Why Ukraine is Becoming the #1 Region for IT Project Outsourcing

Building a software product requires skilled talent. Although it may seem like the number of tech graduates and training programs is increasing year-over-year, hiring issues are a major pain point for international talent hubs. According to a CIO survey, 65% of leading tech companies claim to have hiring issues. If the industry front-runners struggle to attract talent, SMEs are even more challenged to find a skilled and affordable workforce.

As the war for tech professionals is raging on, business owners explore offshore markets to take their projects off the ground. 

Outsourcing software development to a third-world country is a way to access a skilled yet affordable workforce and build a project that will be on par with more expensive solutions. Ukraine, for one, is becoming a popular outsourcing destination.

In this post, we will examine the market landscape and review the benefits of recruiting Ukrainian developers for your next project. 

Market Overview

Over the last decade, Ukraine has made its mark as one of the most powerful Eastern European tech hubs. By putting the accomplishments of Eastern and Western software development schools to use, Ukrainian professionals have managed to take software development to a new level, launching widely used and internationally acclaimed products — Grammarly, Preply, Ajax Systems, PetCube, and others. 

To understand the sprouting growth of local software development, take a look at the most promising statistics in this market.

Number of tech professionals — 185,000+

There are over 1,600 active IT companies operating in Ukraine, and a pool of over 185,000 software developers, testers, and IT professionals from related fields. Local outsourcing teams are supporting some of the hottest companies in the world — in fact, 100 corporations on the Fortune 500 lists have been partnering with Ukrainian outsourcing teams for software development and tech support. 

Number of startups — 2000+ 

Ukraine is one of the most promising startup investment destinations at the moment — in 2017, over $265 million was invested in promising solutions and innovations. There are over 2,000 active startups based in the country, specializing in different domains:

  • SaaS platforms
  • Financial services
  • Education
  • Healthcare
  • Internet of Things and Artificial Intelligence projects 

Number of international research and development centers — 100+

Recently, Ukraine has been at the center of major tech news — Google announced the opening of an international research and development center here. The tech giant is not the only major tech player to recognize the potential of local talent and IT infrastructure. The following companies also ground their research and development activities in Ukraine:

  • Samsung Electronics — the company has R&D offices in Kyiv and Kharkiv
  • Siemens has an R&D office in Kyiv
  • ABBY relies on Ukrainian talent for tech expertise
  • Oracle outsourced product development tasks to Ukraine
  • Ericsson relies on Ukrainian developers for research and also hosts an R&D center in the region

English proficiency — intermediate and higher

The globalization of Ukrainian schools and higher education has led to increased English literacy and proficiency. According to a report released by the British Council in Ukraine, most Ukrainians are intermediate English speakers by the time they are out of college:

  • School graduates have a B1 in English
  • Non-linguistic university graduates are B2 English-speakers
  • Secondary school English teachers have C1 English proficiency
  • Academic researchers are B2 English speakers

Such a high comprehension of English allows Ukrainian developers and IT professionals to communicate with international clients effortlessly, understand project requirements clearly, and express themselves confidently. 

Industry recognition — high

Recently, Ukraine has been recognized as a top-notch IT outsourcer on a global scale. Here are the accomplishments of the market over the last 3-5 years:

Thanks to increased globalization, and the eager adoption of international tech education and management practices, Ukraine is on its way to becoming one of the most versatile and reliable expert hubs in the field. 

Top Reasons Why Ukraine Has Been Chosen for IT Projects

If you are a business owner based in the US, UK, EU, or other places in the world and struggle with talent shortages at home, then onboarding Ukrainian developers is a good way to save on development without sacrificing the quality of the final product. Here are the top reasons to hire Ukrainian talent for software development: 

Wide talent pool

Ukraine has one of the most rapidly-growing tech communities worldwide. By the end of the year, the country is expected to have over 200,000 IT professionals. Ukrainian developers specialize in various languages and skills, with JavaScript, Python, Java, C#, and PHP being the most popular competencies on the market.

High professional standards

Ukrainian developers are well-versed in innovative technologies and the latest development practices. The country has six major technical schools in Kyiv, Kharkiv, Vinnytsia, and other cities. 

Here, developers receive a well-rounded education, mastering multiple programming languages and technologies. In addition, institutions like UNIT.Academy allow talented developers to take free courses in innovative technologies — IoT, AI, and more. 

Affordable developer rates

Compared to American and European developers, Ukrainians charge 2-4 times less per hour for software development services. Moreover, reaching out to local outsourcing firms is also more affordable than choosing a provider in neighboring IT export markets like Poland or the Czech Republic.

Effortless collaboration

Although outsourcing is often full of collaboration hurdles, Ukraine is one of the most comfortable regions for international collaboration. For one thing, the country is located in the GMT+2 time zone — only one hour ahead of most European countries. Ukraine is also an ethnically diverse country that eagerly adopts Western project management practices. A high level of cultural compatibility with Europeans and Americans makes the collaboration process effortless and efficient. 

Favorable business legislation 

Over the last three years, the country’s GDP has been growing steadily at a rate of 3.3%. For 2020, the government ratified the 2020 Strategic Action Plan which eliminates outdated regulations and increases the number of initiatives that help promote innovations in SMEs. The country also facilitated taxes for international companies, reducing the Unified Social Contribution Tax from 36% to 22%

Versatile software developers 

Since most Ukrainian IT firms are geared towards outsourcing, the country’s tech professionals are experienced in handling different types of projects, including building web apps, desktop software, mobile apps, game platforms, and other projects. 

Local software developers are well-versed in different domains, catering to businesses in healthcare, e-commerce, banking, and other fields. 

The high number of tech colleges

At the moment, there are 661 higher education institutions in Ukraine that train graduates by international standards. According to the World Economic Forum, Ukraine is among the world’s leading countries in tech education, with 130,000 annual STEM graduates.

Cultural compatibility with Western companies

In Ukraine, most developers choose to pursue software development out of a sincere passion for technology. A constant desire to deliver their best drives local developers to be excellent team players and life-long learners. Throughout its entire history, the country has been influenced by multiple cultures — Polish, French, and others. 

This, together with Ukraine’s geographical proximity to the EU, makes collaboration with local developers easy and ensures that there are no value mismatches between the client and the outsourcing firm.

Types of Projects That Are Normally Outsourced to Ukrainian Developers

Thanks to the market’s tech versatility, there is rarely a project that Ukrainian developers cannot handle. Having said that, the following types of software development tasks are prevalent and the easiest to hire for in the market:

Website and web application development

Java and JavaScript are the most popular languages among Ukrainian developers. Since many are fluent in PHP, as well, the country has a lot to offer in terms of web development. Ukrainian tech firms employ dedicated UX/UI design departments, as well, to build easy-to-use, scalable platforms for commercial, non-profit, and other purposes. 

Software development

Ukrainian developers are skilled in Python and C++. Most tech schools are geared at teaching software development as a primary course. As a result, Ukrainian tech firms are specifically well-versed in building desktop applications for Windows and macOS. 

Mobile development

Since Ukrainian software engineers mostly enter the industry by learning Java, they can write mobile apps by the time they graduate college. The growing number of successful mobile apps released by Ukrainian teams — PetCube, Grammarly, and others — proves the country’s agility in adopting mobile development trends. 

Ukrainian developers are quite eager to learn emerging mobile development languages — Kotlin and Swift. As such, you will have no problem looking for specialists to work in a chosen mobile development stack. 

Quality assurance

Most Ukrainian software testers have 3-6 years of experience in quality assurance. The country has a strong presence in both manual and automated testing — you will not be challenged to find a team for assessing your project. 

Tech support and consulting

It’s common for international business owners to reach out to Ukrainian IT firms for tech consulting. Since local talent is experienced in creating and supporting projects on all scales across multiple industries, Ukrainian developers are well-equipped to give relevant advice and help optimize the workflow of in-house teams for international clients. 

The country offers a wide range of outstaffing providers, meaning that a local developer can easily become a part of the in-house team and help enforce the best project management practices at the company’s headquarters. 

Find the Best Tech Specialists in Ukraine with bvblogic Outstaffing

The Ukrainian talent pool is lucrative, with thousands of skilled professionals working at affordable hourly rates; however, business owners may struggle to navigate this wide market. To make the process of sourcing Ukrainian talent as easy as possible, companies can opt to work with bvblogic Outstaffing — a hub where skilled Eastern European developers and business owners meet. 

Here’s why using this platform for talent scouting is the right investment for your next project:

  • 10+ years on the market
  • Finding talent or gathering a team takes just 48 hours 
  • Helps you save up to 60% on development costs
  • Assistance when interviewing candidates
  • Support during onboarding and employee training

To find skilled Ukrainian software engineers for your next project, contact the bvblogic Outstaffing team and get your project up and running in no time!

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