Choosing the best destination to outsource software development may be quite a challenge. It might be a good idea to start outsourcing to Ukraine in 2021, but is it the best choice?
As you realize that the success of the project or even the entire company depends on this decision, it gets even harder to make. That is a grave responsibility, indeed.
We know you want to consider all options before hiring a dedicated software development team.
That is why we prepared the list of top 10 reasons why to hire Ukrainian developers. The list is based on the experience we gained from 8 years of cooperation with our clients and their constructive feedback.
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Ukraine has gained compelling positions in several international tech-related rankings. The country holds the 20th position in the Global Services Location Index by A.T. Kearney. In 2017, the Global Sourcing Association (GSA) UK named Ukraine United Kingdom’s “Offshoring Destination of the Year.” Moreover, 13 Ukrainian IT companies were listed in the Global Outsourcing 100 list by the International Association of Outsourcing Professionals (IAOP) in 2017.
Other international rankings Ukraine has been mentioned in include:
The tech community in Ukraine is very active. Almost every city has its IT cluster that gathers around and unites technology specialists, companies, educational institutions, and local authorities to develop the local tech environment. The number of smaller, specialized communities is even more impressive: every group of Ruby developers, QAs, data scientists, BAs, Java enthusiasts, or UX designers holds regular meetups, seminars, or conferences.
On top of that, Ukraine hosts some of the largest European tech events:
Best of all, we can proudly say that the Ukrainian IT community is all about development. And by “development,” we mean personal, professional, and, of course, hardcore coding.
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The tech industry is nothing without the people who push it forward. And Ukraine can boast thousands of talented, professional, driven people.
The IT Ukraine Association reports that over 20,000 tech students graduate in Ukraine each year. Ukrainian state universities cooperate with local IT clusters, making sure that the curriculum of the technical departments is up to date with the latest tech trends and business achievements. It’s also frequent for students and graduates to take courses or internship programs provided by medium and large tech companies or academies. After two to four months of training, the best trainees may even receive job offers.
The Ukrainian IT and software engineering community consists of 166,000 professionals, ranking fourth in the world by the number of tech specialists. The report by GSA reveals that the number of people working in IT engineering will reach 200,000 in 2020.
But it’s not only about quantity. SkillValue recognized Ukrainian software engineers among the world’s best, with an average score index of 91.26%. Besides, software development teams from Ukraine scored an average of 88.7% across all HackerRank challenges.
A poll held by DOU, the nation-wide community of developers, provides data about the years of experience Ukrainian tech specialists have on average:
The language barrier is not an issue for Ukrainian engineers. Almost 70% of them speak English at the intermediate and upper-intermediate levels, according to DOU.
No wonder giants like Microsoft, Huawei, Samsung, Ring, and Oracle have embraced the value of outsourcing IT engineering to Ukraine and moved their R&D centers here. The national technology market responds to global trends by incorporating innovations into the outsourcing services package. From comprehensive applications and analytical solutions, up to machine learning and IoT platforms, Ukrainian tech pros can do it all.
But wait there’s more.
Transparency, trust, and careful consideration of the customer’s needs, intense focus on excellence rather than average results are some of the traits that make outsourcing in Ukraine stand out.
Ukraine may not have too many world-renowned startups to boast, but more and more of them are sprouting each year. PetCube, Gitlab, YouTeam, AXDRAFT, People.ai, and Earth.ai are the Ukrainian startups that managed to get into Y Combinator, one of the best seed accelerators in the US. Other YC alumni include Airbnb, Coinbase, Dropbox, and more.
And if that’s not enough, here’s the list of Ukrainian startups that have earned recognition are:
All of them were founded by Ukrainians and built by Ukrainian developers. By the way, Grammarly has recently become the first Ukrainian unicorn startup.
If you’re serious about cost efficiency, outsourcing software development to Ukraine is your call. Look at it this way: the average hourly rate for a Ukrainian developer varies from $25 to $49, compared to the $60 to $100 a US engineer earns. And don’t you think that the reasonable price means lower quality! Gartner ranked Ukraine number one in Eastern Europe for the price/quality ratio.
Intellectual property is crucial to software development. Most Ukrainian companies follow international security requirements such as ISO, PCI, HIPAA, and devote a great deal of effort to training its staff and developing an effective security strategy.
To check this, you can review the audit reports of the company that provide information about its security, availability, integrity of processing, confidentiality, and privacy.
There are also advantages of outsourcing to Ukraine you may consider insignificant at first and not fully realize until you start working with a remote dedicated team. Ukraine is seven hours ahead of the US East Coast and one to two hours ahead of the time European countries have (depending on the daylight saving time). So, by the time you come to the office, your Ukrainian engineers will probably already have some progress to report.
And although building a remote team in Ukraine sounds, well, remote, it’s fairly easy to get there. Regular direct flights make traveling hassle-free, and a lot of foreign citizens, including Americans and Europeans, can travel to Ukraine and stay there without a visa for 90 days. If you need a member of your dedicated team to visit your office, that shouldn’t be much trouble too. Ukrainians can visit Europe for traveling and business purposes visa-free for 90 days.
The political instability in the country has had little impact on the current activity of most IT industry players. Although, we should admit that it does restrain more active development. In the last years, Ukraine has been putting a lot of effort into making the business environment more favorable. Since 2015, Ukraine went 20 positions up in the World Bank’s Ease of Doing Business rating. Paying taxes is now easier as the country introduced a lower flat rate of 22% for the Unified Social Contribution tax paid by employers compared to the previous rates, ranging from 36.76% to 49.7%.
With Ukraine being the most popular and #1 software development outsourcing hub globally, more and more businesses have been looking forward to hiring Ukrainian developers with extensive IT expertise at a budget-friendly price.
According to the latest StackOverflow research piece, Ukraine is home to 150,000+ outsourcing programmers or IT specialists, holding degrees in Science, Technology, Engineering & Mathematics fields.
Right from C++ to Java to Python to Perl, Ukrainian software developers use all progressive programming languages and hold top rankings in terms of the programmers using advanced technologies for building innovative products.
Ukraine’s liberal outsourcing rates among the best countries to outsource software development make it one of the biggest IT hubs in all of Eastern Europe. When compared to the value they deliver, the hourly or fixed rates they charge and the high project success rates with the developers from other parts of the world, Ukrainian developers, by the standards of the Western World, are nothing but a bargain.
The outsourcing rates heavily rely on experience and technology use. But to help you have a quick idea, we have prepared this table:
While you can hire Ukrainian developers directly via freelancing platforms, it’s advisable to select an outsourcing vendor for offshore software development, where the pricing model may either be an hourly or monthly one and will also include the vendor’s service fees.
Here are some of the benefits of partnering with an outsourcing vendor:
Read our guide on extended software development teams.
Here are the two Relevant types of collaboration models:
For businesses with a wide range of requirements and a good amount of development work to be outsourced, a dedicated team model may be a perfect fit since it involves long-term collaboration. Here, the vendor is responsible for providing the client with an exclusive full-time development team, which may work with your in-house team to carry out your software development project.
Businesses wanting to outsource their software development projects can reach out to a staffing vendor like Relevant Software to set up their own dedicated team in Ukraine.
The Dedicated Team model is best suited for businesses:
The Dedicated Team collaboration model involves the following steps:
The Product Development model is a perfect launch pad for businesses looking forward to developing their own products. Right from market research to business analysis to development to launch, a product development model is a full-cycle software product development services model best suited for businesses:
The Product Development collaboration model involves the following steps:
Of course, you can find an alternative to Ukraine. One of the customers we had at Relevant Software had initially opted for a vendor from Asia, with attractive pricing policy and contract arrangements. Unfortunately, the cooperation was not successful due to the vendor’s constant failures in terms of project requirement fulfillment and the lack of technical and communication skills. Don’t let this be your story too.
All in all, Ukraine is a reliable destination for hiring a dedicated software development team. We see businesses from increasingly more companies recognizing the potential of investing in the technological capabilities of Ukraine. The comparatively low cost of living, the positive dynamics of the Ukrainian ICT, and the related legislation, data protection, and security regulations make Ukraine an attractive outsourcing destination.
If you consider hiring a dedicated software development team in Ukraine, why not contact Relevant Software to discover your options?