Digitalization is a top priority for companies all over the world today. Digital transformation is the key to competitiveness in the modern business world. It’s no wonder, then, that more organizations are considering IT outsourcing to complete this specialist process. Choosing the best outsourcing solution isn’t always easy. However, more companies are looking towards the Ukraine IT industry for all their digitalization needs.
Ukraine has an especially valuable asset in this world of cutting-edge technological advances – its impressive pool of IT talent. Ukraine has become the top technology, digital, and IT outsourcing destination in Eastern and Central Europe. So, could outsourcing to Ukraine be the right choice for your business? In this review of Ukraine’s IT sector, you can learn everything you need to know.
1. What Are Ukraine’s Advantages As An IT Destination?
In 2021, Ukraine was named as the top offshoring destination. So, why is this the case?
Here are just a few points to show some of the reasons that outsourcing to Ukraine is becoming so popular:
- Ukraine has around 200,000 technology specialists
- A large percentage of Ukrainian developers speak English well or fluently
- Ukrainian software developers charge reasonable rates
- Ukraine is within a few hours flight time of most European destinations
- Software development businesses in Ukraine offer flexible outsourcing models
- Ukrainian software developers have a high level of expertise in a range of specialisms
Below, we’ll take a closer look at these points.
When considering IT outsourcing, many companies are looking for convenience and easy communication. One great advantage of outsourcing to Ukraine is its location within Europe. Everything from the type of business ethics found there to working patterns and overall mindset when it comes to research and development closely aligns with European countries that it borders. This makes it much easier to ensure all parties are on the same page with regard to digital transformation requirements. There are less likely to be unwarranted frustrations or misunderstandings when dealing with the Ukraine IT industry.
Furthermore, Ukraine is a convenient location with regard to timezone. Therefore, businesses in European countries can plan visits and meetings more easily. With minimal time differences between Ukraine and other countries within Europe, it’s simple to arrange communications within regular office hours. It’s also pretty easy to reach Ukraine from Europe. There are regular direct flights to make it hassle-free to travel. It’s also legal to remain in the country visa-free for a 90-day period when traveling for business purposes.
Ukraine also has an extremely active tech community. Virtually all of the country’s cities have an IT cluster of technology specialists, educational institutions, local authorities, and companies. They work together to develop the tech environment within their local area.
Ukraine plays host to many of Europe’s biggest tech events including:
- The Games Gathering Conference
- The Agile Eastern Europe Conference
- The Lviv IT Arena
- The DEV Challenge
This serves as evidence that Ukraine is a hotbed of IT expertise.
2. Demand For Ukrainian Developers
The Ukraine IT industry is currently booming. But why is outsourcing to Ukraine becoming so popular? Here, we look at some reasons why IT outsourcing to Ukrainian professionals is the choice of so many tech providers.
2.1 Solid Technical Expertise
It is becoming widely known that Ukraine has become one of the top producers in the world of technological talent. Software developers from Ukraine are known as some of the most talented and skilled IT professionals in the marketplace today. They have in-depth knowledge and understanding of all the latest emerging disciplines. These include big data, AI, blockchain, and IOT (the Internet of Things). Their strong technical expertise makes them a go-to choice when it comes to IT outsourcing.
Many developers in Ukraine are specialists in particular business domains, horizontal and vertical markets and industries. These professionals don’t just code, but also have specialisms in e-commerce, healthcare, HR, banking, construction, and other industries. Furthermore, they also boast impressive knowledge of hardware development and analytic skills.
Ukraine has a large community of software engineers and IT professionals consisting of around 200,000 skilled individuals. Those professionals are well-versed in all the most frequently used (and less popular) technologies. These include:
Programming languages are well-understood in Ukraine, while technologies such as IoT, AI, and mobile app development are widespread.
Most Ukrainian technology specialists also have many years of experience in the industry. On average they have:
- 13% - Under a year
- 25% - 1 to 2 years
- 29% - 3 to 5 years
- 17% - 6 to 10 years
- 12% - over 10 years
With such a wealth of experience behind them, Ukrainian IT professionals are well-versed in their field.
2.2 English Level
Another popular reason to choose Ukraine for IT outsourcing is the high level of English proficiency there. 70% of IT professionals in Ukraine speak English at an upper-intermediate level or higher. The English language is taught in all universities and schools. Also, most software development companies now offer free English lessons in-house for their employees. For this reason, their English speaking and writing skills are of a high standard.
Since the vast majority of Ukrainian software developers speak English fluently, this is a great advantage. It means they are able to easily understand customers and their requirements. As a result, production meetings and interviews run a lot more smoothly. Team members and candidates can communicate effectively with each other, facilitating strong teamwork and cooperation.
2.3 European Level of Education
Ukraine is known for the high quality of its universities and higher education centers. Traditionally, Ukrainian universities have always offered an excellent standard of education in science and mathematics. Not only can anyone keen to enter the IT profession choose a university education, but they have other options too.
There are numerous educational centers in Ukraine as well as online courses all offering IT study programs. Therefore, prospective software developers have a wealth of choices when it comes to earning relevant qualifications. Some Ukrainian universities now offer specialist computer science courses and programs covering innovative concepts. IT developments such as the Internet of Things (IoT) are now widely taught in Ukrainian educational establishments.
It has been reported by BRDO that more than 20,000 Ukrainian technology students graduate every year. The state universities work in alignment with their local IT cluster to ensure their technical departments’ curriculum is up-to-date. As a result, Ukrainian IT students have an in-depth understanding of all the most recent developments in the industry.
2.4 Ukrainian Developer Rates
Perhaps one of the most attractive advantages of choosing to outsource to the Ukraine IT industry is the affordable cost. Hiring the average Ukrainian software developer in 2021 will cost between $25 and $46. This is far cheaper than the cost of hiring a similar American or Western European developer.
The rates you can expect to pay include:
- $40 to $63 per hour for a Senior QA
- $45 to $70 per hour for a Senior Software Engineer
- $40 to $63 per hour for a Business Analyst
- $35 to $56 per hour for a UI/UX designer
To put it into perspective, on average, an American software engineer earns around $80,000 per year. Meanwhile, in the United Kingdom, a similarly qualified developer earns around $25,000 per year. This equates to a pay difference of around $4,600 per month. Clearly, this is a significant saving that tech companies can profit from.
The Ukrainian economic climate is relatively favourable too. Although political instability has affected Ukraine in recent years, most players in the IT industry remain unaffected. Over the last few years, a lot of effort has been put into ensuring Ukraine’s business environment is favourable. For example, paying taxes has become easier thanks to the lower 22% Unified Social Contribution flat rate that employers pay.
2.5 Ukrainian Outsourcers Are Flexible
If there is one thing that businesses have learned over the last few years, flexibility is key to survival. The COVID-19 pandemic shows that being able to adapt to different situations is imperative for success. Fortunately, the Ukraine IT industry is capable of coping with complexities and challenges.
Ukrainian software developers can depend on a reliable and strong internet infrastructure, something that several other non-European countries cannot boast. As a result, The Ukraine IT industry experienced no development downtime even during the Covid pandemic. It’s clear that IT companies in Ukraine are well-equipped to handle any challenge thanks to their flexible approach to work.
With all of the above in mind, it’s easy to see why so many tech providers consider outsourcing to Ukraine. Many Ukrainian outsourcers are now among the world’s top 100 outsourcing companies. In fact, they now employ countless specialists and work on enormous projects for international organizations.
Some of Ukraine’s start-ups have reached an international level including WhatsApp, Grammarly and PetCube. All of this goes to prove that Ukraine’s IT industry is leading the way in the modern world.
If your company is ready for digital transformation, this review of Ukraine’s IT sector may help you make a decision.