Software development outsourcing isn’t a new approach to creating innovations. When such a business decision is powered by a clear strategy and the outsourcing destination is chosen right, it can deliver a lot of business benefits while cutting costs, enhancing cultural diversity, and improving the quality of the final product.
Let us tell you more about the perfect location to outsource your IT tasks to. You guessed it right – we are talking about Ukraine, one of the top global outsourcing destinations, and here is why you are welcome to consider this country as well.
IT Outsourcing Services in Ukraine - 9 Reasons to Consider
Why outsource software development in Ukraine? Below are 9 essential reasons which together make a winning combination of ultimate business value, top-notch quality of the final product, and outsourcing as a service which comes at quite an affordable price.
1. Blooming IT Industry
Being one of the hottest outsourcing destinations globally, the Ukrainian IT industry continues to grow, evolve, and attract investments, even despite the coronavirus crisis, according to the Atlantic Council. Ukraine outsourcing IT sector shows stable growth since 2014, even despite the political disruptions some of which are still going on.
According to the Ukrainian National Bank, Ukrainian IT exports grew by 20.4% in 2020. In 2020, Ukrainian IT exports exceeded $5 billion for the first time, and all these positive trends are expected to evolve.
2. High-end Education and Strong Engineering Traditions
Ukraine is a country with the citizens’ literacy reaching 100%. It also has a very strong education system. This is the result of Ukraine’s belonging to the Soviet Union – the country which had equal access to education and other opportunities as one of the main priorities. The education system of the Soviet Union was one of the strongest and the most effective in the world, and such professions as a doctor, a teacher, and an engineer were considered the most prestigious ones.
To date, Ukraine still has a strong engineering tradition; there are a lot of prestigious universities which have quite affordable tuition programs and strong governmental support for the best students. Most Ukrainian IT professionals have high education, and they continue to level up their skills and master new technologies.
3. Geographical and Cultural Proximity
Ukraine is located at the very heart of Europe. Its geographical position is one more reason why more and more companies from Europe and the US choose Ukraine as their IT outsourcing destination.
The business owners from Europe find it pretty easy to get to the Ukrainian major IT hubs, such as Kyiv, Lviv, Dnipro, and Kharkiv, in case they would like to personally meet their dedicated team. The customers from the US appreciate the convenient time zones overlap which simplifies remote communication.
What’s more, outsourcing Ukraine developers can promise a perfect cultural fit since Ukrainian business ethics and values greatly overlap with European and American ones. Plus, Ukrainian developers’ experience in collaboration with foreign customers helps them understand their needs and the tech products’ target users better.
4. No Language Barrier
In addition to the fact that Ukrainian engineers are educated, experienced, and tech-savvy, there are also almost no mentality gaps and language barriers. Most IT professionals from Ukraine are English-proficient, and this is the result of strong technical education with an emphasis on foreign language learning and practical experience.
Knowledge of English is one more thing that makes Ukrainian developers so competitive in the global IT outsourcing market. The customers may expect clear, effective, and transparent communication not only with the Project Manager but also with the Team Lead, and each of the dedicated development team members. What’s more, the companies you can outsource development in Ukraine to, heavily focus and invest in their staff English proficiency leveling up.
According to statistics, Ukraine is among the top countries with great English skills and fluency.
5. Diverse Tech Talents Pool
The tech talent pool is quite diverse in Ukraine as well. According to different estimates, there are nearly 200,000 technical specialists in this country, which means that even highly specific projects will be able to fill their talent gaps and hand shortage if they consider Ukraine outsourcing development.
Ukrainian IT professionals are also skilled at using most of the modern technologies for web and mobile development, AI and ML programming, IoT, and other innovations.
It is also expected that the number of Ukrainian tech specialists will increase up to 23% by 2024 and the demand for their services will grow as well.
6. Top-Notch Opportunities for Startups from Different Industries
A lot of companies from different industries choose outsourcing software development in Ukraine since the tech expertise of Ukrainian programmers can cover the necessities, challenges, and specifics of their businesses.
What’s more, Ukraine is the motherhood of such globally known startups as Grammarly, GitLab, TripMyDream, and Petcube. A lot of mature companies, for example, Siemens, Skype, Samsung, Microsoft, and IBM have offices and R&D departments in Ukraine as well.
7. Still Affordable Cost to Hire Ukrainian Developers
Development outsourcing in Ukraine is quite a smart and cost-effective business decision since the cost to hire software developers in Ukraine is competitive from the financial and the quality of the final product standpoints.
While there are a lot of factors affecting the final price for your software development (for example, the specifics of your project, the used technologies and technical bottlenecks, the complexity of the design, and the level of hired specialists proficiency), if we compare the average developer salary in Ukraine with the one of a US-based programmer, there is a three times difference.
According to PayScale:
- An average software developer salary is $25,000 in Ukraine annually.
- An average software developer salary is $75,000 in the US annually.
Here is a more detailed outsourcing Ukraine developers cost breakdown.
8. Favorable Political Situation and Taxation Terms
The current political situation is now considered to be quite stable. Mostly, this is the result of the efforts of newly elected President V.Zelenskiy who considers innovation development and creating favorable conditions for attracting foreign investments one of the country’s priorities.
Recently, Ukraine has become the first country in the world where digital passports in smartphones are legalized and equalized to their paper originals. As for Ukraine’s outsource software development business climate, the foreign customers can work with Ukrainian IT companies and the developers sourced by them under the private entrepreneurship model which means simplified and transparent taxation procedures.
9. Globally Recognized IT Companies to Partner With
A lot of Ukrainian IT companies are recognized at the global level. 11 tech companies from Ukraine are ranked among 2020 Global Outsourcing 100. A lot of Ukrainian development vendors were also mentioned by Software 500, Gartner, and Inc 500, so if you want to hire software developers in Ukraine, this is also a chance to outsource your development process to globally recognized experts.
Still, the choice of the development vendor which will perfectly meet your requirements, business specifics, and expectations can be challenging. Let’s find out how to do it right.
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Discuss My ProjectTips to Choose Right Company in Ukraine
Here is how to get started with an effective software development outsourcing partnership in Ukraine.
Decide on Your Business Goal
Most Ukrainian companies are doing their best to diversify their services and perfectly tailor them to the business needs of their customers. Depending on your business goal, they may take on your project development from the stage of idea validation to product launch, strengthen your in-house development team with remote developers, testers, QA, business analysts, and designers, fill in specific talent gaps in the shortest possible time and/or offer their expertise in software development for specific industries or using highly specific technologies.
That is, to get started with outsourcing your tech tasks to Ukraine, the first thing you have to do is to define the particular service you want to get. It will help you to shortlist the companies and find the one with a perfect match potential.
Find Out Which Type of Contract Suits Your Project Best
Next, get back to your project specifics and find out which type of contract suits you best. This understanding will allow you to shorten the negotiation time. As you know, there are three types of contracts you can sign when outsourcing your software development tasks:
- Fixed price. This type of contract is suitable when the project development course is highly predictable, and the project itself will be created according to the Waterfall methodology.
- Time and material. This type of contract is a smart choice for less predictable small-to-medium projects. For example, it is often used for legacy systems modernization.
- Dedicated team. This is the most expensive type of software development outsourcing contract. It makes a perfect match with large-scale projects that will be created following Agile principles and expected to enter a highly competitive market environment.
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We Can Do ItLook For the Company with Experience in Your Niche
As the next step, you should look for companies that already have some projects developed in your niche. Doing this way, you will be able to save some time and money on explaining your business specifics and gathering software requirement specifications. You will also be able to reuse their experience and avoid possible bottlenecks.
Also, make sure to request and revise their portfolio to get the first impression of their development and design skills, and evaluate the level of businesses the company has worked with. If possible, download and test some of the apps created by them and read the users’ feedback.
Ask to Sign an NDA
The readiness to sign an NDA is a sign of a reliable software development vendor. Make sure to ask for this opportunity and actually sign in before sharing your project ideas or business data with a company you would like to hire. There is nothing offensive or personal in such a measure – on the contrary, you will be able to check the company for honesty and transparency before getting into a partnership with it.
Evaluate Your Impression
One more prerequisite for effective collaboration in the framework of IT outsourcing is staying on the same page with the company and the team sourced by it. Choose the company you are comfortable working and communicating with. When making the final choice, be guided by your first impression since in most cases, this is the right one.
Conclusion - Hire Ukrainian Developers in Binerals
Outsourcing your software development to Ukraine can be a value-driving decision with an opportunity for a long-term and fruitful collaboration. Given the reasons we’ve described above, Ukraine has great potential to offer you the dedicated development services you are looking for. Still, you have to choose the right company to partner with. It should be experienced in your niche, open to communication, honest and transparent, with the top-notch talents under their roof.
Binerals meet all these criteria. We would be happy to become your outsourcing partner in Ukraine and create the highest-end solution with great market potential and business value.
Get in touch with us to discuss your project!
