Software Outsourcing In Ukraine—Pros, Cons, Tech Stack, Costs

IT is one of the fastest-growing and most economically important industries in Ukraine. Many people refer to it as the “driver-force” of the economy, so it’s not surprising that top software development outsourcing companies in Ukraine are growing as well.

• The 1st quarter of 2022—the export of the Ukrainian IT industry provided a record $2 billion in revenue, despite all of the hardships Ukrainian people face.

• February 2022—the highest export level in Ukrainian IT market history—$839 million, which is a 43% increase from 2021 ($480 million). 

And now almost a year into the war Ukrainian IT sector remained stable and companies kept the same value of the contracts. Do you wonder why companies still hire developers in Ukraine even when the country is at war? Read on and see the top reasons for outsourcing, specifically Ukrainian developers.

Why do companies hire Ukrainian developers and will keep hiring Ukrainian specialists in 2023?

Let’s take a look at the top reasons why Western countries choose to outsource IT specialists in Ukraine. 

Ukraine has one of the largest pools of diverse IT talents 

Despite the challenges posed by the global crisis and the current situation in Ukraine, the IT sector in the country has been steadily growing. Tech specialists are primarily working as self-employed people, aka private entrepreneurs. And if we check the number of PEs in Ukraine it’s around 212K people in the IT industry.

The Ukraine web development specialists are highly skilled and enjoy a stable tax policy that makes outsourcing to Ukraine an alluring proposition for Western companies. Companies are attracted to working with Ukrainian IT specialists for:

• Min red tape
• Stable tax policy
• Professionalism of local IT experts

Here are the most widely-used programming languages in Ukraine:

• JavaScript
• Java
• C# 
• Python
• PHP 

Also, Ukraine has one of the best QA engineers that are very in demand. We can see that their fastest-growing rates have increased by 23% over the year. The country can also boast a wide pool of non-technical IT specialists like:

• DevOps (including SRE, DBA, and security)
• Big Data specialists
• PMs (project managers)
• BAs (business analysts)
• UI/UX and product designers 
• Marketing specialists ( CMO, SEO specialists, digital managers, copywriters)
• HRs
• Support and maintenance specialists
  

As you can see, Ukraine can offer a full-cycle product development with no need to outsource specialists abroad. Being able to provide a full high-quality service is one of the main reasons why Western countries strive to work specifically with Ukrainian outsourcing companies.

Ukrainian developers have a global mindset

In Ukraine, many software outsourcing companies have built their own ecosystems and work with foreign clients. These companies maintain healthy and productive working environments. 

Foreign customers value the fact that Ukrainian IT teams are ready to take on any project and deal with any problem during the product development process. And many western countries emphasize 3 main non-tech-related qualities of Ukrainian tech specialists:

• Customization and individual approach to every client
• Creativity in problem-solving 
• Profound knowledge not just in the sphere they specialize in

Many Ukrainian tech specialists regularly attend IT events, competitions, meetups, or conferences. They strive for constant development and invest in their skills. Meanwhile, 61% of them read professional literature, while 58%—take courses or training sessions on a regular basis.

Hiring Ukrainian Developers: Tech Stack & Industry Expertise

Software development, consulting, and digital services are among the most popular IT outsourcing services in Ukraine. Working with local professionals can be very beneficial for tech companies of all sizes and specializations. The most popular directions of core developers Ukraine include the following:

• Java
• JavaScript
• Cloud
• Front-end
• DevOps
• BigData
• .NET
• Python
• Automated Testing
• QA (Manual and Automation)
• Business Analysis
• Embedded technologies
• Android and iOS
• Cross-platform development
• Angular JS
  

Moreover, Ukrainian outsourcing software development services can boast specialists in some rare techs like Azure, Ruby, Databricks, or Hybris. That’s a big advantage, as it’s not that easy to find a specialist with good experience with such skills.

Also, Ukraine is one of the first countries in Europe who implement Artificial Intelligence technologies into economically important sectors of the country on a governmental level.

Major tech brands are already working with Ukrainian software developers

Ukrainian IT services outsourcing is in great demand around the world. Many Ukrainian software outfits and R&D centers of globally leading companies are already functioning in Ukraine (Nextiva, Samsung, SimCorp, Huawei, Siemens, and Wargaming). 

If you take a look at the Fortune 500 list that ranks the most impactful companies, you’ll find out 100+ representatives are clients of the Ukrainian outsourcing software development companies. Who exactly?

• IBM 
• Grammarly
• Lebara
• CISCO
• Netcracker
• Volvo
• Audi 
  

And the list can go on and on, as there are many internationally known loyal customers, who have been working with Ukrainian IT specialists for years. Are you still curious about what’s the deal with developers from Ukraine? Let’s see what are the main pros and cons of hiring a local dedicated development team.

Pros & Cons of Software Outsourcing in Ukraine in 2023

PROS

Here are the main advantages of working with Ukrainian developers from a foreign country:

• Great price-to-quality ratio. Budgeting can be really tough when the project has more requirements than resources. But when western companies hire dedicated development team in Ukraine, they can get a lower price without compromising the quality of the service. If put that in numbers, the average hourly rate of a senior developer is only $30-35.

1.  Favorable taxation and Intellectual property protection. Ukrainian PE taxation is very beneficial for western clients, and Ukrainian outsourcing businesses adhere to international security standards (ISO, PCI, and HIPAA).
2. Competency and cultural similarity. Indian developers are considered the main competitors of Ukrainian software outsourcing but competency and western-like traits are several times higher in Ukraine than in India.
3. Convenient time zone. Working with Ukraine you get 7 out of 9 business hours in almost all  Western countries. It may seem like a not-that-important factor, but reduces downtime, as Ukrainian developers start working earlier, and by the time you log in, they will already provide some progress.
4. 80% of IT specialists are fluent in English. The majority of Ukrainian software developers have Intermediate or Upper-intermediate levels of English proficiency, making communication easy and smooth.

All of the pros above result in a more productive development of high-quality IT products because a dedicated software development team from Ukraine is concentrated only on your project and the country’s legislation works in favor of international contracts.

If you are curious to read about the peculiarities of working with a dedicated software development team check out this.

CONS

But there are some drawbacks that are also worth exploring before you hire a dedicated team from Ukraine to know your challenges.

1. Less organizational control

It’s quite obvious that when you are working with a team in a foreign country it is harder to feel full control. However, all popular Ukrainian software development companies work according to Agile methodology, which means that you get updates and discussions on every milestone, without the burden of micromanagement. 

Besides, when you are hiring a full team, they already have established work processes, so you save time and resources on onboarding and organization.

• Lack of some soft skills

Even though the Ukrainian IT sector is much better compliant with Western soft skills norms now, than it was even 5-7 years before there are still some challenges, mainly because of the language barrier. To Americans, so phrases used might seem as rude or too straightforward. 

But that’s just because pleasantries are not common in Ukrainian languages to the extent that it is in English. But it’s usually not something that is seen on a regular basis and the country is really excelling in the adaptation of English.

How much does IT cost to hire a developer in Ukraine?

The average cost of the developer in Ukraine depends on the 3 main factors:

• Programming language (skills)
• Experience
• Location

You can see some estimates for 2022 in the table below.

Developers Number + Salaries by Ukrainian Cities

Average Monthly Salaries by Programming Languages

Although these salary rates might seem higher if, for example, compared to India, they’re still several times lower than average for the same service in Western Europe or the US. 

Ukrainian Developer’s Life & Work in War Conditions

It’s not a secret that war changed the situation in Ukraine. The first days of the war understandably caused a little pause with releases, since most major IT teams were located in Kyiv and had to relocate to the West of Ukraine (a safer area). And after a few weeks, with some organizational changes, everything went back to normal.

The IT sector was able to keep the same revenue rate and over 95% of client deals with timely launches. You may wonder how on Earth is it possible to work in the war when some people can’t find the motivation while being in a safe country?

• Now more than ever Ukrainian people are united, and having a stable source of income means supporting families and helping those in need
• Ukrainian developers feel they strive to live and become better in what they do, and achieve their personal goals, as they feel the value of life

You can see what Ukrainian developers can achieve in harsh environments, while remaining with a  good sense of humor, and that’s only a little what real Ukrainian people are capable of. Can you even imagine what these professionals can do for your project?

Omi Case Study

In the world of software outsourcing in Ukraine, we want to present the case of an outstaff team for a messenger app.

DefTalk, a groundbreaking messaging platform, gave our team some significant challenges. Working closely with the client’s developers, our experienced team set out to update the app. Our main goal was to fix existing issues, improve stability, and add new features. We also implemented CI/CD practices and the MVP architecture pattern, which added another layer of complexity.

But our mission went beyond technical improvements. In a crowded market, we needed DefTalk to stand out. Collaborating closely with the client’s team, we introduced innovative features such as media sharing, animated stickers, and audio calls. The real challenge was ensuring top-notch quality while enhancing the user experience.

Through dedication and teamwork, OmiSoft turned DefTalk into a standout success story in Ukraine’s software outsourcing scene.

The Verdict: Ukraine — the country that codes

Ukraine has long become a real IT hub for projects of any complexity. If you want to hire skilled, dedicated, and responsible people for your team, consider outsourcing IT in Ukraine. And if you have a creative idea in mind OmiSoft outsourcing company is ready to help. 

By Dmytro Romaniuk

CEO & Founder

Dec 20, 2022

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