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Top Reasons for Software Outsourcing to Ukraine

Conveniently located in Eastern Europe, Ukraine has become an extremely attractive place for IT and software development. And software outsourcing to Ukraine comes with many benefits such as access to a large pool of Highly Qualified and committed programmers, that easily integrate into your teams, cost savings while bringing products to market fast.

Read these top reasons to outsource to Ukraine gathered from our 15 years of experience in offering offshore software development services to clients in Israel, the USA and Western Europe.

The rapid expansion of Ukraine’s IT industry

During the last five years, the Ukrainian IT industry is on a constant rise with the growth rate of 20% year-to-year. It is one of the rapidly growing segments of the Ukrainian economy. The export revenues of the Ukrainian software development sector have reached $4 billion in 2018 according to the “Tech Ecosystem Guide to Ukraine” factbook. Ukraine’s tech sector took the second position among the largest export of services industry.

Ukraine is ranked the 1st Offshoring Destination by Global Sourcing Association in 2017 and the 1st outsourcing market by Outsourcing Journal.

Today, Ukraine is the highest populated country in Eastern Europe with its 45 mln people. The country has a valuable human capital of smart and ambitious individuals among 24,5 mln of the employable population.

More than 100 of Fortune 500 global tech firms such as Samsung, Oracle, Siemens, Aricent, Sitecore conduct their research and development activities in Ukraine making a wise decision to outsource programming needs to the country.

Highly Qualified Workforce

A significant factor that has established Ukraine’s top positions in offshore software product development is the country’s large talent pool of tech professionals. Currently, the country is home for over 185.000 qualified software developers and its number is expected to double by 2020. Three Ukrainian cities – Kyiv, Kharkiv, and Lviv – remain the largest number of software developers in Ukraine.

Over 83% of tech specialists have completed higher education at a university, among them, 56% focused their studies on either programming or specific sciences.

There are 150 Universities graduating tech talent across all regions of Ukraine. Annually, the country has about 23.000 engineering graduates. In comparison with other countries, Ukraine scores on 5th place on its Higher education and training according to The Global Competitiveness Report 2017–2018. Historically, Ukraine has a strong background in Engineering, Math, Science and IT. In 2018, Ukraine was ranked 4th in International Math Olympiad and has remained in the top 30 countries worldwide in the past 10 years.

When it comes to efficient communication, the level of English proficiency among tech professionals has grown significantly.

Expertise Level

The software developers in Ukraine are highly competent and skilled in a variety of technologies and methodologies. Ukraine ranks first in the number of C++ developers, also the country occupies the second place in JavaScript, Magento, Scala, the third – in PHP, Node.js, Ruby, and Python, and has excellent resources for front-end development, UI/UX design, QA, other tasks.

Ukrainian IT professionals are valued for their technical excellence and often work on mobile, software, enterprise and web projects. They build a reputation in solving complex engineering tasks. Even more, most Ukrainian software developers have experience working for global companies.

Cost Saving

By all means, cost-reducing is the main reason why companies choose to outsource their software development in other countries. Cooperation with your outsourcing partner of software development allows to reduce the cost of setting up the company infrastructure, hiring people, salary, other facilities and excludes all the additional spending, thus making huge cost savings and reduce the workload. Thus, outsourcing helps you to focus more on the core business areas of your organization, increase your business’s productivity and revenues.

The low costs of living and progressive big-city culture further add to a thriving tech ecosystem. Locating their core software development in Ukraine, international companies are likely to save 40 to 60% of their total in-house IT spending. Ukraine is ranked 8th place by the lowest cost of living according to the Cost of Living Index for Country 2019 by Numbeo.

Two Ukrainian cities — Kyiv first and then Lviv after — got into the list of top-10 cities with high cost-effectiveness. According to FDI Magazine’s ranking of Smart Locations of the Future 2019/2020 (ranking of the most attractive locations for investment), these cities ROI is of the highest, worldwide.

That allows Ukraine to offer a remarkable price/quality ratio. In addition, the ease of recruiting and laying-off employees in the absence of strong legal restrictions or trade unions make Ukraine very attractive for the outsourcing of software development.

Mental Compatibility

In terms of communication, Ukrainians have quickly become open-minded and adapt to the culture of Western business practices. The Ukrainians’ mentality is more western and there are no significant cultural barriers in communicating with Ukrainian tech engineers. As a rule, Ukrainian developers have a high level of commitment and personal involvement in the project they are working for.

Favorable geographic position

Ukraine’s geographical location and convenient time zone make the country the perfect choice for a globally operating business. Ukraine is just a two-hour flight away from Berlin and Istanbul, 3,5 hours from London and Tel Aviv, 9 hours from New York or Beijing. If you are located in Europe, the working hours with your offshore development team in Ukraine will be almost the same. Being based in the US or Canada, choosing the services of Ukrainian programmers will be the better option than ones in India. This keeps travel costs at low levels, reducing the expenses of software outsourcing services in the long run.

To Wrap Up

Everything said above proves that Ukraine is an ideal offshore software outsourcing location when it comes to choosing the destination for outsourcing your software development.

AllStars-IT Ukraine consultants will assist you from day one in choosing the right approach for a successful long-term collaboration Ukrainian remote teams.

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