IT Outsourcing industry of Ukraine
Ukraine IT Outsourcing Review 2019

IT Outsourcing to Ukraine in 2022 — The General Country Overview

Ukraine is one of the Eastern European countries that is becoming increasingly popular among those looking for IT outsourcing partner. Since 2017, the IT sector in Ukraine has grown 27%, with over 185,000 IT specialists currently working in the country. The number of IT companies in Ukraine is predicted to double by 2025. Ukraine is now the fourth-largest supplier of tech talent to the world (after the US, Russia, and India), with a corresponding growth in the amount of outsourcing in Ukraine.

According to Outsourcing Journal, Ukraine is now the number 1 digital, technology, and IT outsourcing destination in Central & Eastern Europe. Gartner named it in the top 20 offshoring destinations in the EMEA region, and PwC has noted that its a top 25 IT exporting country.

IT outsourcing in Ukraine nowadays offers a broad range of market solutions. From individual developers to small and mid-size software development firms. Some have teams of hundreds of engineers, specialists, and QA professionals. Most developers in Ukraine have years and decades of experience, working according to tried-and-tested processes, and use cutting-edge tech solutions, project management tools, and work within a supportive tech ecosystem.

Companies in Western Europe and North America, as well as Asia and Israel, need to be confident they’re working with skilled and experienced developers. Many are clearly showing reasons for confidence, with globally-recognized brands augmenting IT teams in Ukraine and outsourcing more projects to IT companies in Ukraine.

Let’s take a closer look at why businesses across the world are outsourcing IT needs and projects to software development companies in Ukraine and why IT outsourcing to Ukraine benefits so many companies worldwide.

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Benefits of outsourcing IT projects to Ukraine

  • With 185,000 IT specialists — expected to reach 200,000 soon — Ukraine is home to an extensive amount of coding and engineering experience. If you want someone or a firm skilled in a particular language, you should be pleased to know that the following are the most popular: Java (26,3%), C#(15,4%), JavaScript(13,8%), PHP (13,1%), and Python (8%). According to a DOU.UA, Programming language popularity ranking.
  • Within this Ukraine IT outsourcing talent pool, there are around 67,000 front-end specialists, which means Ukrainian developers are just as skilled as those anywhere else in the world when it comes to creating front-end web or mobile-based (think iOS or Android) interfaces and user-experiences.
  • No language barrier concerns. Schools and colleges teach English. It’s the global language of business, so with 80% of developers speaking English, you don’t need to be concerned about communicating when Ukraine IT outsourcing.
  • Ukraine graduates 36,000 new IT and technical specialists every year. With 402 universities and colleges, many specializing in science and technology subjects, it’s no surprise that the World Economic Forum named Ukraine one of the top 10 countries for engineering, manufacturing, and construction graduates (130,000 overall in those fields).
  • From startups to multinational mid-size companies, outsourcing in Ukraine is an attractive and cost-effective opportunity. However, you might be surprised to know that Ukraine now attracts global Fortune 500 companies that previously only outsourced to India and Israel. Ukraine is now home to over 110 R&D centers for multinational tech giants. Global giants now operating in Ukraine include Microsoft, Samsung Electronics, Apple, Skype, IBM, Boeing, Ericsson, Siemens, Oracle, and numerous others. These outsourcing operations have entered the market through mergers, joint-venture operations, or outsourcing IT to reliable third-party providers.
  • Ukraine is home to a vibrant tech community. This is vital to a healthy IT and technology infrastructure. Not only are the majority of developers active in online communities, but there are also at least five major conferences throughout the year: Agile Eastern Europe Conference, PyCon Ukraine, iForum, IT Arena, and DEV_Challenge. According to a survey, 60% of developers in Ukraine regularly attend IT events, conferences, and local meetups. The most prominent conference in the country attracts 7,000 developers, and many will also fly to conferences and events around Europe, Russia, and even as far as San Francisco, California.
  • Ukraine’s IT outsourcing is cost-effective. Compared to Western Europe and the US, where mid-level to senior developers can easily earn $100 an hour, developers in Ukraine are generally in the $25 to $50 per hour range. Overall, Ukraine’s outsourcing rates are not as cheap as some regions, such as parts of Asia and Latin America, but factoring in language and cultural compatibility, Ukraine is proving itself as the smart and strategic choice for long-term IT outsourcing.
  • Strong work ethic. Over 110 global R&D centers are a positive indicator that developers in Ukraine are on a similar wavelength to companies and clients in Western Europe and the US. When it comes to Ukraine outsourcing, you can be confident in the work ethic and commitment to excellence. In Ukraine, facts and figures matter as much as personal and professional relationships, and developers in Ukraine get invested in projects they’re responsible for. Ukraine’s software development companies typically are more focused on establishing long-term relationships with their partners in Europe and the US. There are countless examples of large companies that outsource software development to Ukraine for long periods of time. Try to provide feedback and challenge approaches, whenever required, and working with a developer directly instead of through an account manager means you avoid misunderstandings and a project will evolve and come to completion more smoothly.
  • Positive and favorable business environment. In previous decades, Ukraine and many Eastern Bloc countries weren’t known for having the best environment for starting and growing businesses. But in recent years, national and local Ukrainian legislators and lawmakers have implemented reforms that are encouraging entrepreneurs and companies to outsource IT to Ukraine. And these reforms are starting to have a positive impact on the economy. GDP growth is around 3.5%, which is more than some Western European countries. A Strategic Action Plan 2020 phased out over 450 outdated laws, making it easier for businesses and professionals to operate. This, in turn, has improved Ukraine’s position on the World Bank’s Ease of Doing Business rankings table. Personal tax rates have also reduced, giving employers more of an incentive to recruit new staff, thereby giving them the ability to support a growing list of Western clients outsourcing in Ukraine.
  • A strong startup community. As mentioned above, starting a business in Ukraine is easier now than ever. As a result, there are over 4,200 startups in the country, with $258 million raised in 2017 and steady growth from VCs and angel investors ever since, and a growing number of investments being made from nearby countries and even those further afield (including the UK, Germany, and the Netherlands). Kyiv, Ukraine’s capital is turning into a major tech hub, with numerous VC firms actively supporting the growth of startups. Some prominent startups include Jooble, DepositPhotos, Grammarly, GitLab, PetCube, Mobalytics, Preply, Attendify, MacPaw, CleanMyMac, Setapp, InvisibleCRM, Looksery, Readdle, Skylum, and numerous others that either started or are still based in Ukraine. Startups are a vital part of the developer community and this is recognized as a positive for those outsourcing IT to Ukraine.
  • Ukrainian developers have a very strong skill set, both in technology and problem-solving. Alongside the most popular coding language skills in Ukraine — Java (26,3%), C#(15,4%), JavaScript(13,8%), PHP (13,1%), and Python (8%) — developers in the country are also known for proficiency in other languages that clients increasingly need, including C++, Scala, Magento, Node.js, Python, ASP.NET, Ruby, Symfony, and there are thousands with Unity 3D skills. As for soft skills, Ukrainian developers are quickly adopting western values and quickly improving when it comes to communication, strategic thinking, and project management.

As you see, there are numerous good reasons to trust  Ukraine’s outsourcing software development companies. IT projects are delivered on-budget and on-time when outsourcing in Ukraine. Developers are hard-working, forward-thinking, and good communicators. Developers in Ukraine are also innovative, coming up with solutions to difficult challenges that others may not have considered.

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Exploring Ukraine’s IT outsourcing industry 2022

Ukraine is an increasingly popular choice for IT outsourcing. Whether you need a new app, to overhaul a legacy system, or are developing something from scratch in a cutting-edge space, such as 3D printing, AR/VR, or Blockchain, you can be confident of finding the dedicated and experienced talent you need when working with Ukraine outsourcing IT companies.

In Ukraine, there are over 1,000 specialist software and engineering companies. Some IT companies in Ukraine are small, others have hundreds, even thousands of staff in one or several offices around the country. All of them benefit from the technology ecosystem and environment we have talked about in this article, including the universities, R&D centers, supportive community, and startup community.

Outsourcing to Ukraine is a strategic and cost-effective approach to solving the IT challenges of your company, and YouTeam can help you find the best outsourcing partner. Find your team now. Just fill in a bit of info on the type of project and a team or an engineer you want to hire, and we’ll get back to you soon. Meanwhile, you’ll be able to browse all available developers directly on our platform, add them to the shortlist, and contact our Team Advisor in the live chat. Your hiring challenge is not a challenge if you sign up to YouTeam.

Written by
Galina Divakova

Former Head of Marketing at YouTeam, a Y Combinator-backed marketplace for building remote dev teams.

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