In 2023, even more companies face the questions: what is the best place to outsource, and where can you find professionals to trust your product development? Why? Because software development outsourcing will increase by 70% and reach $430.5 billion in 2023.
While numerous factors impact the final decision on the outsourcing destination, we recommend you consider Ukraine. With over 285,000 IT professionals and a thriving tech industry experiencing a 23% year-on-year growth, Ukraine is quickly becoming the go-to IT outsourcing destination for businesses worldwide.
Despite the ongoing war, the Ukrainian tech industry not only operates successfully but shows growth. Just think for a moment. During the war in 2022, IT service exports reached a record $7.34 billion, up $400 million from 2021! Moreover, Ukraine tech companies retain about 96% of their contracts and keep the projects running.
So, what makes Ukraine such a hot spot for outsourcing? In this article, you’ll learn more about the benefits of working with Ukrainian tech experts. More than that, we offer ten reasons why you should consider hiring software developers in Ukraine for your next project. If you’re ready to take your company to the next level, then keep reading to find out why IT outsourcing to Ukraine may be the perfect solution for your needs.
Table of Contents
Let’s start with a quick summary of why Ukraine IT outsourcing is a good and profitable idea.
Ukraine is gaining weight as a top Eastern European IT outsourcing destination mainly due to three dominant factors – a large tech talent pool, diverse expertise, and affordable labor.
Ukrainian developers are globally recognized for having the necessary hard and soft skills that set them apart. In addition, most have years of experience working with proven processes and using the latest industry solutions and project management tools. As a result, you can find experts for every technology or role with impressive backgrounds in different projects. Plus, you get high-quality coding and product at a lower price than American and European counterparts.
A high level of English eliminates misunderstandings collaborating with Ukrainian software engineers. At the same time, you can expect IT experts to have a strong work ethic, dedication, and adaptive mindset that will ensure smooth project release. As the above shows, Ukraine shines as a significant and promising IT community with qualified personnel and a favorable environment for innovation.
Ukraine IT outsourcing companies offer a broad range of market solutions. It would be a mistake to lose sight of its possibilities and prospects.
If you’re initiating a new IT project, here are some convincing reasons to consider outsourcing to Ukraine.
Ukraine has achieved weighty positions in multiple tech rankings as a leading software outsourcing location. For example, the country holds 57th place (out of 132 countries) on the Global Innovation Index 2022, showing solid positions in Knowledge and technology outputs (36), Business sophistication (48), and Creative outputs (63).
For the past 8 years, Relevant has helped 200+ companies outsource their software development to Ukraine.
Let's talk about your current needs and how we can help you.
On top of that, Ukraine ranks 4th when it comes to the best programmers globally. Based on 550+ technical assessments, Pentalog recognizes Ukrainian developers as highly skilled experts, taking 4th place worldwide. Meanwhile, another Global Skills Report 2022 by Coursera ranked Ukraine 21st due to its impressive level of technology (93%) and data science (83%) skills.
You can also find Ukraine featured in other rankings, including:
Ukraine has a vibrant tech community that offers many opportunities for development and knowledge sharing and contributes significantly to the advancement of IT infrastructure. A rapidly growing and vibrant tech community strives to create better opportunities with various IT associations, innovative centers, and conferences. In addition, the community supports the industry growth in different cities and develops tech culture.
As of the beginning of 2022, over 20 IT clusters operated in Ukraine, and most continue to operate today. All the more, developers who relocated to Western Ukraine for safety reasons established a new IT cluster in Transcarpathia.
Clusters work closely with educational institutions to adjust the programs to meet the market demands and attract students. They also conduct workshops, provide internships in top Ukrainian companies, and organize events and courses for software engineers and IT specialists.
So what’s it all about? The Ukrainian IT community is one of the reasons behind such a competitive and talented IT labor pool in Ukraine. It helps attract young generations of tech experts, supports the development of its members, and fosters innovation through idea sharing.
Ukraine IT outsourcing gained the reputation of a major marketplace in Central and Eastern Europe (CEE) due to its robust technical education. Every year the country graduates around 17,000 students with degrees in technical studies. That’s why the Ukrainian IT industry is so strong and fast-growing. By the way, these numbers are the highest in CEE. Additionally, numerous IT schools like Beetroot Academy and Projector Institute with modernized courses help study programming and start a career in IT.
So it’s hardly surprising that nearly every software engineer has at least one or more specialized higher education diplomas with experience working abroad. On top of that, learning is a lifelong culture for developers. So, they constantly hone their skills and improve their knowledge of blockchain, artificial intelligence (AI), big data, and other cutting-edge technologies.
It’s no secret that hard skills are insufficient to build a good project. So, you’ll benefit from working with Ukrainians who are as good with communication skills as they are with technical competence.
Currently, English is a de facto standard in the IT outsourcing Ukraine market. Future tech talents know they should be proficient in English to work for a multinational company. Moreover, Ukraine software outsourcing firms have in-house English teachers or agreements with nearby language schools to help software developers maintain high language skills. So, no wonder 80% of IT experts speak English at an intermediate or higher level.
Programming languages Ukrainian developers work with
Moreover, tech professionals have considerable expertise in various business domains: fintech, healthcare, eCommerce, edtech, telecom, and transportation. In addition, Ukraine can also boast about providing highly sought-after specialists in data science, cloud computing, the Internet of Things (IoT), and AI.
Also, it’s worth mentioning that most students start working while studying at universities. As a result, by their 30s, they have already become industry veterans with substantial hands-on experience. According to a report by IT Ukraine Association, 60% of Ukrainian tech specialists have 3+ years of experience:
So, whatever expert you need to complete your project, be sure to find them easily by outsourcing software development to Ukraine.
Ukraine regularly attracts foreign investments, hosting over 100 research and development centers of international companies. Tech giants like Microsoft, Oracle, IBM, Samsung, and Google have already discovered and leveraged the quantity and quality of Ukrainian talent, launching offshore offices and outstaffing in Ukraine. It makes the country a reliable technology partner in the international IT arena. Also, you can see that as offshore software development, Ukraine also shows excellent prospects. That’s why the country hits the top of IT destinations, not by chance.
Foreign investors who embrace innovative products and value creative minds find Ukraine an alluring destination. In 2021, Ukrainian startups raised a record $571 million in investments. Nobody awaited large rounds in 2022 due to the war. Nevertheless, with assistance from the global community, Ukrainian-founded startups continue to receive grants, raise funds, and spread their ideas worldwide. Currently, the Ukrainian startup ecosystem ranks 50th globally and 12th in Eastern Europe among 202 countries.
GitLab and Grammarly are two unicorns produced in Ukraine worth over $1 billion. Their advanced products have made a considerable difference in the business world. Beyond that, Ukrainian tech-savvies invented well-known products like PetCube, MacPaw, Ahrefs, CleanMyMac, Reface, Preply, Readdle, and many others that are effectively being used around the globe. They were founded in and are still based in Ukraine.
An effective outsourcing strategy implies finding the best combination of value and cost. What this means is that you should find a cheaper alternative to hiring local software engineers in your country while getting the same high-standard product. That’s why when it comes to cost-effective IT outsourcing, Ukraine shines.
Compared to the US and Western Europe, the prices for software development services in Ukraine are 2-3 times lower. Just compare these figures: $60,000 average yearly salary in Ukraine against $141,000 base salary in the US. So it looks like opting for Ukraine tech companies that offer the same value for a lower price is a great deal, isn’t it? Thus, the in-depth technical expertise and reasonable development costs make Ukraine a strategic outsourcing option for business leaders worldwide.
You should be sure all your information assets and the users’ confidential data are safe when outsourcing to Ukraine. Moreover, the creation of software solutions requires compliance with international regulations in addition to solid data security. So what can you expect here in terms of privacy and security?
Ukraine’s laws are consistent with the European ones. The intellectual property (IP) laws of Ukraine provide copyright protection for databases and computer programs. Established Ukrainian tech companies comply with international regulations and follow best security practices to ensure the privacy of critical clients’ data. In addition, they offer customer-specific compliance solutions and proper data recovery methods for handling unpredictable data loss.
Also, it’s a standard practice to sign non-disclosure agreements that protect your business ideas in most tech companies from Ukraine. Furthermore, to meet the demands of clients, Ukrainian IT firms deal with strict industry-specific compliances such as HIPAA, PCI, and ISO certifications to confirm information security management.
Another reason to choose Ukraine is its geographical location – the center of Europe. Ukraine is 1-2 hours ahead of most European countries, which means seamless cooperation and timely communication. Furthermore, project management and alignment are simple due to the small time zone difference with the EU.
It’s a bit different for the US, though. The difference is 6+ hours. However, many Ukraine software outsourcing providers offer optimized collaboration plans and suitable work schedules. That’s why Biderator, FISK, Scriversi, and other Relevant’s clients from the US are satisfied with our cooperation.
The Ukrainian government realizes the importance of the IT industry, so it adjusts the legislation to promote its growth. For example, the authorities simplified taxation for IT-related independent contractors, who now pay only 5% of their income and a monthly unified social tax. So, employing Ukrainian developers is a powerful impetus for domestic and foreign organizations to explore partnership opportunities.
Simplified taxation and government encouragement for faster digitalization foster outsourcing in Ukraine and provide a favorable business environment for potential investors.
It’s safe to say Ukraine has an exceptional reputation in the global IT sector as a top software development outsourcing hub. Its world-class talent and budget-friendly rates attract the attention of IT leaders looking for reliable partners to build innovative products. Thousands of developers working on projects for IBM, Google, and Oracle is a good indicator of the quality of code and management. So, if you want to make the best investment for your business, hire a development team in Ukraine for your project.
Let’s be honest, saving money is the main reason for outsourcing for most organizations. And Ukraine is ideal in this regard. The outsourcing rates depend on several factors, including experience, programming skills, and technology use. Check our table below to get a brief idea of the hourly rates of Ukrainian IT specialists.
You can engage freelancers, but you may face developer engagement, legal documents, and security difficulties. Therefore, hiring an IT outsourcing services company is more beneficial, especially considering some other perks such as:
Relevant offers a few collaboration options to clients:
You’ll benefit from a dedicated team model when you have a large project or a lot of tasks that require specialized skills and imply long-term collaboration. If this is your case, a vendor will provide you with a development team that will operate as part of your in-house team on a specific project on a full-time basis.
This model is a perfect choice if you are:
The Dedicated Team collaboration model involves the following steps:
We recommend choosing a product development model if you want to build your own product that involves initial market research, business analysis, and full-cycle software development. So, this model will fit you if you:
The Product Development collaboration model involves the following steps:
Ukraine ranks among the best countries to outsource software development, and there are ample reasons for that. Regardless of what you prioritize when choosing an outsourcing location – whether it’s cost-efficiency, expertise, or convenience – there’s no doubt you’ll find it in Ukraine.
Having a partner who shares the same work ethic and first-class standards as you do guarantees ease in doing business together. Add to that an opportunity to enter new markets and a seamless collaboration experience, and we think the partnership with Relevant for IT outsourcing is worth a try. So, if you want to reap these benefits of IT outsourcing services, start working with us.