Numerous reasons justify that a considerable percentage of software development and IT companies resort to outsourcing/outstaffing rather than doing all their tasks in-house in 2021. Gaining fresh ideas, saving time, money, and efforts in a post-Covid world all became paramount aspects. And wasting them might cost a business its success, especially for startups along with those newly established.
We cannot argue the need of each company for outsource or outstaffing, but what we can argue is, which of the countries that corporates outsource to are most suitable in terms of getting the best value, the best quality, and convenience. Today, our subject matter is Ukraine, a country outsourced to as well as outstaffed from for over a decade, occupying a place in the list of best 10 countries outsourced to in terms of value, quality, and convenience. Only the question remains; will that change in a post-Covid world?
The answer is simple; low cost/higher value, gaining foreign expertise. This is what companies are getting when outsourcing to Ukraine.
Ukraine became a leading IT outsourcing destination for European counties together with American ones for the past few years, and its tech ecosystem generates close to 5 billion dollars of industry export volume, a number expected to double in the upcoming years. Which brings us to the real question:
Average wages for software developers in Ukraine range between 20-50$ per hour, which is lower than they are in other European or rather some Asian and South American countries. That is because the cost of living there is low when compared with Western European countries. But that does not mean you will be getting lower quality; on the contrary, software developers in Ukraine exceeded expectations over the years, and a 20-50$ rate is considered way above average pay for people living there.
The fact that Ukraine became a major outsourcing destination and an IT hub a decade ago helped create a credence for people on the importance of educating upcoming generations in all aspects surrounding this sector. Creative minds were inspired to establish nationwide institutes dedicated to equipping the people with the trade’s best practices and secrets. Some people there gave up their careers in other domains to start learning programming, seeing that the profession offers relatively rewarding income and encouraging future
All the above was associated with the fact that many software development entrepreneurs in Ukraine lived abroad before they went back and founded their own companies, that brought foreign expertise to the country.
A businessman and a friend of FlairDev’s shared feedback after working with a Central Asian company he hired for their surprisingly low rates:
“As you know, I am only a businessman, I am not an expert on this kind of work, so my biggest problem was communication. They were like brainless machines to me. I asked for a feature to be implemented, they did so without even telling me that it wouldn’t work with other features. They did not even give me their business and logical input; they just did what was asked. I had to hire another expert in programming to communicate my ideas to them.”
Low cost/higher value does not only mean lesser money paid, but it also means that for the price you are paying, you are getting a great bargain including clear communication, collaboration, convenience, and consistent logical inputs. Tech Entrepreneurs understand the significance of having clear communication to perform tasks successfully, which is why many Ukrainian companies offer their employees free English courses when starting the job. A research by DOU (a leading Ukrainian tech community) shows, that 85% of tech specialists have an Intermediate or Upper-Intermediate level of English, and another 13% stand out with their Advanced level of English. For your project, this means that no matter who you hire from Ukraine, clear communication is guaranteed.
Ukrainian developers gained a reputation over the years for being creative problem solvers and comfortable to work with. Their undebatable passion for traveling made the mass multicultural, understanding, and able to give a logical business input on all aspects of the project, in the contrary to many other nations that offer similar quality of software, only communicating ideas to them is relatively hard.
Another aspect enabling Ukraine to be a perfect resort for many European and American companies is that, since there is a prospect of Ukraine joining the EU, companies there are trying to be as connected to the western world as possible. That includes modern working spaces, modern company structures, gender equality, along with focusing on getting the job done with quality, integrity, and teamwork.
Ukraine not being located far to the east in Europe means that the country falls in a GMT+2 time zone, which is convenient for all countries that rely on outsourcing work, and especially in a post-Covid world where everyone is depending on remote work.
The country is 1 hour ahead of Western European countries and 6 hours ahead from the US East Coast, which makes it easier to work with when compared to other countries like China, or India.
Although some Ukrainians try to deny it, some regulations notably ease the process for their success in this industry; IT specialists get a Simplified Tax Regime, which basically means 5% income tax plus and easier legal chores for employers. Furthermore, broadband internet is made available to everyone in the cities with the lowest of rates together with the highest of speeds. You can get a 100 Mbps connection with unlimited traffic for as low as 6$. (Cool. right?!)
These factors besides many more create a befitting, strong, and a modern community with the necessary IT mindset for most businesses. We don’t have the intention of boring our readers, so we will just stop on these.
Check out our other article: UI/UX Design: 11 Rules Every Developer Wants You to Follow.
The answer might surprise you.
Several market giants like Google, Amazon, Microsoft, Samsung, LG, Huawei, Boeing, IBM, CISCO, Skype, BBC, Buzzfeed, eBay, The Economist, Reuters, Jaguar Land Rover Automotive, Guinness, Crocs, and many more either hired, worked with, or opened R&D centers in the globally recognized country for its cutting-edge software solutions.
Needless to elaborate, if these names trust Ukrainian experts, why shouldn’t everyone?
Ukraine is the home for 4K+ tech corporates & startups, 110+ R&D centers for market giants. 100 Fortune 500 companies have remote development teams in Ukraine, while 1K+ tech events are held annually there. It is also the #1 Eastern European country for IT/software development outsourcing and have been in the list of top 10 countries most outsourced to in the past decade.
A survey conducted by DOU.UA stated, that 82% of IT professionals in Ukraine are satisfied with their salary. The more satisfied being senior specialists, tech leads, and system architects. The less satisfied being Junior developers, designers, marketing specialists, system administrators and support officers.
According to a report by Ukraine Invest (a Ukrainian governmental entity), there are 130,000 engineering specialists along with 16,000 qualified IT specialists that graduate annually, making Ukraine the home to the largest IT engineering force in Central and Eastern Europe.
There was almost 200K Ukrainian developers scattered between major cities at the end of 2019, and that is according to an article published by DOU.UA on a report about the Ukrainian tech market. The number is expected to grow even more in the next few years. And with local competition growing, Ukraine’s growth in this sector is only inevitable as the country’s becoming even a better resort for companies to outsource to or hire from.
• Dreadful inflexible working hours
• Unbefitting thinking
• Poor communication
• Unimaginative engineering with no business or logical input
• High cost, moderate value
• Low cost, low value
The adage goes: you get what you pay for. However, if you are outsourcing to Ukraine, the adage becomes: you will get more than you pay for.
But seriously, there are many ways to hire a Ukrainian company, it all depends on the scale and type of job you need done.
We are a start-up, we support start-ups, and we understand their struggles to achieve their goals and to overcome challenges in the presence of money-oriented sharky corporates which are conquering the market and destroying small businesses. We deserve a chance because we try our best, furthermore we try to become better by helping other companies, and our portfolio of success is growing daily.
Check out our other article: Top 13 Reasons Your Startup Business Failed.
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COVID-19 drastically changed the world, but all the same Ukraine remained one of the best options to outsource a software project to. And data is supporting our claims and even promising more progress. Cost efficiency, credibility, convenience, logical insights, creative minds. These are all part of the package. We advise you not to hesitate if the goal is to optimize your company’s global operations.
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