As the costs for software developers continue growing in the EU, the Eastern European country has become a hub for outsourced IT labor. An article on Forbes Technology Council labeled it also as the “best-kept secret in California’s startup scene.” To entities outsourcing their software development Ukraine offers at least five advantages:
1. Labor cost reduction
Instead of employing full-time staff who are on the payroll even when their services are not required, outsourcing allows to cut down or ramp up on staff quickly in response to business changes. Ukraine offers outsourcing companies an average software development rate of $25–50 per hour. That’s more competitive than in the neighboring countries, to say nothing of Western Europe and North America. The clients further save on office space, hardware and equipment, employee onboarding costs, etc.
2. Rich selection of IT talent
Outsourcing also improves the speed of development and the resulting product quality because companies can tap into the global knowledge base and access capabilities not available locally. They are free to choose among thousands of teams based on the skill set, price, etc.
Ukraine’s programmers rank 6th according to Programmers Activity by TopCoder Report 2018.
3. Access to experience & latest technology
Employing Ukrainian teams and programmers means instant access to the latest development tools, frameworks, and refined workflows. Ukraine is among ten Eastern European countries that made it to Bloomberg Innovation Index 2018. The fact that nearly half of the country’s developers work for outsourcers and IT is the third-largest export also speaks for itself.
The specialists not only accumulate experience from various business cases and successful projects. To remain competitive, local outsourcing vendors have to stay on the cutting edge of technology. They network with and bring over foreign subject matter experts for continuing education of the employees. 60% of Ukrainian developers regularly attend specialized events in order to pick up on the industry’s best practices and be up to date with the hottest topics like AI, VR/AR/MR, big data, blockchain, IoT, etc.
4. Professional service providers
Outsourcing vendors are expected to understand and respect the clients’ needs and to add value to the projects. Remote teams do most of the management work for day-to-day tasks, tracking progress, updates on the project’s progress and budget, and so on. A Managed Services Provider can audit an existing IT infrastructure and processes, optimize the systems, etc., and must ensure the security and integrity of the processed data. For their clients, it means that the outsourcing partner handles all the regulatory compliance issues and risks.
There are 1,000+ IT companies in Ukraine that offer every kind of web and mobile development services. According to a report by DOU.ua, the IT outsourcing market is growing by ~30% annually. But it’s not just about the quantity: in January 2019, six Ukrainian entities made it to the Top 50 IT Outsourcing Companies list by TheManifest.
5. Safe and comfortable cooperation
80% of Ukrainian IT employees speak English fluently or on the Upper Intermediate level. There are virtually no cultural barriers between them and the clients either. The work ethics is similar to that of businesses in the U.S. and EU. The developers are highly motivated, flexible, and don’t mind working extra hours or on holidays when needed. (There are actually fewer holidays than in the neighboring countries, much less in the more culturally diverse Asia.)
Being an hour ahead, Ukraine-based teams easily collaborate with their European partners. The 7-hour time (EST) difference with American clients means the tasks are usually done overnight. The shared working hours are also more convenient as compared to the popular India or the Philippines.
When it comes to outsourcing software development, Ukraine has a lot to offer for international giants and startups alike, starting with
1. the cost of ~$3,000/month per developer, which allows US-based companies to save up to 70% of the software development budget;
2. 150,000+ IT specialists to choose from;
3. high quality of the workforce and expertise in various technologies;
4. easy communication and smooth cooperation;
5. competent, trustworthy, and reliable outsourcing partners.