Sep 12, 2022
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IT services outsourcing is a popular way of creating tech products. In recent years, when business needs ultra-fast digitization, many companies decide to “delegate” software development or its components to a vendor to keep up with progress in the tech market and save money.
Ukraine is one of the leading regions for IT outsourcing. In this article, we will discuss which popular startups were created by Ukrainian developers, what the country can offer investors, and why it is worth outsourcing software development here.
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The global business process outsourcing market was valued at $245.9 billion in 2021. Experts claim that from 2022 to 2030, it will grow by 9.1% annually. The main reason is the need to increase business flexibility and efficiency while simultaneously reducing operating costs.
IT outsourcing is no exception. This approach is
Describing the IT industry of Ukraine, it is worth highlighting several important facts:
The top five technologies include JavaScript, Java, C#, Python, and PHP, and the number of mobile app development specialists is also rising. A typical Ukrainian engineer has a university degree (often technical) and two years of work experience.
Leobit is one of the most successful development companies in Ukraine. And we will be happy to advise you on outsourcing in more detail.
Let’s talk about why it is worth outsourcing software development to Ukrainian companies.
According to the report of the IT Ukraine Association, over 20,000 tech students graduate in Ukraine each year. Ukraine provides high-quality and affordable technical education, which in turn provides a vast pool of IT talent. Ukrainian engineers specialize in various technologies (Java, Flutter, C#, PHP, .NET, etc.), in data science, artificial intelligence, and machine learning.
Ukraine is home to powerful and bright startups such as Grammarly, People.ai, MacPaw, etc. They emerged thanks to a solid community supporting ambitious projects and creating a pleasant development ecosystem. Formal and informal IT events are held in Ukraine, and such organizations as the IT Cluster and the Ukrainian IT Association are successfully functioning.
There were more than 18 000 legal entities related to the IT industry in the Unified State Register of Enterprises and Organizations of Ukraine at the end of 2021. Of course, the actual numbers are smaller, but experts estimate around 5000 IT companies on the market.
Ukraine has become home to many international R&D centers. For example, Oracle has offices in five cities: Kyiv, Lviv, Kharkiv, Dnipro, and Odesa. After the acquisition of Mellanox in 2020, Nvidia opened its research office in Kyiv.
The ABBYY Eastern European head office and the first Ukrainian Ring R&D center are also located here. Ring opened another representative office in Lviv in 2018. Assassin’s Creed fans have a chance to get a job in Kyiv or Odesa UbiSoft studios. And it’s just a part of the list of R&D centers that work successfully in Ukraine.
According to the Ukraine IT Report 2021, 80% of Ukrainian IT specialists know English at an intermediate and higher level. This makes communication much easier and helps understand the client’s requirements perfectly.
Ukraine’s time zone is about an hour ahead of European countries and 7 hours ahead of the US East Coast. This is quite a small difference for offshoring, especially since Ukrainian companies have an effective communication system with clients, taking into account the time difference.
Ukraine offers a loyal tax system, new opportunities for foreign investors and a unique project of digitalization of tax relations called Diia City. This allows exports of the IT industry to grow by $853 million, or more than 20% per year.
Intellectual property is respected in Ukraine, so IT companies treat this issue very strictly. For example, all reliable IT service providers sign a non-disclosure agreement from the beginning of cooperation. And it really protects your ideas and creations.
Country | Starting Cost per Hour |
Most Popular Languages |
Famous IT Products |
Ukraine | $20-$25 | JavaScript, Java, C#, Python, Ruby, PHP, .NET |
Grammarly, People.io, PetsCube, MacPaw, etc. |
Poland | $25-$30 | JavaScript, Java, Python | Brand24, IVONA, LiveChat |
Czech Republic | $25-$30 | Java, PHP, C, C++ | Seznam.cz, Avast, Hidden & Dangerous |
Romania | $30-$40 | JavaScript, NodeJS, .NET | VoxiKids, Licenseware |
IT outsourcing has its own pitfalls, so it is crucial to build a relationship with a partner properly and outsource projects effectively.
Choosing the right outsourcing relationship management model is also a good practice. Determine how deeply you are willing to be involved in the development process, how much time you can devote to it, and if necessary, choose a specialist from your company to manage communication with the vendor and provide regular reporting for you. This way, you will always be aware of the progress.
Leobit is a full-cycle web and mobile application development service provider for technology companies and startups primarily located in the US and the EU.
We’ve delivered more than 150 projects including 3 unicorns and 9 successful exits (check our portfolio). Our tech stack includes .NET, Angular, Flutter, Ruby, PHP, React, iOS, Android, and a comprehensive range of other technologies from the Microsoft, Web, and Mobile Stacks.
Therefore, we have everything, so you can easily outsource development services to us: experience, skills, a solid portfolio, and an exceptional approach to each customer. And we’ll be pleased to answer all your questions.
Summing up, Ukraine has everything for successful IT outsourcing. This is a large pool of tech talents who work in a convenient time zone and have a high level of proficiency in English. Ukraine also offers a loyal tax system and convenient cooperation conditions for foreign customers.
It is also worth noting that such giants as Microsoft and Oracle have their R&D centers in Ukraine, and the IT community is actively developing a system of non-formal technical education. Thanks to this, each customer receives high-quality services from talented developers at practically the lowest price in Europe.
Leobit is one of the most successful development companies in Ukraine. And we will be happy to advise you on outsourcing in more detail.
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