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.

Benefits of Outsourcing IT Projects to Ukraine

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. 

Ukraine: Top Destination for Software Development Outsourcing

If you’re initiating a new IT project, here are some convincing reasons to consider outsourcing to Ukraine. 

Recognition of Ukraine’s Tech Expertise Globally

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). 

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:

• 1st place in Science and Technology by The Good Country Index
• One of the top 30 countries for offshore development services seven years in a row by Gartner
• One of the top 50 digital nations by the Tholons Global Innovation Index
• One of the top 50 in the Global Services Location Index AT KEARNEY

Strong and Dynamic IT Community

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.    

High-class Education and English proficiency

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.  

Large IT Labor Pool

Accessibility to high-quality education inevitably results in a constantly growing, rich talent pool with a prediction to increase by 23% by 2024. However, it isn’t just extensive, it’s also diverse. You can find developers well-versed in popular and less-known programming languages, including JavaScript, C#, PHP, Python, Java, C++, and TypeScript. 

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:

• Less than 1 year – 14%
• 1-2 years – 26%
• 3-5 years – 30%
• 6-10 years – 17%
• More than 10 years – 13%

So, whatever expert you need to complete your project, be sure to find them easily by outsourcing software development to Ukraine. 

A Preferred Outsourcing Location of Multinational Corporations

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.

Hub for Innovation and the Origin of the World-Renowned Startups

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. 

Top Quality Solutions for Fair Money

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.

Data Protection and Information Security

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.  

Convenient Time Zone

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. 

Simplified Taxation System and Favorable Business Environment

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.  

Hiring Software Engineers in Ukraine

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. 

Take a Glance at Outsourcing Price

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.  

Role	Rate
Business analyst	$40-$63
Architect	$50-$77
Project manager	$45-$70
Junior engineer	$25-$42
Middle engineer	$35-$60
Senior engineer	$55-$90
Junior QA	$25-$42
Middle QA	$30-$49
Senior QA	$40-$63
UI/UX designer	$35-$56

Select the Right Vendor

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:

• Hassle-free hiring process
• Access to diverse skills and competencies
• Project management
• Quality control
• Easy team scaling

Check our detailed guide on how to select a software outsourcing vendor and ways to extend your software development team. 

Choose a Collaboration Model

Relevant offers a few collaboration options to clients:

Dedicated Team

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:

• Under short deadlines
• In need of scaling fast
• In need of managed IT professionals

The Dedicated Team collaboration model involves the following steps:

• Gathering Requirements: The initial stage of our process involves collecting the necessary requirements from you. Our team will attentively listen to your project description and desired workflow in order to compile a comprehensive list of your needs. This will enable us to select the most suitable specialists to meet your business goals.
• Assembling the Team: In case we have specialists suitable for your project, we will assign them to work on your project. However, if we don’t have the right match, we won’t rest until we find the ultimate talent for your project. Our recruitment team will go above and beyond to bring in the experts with the skills and creativity to release your project on time and within the budget.
• Talent Selection: Finding the perfect candidate for your project is our top priority, and we don’t take this task lightly. Our HR specialists will put each and every candidate through a rigorous selection process to find the best candidate for your project.
• Integrating the Team: We’ll make sure that integrating our team into your ongoing project is as smooth and painless as possible. Our team has experience collaborating with a variety of different projects and teams, so we know how to make sure everyone is on the same page.
• Result: You will be working with the specialists just like you do with your in-house team.

Product Development

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:   

• Don’t have an in-house tech team
• Want to develop your own product

The Product Development collaboration model involves the following steps:

• Investigation and Estimation: Upon gathering your requirements, we will conduct a thorough market analysis, ideate a proper solution, and estimate the time and budget for kickstarting the project as soon as possible.
• Planning: At this stage, we will define the product architecture and most suitable technology stack for this case. Then, we will build a detailed roadmap to clearly outline the current and future steps that help ensure we stay on schedule and hit the deadlines.
• Design and Development: The design part involves defining how the final product looks and feels. This is when the conceptualization of the software system takes place. We create the prototype design and then use it to build the whole product structure.
• Once the design is complete, our engineers will start developing your software using the defined technologies and architecture. We ensure that the code adheres to the software requirement specifications and your demands. At the same time, we keep in mind the user experience and user interface design to make the product easy to use.
• Quality Assurance: Since we’re very scrupulous about the quality of software products we build, our QA experts perform manual and automated system testing, functionality testing, user acceptance testing, and bug fixing to ensure the top quality of your final product. Thus, we get a stable product with minimal issues, which is ready for deployment.
• Deployment and Maintenance: Now, it’s time to launch your product. Our planning, development, and operation teams will work together to provide trouble-free and smooth deployment. Once it’s deployed, we will deliver regular updates to resolve any possible issues and set up continuous integration and delivery for improved deployment capacity.

Relevant Software – your reliable software development outsourcing partner

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.  

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