Our friends over the pond: Why US companies are outsourcing software development to the UK

Recent changes in the United States—including federal restructuring and potential tariffs on imports from key manufacturing regions—have created significant uncertainty, particularly for device manufacturers. However, one thing remains clear: for many US companies outsourcing software development to the UK remains a highly effective strategic choice.

From lower costs to compliance capabilities, let’s take a look at some of the reasons why:

The UK costs less

There’s no shortage of software professionals in the States. According to the U.S. Bureau of Labor Statistics there are 1.9M developers, quality assurance analysts, and testers currently working there. However, they don’t come cheap; hiring a full-time developer in the US comes with higher salaries, benefits, taxes, and overheads than in most other parts of the world.

While Britain may not offer the rock-bottom rates of some offshore destinations, it can provide highly skilled engineers at a more competitive rate than the US without sacrificing quality.

Danny Lopez, CEO of cybersecurity company, Glasswall, told The Wall Street Journal that software engineers in the US can earn two or three times more than their UK equivalents. It says a lot that his software engineers are nearly all based in the UK—despite 90% of the company’s revenue coming from the US.

What’s more, this advantage can be compounded by the strength of the US dollar against the British pound. Often (but not always), this means that US companies get even more value for their investment when working with UK-based teams.

UK and European compliance know-how

Navigating compliance for regulated markets can be a minefield. If you’re planning to release a product in Europe, UK software developers hold a distinct advantage: deep expertise in both UK and European regulatory landscapes.

UK software teams are well-versed in UKCA (UK Conformity Assessed) and CE (Conformité Européenne) requirements, ensuring that your product meets the necessary compliance standards for both UK and European markets. This experience reduces the risk of compliance failures that could lead to recalls, delays, or legal issues.

However, UK teams aren’t limited to developing products for European markets. Businesses such as Bluefruit are experienced in working with key international standards like IEC 61508, IEC 62304, and DO-178C.

This allows US manufacturers to streamline compliance, reduce risk, and confidently expand into global markets without regulatory headaches.

Round-the-clock development

UK software development enables a near-continuous development cycle for US device manufacturers. Britain is just five hours ahead of Eastern Time (ET)–that’s the same time difference as Anchorage to Boston.

This means that issues raised by the US in the afternoon are addressed by the following morning. This rolling workflow accelerates iteration cycles, minimises downtime, and keeps projects on track. Meanwhile, overlapping working hours allow teams to collaborate in real-time, reducing delays and improving responsiveness.

Unlike fully offshore teams in more distant time zones, UK developers can integrate seamlessly with US teams, avoiding late-night meetings while maintaining close collaboration. This extended development window allows manufacturers to speed up delivery without compromising efficiency or communication.

Software development skills are in short supply in the US

The US, like much of the world, faces a shortage of skilled software developers, particularly in specialised areas like embedded systems, safety-critical software, and compliance-driven development.

Skill shortages include:

• Embedded software
• Safety-critical and regulatory compliance
• Test-driven development and software quality
• AI, machine learning, and edge computing
• Cybersecurity and secure software development

The UK has no such shortage—quite the opposite by some accounts. By outsourcing to specialist service providers in the UK, US companies can gain access to high-demand skills, upholding quality and preventing development delays.

Better than the rest

The UK isn’t the only outsourcing option—if cost is your main priority, there are certainly cheaper developers available in Eastern Europe or Asia. However, while these may seem cost-effective at first, they often introduce challenges in quality and alignment with US business needs. Such low-cost development can ultimately lead to quality issues that require expensive reworking.

The UK offers a better balance, combining high-quality software development with a closer cultural fit and a more favourable time zone difference.

Furthermore, working with UK teams also means fewer barriers to communication, decision-making, and collaboration. With a shared language, similar business practices, and a strong engineering culture, UK developers help US companies avoid the misunderstandings and inefficiencies that might arise with offshore outsourcing. The result? Smoother workflows, better project outcomes, and a more reliable partnership.

Does this sound like your cup of tea?

Outsourcing software development to the UK offers a compelling mix of cost-effectiveness, compliance expertise, and collaboration. For US manufacturers seeking high-quality software solutions without the risks often associated with offshore outsourcing, the UK remains a strategic and reliable choice.

And if all that’s not enough, remember that it’s perfectly reasonable to take a trip to see your software development partner. At least once a year. And Cornwall—where Bluefruit is based—is particularly lovely.

We’ll put the kettle on.

To find out more about the benefits of outsourcing software development to the UK, get in touch.