Why Does Ukraine Take the Lead in IT Outsourcing Compared to Other Regions and Countries?
May 29, 2019
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The practice of IT outsourcing has become so common and widespread that making the decision regarding the country to outsource can be quite difficult. Different regions may have some hidden obstacles and potential complications for IT outsourcing companies. Keep reading to learn more about the key advantages of the Ukrainian outsourcing compared to other countries.
Ukraine vs Asia
With the IT outsourcing giant India taking over 40% of the world’s outsourcing supply, Asia has become the region with the highest number of developers. According to the recent data, by the end of 2018, the Indian developer base will reach a striking level of 5.2 million. Nevertheless, despite the size of the labor market, the percentage of experienced specialists is comparatively low. India and many other Asian countries have a great share of developers with minimum experience who agree to a lower hourly rate but, actually, cannot ensure the necessary quality without the Senior help. Moreover, in case an Asian developer is highly qualified, they will request the US level of salary ruining all your dreams to cut development costs.
Ukraine boasts a higher percentage of experienced developers and has a more balanced tech labor market. These specialists have much stronger technical expertise and a better English proficiency which makes them a more valuable asset for outsourcing.
Why Ukraine is a better choice:
- Higher percentage of qualified tech experts;
- Proximity to Europe and the US;
- Less cultural differences;
- More favorable taxation system (compared to Asian communist countries);
- Higher Internet penetration rate.
Ukraine vs Latin America
Latin America is a relatively new region on the IT outsourcing map with Brazil, Mexico, and Argentina playing a key role. It was pretty obvious that sooner or later these countries will attract the US tech giants due to their close geographical location and lower hourly rate. Sounds perfect, doesn’t it? Yet before deciding to outsource, you should take into account the political situation in the chosen destination. Anti-business and anti-American governments control many Latin America’s countries, including Bolivia, Venezuela, Ecuador, Nicaragua, and to some extent, Argentina, which may become a serious obstacle to the launch and development of outsourcing teams.
Why Ukraine is a better choice:
- Proximity to the European market;
- Ukrainian experts have better tech expertise (The Best Developers ranking);
- Higher English proficiency;
- Lower rates with more dedication.
Ukraine vs CEE
When it comes to the comparison of the Ukrainian tech field with other CEE countries, Poland, Belarus, and Russia are definitely in focus. These countries have so much in common that it may be difficult to understand their primary differences in terms of IT outsourcing. To help you out, here are several key points:
Ukraine vs Poland:
- Ukrainian developers are more dedicated and always want to make a maximum contribution to projects. They are flexible and, if necessary, ready to work extra hours;
- The Polish market is smaller and more expensive than Ukrainian (90 companies with 50+ specialists compared to 245 in Ukraine);
- Ukrainian companies offer quicker staffing hence you’ll get a chance to launch your project much faster;
Ukraine vs Belarus:
- Belarus has a more centralized market focused in Minsk, whereas the Ukrainian tech field spreads to the different parts of the country;
- Ukraine has a larger pool of developers and a better established IT community;
- Ukraine has a stronger connection with European countries and its market is less controlled by the government.
Ukraine vs Russia:
- Ukraine is closer to Europe and the US, which means shorter travel time and a smaller difference in time zones;
- Ukrainian citizens don’t need a visa to visit Europe which facilitates the cooperation process;
- Russia is a more closed and strictly regulated country.
A Few Additional Reasons to Cooperate with Ukrainian Developers and Outsource to Ukraine
- The Ukrainian government supports the development of the tech field providing the necessary freedom for growth and favorable tax regulations. The IT sector is considered as a priority and will become even more influential in the future.
- Ukrainian developers have access to progressive education and numerous R&D centers which ensure the inflow of qualified specialists. Every year nearly 16,000 students complete their IT education and 33,500 students graduate in the area of Sciences.
- Ukrainian developers have great outsourcing experience and know how to support continuous communication with the whole team. There is no need to set all the processes or reinvent the wheel. Everything is already done, and you can just come and use the extensive experience of the Ukrainian developers who have been working in IT outsourcing for many years.
- Ukraine has a constantly growing IT community which readily shares experience and organizes numerous events for networking with American and European speakers. Many of these meetings are dedicated to IT outsourcing as one of the leading directions of the Ukrainian tech field.
- Ukraine is one hour ahead of most European countries and several hours ahead of the US. The small time difference ensures smooth communication between different parts of the team and helps to synchronize the work of developers located in different countries.
- Ukraine is a hub connecting the West and the East, which makes it open to new cultures and flexible in terms of business approaches. Here you will easily implement innovative corporate models and find space for experiments
Some Extra Tips on Finding the Company for Outsourcing Services in Ukraine
In case you have some doubts regarding the choice of a company for IT outsourcing, you should, first of all, define your business needs and goals. A clear understanding of these factors will help you to find the right partner for mutually beneficial cooperation.
Here, at Leobit, we have substantial expertise in web and mobile app development and provide development and testing services for tech companies and startups all over the world. You can hire our dedicated team for .Net, Web, and Mobile app development, UI/UX and architecture design, quality control & testing, application support and maintenance.
Leobit has been recognized as the top IT employer in Lviv in 2018 by DOU.ua and has remarkable tech expertise in specialized fields, including:
Microsoft Technology Stack
- C#, Asp.Net, MVC, WCF
- WPF, XAML, WinForms
- Xamarin, UWP, Mono
- .Net Core
- Entity Framework, DevExpress
- IIS, Azure
Mobile Technology Stack
- Java, Kotlin (Android)
- Objective-C, SWIFT (iOS)
- C#, Unity, Xamarin.Forms, Xamarin.Native
- JS, PhoneGap, Cordova, Ionic
- React Native
Web Technology Stack
- Angular.JS, Angular
- React, Redux, Ember, Vue
- HTML/CSS/JS/TS, Bootstrap
- C#, Asp.Net, MVC
- Ruby, RoR
- C/C++/C#, Linux, Embedded
- Node.JS, PHP
- Groovy/Grails, Perl, Python
- DevOps, Amazon AWS, S3
Most importantly, top developers in Ukraine working at Leobit have completed the projects related to different fields, starting from healthcare to banking and finance. Every time we try to learn the philosophy of a company, understand their wishes, and create the most suitable product. We aim to develop solutions that would meet the primary goals set by our customers which is proven by our numerous successful projects, including:
Interim Management Portal: Our web developers have created a solution for a US recruitment company to replace the existing portal for consulting and recruiting tasks. The main functionality includes chat, video conferencing, meeting scheduling, Salesforce support, and white labeling. Technologies: Ruby on Rails, Ruby, Heroku, PostgreSQL, Elastic Search, Twilio, Stripe, Calendar, Google Analytics, Mailgun, DaXtra, JS, HTML, CSS, Bootstrap.
Parking Management System: Parking Management System: We have developed a parking assistant app that helps to combine multiple parking tasks in different locations. This simplifies the life of users, making parking operations really easy and allows businesses to provide better customer experience and earn customer loyalty. Technologies: .Net 4.6, Xamarin.iOS, Xamarin. Android, Realm, Node.js, Bluetooth.
Trond Ahlsen, Owner & Managing Director, Sportif AS
Android app for a police department: Leobit has cooperated with an EU customer that provides software for government agencies to develop a tablet app allowing traffic police to record violations. Technologies: Android (tablet), Java, .Net.
Compared to other companies that provide IT outsourcing services on the Ukrainian market, Leobit stands out with its:
- Technically strong team consisting of 100+ software engineers, architects, quality control experts, and UI/UX designers with substantial experience in outsourced projects;
- Flexibility in terms of models and approaches, including extended team, partial or full cycle product development, T&M, dedicated team, and fixed price;
- Quick team staffing and project rollout (starting from 1 week for key tech stacks, such as .Net, Android, iOS, etc.);
These skills and working methods ensure the success of projects and mutually beneficial cooperation where both parties win.