might appear to be simple, but it can be quite time-consuming without local knowledge (to say the least).  In our experience, it is difficult for companies to come to Budapest with the intention of establishing a company.

Please contact us for more information!

Option 2: Hire IT Professionals on a Daily Rate From Hungary

Most businesses focus on this solution from the outset. It is preferable to first experience what it is like to work with Hungarian IT professionals before establishing a company in Hungary, with all of the difficulties and costs that entails.

What happens in this case?

Simple. If you want to add more IT professionals to your team, we need a job description that specifies the type of technology and programming skills you require. Include a list of all the technologies needed for the project.

Defining exactly what kind of professional experience and skills you need is paramount. Communicating these details clearly helps us find the best candidates possible for the role you're aiming to fill.

Even better: There are no extra, hidden charges involved in the process.

The chosen IT professional will be employed by us. You will be billed on a monthly basis based on the IT professional's project hours.

The rates are determined by combining the software developer's fees and the Bluebird margin. Costs will be clear from the outset – it's as simple as that.

Get in touch with us!

Hire IT Professionals On A Daily Rate!

At Bluebird, we call this model the IT Staff Augmentation model.

Why Bluebird?

Balazs Refi Bluebird CEO
  • Established in 2001

  • More than 160 employees

  • More than 7.5 million USD in revenue

  • Bluebird is one of Hungary's market leaders in IT Staffing.

  • We have already been chosen by over 250 partners.

  • Because we work in a trustworthy and transparent way.

Picture sources

John von Neumann:

John G. Kemeny:

Gabor Dennis:

Andrew S. Grove:

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