Why Outsourcing to Ukraine
Companies around the world continue to experience digital transformation with more and more businesses outsourcing their IT projects. Ukraine is becoming an increasingly popular outsourcing destination for those looking for software development partners. According to PwC, the Ukrainian IT market has grown 2.5 times recently. Many world-famous projects such as Grammarly, Depositphotos, Jooble, Nimses, Terrasoft were created by Ukrainian developers. In this article, we will look at the main reasons why outsourcing to Ukraine is in such demand.
5 reasons for outsourcing to Ukraine
If you’re looking for the best outsourcing destination, you should know why IT outsourcing to Ukraine has become more popular in recent years. Let us consider the 5 reasons why so many global IT companies choose Ukraine to outsource their projects to.
Favorable economic environment
The country’s GDP growth is around 3.5% per year, and since 2015 Ukraine has gone 20 positions up in the World Bank’s Ease of Doing Business rating. The IT industry accounts for an estimated 10% of Ukraine’s GDP, and therefore in recent years the government has implemented reforms that have created more attractive conditions for outsourcing to Ukraine. In particular, Ukrainian legislation allows IT companies to work with self-employed specialists who only pay 5% of their income and a monthly unified social tax, which is 22 percent of the minimum wage.
Time zone and culture
Compared to some alternative outsourcing destinations Ukraine is located in the center of Eastern Europe. Working with Ukrainian professionals will be comfortable as they adhere to many of the same values that are reflected in Western work culture and mentality, including dedication and discipline.
Ukraine’s time zone GMT+3 is convenient for nearshoring, given that it is only 1–2 hours ahead of most European countries, and for the USA the difference is usually between 7 to 10 hours. You can use this time difference for non-stop product development. In addition, Ukrainian companies often work on flexible schedules, so it will be easy to establish a stable workflow and communication process.
The country has a favorable geographical location for IT development outsourcing and business trips. A flight from most European capitals to Ukraine takes about 2–3 hours, and travel is mostly visa-free. Citizens of 64 jurisdictions, including all European citizens and the citizens of the USA and Canada can enter Ukraine visa-free and stay for up to 90 days in a 180-day period.
A large pool of skilled developers
More than 20,000 tech students graduate from Ukrainian universities annually. Many of them are taking internship programs at IT companies in order to receive a job offer afterwards. Around 75% of Ukrainian developers have a higher education degree, 6.3% have two degrees, and 1.5% hold an Sc.D, according to statistics. Also, in the IT Skills 2021 report, Ukraine ranks 6th among countries whose developers have received the highest scores in coding tests. In addition to traditional education, there are a large number of IT courses. There are about 120+ courses in programming, QA testing, and UI/UX design in Kyiv alone.
Ukrainian developers work with a wide range of technologies that meet the needs of the market. According to DOU, 2020 was the first year JavaScript had outrun Java and became the number-one programming language in the Ukrainian development community. Over 18% of software engineers used it as their primary language in 2020, and more than 41% named it as an additional programming language. When it comes to frameworks and libraries in use, React.js, Node.js, and Angular.js are the top three in the popularity chart.
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