Outsourcing in Ukraine: Tech Revolution or Offshore Mirage
Outsourcing is gaining more popularity yearly among many businesses, with the IT industry at the top of the list.
Why? There are plenty of reasons to outsource IT.
Role of Outsourcing in the Software Development Industry
As said, IT is one of the most outsourced industries, with software development being in the highest demand.
To start with an obvious reason: not every business is capable of building a custom app.
Let’s say some restaurant/coffee shop has decided to have its own app, with the following features: menu, with the option to add positions to favorites; delivery services with tracking the progress of an order; news/updates/blog page with notifications; and bonus system for the customers to collect and exchange for merch.
Sounds like a perfect app for businesses to improve, be more customer-oriented, and grow clientele — the dream of any business owner.
(btw, in Ukraine, food restaurants actually have one like this).
So, what should the restaurant do to have such an app? Outsourcing software development is the right answer:)
Not only outsourcing is the only valid option since none of the restaurant staff is more likely not able to develop an app, but it’s also much cheaper than hiring an in-house team.
Nevertheless, even if it’s not just any business, but an IT company, and what is more, a software development company, outsourcing is still considered.
Why? In general, I can name two main reasons:
✔️Expertise & Resources
IT companies too may not have the expertise in something, say the same software development or just one of its processes, or a number of the company’s employees with the needed skill level isn’t enough, so it makes sense to outsource an external team with the required skill sets.
✔️Focus & Time
And even if an IT company has the expertise AND the resources, outsourcing to another development company may simply be the solution to save time or reduce the workload, so that the focus is on higher priority projects.
There are more reasons to outsource IT that are mostly beneficial and valuable to businesses, such as access to the global talent pool of skilled engineers, time and cost efficiency, scalability & flexibility, and innovative solutions.
Outsourcing Destinations: how to choose a trusted outsourcing partner
Now let’s talk about where to outsource.
The outsourcing market is huge nowadays: numerous destinations with numerous companies
Some of the most popular outsourcing destinations are South Asia (India, the Philippines), Central & Eastern Europe (Poland, Ukraine, Romania, ) South America (Brazil, Mexico, Argentina),
Still, with European countries dominating offshore development, the top 3 outsourcing destinations are India, the Philippines, and Ukraine.
Each one differs in terms of the hourly rates, time difference, technical skills & tech stack of the dedicated team, along with other things that can (and should) influence your choice.
While you are struggling to choose, I have a perfect solution: outsourcing in Ukraine.
Why Ukraine? Ukrainian IT industry in numbers & statistics
Ukraine ranked #1 IT outsourcing destination, which makes it the most popular for outsourcing software development among other countries of Eastern Europe.
Outsourcing in Ukraine remains one of the main practices of Western countries (North America, and some of Western Europe), bringing in huge revenues that are predicted to grow by 15% every year by 2028.
And it’s no wonder.
The Ukrainian market is fast growing and more than competitive. According to the 2021 statistics, there are:
- more than 20 clusters;
- more than 5,000 Ukrainian outsourcing companies;
- nearly 300,000 Ukrainian developers;
- 11th in the IT Competitiveness Ranking by Emerging Europe;
- 12 of the top 100 outsourcing software development companies are Ukrainian companies.
And that was 2021. As for now, the statistics have changed in a rather unexpected way: in 2022 IT export market in Ukraine has grown by 6%, despite the invasion and full-scale war.
So, outsourcing in Ukraine now makes even more sense as we rise no matter what. Literally:)
But, if you need extra reasons to outsource in Ukraine, let’s see all the benefits.⬇
Benefits of Outsourcing in Ukraine
◾Developers
The Ukrainian talent pool is endless.
It is the world’s fourth largest supplier of tech talent, with software developers being 58%, and quality assurance specialists, project managers, etc being the remaining 32%.
It’s not just the number of Ukrainian developers, but the level of both: soft skills & technical skills.
◾Companies
As there are plenty of Ukrainian software developers, it is reasonable to assume that there are more than enough outsourcing software development companies too. And the assumption would be just right.
There are more than 4000 software development services providers and other high-quality solutions.
◾Cost
One of the main reasons for software development outsourcing is the cost.
Software engineering is a costly affair. That’s why specifically offshore development is so popular, as the outsourcing rates are lower without sacrificing quality.
And this is where outsourcing in Ukraine comes first as well, as for the affordable rate you get not just any, but high-quality service.
The Dedicated Team model is more than just a name, the Ukrainian engineers ARE in fact dedicated to what they’re doing.
◾Time
Time zones are not really a problem here, but something to consider too.
Hours in Ukraine do not differ much from Western Europe, not to say the same about the US, Canada, and others, though.
Still, there’s a tendency for Ukrainian software developers to start their workday not in the morning, but rather late. This makes it easier for the remote team to find a convenient time to work with the on-site one.
◾Language
As for language barriers, it may cause an issue. Not just language, but overall communication skills too.
Not to worry with Ukrainian developers though, as among other soft skills, English as a second language (ESL) is almost a requirement for the majority of companies.
◾Culture
Last but not least, cultural similarities & differences might slightly affect communication & work.
But with the Ukrainians’ ease of learning and adapting, it could mean even more successful collaboration.
Sum Up
“Do what you do best and outsource the rest.”
-Peter Ducker
Outsourcing software development in Ukraine is the answer to all your needs. Ukraine has proven to be not just an option, but a competitive vendor in the world of the IT industry & IT outsourcing (and others too).
With outsourcing in Ukraine, your business will thrive, and you will get a truly reliable partner in any circumstance.
I mean, even a full-scale war couldn’t prevent us from being the best at what we do. I doubt anything ever will, don’t you think?
