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Ukraine’s IT outsourcing industry continues to thrive as the rest of the world continues to grapple with the pandemic. The country’s IT export charted a 20.4% growth in 2020, indicating a growing demand for technical expertise from the Central Eastern European country.
If you’re embarking on a new IT project and are hoping to outsource, you’ll want to turn your attention to Ukraine for the following reasons.
The 2nd Largest IT Outsourcing Market In Central Eastern Europe
In 2019, Ukraine boasts 200,000 IT specialists in the professional workforce with 40% of them based in Kyiv while the rest are clustered in Kharkiv, Lviv, Dnipro, and Odesa.
58% of the IT talent pool are software developers while the remaining includes QA testers, managers, and other positions. Ukraine’s IT industry, which is worth $5 billion, is spearheaded by more than 4,000 IT companies.
Ukraine’s position as one of the leading IT outsourcing destinations is strengthened by the presence of multinational R&D hubs. Global companies like Google, Microsoft, and Apple have set up their respective R&D centers in the country.
Top-Notch Education and Impeccable Skill Sets
The importance of education is strongly imbued amongst Ukraine’s citizens. According to the latest World Bank data, Ukraine has a high literacy rate of 99.7%.
Ukraine’s reputation as a leading CEE IT outsourcing marketplace lies in its robust education system. As of 2020, the country has 619 higher education institutions across the country with approximately 1.5 million students enrolled.
Ukrainian universities are expected to bolster the number by 36,000 yearly, as the country tries to keep up with the growing demands of homegrown IT experts. 3 of Ukraine’s universities made it to the top 100 of QS University Rankings EECA 2019.
In 2015, Ukraine ranked in the top 10 for countries with the most engineering, manufacturing, and construction graduates in the World Economic Forum Human Capital Report.
Many Ukrainian developers are exposed to STEM-related education, where they are exposed to various industry-related disciplines. Learning is a life-long culture for the developers, where they continue to upskill throughout their careers.
Best Value/Cost Ratio
When you’re outsourcing, you’re looking for the best combination of value and cost. It needs to be comparatively cheaper than hiring local developers in your country without compromising on quality.
Again, Ukraine shines by providing one of the most affordable rates in the region with top-quality developers. Ukrainian developers typically charge between $35- $55 per hour, a fraction of US developers' billing of $100 - $180.
Outsourcing your IT projects to Ukraine is still cheaper than hiring developers from Western European countries. UK developers, for example, bill between $60-$100 per hour while their German counterpart charges $55-$85.
Even amongst Central-Eastern European nations, Ukraine is known to have one of the lowest pay scales for its developers.
Some would argue that it is possible to get cheaper rates by outsourcing to certain Asian countries. However, most would agree that the works of Ukrainian software engineers are on par with US developers or Central-Eastern European developers.
Western Culture Drives Ukrainian Tech Industry
Chances are, you’re residing in Western countries like the US, UK, Canada and Germany. You’re accustomed to the culture and norm of developers in your local areas. As such, you’ll find it comfortable working with Ukranian IT experts.
Unlike what most people thought, the Ukrainian tech industry isn’t as strict and rigid as it’s perceived. Through years, we’ve evolved and embraced a more open, flexible Western working culture.
Part of the reasons for the culture assimilation is that Ukraine has seen many Western entrepreneurs launch or expand their business in the country. Inadvertently, local IT developers tend to adopt how Western businesses work.
So, you can expect less formality and more open communication when dealing with IT outsourcing firms in Ukraine. As a product manager, I’ve always been receptive to feedback and opinions from our many clients.
Don’t be fooled by our flexible approach towards meetings and discussion though. Ukrainian developers in general are known to produce high-quality deliverables and with strict adherence to deadlines.
Strategic Geography and Time Zone
Besides cost and expertise, time zone and location are important aspects when outsourcing your IT projects. If the agency is situated half a planet away from your location, you’ll find it hard to make time for both parties to communicate.
Ukraine’s location is strategic to most Western countries. It’s 7-8 hours ahead of most regions in the US. US clients could still get hold of Ukrainian developers within the working hour. Western European clients are lagging 1-2 hours from Ukrainian time. The slight difference has very little impact when dealing with developers in Ukraine.
Sometimes, you’ll need a face-to-face meeting with your developers at a certain phase of the project. Ukraine’s strategic location in Europe means the developers can travel to your location within the shortest time frame.
Dynamic IT Community
Once deeply shrouded in Eastern values, Ukraine’s exposure to Western cultures over the decade has enriched the culture of its IT community. You can expect Ukrainian developers to be friendly and humble but never hesitate in sharing their thoughts on cost and expectations.
Generally, you’ll find software companies in Ukraine helmed by the younger generations. When you outsource to Ukraine, you’re tapping into a pool of diverse skill sets, experience, and positive working culture.
We have a solid reputation of being trustworthy in business and I guess that’s what makes our country a favorite outsourcing destination for many nationalities.
Preferred Outsourcing Destinations of Global Companies
Throughout the years, Ukraine has attracted global firms like Samsung and Boeing as the ideal hub for R&D activities. Regardless of size, companies across the world have found Ukraine’s thriving IT ecosystem a strategic platform to expand their businesses.
There’s no question of Ukraine’s standing as one of the leading outsourcing destinations in the world. Outsourcing Journal crowns Ukraine as the top outsourcing market in Eastern Europe. The IT sector contributed to 4% of Ukraine’s GDP in 2019 and the figure is expected to double in 2025.
Ukraine has continued to attract global companies in need of professional IT expertise. Dollar Shave Club, a popular US business selling razors, engaged our team in Ukraine for its mobile app development. Nomad Home, a Dubai-based real estate firm, has outsourced its web app development to Ukrainian developers.
Thriving Ecosystem For Startups
The abundance of the IT talent pool in Ukraine directly enriches its startup ecosystem. Numerous renowned startups have benefited from the IT resources that Ukraine has to offer. The vibrant startup landscape has attracted interest and investment from VCs and angel investors.
One of the notable startups born from Ukraine soil is Grammarly. Launched in 2009 as an online grammar checker, Grammarly is now worth more than $1 billion. Joining its rank is another recognizable name, Gitlab. Gitlab attracts investments from the likes of Goldman Sachs and Y Combinator and is now valued at $6 billion.
IT outsourcing in Ukraine - How Does It Work?
Ukraine not only established itself as the preferred IT outsourcing destination in Central Eastern Europe but does so by offering flexible collaboration options to clients. IT companies in Ukraine tend to work with clients on a few collaboration models.
You can hire Ukrainian IT developers on a project basis, where you pay for the time and material involved. Or you can opt for the dedicated team model, where you’ll have a team of IT developers exclusively working on your project. Of course, you’ll need to pay for the monthly salary of the developers for as long as they are contracted to you.
Regardless of the collaboration model, you’ll be assured of professionalism throughout the project. Ukrainian developers are adept in software development best practices, including working in Agile sprints that lead to better deliverables and user satisfaction.
Outsourcing rates in Ukraine - How Affordable Is It?
If you’ve never hired Ukrainian developers, it’s natural to be skeptical about how affordable it is. The truth is, the outsourcing rates in Ukraine are very competitive compared to other countries in the region. It costs an average of $45 per hour to hire an IT developer in Ukraine.
Comparatively, it would cost you twice or more if you’re outsourcing to developed Western countries like the US or UK. Despite the low outsourcing rate, you’ll be working with some of the best IT talents in the world.
Why Uptech Is The Best Outsourcing Partner In Ukraine
For years, Uptech has worked with clients in different regions, particularly early-stage startups, and delivered innovative IT solutions to them. We have a proven set of product development strategies, principles, and approaches that have brought success to our clients.
Some notable apps that we’ve built are Yaza, Nomad, and Sprent, which we’ve built to our client’s satisfaction. Besides being a great IT partner, Uptech has the honor of bagging prestigious awards like the Top App Developer and The Best Software Dev Partner in Ukraine.
Whether you need a mobile developer or expertise in backend development, our team has it all. We are a team of skilled IT experts specializing in various software disciplines. At the same time, we also understand the business part of the project and ensure your product fits the target audience.
Time and again, we continue to surprise our clients by exceeding their expectations on the delivery timeline and product quality. We understand that your success greatly reflects on our capability.
Companies of all sizes have chosen Ukraine as their preferred IT outsourcing destination. Whether it’s cost, expertise, or convenience, there’s no doubt that Ukraine is the most strategic choice amongst other nations.
Uptech is the trusted IT outsourcing partner of many global clients. We’re ready to turn your ideas into successful apps.