Software Development Outsourcing to Ukraine: 9 Reasons Why It’s the Best Choice#Dedicated Teams October 17th, 2020
To develop software cost-effectively, IT companies outsource software development to countries where there are low cost and high quality. When you talk about software development outsourcing, one cannot ignore Ukraine, which is the popular destination for the development of software. In this article, you will be informed regarding why Ukraine is the best place in the world for outsourcing software development. Besides, you will get information concerning the top web development companies in Ukraine. Moreover, facts and figures about IT professionals, IT universities, and graduates passing each year will be provided to get in-depth knowledge about the IT sector of Ukraine.
9 Reasons why is Ukraine the Best Choice for Software Development Outsourcing?
Worldwide recognition with proven credibility in IT
One of the major factors that make Ukraine an ideal place for top website development consultants to outsource software development there her worldwide recognition in the domain of tech and IT industry. You can judge the position of Ukraine in the global IT market from that A.T. Kearney’s Global Services Location Index place her in the 20th position. While at Global Sourcing Association (GSA) awards ceremony, London (2017), Ukraine was declared as the “Offshoring Destination of the Year” in the globe. These international recognitions and rankings have improved her credibility in the IT with leaps and bounds.
In addition, at Outsourcing World Summit USA, (2018), the Ukrainian IT firms and companies were also placed in the list of the top 100 IT-service vendors. Besides, 13 Ukrainian IT firms and companies were also placed in the top 100 IT-vendors that provide outsourcing services in 2020. This ranking was published by the International Association of Outsourcing Professionals (IAOP) in 2020. This attracts Ukraine as the best place for outsourcing IT work in general and software development in particular.
Other important and global positions secured by Ukraine include: top position in the Outsourcing Journal’s Outsourcing Market in Eastern Europe ranking, CEE by the number of engineers, outsourcing volume (CEEOA report), and AT KEARNEY’s the top 50 In Outsourcing Activities.
Figure 1: Outsourcing ranking of Ukraine
Enabling and feasible Environment for Outsourcing IT Services
Besides the international credibility and top rankings, the environment of IT in Ukraine is also the big source for attracting the professional website development companies to outsource IT work there. As per the report of the IT Association, in Ukraine the IT services contributed $3.6 billion in the country’s export and in 2025 its amount would be around $8,4B. The contribution of the IT sector in the GDP of the country is expected to rise from the current level of 3,34% to 4,65. To make the best use of the IT industry the government needs to ensure stabilization in the tax policy and removal of regulatory rules and regulations.
Figure 2: Facts and figures regarding the IT market in Ukraine
The important areas of the IT industry in Ukraine where software and IT experts provide high-quality services include software engineering, testing, test automation, apps support, and architecture. You can also avail services like IT consultancy services, training, R and D, content marketing, management of security, etc. High-quality services coupled with a feasible and enabling environment bring the top software and IT companies in Ukraine to outsource their IT related project for completion efficiently and cost-effectively.
The quality of technical education and the record number of students with computer science degrees
Another significant reason that makes Ukraine as the top destination for the top apps companies and mobile app developers to outsource IT related projects there is the best quality of technical education and a vast variety of talented computer engineers. As per the Ukrainian government report, there are 652 higher studies institutions and about 1.5 million students studying in degree-level classes in the country. As per the report and ranking of Emerging Europe and Central Asia University Rankings, there were top 3 Ukrainian universities among the top 300 best universities in developing countries in 2019.
As far as the number of IT graduates in Ukraine are concerned, the official figures of the Ukrainian government reach 36,000. While the literacy rate of Ukraine is about 99.8% as per the World Bank report. Thus, the quality and number of IT graduate along with top-ranking IT universities and the perfect literacy rate in the country make her an ideal hub for the IT industry in the work. As a result, she attracts many companies to outsource IT work there.
Trustworthy IT vendors and experienced software specialists
Trustworthy IT vendors or experienced software specialists is also one of the most promising aspects that renders the Ukrainian IT market pivotal in the sense of outsourcing the software development projects in the global world It market. Thus, Website development agencies and website development consultants all around the world outsource IT related projects like software development, app development, website development, android app design, etc. One can easily estimate the potential and power of the Ukrainian IT industry from the point that there are more than 192, 000 software developers and computer engineers as per the report of the Tech Ecosystem Guide.
Official and governmental statistics show that the IT sector in Ukraine is expanding at a fast speed as well. One more thing that makes the Ukrainian IT market more attractive is the presence of a vast number of developers well-versed in numerous programming languages. The most recent pool in this regard revealed that the PHP, Python, C#, etc. are the most popular programming languages in the Ukrainian IT market.
Besides, the Ukrainian IT market is rich when it comes to IT companies and consulting firms. According to a recent report, there are more than 4,000 software development and tech companies in the country. These companies provide services like UX/UI design, software development, app development, business development, etc. In addition to local IT companies, there are numerous offices of world-renowned IT firms and companies in Ukraine including Google, Apple, Microsoft, etc. Consequently owing to these crucial factors, Ukraine is considered the best place in the world IT market for outsourcing IT related services.
Figure 3: statistics of IT-related engineers in Ukraine
Numerous huge Software Design and Development Hubs
Another reason that renders the Ukrainian IT market a perfect choice for the website designers and the best app design provider to shift their IT project there is a wide variety of the huge software design and development firms located in the major cities of the country. As per the report of the Mappedinua, the major software development companies are situated in Kyiv, Lviv, and Odesa with a number of IT companies of 891,116 and 74 respectively. These IT companies and tech firms are not limited to only software development but there are also Research and Development agencies, Investors, accelerators, IT companies, startup, etc. Thus, the Ukrainian IT market attracts more and more people and agencies for outsourcing the IT-related projects and job from and around the world states.
Figure 4: Major IT centres and hubs in Ukraine
One can easily understand that the total population of Ukraine is about 43 million (2017 statistics) and a large chunk of IT-related firms and agencies are present in the big cities of the country. The presence of IT companies and firms in big cities of Ukraine compels outsources by reducing their cost and time spent in the development of the software.
Ukraine: the Visa-free outsourcing country
The visa-free nature of Ukraine for outsourcing the projects brings a lot of website designing and development companies, website development firms, and software development agencies in the country for the outsourcing of the IT projects and jobs around the world. Taking visa and official approval for the business in many countries is a hectic effort and act as a major obstacle that hampers the foreign direct investment in the third world states. The companies that outsource their project to other companies and investors provide a lot of attention to the visa of the targeted country for the sake of ease of doing business and profit.
In Ukraine, the visa procedure is too convenient and easy for foreign investors and outsourcers. Many western counties enjoy the visa-free status in Ukraine and their residents, as well as investors, visit the country for business and trip with much ease and comfort. Besides, Ukraine started the e-visa policy for 52 countries in 2018. Thus, the e-visa system has reduced the undue visits to the embassy and shortens the visa process by many-folds. As a result, visa-free and e-visa policies are one of the major drivers that bring famous IT companies and investors of the world in the country to outsource IT projects in Ukraine.
Reasonable, affordable, and lower Rates for outsourcing IT projects
Lower rates for outsourcing the IT projects also make the Ukrainian IT industry a good choice for outsourcing in the world market. According to the famous and reliable source Clutch, most of the software development companies and firms in Ukraine are small with respect to employee strength and there are a number of small and medium-sized companies that acquire IT outsourcing projects at reasonable and lower rates. Besides, Ukraine is a country where the system of taxes is too simple and there is also a sufficient level of Science, technology, engineering, and mathematics education that support the projects to be done at reasonable rates.
Lower rates and high levels of specialities are reasons behind the top hiring of Ukrainian developers by the USA, the UK, and Germany. Consequently, to reduce the cost, and a number of experts as well as to hire top-notch specialists, many IT companies, firms, agencies, and investors in the world shift and delegate their projects and jobs to the freelancers, third world states, and foreign developers and designers. When it comes to lowers rates and specialists in the IT domain, the name of Ukraine can’t be ignored anyway.
The favourable location and the time zone: The compelling factor for outsourcing
In addition to lower rates and high quality of developers, the location and time zone of Ukraine are key factors that make her the best choice for outsourcing IT-related jobs. The best app design provider, website development project managers, and top apps companies choose the IT industry of Ukraine as a good choice for them for outsourcing. Ukraine is located in close proximity to the European states which are too advanced and rich with respect to the IT industry. It makes it very easy for the investors of Europe to look after the progress of the outsourced projects in Ukraine in just a few hours. Similarly, the developers can easily reach and contact their clients in just a short span of time and with much ease.
Besides the favourable location of Ukraine, her time zone is also a crucial factor in attracting rich client from the European states. The time of Ukraine is 1 hour ahead of the rest of the European countries, thus it means any from Europe and customers from Ukraine can discuss their project with much ease and comfort. Other time zones like the pacific, Central, and Eastern Time zones don’t have much difference with that of Ukraine. As a result, a convenient location and favourable time zone of Ukraine play a vital role in making her an ideal choice for outsourcing the software development projects in the world market.
Specialized IT events
Last but not the least, one of the major reasons that make the IT market of Ukraine as an essential and favourable choice for outsourcing IT projects and jobs is the specialized IT-related events and conferences that take place every year. The high profiles specialized IT hackathons ad meeting with a large number of attendees and guest speakers, that took place during the last few years include iForum (2019), IT Arena (2019), Games Gathering (2019) having 13,000, 3,800, 3,000 participants respectively. In these events and seminars, IT graduates and academia, developers, and professionals gather from all around the world to share ideas, gain valuable IT-related information, and exchange knowledge with each other.
Some other IT-related local, national, and international seminars, meetings, events, and conferences include JEEConf, Dev Challenge 12, Mobile Beach Conference, Agile EE Conference, and many more. According to one survey, it is estimated that more than 60% of developers and IT specialists in Ukraine attend these events to gain the latest and first-hand knowledge. Thus, the specialized IT related seminars and conferences also contribute to Ukraine’s IT industry to attract software development outsourcing from all around the world.
Comparison of IT outsourcing among Ukraine and major world countries
Here is the table of comparison that will provide you a deep insight into the outsourcing of IT projects and jobs in Ukraine and other major countries of the globe. One can easily understand the potential of software development outsourcing in Ukraine by looking at this table.
Figure 5: IT related outsourcing in Ukraine and other countries of the world: a Comparison
Why choose CodeAssembly and how to outsource with it?
Once, you have been provided with reasons for outsourcing software development and if you have decided to outsource software development to Ukraine, then you should have in-depth info about the best IT-related companies and consulting agencies that will assist you to complete IT projects and jobs in an effective, efficient, and cost-effective manner.
CodeAssembly would be happy to help you in outsourcing any software development needs you might have. Our company is expert in full-cycle software development with an office in the UK with an R&D in Ukraine. Our expertise is to set up and build top quality software engineering teams and solutions on a very cost-effective basis. We can help bring your business online and help your business grow and succeed. We work with middle and enterprise companies in Digital Marketing, Fintech, eCommerce and iGaming. We have worked with numerous local and international clients and completed many projects in software development outsourcing.
Features our service include:
- A professional and highly talented workforce
- Experienced in outsourcing software development
- On-time delivery
- Quality work
- Guaranteed 100% customer satisfaction
- Reasonable price
In the end, it can be concluded from the above discussion that there are many reasons behind choosing the IT market of Ukraine as an ideal place for outsourcing software development. The most important factors that make Ukraine an ideal choice for international investors and companies to outsource software development include low rates, world-renowned IT graduates and experts, convenient location, favourable time zone coupled with specialized IT events, visa-free policy, and low regulation and taxes in the country. Besides, an in-depth comparison chart has been given to provide an outsourcing comparison between Ukraine and other major countries of the globe. Finally, the article concludes with the list of the best top ten IT companies, firms, and consulting agencies for software development outsourcing in the country.
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