Why choose an outsourcing company from Ukraine?
Outsourcing is becoming more popular every year around the world. Looking for professionals in your team is a lengthy and costly process, so savings are the first reason for working with an outsourcing company. It is much easier to find outsourcers than people on staff. From the perspective of taxes and official registration, outsourcing is much more convenient and profitable for companies.
In 2010 Ukraine was named the best country for outsourcing software development for clients from Western Europe. More than 100 international telecommunications, e-commerce, software development, and game creation have located their offices in Ukraine, including Grammarly, Magento, Ericsson, and Crytek. The percentage of Ukrainian software engineers is the highest in Central and Eastern Europe.
Has the situation changed since then? Is IT outsourcing in Ukraine much cheaper? The Sannacode team, based on 7+ years of working with clients around the world, has collected information about outsourcing development in Ukraine and decided to share it with you in this article.
Top 8 reasons why to choose IT outsourcing in Ukraine
Ukraine has some of the lowest rates in the world for high-quality IT services.
The average cost of an hour of a developer in Ukraine is $ 25-50. Simultaneously, the USA’s average development cost is $ 50-300, and in the UK - $ 50-170. Development cost statistics by region can be viewed below on the infographics.
As you can see, Ukraine’s cost of development is several times lower than in other developed countries. Therefore, for clients from the USA or Western Europe, Ukrainian prices are still beautiful.
By transferring all their "production facilities" in the IT field to Ukraine, Western companies can reduce their costs by 40-60%.
The low cost of living in Ukraine, compared to other European countries, allows qualified developers to set a reasonable price for their services.
Our experience shows that clients from various countries work with developers from Ukraine, among which the USA, Great Britain, and Canada stand out. Besides, the Ukrainian outsourcing market attracts clients from Russia, Germany, and Israel. It would not be an exaggeration to say that all the companies that worked with us were more satisfied with outsourcing services in Ukraine than in any other country.
High technological education
Ukraine is in third place in the world in the number of people with higher education and fourth in certified IT specialists.
Historically, every major city in Ukraine has technical universities, and more young people choose technical specialties.
85% of specialists from Ukraine have higher education. It is one of the reasons that make them reliable and professional employees. Almost two-thirds of Ukrainian developers have graduated from universities’ technological faculties, and 55% of developers have more than three years of experience in their specialty.
Ukrainian universities’ requirements for applicants are similar to American and British universities. 4 years of bachelors and 1-2 years of master's degrees correspond to the Bologna process. It allows you to standardize education throughout the European Union.
Six Ukrainian universities are included in the ranking of the best universities, according to QS. Three of them are located in the capital of Ukraine - Kyiv.
Also, Ukraine’s population is 6% of the total number of highly educated specialists in physics, mathematics, programming, and other technical fields. Our country ranks third in the Top 50 countries with the most certified IT professionals, behind only the United States and India.
The high concentration of IT specialists
The number of developers in Ukraine is growing every day. From 2015 to 2020, the number of IT specialists in Ukraine doubled from 90,000 to 180,000. These are the findings of a study of the Ukrainian IT sphere over the past five years by GlobalLogic.
25% work in the top 25 companies: Epam, SoftServe, GlobalLogic, Luxoft, Ciklum, Infopulse, NIX, ELEKS, EVOPLAY, DataArt, etc. At the same time, about 20,000 programmers work in the top five Ukrainian IT companies.
More than 60% of all the specialists above are employed in outsourcing IT companies. Simultaneously, the number of startups (2000+) and international R&D offices (100+ companies) is growing.
Ukrainian outsourcers cooperate mainly with companies from the USA (81% of all clients). These can be both startups at the bootstrap stage and tech giants. Among the latter in the Ukrainian outsourcers portfolio are Cisco, IBM, Atlassian, Travelport, OpenText, Fluke Corporation, etc.
Often, teams of outsourcers that work for Western clients grow into full-fledged development centers (less usually they are branded) for their clients.
Convenient time zone
The time zone of Ukraine is GMT + 2. Thus, we have the same working hours as European countries. Even for companies from America, Ukrainian time is more convenient than in Russia, India, or China.
When choosing an outsourcing company from Ukraine, you will not experience a language barrier. Fluent English is a mandatory requirement for employees of IT companies. Almost all developers and managers in IT companies speak English. Some companies have native speakers on their staff.
Any large outsourcing company in Ukraine stimulates the study and practice of the English language.
For example, we, at Sannacode, provide English lessons for our staff with native teachers. Sannacode IT professionals work on their English at least twice a week.
Ukraine is the largest country in Europe with a convenient geographic location. It is a huge advantage for companies that want to outsource software development to Ukraine since the flight from most European capitals takes only 2-3 hours.
Moreover, trips to Ukraine are mostly visa-free. Citizens of 64 jurisdictions, including all European citizens, citizens of the USA and Canada, can enter Ukraine without a visa for a stay of up to 90 days in any 180 days.
The largest cities, where most IT outsourcing companies in Ukraine are located, are Kyiv, Lviv, Kharkiv, Dnipro, and Odesa.
Such rapid growth in the IT outsourcing industry in Ukraine lies in the right geographical location and the cultural compatibility of Ukrainian software developers with Western clients. Despite vestiges of the Soviet Union, Ukrainians are European-minded. They are open-minded, tolerant, curious, and determined.
Most IT companies in Ukraine employ specialists of different nationalities, religions, and languages. Thus, the values of tolerance and flexibility allow Ukrainian IT specialists to cooperate with Europe and the United States representatives entirely.
Ability to protect intellectual property rights
Clients do not have to worry about the security of information about the project since the country’s legislation guarantees intellectual property rights. Besides, we at Sannacod use Non-Disclosure Agreements (NDAs), a legal document and an essential part of business etiquette that governs communication.
How can IT outsourcing help your company?
Capital cost control. Cost reduction may not be the only reason for IT outsourcing, but it is undoubtedly an essential factor. IT outsourcing converts fixed costs into variable costs, frees up capital for investments in other parts of your business, and avoids high prices in the early stages of a startup and business. IT Outsourcing can also make your firm more attractive to investors as you can focus on your core business.
Increased efficiency. Companies that do it all have much higher research, development, marketing, and distribution costs, all of which must be passed on to customers. A third party's cost structure and economies of scale can give your company a significant competitive advantage.
Reducing labor costs and optimizing them. Hiring and training staff for short-term or secondary projects can be very costly, and temporary workers may not always meet your expectations. IT Outsourcing allows you to focus your human resources where you need them most.
The rapid development of new projects. A good IT outsourcing company has the resources to start a project right away. Doing the same project in-house can take weeks or months to hire the right people, train them, and provide the necessary support. And if the project requires a large capital investment (for example, building several distribution centers), the start-up process can be even more complicated.
Focusing on core business. Every business or startup has limited resources, and every manager is limited in time and attention. IT Outsourcing can help you focus on your core business and not be distracted by development and developer training.
Reducing risks. Every business investment comes with a particular risk. Markets, competition, government regulations, financial conditions, and technology are changing rapidly. Team Sannacode can take and manage this risk for you. We are much better at deciding how to avoid trouble in our areas of expertise.
In the end
Observing the rapid development of the Ukrainian IT industry, we can conclude that Ukraine is one of the most promising and attractive countries for Western countries. The main advantages of Ukrainian IT outsourcing are:
The growth rate of sales of Ukrainian IT companies exceeds the overall global rate by five times.
The international positioning of Ukrainian IT companies is improving: attracting investments in new startups, large M&A deals, new well-known contracts with IT giants, and increasing world rankings.
Clients seek to diversify the number of concurrent IT service providers, thereby increasing new sales of Ukrainian companies.
Clients are shifting the focus from traditional IT outsourcing to IT solutions for business problems. Ukrainian companies are picking up this wave by attracting business analysts to the industry.
The state is more involved in developing the IT industry, using the topic as part of the state international PR program.
IT companies are integrating with Ukrainian universities, creating a demand for specialists, and adjusting educational programs.
Large IT companies develop their academies.