Top 6 Reasons Why Israel Outsources Software Development To Ukraine

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20 Feb 2018
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Sergey L.
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Israel is the country that can boast about a rich history and international business connections with many countries all over the world. And since software development is one the leading types of the business in the world, Israel has also companies that are engaged in this field. However, due to some strong reasons, Israeli entrepreneurs prefer order software development from countries abroad. And Ukraine became the most appropriate place to do it.

Read the article to find out the reasons why Ukraine is more beneficial for outsourcing the software development.

Why is Israel-Ukraine connection tight?

The active collaboration between these two countries has begun after the dissolution of USSR. For today, Israel and Ukraine are connected with more than 60 air flights per week, and annual commodity turnover between them is from $600 million to $1 billion, depending on a year. A few hundreds of thousands of Ukrainian people moved to Israel, and also many citizens of both countries visit each other for work reason in business trips.

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For last more than 20 years bilateral agreements in science, agriculture, customs policy and other fields were concluded. As a result, Ukraine and Israel have a successful and fruitful cooperation, and Israel is importing sunflower oil, dairy product, food for animals from Ukraine that helps Israel meet its needs in common products.

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Well, that is what concerns Israel-Ukraine relations in common. But apart from products importing and exporting, there is also one of the interesting and tight types of collaboration which is called software development. It is worth mentioning that in previous years and nowadays many qualified IT specialists move to Israel to work as programmers.

But now let's go deeply into benefits of development outsourcing to Ukraine and why Israel strives to cooperate with Ukraine in IT field.

Advantages of outsourcing to Ukraine

For a start, we should say that Israel seriously lacks specialists in math and other exact sciences, it is one of the reasons to outsource the development to such countries like Ukraine, Lithuania, Norway.

The Israeli government is developing its education field and makes educating process in exact sciences more efficient. It is necessary to teach young specialists and give them a good knowledge of math and physics since the country has high demand in engineers and IT specialists. But the lack of specialists is still high and the country has to look for professionals in these fields abroad, and Ukraine is on the first place in this list.

Advantages of outsourcing

Advantages Israel gets from outsourcing the development to Ukraine

No language barrier

The first problem any country may face when establishing relations with other country is a language barrier. To order a software development, it is necessary to elaborate every detail before the development starts, and misunderstanding can lead to the epic fail. But as for Ukraine, Israel has no such problem. Considering that Israel has a lot of Russian-speaking people, they can easily converse with Ukrainian specialists without any hurdles. Apart from it, more than 50% of Israeli citizens can speak English fluently, and the majority of Ukrainian IT specialists are good at English as well since Ukrainian companies work with foreign companies mostly and Ukrainian IT companies are teaching English to their employees. That is why language barrier is not an issue.

Ideal time zone

Countries from two different hemispheres have one common problem - time difference. It is rather difficult for them to communicate since one part should adapt to another part when Skype conferences and other meetings are held, otherwise the business will not be successful. At the same time, meeting in the late evening will not be effective and it will not bring a high result. But Israel and Ukraine have one time zone without even one hour difference. So it is one more contribution to the strong sides of Ukraine-Israel collaboration.

Time zone Israel-Ukraine

One time zone for Israel and Ukraine

Short distance

When you can get from one country to another for a couple of hours, you can safely say that the trip was not too long. The same is here - the flight from Tel-Aviv to Kiev, for example, takes only 3 hours. It doesn't mean that you will fly there and back again every day, but it is possible to have one personal business meeting per two weeks easily. In addition, business trips to both these countries don't require visas, so there is no need to spend a lot of time arranging a pile of documents to fly to Ukraine.

Familiar culture

As many Israeli people were born in post-Soviet countries and moved to Israel later, they get acquainted with our culture very well, and it facilitates good collaboration that is lasting for many years. Understanding the mentality of each other, countries can provide each other with good service, and software development area in Ukraine is not the exception to this rule.

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Lower costs

It is also one of the strongest reasons why Israel is outsourcing development to Ukraine. Our software developers can create high-quality web and mobile apps for a price lower than average in Europe. Hourly rate in Ukraine starts from $25, whereas the average hourly rate in Israel starts from $60. Not to mention Western European or North America rate starting from $100+. This is a real upside for all nearby countries to work with Ukraine, Israel is not the only one. Distance and time zone multiplied by low hour rate makes Ukraine the perfect arena for doing business.

Average salary

Average salary of developer in Ukraine and Israel (Source: Payscale)

High skills and experience

And the last but not the least great advantage is a high level of professionalism and good knowledge of software development technologies. Every year more than skilled 40 000 graduates with a technical degree are ready to work in IT field as well as in other technical fields.

Ukrainian developers strive to learn all latest technologies and tools to apply them in new software. Also, Israeli entrepreneurs can find masters of almost all programming languages in Ukraine that also becomes a good benefit for Israeli customers.

Israeli R&D offices in Ukraine

Here we would like to list some successful products that were created by famous Israeli companies in Ukraine. All these companies founded research & development offices in Ukraine.

PlayTech

This Israel-based company is engaged in online games for gambling. More than 6,000 specialists work that has offices in more than 12 countries and Ukraine is included in this list. Many projects were developed and being developed at the moment in Ukraine directly. Ukrainian office in Kiev has more than 400 employees.

Wix

I am sure you heard about this company at least once. Wix company has been founded in Tel-Aviv in 2006. Its large development kit that makes it possible for anybody to create their websites like construction set gained more than 90 million customers for today. Partially this project was developed in Ukraine, where now there are two R&D offices - in Kiev and Dnipro.

Playtika

The Israeli company is creating social casino games and outsource part of development to Ukraine and other countries. Ukrainian offices are located in Kiev, Dnipro, and Vinnitsya and up to 600 employees are working there.

Israeli R&D offices

Large Israeli R&D offices of software development companies

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As you see, there are objective reasons why Israel is outsourcing software development to Ukraine, and this tendency is likely to go on for many years, I am sure. Every year new Israeli companies choose Ukrainian programmers to cooperate with them in software development. Thus, you can also choose Ukraine as the place of origin of your future app. Our company is ready to assist you with it, just contact us and mind to Subscribe to our blog. See the button on the right side!

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