Dan Fedirko
Jan 31 · 5 min read

Ukraine’s IT outsourcing was growing for over the last 20 years. World-class engineering talent and cheap rates are the main reasons for outsourcing software development to this country. Moreover, some tech giants are so attracted by Ukraine’s IT potential that many of them, such as Oracle, Cisco, and Samsung have opened their R&D centers there.

When planning to outsource, business owners want the highest quality and reasonable cost. That is why they find Ukraine an attractive place for IT outsourcing, but it’s not the only reason.

10 reasons to outsource to Ukraine

1. 160,000+ IT Professionals

There is a prediction that the Ukrainian IT industry is going to worth $10 billion by 2020. The local software development community has grown by 27% in 2018 and currently employs over 160,000 IT specialists. By the number of tech workers, Ukraine holds 4th place in the world after the United States, India, and Russia. Moreover, it is expected there will be 200,000 IT specialists by 2020.
According to SkillValue, Ukraine ranks 8th among the world’s top countries with the best programmers with an average score index 91.26%.

Ukrainian developers have skills in most of the world’s technologies, with Java (26.3%), C#(15.4%), JavaScript(13.8%), PHP (13.1%), and Python (8%) being the most popular programming languages in Ukraine according to DOU.

2. A Big Tech Community

Such Ukraine’s major tech event as IT Arena, Agile Eastern Europe Conference, PyCon Ukraine, iForum, and DEV_Challenge give IT specialists an opportunity to network with their colleagues, share experiences, and learn on the best practices from the leaders of the industry.

More than 7,000 people visit the largest conferences to learn from international speakers from global companies such as Microsoft, HP, Skype, IBM, Intel. There are also smaller tech events on the local level, where professionals talk about AI, big data, data science, VR/AR, blockchain, etc.

3. 36,000+ Tech Graduates Annually

Ukraine has 400+ universities and colleges that graduates more technical specialists than most of the technological countries like Japan or the Netherlands. Every year more than 36,000 students graduate with IT degrees.
The country supports those willing to join the hi-tech community by launching various educational opportunities. In cooperation with local software development companies, regional IT clusters often set up innovation labs and launch various educational programs at universities and colleges. For example, Lviv IT Cluster has recently launched educational programs in new fields such as IoT, AI and Data Science at 2 best universities in Lviv.

Looking for offshore developers? Relevant Software can provide you with experts of any seniority.

4. Best Price/Quality Ratio

With such a large and powerful tech talent pool, Ukraine offers lower rates then it’s neighbours such as Poland.

The average salary varies between $2,500 and $4,000 per month with the average hourly rate of a software developer within the $25–50 range.

These rates may be higher than in some other popular countries for outsourcing, but Ukraine’s engineers are more talented with quality not lower than those in Western Europe and North America, where a software engineer of similar skillset could cost around $100/hour.

5. 1,000+ IT Companies

There are over 1000 software development companies in Ukraine that offer almost every kind of IT services, such as web and mobile development, UI/UX design, QA and testing, R&D services, IT consulting, big data and analytics, etc.

And it’s not about the quantity, Ukrainian IT companies have proven their quality by showing up in the top 10 of the global rating of IT companies.

6. 2,000+ Up and Coming Startups

The local startup community is rapidly growing. Grammarly, GitLab, DepositPhotos, PetCube, Prepl, and Readdle are only a few of the big companies that had their birth in Ukraine.
Global market big players have a huge interest in Ukraine’s startups: Google acquired Viewdle — a facial recognition company, Snapchat has bought Looksery — a real-time facial modification app, and Oracle has bought Maxymiser — a website testing and personalization tool.

Moreover, according to Techstars, Kyiv, Ukraine’s capital and major tech hub, has more investors than Copenhagen, Vienna, Warsaw, and Oslo. These include Chernovetsky, SMRK, Investment Group (CIG), Digital Future, AVentures Capital, Vostok Ventures, Imperious Group, and TA Ventures.
Strong relationships with venture capital funds from the UK, Germany, the Netherlands, etc were built, as a result, venture capital investment in Ukrainian startups has been growing and has reached $258 million in 2017.

7. Multinational R&D Centers

Such companies as Microsoft, Apple, Samsung Electronics, Oracle, Ericsson, Skype, IBM, Siemens, Magento, Boeing, and Wargaming have placed their R&D centers in Ukraine. And it’s no surprise with a fact that Ukraine is one of top 50 innovative economies in the world.

8. 80% of Ukrainian Developers Speak English

80% of Ukraine’s IT professionals have an intermediate or higher level of English knowledge according to DOU’s research. Most of the IT companies in Ukraine, including us, offer free English classes for their employees which increases their English level.

9. Cultural Compatibility

The work culture of the IT outsourcing industry in Ukraine is very similar to that of the West. Ukrainian developers are open to challenges, treat the projects they’re working on as their own, and are interested in the success of the customer.

It is common for eastern countries to work based on the trust and reputation, but here in Ukraine facts and figures matter most, as for the western business.

10. Good Business Climate

From year to year, Ukraine is regulating its international policies and moving towards a more convenient business environment.

Moreover, Ukraine has gone 20 positions up in the rank of ease of Doing Business owned by World Bank. Ukraine also made the process of paying taxes easier for employees by reducing a flat rate from 49% to 22% for the Unified Social Contribution.

All these improvements boosted the growth of the local IT community and urged business owners to choose Ukraine for IT outsourcing.

Afterword

Fast-growing tech ecosystem, a huge number of talents, professional high education and cost efficiency make Ukraine one of the most attractive places in Europe for IT outsourcing. Ukrainian developers have strong technical expertise, high English proficiency level, and skills in emerging disciplines such as blockchain, VR/AR, AI, big data, etc., that is why top companies hire them to create cutting-edge solutions.

Looking for offshore developers? Relevant Software can provide you with experts of any seniority.

Elligense | Tech in elearning and ecommerce

We at Elligense develop custom elearning and ecommerce IT solutions and share our expertise here at Medium.

Dan Fedirko

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Looking for a reliable IT vendor? Check out Relevant Software → https://relevant.software/

Elligense | Tech in elearning and ecommerce

We at Elligense develop custom elearning and ecommerce IT solutions and share our expertise here at Medium.

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