Ukraine was known as the best country for software outsourcing in Europe in 2010. What has changed since then? Has Ukraine retained its leading position in the field of IT outsourcing and remote work? Let's find out.
Why is setting up a remote development center in Ukraine a smart move for scaling engineering capacity?
Here are the most significant arguments in favor of working with a Ukrainian remote development team.
A Reasonable Price for Services
Ukraine is one of the countries offering the lowest prices for IT outsourcing. Note that the cost of work was the lowest in the world ten years ago. Due to increased demand, the services of Ukrainian IT specialists have risen in price but still remain very attractive.
IT outsourcing in Ukraine provides Western companies with the opportunity to reduce their expenses by 40-60%. Cities such as Kharkiv and Dnipro rank 3rd and 5th among the most cost-effective IT development centers.
The cost of software development in Ukraine depends on the model of work of the remote development team you choose:
- outsourcing with the ability to create a turnkey project;
- outstaffing - hiring a specialist for any period of time;
- opening an office in Ukraine.
For an American company, the third of these options seems to be the most profitable, since the cost of maintaining a remote software development center in Ukraine is about $500 per month, while, for example, in San Francisco it costs at least $10,000 per month.
Ukrainian developers show consistently high results in global online competitions among IT specialists. Besides, Ukraine ranked 4th by number of accredited developers in the world in 2010 when the research was done.
A Large Number of IT Developers
Every year, 16,000 graduates of higher educational institutions join the ranks of Ukrainian IT specialists. In 2015, there were 90,000 IT specialists in Ukraine, which is 20% more than in 2014. More than half of them worked in outsourcing companies. In 2020, the number of IT specialists is supposed to reach 200,000.
No Internet Connection Issues
Ukraine ranks 21st in the world by Internet speed. For some reason, such ratings never include the fact that in any large Ukrainian city you can connect to a 100-megabit network within a day, and it costs no more than $5 per month!
No Threat of Natural Disasters
The probability of earthquakes, tornadoes, tsunamis, and other destructive natural disasters in Ukraine is minimal.
No Problem Communicating in English
Ukrainian developers normally know the language to a level that ensures they can do their job well. Project managers, customer service managers, and team leaders can boast an even higher level of both spoken and written English.
Each major remote software development center in Ukraine provides full-time lessons that help IT specialists improve their English at least twice a week. Thus, there are no difficulties with communication.
What About the Disadvantages?
Upon hearing about Ukraine, many people think about the conflict in the East first. Although some military activity is still going on in some areas, it is concentrated in only 10% of the country's territory. The remaining areas are completely safe; ordinary peaceful life continues there. The current situation in Ukraine can be compared with the situation in Israel. Both countries are used to varying levels of military conflict, but are among the world's most appealing technological centers.
Besides, neither Crimea nor Donbas were hubs for a large number of IT companies - any enterprises based there were moved to safe regions of the country after the outbreak of hostilities. Communication lines - electricity and the internet - don't pass through the Donetsk and Luhansk regions, so nothing threatens the quiet work in the rest of Ukraine.
The largest share of the outsourcing market among the countries of Central and Eastern Europe, 16,000 IT graduates per year, Western orientation, WTO membership, and the highest level of democracy among all post-Soviet countries outside the European Union are what makes Ukraine an attractive country for outsourcing IT projects.
The country's infrastructure is always developing, and government expenditure on education is high, with the number of qualified IT professionals growing.
More than 50% of companies are ready to provide customers with fully-fledged remote teams, and 40% offer a mixed business model where specialists can work both in the client’s office and remotely.
Ukrainians are not afraid to offer innovative models of cooperation, characterized by the following:
- focus on long-term interaction with customers;
- process management (employees are part of the company’s staff);
- speeding up the product launch.
This approach allows establishing a closer interaction between the customer and the executors. This guarantees a better understanding of the customer’s business needs, as well as gives the customer the opportunity to control the development process.