Why Outsource to Ukraine: Why Consider It and How to Nail It
Updated 17 Oct 2022
Outsourcing may be a perfect option if you plan to save money and get high-quality web development services. The only thing you need is to choose the country. Ukraine is the one where outsourcing services are provided on a high level, and we will explain to you why. This article will describe all the benefits, reasons to outsource to Ukraine, well-known projects, and steps to start your software development outsourcing. Let's go!
Why Ukrainian IT Industry is a Perfect Arena for Outsourcing
First, it is worth noting that Ukraine provides other countries with a range of professional services concerning software development and related issues. This section will show you clearly how the Ukrainian IT industry is developing and how it can be helpful for you. To start IT outsourcing, Ukraine is a perfect place to do it.
Regions that outsource to Ukraine predominantly
IT Ukraine Association states that outsourcing to Ukraine is a fastly progressive and promising niche which guarantees success to businesses. To illustrate, the Ukrainian IT industry has increased by 27% within 4 years and has more than 185,000 tech-savvy experts, the number of which is forecasted to double by 2025. These figures speak for themselves, and it means that Ukrainian specialists have high development skills (more details are below).
Tech education in Ukraine
The majority of IT specialists in Ukraine have technical degrees in science, technology, math, and engineering areas. There are more than 400 universities in the country, and over 40,000 tech students graduate every year. Moreover, there are also IT specialists who work as developers, but they don't have a specialized degree since they got IT skills with the help of self-education.
In-house or outsourcing - which practice is better? Read In-House vs. Outsourcing: Which Software Development Practice to Follow
The vast number of skilled professionals means that by outsourcing IT to Ukraine you will receive excellent services at an affordable hourly rate (which is $35-50 in Ukraine). Besides that, all advanced technologies will be used to develop your software. You may observe the average hourly rates of Ukrainian experts below:
- Junior: $19- 25
- Middle: $26- 38
- Senior: $39- 60
UI/UX designers: $50- 99
- Junior: $43- 50
- Senior: $63- 70
Quality Assurance engineers: $26- 36
Here are average development hourly rates in several countries for comparison:
- North America: $100- 150
- Western Europe: $60- 90
- Eastern Europe: $35- 55
- Canada: $80- 120
- Australia: $70- 110
Skills of Ukrainian IT Specialists
Ukrainian developers may boast about the knowledge of a large number of programming languages, including even the most complicated ones, which require a lot of time and experience to learn.
Not only do Ukrainian developers continuously learn something new, but IT specialists in Ukraine focus on their experience level, and they strive to improve it. They always visit conferences and various training programs to learn more and get new skills. It helps them keep an eye on things and stay tuned. IT outsourcing Ukraine experts build software for all breakthrough sectors like Artificial Intelligence, blockchain, the Internet of Things, etc.
Below you may find the list of a few of the most widely-used programming languages Ukrainian developers often work with:
Besides, Ukraine has other competent and experienced specialists worth mentioning.
Other IT experts from Ukraine to Hire
In Ukraine you can also find a wide range of other high-qualified specialists who play a vital part in the project development process:
- Project managers
- Business analysts
- Solutions architects
- Data engineers, etc.
As a result, a full spectrum of essential specialists offered by Ukrainian outsourcing companies will develop a turnkey product efficiently and qualitatively since you don’t have to hire any other specialists additionally. The team will be completed and proceed to work as quickly as possible.
By the way, Ukraine ranked 1st position by Outsourcing Journal in the list of IT service outsourcing providers in Central & Eastern Europe. According to statistics, Ukraine’s GDP has grew by 3,8% in 2021. Forecasts state that in 2022 we will see Ukraine’s GDP increase by over 4%, which will scale the business. Besides, 21 software development companies from Ukraine were included in the Global Top-100 Best IT Services Providers by The International Association of Outsourcing Professionals (IAOP) 2020, according to the Global Outsourcing 100 review. We may see the visible difference between 13 companies in 2017.
Thus, you may find any specialist in Ukraine for your project, even if this project is complicated and requires the use of many tools and technologies.
Apart from software development processes, you will also get a full range of services like UI/UX design, Quality Assurance, DevOps, marketing services. That is, you may request the development on a turnkey basis in Ukraine. At the moment, there are about mid-sized 5 thousand software development companies with a staff number that doesn’t exceed more than 100 employees.
Benefits of IT Outsourcing to Ukraine
Now let’s review the main advantages of software development outsourcing IT to Ukraine in detail. And you will see how many good options you may get during the outsourcing process.
Benefits of software development outsourcing to Ukraine
Well-developed IT market
As mentioned above, outsourcing to Ukraine keeps gaining popularity and has climbed up to the top in the list of top outsourcers. It speaks about the Ukrainian IT market’s experience and maturity, which has increased by 20% from 2020, and is valued at over $6 billion in 2021. In Ukraine, outsourcing companies of various sizes offer high-quality services and multiple developers who are experienced in many IT technologies and may handle tasks easily.
Low hourly rates
The less you pay for your app development, the better it is for you, of course. So entrepreneurs are looking for more appealing prices, but price should be combined with quality. That is where Ukraine comes to rescue. An average software development hourly rate in Ukraine is $25-50, which is $1,400-3,300 monthly. Eastern European countries provide very good rates keeping a top-notch quality level.
Another reason why outsource to Ukraine is a similar mentality with any other European country. If you are nervous about some discrepancies in culture and business approach, then your fears are groundless. The Ukrainian style of doing business is not different from the one in the USA or the rest of Europe. So you can start collaborating with Ukraine without any concerns.
Ukraine is an excellent arena for outsourcing if you live within the framework of Europe, the Middle East, and other nearby regions as it is only one hour ahead. Depending on your location, the time difference usually doesn’t exceed two hours. It is very convenient to cooperate with the development company, hold meetings and Skype conferences without the necessity to work at night when it is daytime in Ukraine.
Visa free country
Ukraine invites entrepreneurs from all over the world. That is why the country opens its doors to more than 50 countries. If you plan to visit the country for a 90 days-term, a visa is not required. So you can quickly fly to Ukraine and visit the company you plan to outsource the development to, to know everyone better and discuss all the details.
Non-disclosure agreements are signed
Your idea is appreciated, and IT outsourcing in Ukraine keeps up strictly with property rights. And to protect your idea from being stolen and copied, NDA (non-disclosure agreements) are signed from the very beginning, so the information about your project will not be handed over to a third party.
High level of spoken and written English
All software development companies that are outsourcing IT Ukraine providers pay great attention to English language skills. They hire an English teacher for their employees to improve their written and oral English skills and communicate with customers efficiently. Therefore, communication won’t be a problem for you. For example, at Cleveroad, all project managers along with software development specialists speak English fluently. It is a must-have skill. Well, I think these advantages are enough to help you make the right decision concerning Ukraine outsourcing.
Ukrainian development companies have brand-new equipment. Stable, secure Internet connection and modern infrastructures are a must for a product building. Thus, all the necessary technologies are available for creating digital products, and provide top-quality software engineering. Thanks to high-level communication, you won’t even feel the distance between you and your team.
Enhanced soft skills
The high performance of Ukrainian specialists is conditioned by their perfect soft skills. They are open-minded and creative experts, who will give efficient suggestions on your project. Problem-solving approach, deadlines meeting with the help of time management, productive communication with clients and teammates allow experts to build unique, qualitative products.
Well, I think these advantages are enough to help you make the right decision concerning Ukraine outsourcing.
Reasons to outsource web development: what, why, where
Influential projects built by Ukrainian development companies
Apart from a high skill level of IT specialists, Ukraine also has something more to boast about. Some projects became famous, and they are used in many other countries successfully. Here I will review a few of them.
Ukrainian projects that surprised the world
Grammarly. This is an online service that makes it possible to check grammatical and syntactical mistakes. Also, it checks the text for similar words and offers to enrich it with more synonyms. And you can use it to find plagiarism in your text. Grammarly uses machine learning to improve editing and checking quality. The project was created by two Ukrainian developers Alexey Shevchenko and Maxim Litvin, in 2009, and it is being improved to date.
Terrasoft. A company that creates CRM, BPM, and Service Desk systems. Also, the company is engaged in IT consulting services and implements projects on how to launch CRM strategies and automate enterprises. Alexander Popov developed the first version of Terrasoft CRM in 2001. The company has offices in 6 countries.
Depositphotos. An international photobank and one of the leading platforms for sales and purchase of photos. It includes more than 75 million photos, customers from 192 countries use it, and online support is available 24/7 in 20 languages. Ukrainian entrepreneur Dmitry Sergeev created it in 2009. To post your photos, you need to pass the exam loading the required photos, and submit your ID.
Attendify. A progressive cross-platform application that allows establishing communication among private communities. The functionality comprises event management, implemented chat, reminders, schedules, and so much more. Currently, it has 15.5K Reviews on AppStore and 4.8 out of 5 ratings. What’s more, the total amount of fundings is now $2.1 M.
Competera. It is a platform allowing retailers to optimize and control prices and their formation. In addition, it tracks the prices of competitors. Such a solution is helpful for various business fields, such as clothing, cosmetics, and household goods. The Competera founded by Alexander Galkin helps retailers from 23 countries and has received $2.8 M of fundings in total.
Well, this list is not full, and there are more projects made by Ukrainian developers. However, we wanted to cover the most popular ones and show that in Ukraine IT outsourcing is mature and full-grown.
Steps to Start IT Outsourcing to Ukraine
If you plan to outsource to Ukraine, you should undertake a few steps to organize this process wisely. Check them right now.
Steps to start software development outsourcing
Define the goals and objectives of your project
The key to a successful project is thoughtful research. So, before proceeding directly to the development flow you should conduct market analysis and explore the benefits and drawbacks of your competitors. What is more, you should also define your target audience, find out their pains and needs in detail to provide them with relevant successful software solutions. The great idea is to apply to IT consulting services to make the final product meet both your requirements and satisfy consumers' needs.
Choose a reliable service provider
First, you should find a company that will help you create your software. To find a reliable company, you can check such trustworthy services as Clutch or Goodfirms. They make it possible to filter companies by their age, the number of reviews, the country, and so on. Thus, you will be able to find a company that meets your requirements and expectations.
Check the portfolio
What is the company you chose known of? What projects did it create? You should review the company’s portfolio, find out what types of projects the company was involved in, their complexity, and other factors you may be interested in. But don’t hesitate to ask the company’s managers about other projects they have created since the portfolio usually doesn’t include the whole scope of software that was developed. Many projects are created for internal use, and the development company has no right to disclose any data about them.
Communicate and arrange the meeting
You should always hold a detailed meeting with the company’s managers to discuss each nuance and detail. Also, it would be better for you to know the development team, check their soft skills because you work with humans, not with machines. And hard skills are not everything you need. So personal qualities are also important. Ask questions, feel free to know everything about IT, service providers. For example, requirements managers at Cleveroad always strive to earn the trust of customers first.
Pick your outsourcing model
And finally, you need to choose the pricing model that will be more appropriate for you. There are three main models, as follows:
This model is viral. It means you and the company approve the budget before the development starts, and it will remain unchanged until the end of the development process. The executor bears all risks for deadline violation.
Time and material
You pay for the hours spent on the development process. You discuss with project managers all approximate estimations to understand how much time the development may take. The process is divided into sprints, and you pay for staff hours and the working process, not for the result. This model gives you maximum flexibility.
You hire the whole team for your project that will be engaged in the development of your project only. You communicate with a team, set tasks, and so on - they are all at your disposal. It is a good option if you plan long-term cooperation and project requirements are unstable and can be changed often.
Thus, if you follow these steps, you will be able to organize efficient cooperation with IT outsourcing Ukraine, and your project will be created according to your vision and instruction.
The difference in IT outsourcing pricing models - learn more
Outsourcing services at Cleveroad
Cleveroad IT outsourcing services have a solid ground due to the experience of the company. Cleveroad has been working in the IT outsourcing market for more than 10+ years, so our company knows how everything works, what services customers want to get first, and so on. The partnership with Cleveroad is highly beneficial due to the following reasons:
- Cleveroad offers flexible cooperation models which may be adapted to every clients’ requirements
- Our services comprise full-cycle software development, which allows establishing long-term profitable partnership conditions
- We have a full development team incorporating top-notch specialists who will eagerly bring your ideas into reality
- Our company provides IT consulting to choose the best possible solutions for your project
- Our expertise includes a wide range of industries and fields, for example, healthcare, retail, or travel.
To know more, don’t hesitate to contact our managers and explain to them what you need. We will help you pick the right model for your project, provide with estimations, and other relevant services. Feel free to surf our website, check our services, portfolio, and exciting articles. Just follow the right road!
Businesses choose to outsource to Ukraine for a number of reasons. Some of them are:
- High level of tech education
- High English level
- Low hourly rates
- Large talent pool
- Constant accessibility
- Perfect soft skills
Companies outsource to Ukraine for economic reasons. Ukrainian developers provide quality services for a reasonable price. Besides, Ukrainian software vendors are known for their reliability and customer service. In Ukraine, your idea is appreciated, and companies protect it from being stolen with NDAs (non-disclosure agreements).
To find a reliable company, you can check such trustworthy services as Clutch or Goodfirms. They make it possible to filter companies by their age, the number of reviews, the country, and so on. Thus, you will be able to find a company that meets your requirements and expectations.
Then, you should review the company’s portfolio, find out what types of projects the company was involved in, their complexity, and other factors you may be interested in.
As one of the most popular countries in this niche, Ukraine outsourcing IT has no significant disadvantages in the IT outsourcing sector. Business partners from abroad trust Ukrainian vendors for a reason. However, the only disadvantage is that the Ukrainian time zone may be less convenient for clients from the US. However, they won't notice the difference because vendors' project managers will keep in touch with the client at any time.
The greatest advantage of software outsourcing to Ukraine for EU and UK-based companies is the minor time-zone difference. Ukraine has a difference of 1-2 hours with all European countries. That's why it's easy to communicate with project managers and make physical visits to Ukraine.
US companies get the same product quality as if they've hired an in-house team. However, Ukrainian developers charge almost four times less than US developers. The price difference inspires companies to hire outsourced development teams.
As funny as it is, the main reason why companies are afraid of outsourcing to Ukraine is low hourly rates. Businesses compare developers' rates in their regions and consider Ukrainian rates too low and suspicious. However, the rates are formed according to the cost of living in the country. Besides, thousands of clients cooperated with Ukrainian software development companies and got quality software for a reasonable price. So, there's nothing to be afraid of.
Evgeniy Altynpara is a CTO and member of the Forbes Councils’ community of tech professionals. He is an expert in software development and technological entrepreneurship and has 10+years of experience in digital transformation consulting in Healthcare, FinTech, Supply Chain and Logistics
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