Why outsourcing to Ukraine is the strongest choice of the moment?

25 Sep 2019

The practice of using outside firms to handle work usually performed within a company is quite popular nowadays! Everyone is looking for the best market for outsourced workers. Ukraine is one of the hottest destinations for businesses of all sizes that are looking for skilled, well-priced, and committed freelancers for a range of projects. When it comes to IT and software development, Ukraine is the strongest choice of the moment.

When planning to outsource, business owners want the highest quality and reasonable cost. That is why they find Ukraine an attractive place for IT outsourcing, but it is not the only reason.

Some of the reasons why tech startups chose to outsource development to Ukraine include:

  • Budget. The vast majority of tech startups bootstrap on a shoestring. Frequently they are self-funding and simply don’t have the capital to spend on an in-house developer. They need the best talent for the lowest price, and Ukraine is where the two converge.
  • Management. Outsourcing software development allows startups to keep management teams focused on the big picture of management without the distractions of handling in-house developers.
  • Time. All too often, the team that’s the first to come out with their MVP wins the funding. Startups that are competing for investment need to get a prototype on the ground as soon as possible. Outsourcing allows them to find the expertise they need to get it done in a hurry.

Here follow the key reasons why Ukraine can be your next software development outsourcing destination:

1. 166,000+ IT Professionals

There is a prediction that the Ukrainian IT industry is going to worth $10 billion by 2020. The local software development community has grown by 27% in 2019 and currently employs over 166,000 IT specialists. By the number of tech workers, Ukraine holds 4th place in the world after the United States, India, and Russia. Moreover, it is expected there will be 200,000 IT specialists by 2020.
According to SkillValue, Ukraine ranks 8th among the world’s top countries with the best programmers with an average score index of 91.26%.

2. 36,000+ IT Specialists Graduates Annually

Ukraine has 400+ universities and colleges that graduate more technical specialists than most of the technological countries like Japan or the Netherlands. Every year more than 36,000 students graduate with IT degrees.
The country supports those willing to join the hi-tech community by launching various educational opportunities. In cooperation with local software development companies, regional IT clusters often set up innovation labs and launch multiple educational programs at universities and colleges.

3. 1,000+ IT Companies

There are over 1000 software development companies in Ukraine that offer almost every kind of IT services, such as web and mobile development, UI/UX design, QA and testing, R&D services, IT consulting, big data and analytics, etc.

4. A Big Tech Community

Such Ukraine’s major tech event as IT Arena, Agile Eastern Europe Conference, PyCon Ukraine, iForum, and DEV_Challenge give IT specialists an opportunity to network with their colleagues, share experiences, and learn on the best practices from the leaders of the industry.

More than 7,000 people visit the largest conferences to learn from international speakers from global companies such as Microsoft, HP, Skype, IBM, Intel. There are also smaller tech events on the local level, where professionals talk about AI, big data, data science, VR/AR, blockchain, etc.

5. Quality Ratio

It is a well-established fact that outsourcing is about cost-efficiency. With such a large and powerful tech talent pool, Ukraine offers lower rates then it’s neighbors such as Poland.

The average salary varies between $2,500 and $4,000 per month, with the average hourly rate of a software developer within the $25–50 range.

These rates may be higher than in some other popular countries for outsourcing. Still, Ukraine’s engineers are more talented with quality not lower than those in Western Europe and North America, where a software engineer of similar skillset could cost around $100/hour.

6. Multinational R&D Centers

Such companies as Microsoft, Apple, Samsung Electronics, Oracle, Ericsson, Skype, IBM, Siemens, Magento, Boeing, and Wargaming have placed their R&D centers in Ukraine. And it’s no surprise with the fact that Ukraine is one of the top 50 innovative economies in the world.

7. 80% of Ukrainian Developers Speak English

80% of Ukraine’s IT professionals have an intermediate or higher level of English knowledge, according to DOU’s research. Most of the IT companies in Ukraine offer  English classes for their employees, which increases their English level.

8. Cultural Compatibility

The work culture of the IT outsourcing industry in Ukraine is very similar to that of the West. Ukrainian developers are open to challenges, treat the projects they’re working on as their own, and are interested in the success of the customer.

It is common for eastern countries to work based on trust and reputation, but here in Ukraine, facts and figures matter most, as for the western business.

9. Good Business Climate

From year to year, Ukraine is regulating its international policies and moving towards a more convenient business environment. Ukraine also made the process of paying taxes easier for employees by reducing a flat rate for the Unified Social Contribution. All these improvements boosted the growth of the local IT community and urged business owners to choose Ukraine for IT outsourcing.

Ukraine is duly positioned as one of the most attractive destinations for software engineering services outsourcing due to the quality of services, commitments, business-oriented values, human capital, and cost-efficiency.

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