Why Outsource Custom Software Development to Ukraine? [7 Reasons]

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02 Feb 2020
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8 min
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Maria D.
Copywriter

Outsourcing software development to Ukraine is quite a popular idea.

Here’s what statistics says:

  • Statista names Ukraine one of the leading countries in offshore business services;
  • State of European Tech reports that Ukrainian tech raised $21M investments in 2019;
  • 20% world's leading tech companies have offices in Ukraine.

Why do they choose Ukraine? Pretty simple: Ukrainians have decent business and tech skills, there’s a large pool of programmers and relatively low prices.

But that’s not all.

I’ve gathered seven reasons why custom software development in Ukraine is worth the effort. Let’s check them out.

Reason #1. IT Education

Ukraine’s software industry starts with education.

There are 208 universities in Ukraine that educate students of IT-related fields. Each year, 20,000+ bachelors graduate from top Ukrainian universities with Computer and Information Technology degree.

What’s more, software development companies in Ukraine also play a big part in educating students. They hold traineeship activities, give lectures, offer mentorship programs, and many more.

Best students get offers from IT firms and become full-time programmers, QA testers, or UI/UX designers.

For those who don’t like traditional education, there’s a large pool of IT courses. In Kyiv (the capital city) alone there are 120+ programming courses, 26 that teach QA testing, 63 – UI/UX design.

When it comes to the latest tech trends, local IT clusters do a lot too. They launch edu programs at the top tech universities and introduce new disciplines like Big Data, machine learning, IoT, and AI.

More than 20 Ukrainian cities have their own IT clusters and actively develop them. The largest – Kyiv IT Cluster, Lviv IT Cluster, and Kharkiv IT Cluster.

IT education in Ukraine

Tech education for developers in Ukraine

IT committees at the American Chamber of Commerce (ACC) and the European Business Association (EBA) also play an active role in supporting IT education. With these organizations, Ukrainians lobby for the interests of their IT community, train newcomers, and support startups.

Reason #2. 192,100+ Talents

In 2018, 184,700 IT specialists lived and worked in Ukraine. In 2019, this number rose to 192,100,

It’s a phenomenon: in just one year, the IT talent pool across Ukraine grew by 7,400.

Today, it’s the third largest pool in Eastern Europe, giving way to only to Russia and Poland. And this number is constantly growing – by 2025, it is expected to reach 242,000.

Number of IT specialists, Ukraine

Ukraine software industry: number of IT experts by cities

According to the latest research, 17,8% of Ukrainian programmers write in Java. JavaScript goes hand in hand with it; it’s used by 17,7% of developers. The third place with 14% goes to C#.

Other popular programming languages include PHP, Python, C++, Swift, Ruby, and Kotlin.

Popular programming languages in Ukraine

Top 10 programming languages Ukraine developers use

What about their skills? Also good – SkillValue places Ukraine on the 20th position in the list of world's countries with the best programmers.

Reason #3. 1,110+ All-Size IT Companies

According to Clutch, there are 1,110 firms that provide web development services. 799 IT firms have expertise in building mobile apps.

It’s a large pool of Ukraine software outsourcing firms of any size – from small teams with ten members to companies with 7500+ employees.

?

Picking an offshore partner? Learn the steps, dos, and don’ts in our ‘ How to Сhoose a Software Development Company For Outsourcing?’ guide.

Ukrainian IT companies are actively growing in numbers, increasing their staff and opening offices in new locations. The most popular cities – Kyiv, Dnipro, Lviv, Kharkiv, and Odesa.

The startup community is also active in these cities. Plus, the government announced a $15,6m fund to invest in startups.

That’s a huge boost, still, the majority of Ukrainian developers (60%) works in IT outsourcing companies. Their main clients are the USA, Canada, UK, Germany, France, and the rest of Europe.

Often, software development companies in Ukraine that work for Western clients grow into fully-fledged R&D centers.

Microsoft, Oracle, Skype, IBM, and Snapchat – they all have R&D centers in Ukraine and actively collaborate with local developers.

Famous companies with offices in Ukraine

Companies that outsource development services to Ukraine

As I’ve said, Ukraine is a good destination if you’re working with brand-new technologies – AI, ML, data science, and others.

For instance, 57 Ukrainian IT companies work with Artificial Intelligence. Only Poland (110) and Russia (133) have more companies with expertise in these fields.

Another great thing is that if you pick software development outsourcing to Ukraine, you have access to a bunch of services. Not just programming but UI/UX design services, iOS and Android development, QA testing.

Reason #4. Hackathons and Other Events

Ukrainian developers love networking, sharing experience, and picking up the best industry practices.

That's why 60% of devs go to specialized IT events – hackathons, meetups, and conferences.

Every year, the Ukrainian IT community holds 1,000+ events about technology, startups, and investments. In Kyiv, it’s IForum, IT Talk Kyiv, IDCEE, Outsource People Kyiv; in Lviv – IT Arena and GDG DevFest.

Other popular IT events:

  • Dev Challenge 12
  • Agile EE Conference
  • iForum
  • JEEConf
  • Mobile Beach Conference
  • IT Weekend Ukraine

The biggest events gather over 7,000 attendees and speakers that work in Skype, SAP, Dell, and IBM.

Reason #5. Soft Skills

Here’s the truth: customers are not always looking for people that can just write code. More often, they look for the people who can solve their business problems.

Ukrainian developers aren’t just performers. They think from the client’s perspective. They make suggestions; they get involved.

And they’re often interested in the project's success just as their clients are.

If there’s any problem with your product, Ukraine developers will warn you in advance. That’s not because your team has no idea what you’re talking about. But to define all the sides of the future project and find the best approach to it.

Thus, software development in Ukraine doesn't differ much from Western Europe or the USA. After all, Ukraine is a Western-orientated country, especially when it comes to software engineering.

Reason #6. Affordable Rates, Low Taxes

Skills do matter, but sometimes it’s the cost that decides. Custom software development in Ukraine works great in terms of price and quality.

?

How much does your app cost? Figure out the price with our in-depth ‘ How Much Does It Cost to Make an App’ guide.

Let’s see why.

First, in Ukraine, outsourcing rates don’t exceed $25 - $49 per hour. And here are the software dev costs in other popular outsourcing regions.

Software development rates worldwide

How much software development costs in different regions

A more precise price comparison in different countries:

Software dev hourly rates (Source: Clutch)
Country Cost per hour, $

Austria

$50 - $99

Belgium

$50 - $99

Canada

$100 - $149

Denmark

$50 - $99

UK

$50 - $99

Estonia

$25 - $49

Finland

$100 - $149

Germany

$50 - $99

Israel

$100 - $149

Italy

$50 - $99

Latvia

$50 - $99

Luxembourg

$49 - $80

Netherlands

$50 - $99

Norway

$50 - $99

Portugal

$100 - $149

Spain

$25 - $49

Sweden

$100 - $149

Switzerland

$50 - $99

United States

$100 - $149

Second, the average monthly salary isn’t that high in Ukraine. Developers get $2000+ (middle-level programmers) per month; senior engineers – $3500+.

Devs’ salaries in Ukraine, by programming languages (Source: Dou.ua)
Language Junior Middle Senior

Java

$770

$2200

$3800

JavaScript

$650

$2000

$3775

C#/.NET

$800

$2000

$3500

PHP

$650

$1800

$3500

Python

$700

$2000

$3950

C++

$900

$2150

$3750

Swift

$600

$2200

$3700

Ruby

$800

$2300

$4000

Kotlin

$620

$2000

$3500

Right now, these salaries are quite compatible, compared to European companies. But they’re still high compared to other salaries in Ukraine.

What about the taxes?

For IT-related companies, they’re quite low. Ukrainian legislation allows IT firms to work with self-employed specialists. They only pay 5% of the total income and a unified monthly tax (22% of the minimum wage – ₴1040 or $40).

Reason #7. Visa-Free Country

Most likely, you’d want to meet the team in person. To discuss the terms, to get acquainted with the people and see how they work.

!

Want to know how Cleveroad devs work? We’re describing the process in the ‘ Steps To Build A First-Rate App At Cleveroad’ article.

If you’re outsourcing software development to Ukraine, visiting your team is no longer an issue.

Ukraine International Airlines offer regular flights from the world's top tech hubs – London, Berlin, Amsterdam, and many more – to Kyiv, the capital city.

Ukraine is generally visa-free for visiting, and the travel prices aren’t too high.

Here are the flight costs to Kyiv (one-way ticket):

  • Paris, France – from ₴5,742 – $230
  • London, UK – ₴6,104 – $244
  • Berlin, Germany – ₴3,329 – $133
  • Amsterdam, Netherlands – ₴5,077 – $203
  • San Jose, CA – ₴18,679 – $746
  • Washington, DC – ₴15,749 – $629
  • Seattle, WA – ₴18,679 – $746
Flights from biggest tech hubs

UIA and other carriers offer regular flights to Ukraine

And if you want to invite devs to your office, it won’t take long for them to come. Visiting EU countries is twice as easy for Ukrainians – since 2017, they take advantage of a visa-free travel regime.

Why Outsource to Cleveroad

Cleveroad is a Ukraine-based outsourcing company that provides software development services for 5+ years. We build web, desktop, and mobile solutions, offer UI/UX design and QA testing services.

We’ve been working with clients from the USA, France, Denmark, the UK, Switzerland, Sweden, and many other countries.

What do they say about our cooperation? Check our Clutch and GoodFirms profile for verified clients’ reviews!

Our developers deliver products of any scale and complexity. From video-on-demand apps like Blockbuster to SaaS retail solutions like RetailOps.

Want to see our projects? Take a look at the portfolio!

Blockbuster and RetailOps mobile design

Blockbuster and RetailOps apps built by Cleveroad

Looking for a tech partner?
We're here to help! Describe your business idea, and we’ll get back to you in less than 24 hours.

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