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Estonia

Overview

Estonia was named “the most advanced digital society in the world” by Wired magazine in 2017. Its pioneering e-Residency program, aimed at offshore software developers and writers, gives global entrepreneurs a government-issued digital identity and status that allows them to start and manage an EU-based company from anywhere, entirely online. Launched in 2014, the program now has more than 22,000 registered companies and some 93,450 e-residents from 178 countries. 

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13hrs

Time Travel (From NY)

Average flight time from NY to the major cities in the country.

55

Partner Innovation capability

The score reflects investment in STEM progrms and IT funding by country.

62

Partner Skill Level

Level of workforce skills and quality of education, including factors such as digital literacy, interpersonal skills, etc.

55

Partner Global Competitiveness

National productivity based on 12 core pillars, including government policy, infrastructure, economic stability, etc.

Low

Software Outsourcing Readiness

Overall rating, based on the maturity of the tech sector, socio-political conditions, and on-the-ground research by Accelerance.

Software development outsourcing in Estonia
Talent Pool & Education

Estonia boasts a vibrant and skilled software development talent pool, contributing to its standing as a technology hub. Fueled by a strong educational system, the country's tech-savvy culture is further nurtured by its early adoption of digital initiatives and e-Government services.

The thriving start-up ecosystem, coupled with policies aimed at talent retention and attraction, has created a dynamic environment for software development professionals. Estonia's global recognition for tech expertise and the hosting of various tech events further enhance the country's standing in the global technology landscape. While the talent pool is smaller compared to larger hubs, the quality and innovation of Estonian developers make them highly sought after internationally.

Language

Estonian is the official language of Estonia, belonging to the Finno-Ugric language family within the Uralic group. Closely related to Finnish and distantly to Hungarian, Estonian employs the Latin alphabet with additional characters like õ, ä, ö, ü, and š. Noteworthy features include a complex grammar with 14 grammatical cases, shared with Finnish, and vowel harmony, where vowels in a word harmonize in terms of frontness or backness. Language preservation has been a priority, especially during the Soviet era, to maintain national identity in the face of attempts to Russify the region. The Estonian language has actively resisted external influences, and efforts have been made to create native terms for various concepts. Despite borrowing words from languages like German, Russian, and Swedish, language policy and education play a crucial role in the conservation and promotion of Estonian, emphasizing its significance in preserving the cultural heritage of the country. Estonia's linguistic landscape is enriched by various dialects, with the standard form based on the Northern dialect.

Estonia has relatively high English proficiency levels compared to many other non-English speaking countries. English is taught as a compulsory second language in Estonian schools, starting from an early age, and this contributes to a general proficiency in the language among the population.

In urban areas, particularly among the younger generation and those working in sectors like technology, business, and tourism, English proficiency tends to be quite high. In the capital city, Tallinn, and other major cities, you will likely find that many people, especially in service industries, can communicate comfortably in English.

However, in more rural or remote areas, especially among older generations, English proficiency might be lower. It's always a good idea to be aware of the local context and adjust your expectations accordingly, but in general, English is widely understood and used in Estonia, making it a convenient destination for English-speaking visitors.

Software development in Estonia
Economic Outlook

Estonia has maintained a robust economic outlook within the Baltic region. Focused on innovation and technology, the country's market-oriented economy is marked by strengths in information technology, e-government, and a thriving startup ecosystem.

Estonia's economic resilience is attributed to prudent fiscal policies, a flexible labor market, and a commitment to foreign trade and investment. As a member of the Eurozone, the country's economic stability is interconnected with broader European economic conditions.

Political Conditions

Estonia maintains a stable political environment as a parliamentary representative democratic republic. The political system features a unicameral parliament, the Riigikogu, responsible for legislative functions. The country's government structure includes a President as the head of state and a Prime Minister leading the government.

Estonia's commitment to democratic principles is evident through advanced e-Government initiatives, fostering efficiency and transparency in public services. As a member of the European Union and NATO, Estonia prioritizes cooperation with EU nations and maintains strong international ties. The nation's foreign policy aligns with a commitment to the rule of law and human rights, contributing to transparent and accountable governance. Estonia's economic policies emphasize market-oriented strategies, fiscal responsibility, and adherence to free-market principles, resulting in sustained economic growth and stability.