IT Outsourcing to Ukraine — Brief Country Overview.pptx
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So should you choose to outsource IT services to Ukraine? Why or why not? What are the challenges and advantages of hiring Ukrainian developers for your project? We will try to find the answers to these questions in our presentation.
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IT Outsourcing to Ukraine — Brief Country Overview.pptx
- 1. created by impressit IT Outsourcing to Ukraine — Brief Country Overview
- 3. created by impressit Advantages of IT outsourcing to Ukraine Cost- effectiveness Availability of Skilled Professionals Cultural Similarities and Multilingual Skills
- 4. created by impressit Cultural Similarities and Multilingual Skills ● 53% of IT specialists in Ukraine rate their English level as above average or advanced while 33% rate it as average ● An average IT specialist from Ukraine is a 29-year-old, who lives in a big city, is married, and works in IT for about 5 years
- 5. created by impressit Availability of Skilled Professionals ● 285,000 IT specialists in Ukraine as of 2021 ● Ukrainian universities graduate up to 13,000 specialists every year ● 87% of IT specialists have higher education as of 2022 ● The five most popular programming languages among Ukrainian developers are:
- 6. created by impressit the average prices for senior developers’ services in Ukraine vs different countries Cost-effectiveness Service Country Ukraine US UK Germany Back-end $5000 $9350 $6525 $6240 Front-end $4800 $8540 $5390 $6270 Full-stack $4800 $9900 $5830 $6240 Mobile $5000 $9490 $5890 $9300
- 7. created by impressit Challenges of IT outsourcing to Ukraine Wartime Instability Time Zone Proximity
- 9. created by impressit Creating wow products. Uniting wow people. Delivering wow results. impressit.io
Editor's Notes
- As of 2022, market research showed that Ukraine was a home for more than five thousand IT companies that generated $6.8 billion in export. Moreover, in the last four years, the volume of the export has doubled and was showing steady growth by an average of 27% every year before the full-scale russian invasion.
- There would be no sense for numerous companies from the United States and Europe to outsource their IT projects to Ukraine if this process had no apparent advantages. Here are the undeniable pros of outsourcing to Ukraine.
- Let’s start with the latter. 53% of IT specialists in Ukraine rate their English level as above average or advanced while 33% rate it as average. Each and every IT company in Ukraine offers their employees language courses as well, so you can be sure that Ukrainian developers are constantly improving their language skills, and you don’t have to worry about barriers. Regarding the cultural differences or differences in mentality, the situation is similar. An average IT specialist from Ukraine is a 29-year-old, who lives in a big city, is married, and works in IT for about 5 years. The lifestyle, values, and work ethics of an average Ukrainian IT professional are quite similar to their European counterparts.
- As of 2021, the number of IT specialists in Ukraine was about 285,000. Although this figure is smaller (based on the number of specialists per 100,000 population) than in European countries and the USA, Ukrainian universities graduate up to 13,000 specialists every year. Moreover, a large number of educational programs and courses from universities and large IT companies allow even people with a non-professional education to retrain and successfully work as a developer or a tester. It is also necessary to mention that around 50% of 25 – 34-year-olds in Ukraine have a higher education, which is an indicator at the level of such countries as Sweden, Belgium, France, Portugal, and Latvia. This number is even higher for those who work in IT — the 2022 survey shows that 87% of them have higher education.
- You can expect to receive development services of exceptional quality at a lower price. And of course, you could say that outsourcing to India is an even cheaper option. First of all, the quality of the code written by Ukrainian specialists is definitely better, and this is the reason to invest in development a little more than you would invest if you chose India. Secondly, outsourcing to Ukraine also has a number of other advantages, which we will talk about right now. See more in our article https://impressit.io/blog/outsourcing-to-ukraine
- 20% of the total number of IT workers evacuated abroad, but even now many of them continue to work for Ukrainian IT companies. There are also fewer vacancies in the Ukrainian market than candidates, so the chances of finding the necessary specialist are extremely high. Another step to overcoming the crisis was the opening of foreign offices. The largest Ukrainian IT companies opened their representative offices in Poland, the Czech Republic, Romania, Germany, Bulgaria, and Hungary. It is also impossible not to mention the contribution of Ukrainian software developers to the fight against the occupier. Over the past year, Ukrainian specialists presented military developments in the fields of drones and army software. Work on an IT project is almost always a team effort. And if the team members are on different sides of the ocean, then this can, if not become a problem, then definitely create inconvenience for those involved in the project. Fortunately, the time difference between Ukraine and other European countries is 1–2 hours, and such a small difference does not create any problems in organizing the work process and holding meetings. The situation with the USA is different. The time difference between Ukraine and the USA is 7–11 hours (due to the multiple time zones of the USA). Despite this, teams from these countries successfully find a convenient time for business calls, and this is evidenced by the fact that 40% of the export of IT services from Ukraine goes to the USA.
- Size of the Team — whether you need two developers with a specific tech stack or a full team of ten specialists that would include both backend and frontend developers and QAs, outsourcing is an amazing opportunity to fill in the human resources gaps. Moreover, it allows you not to spend time and money on training or retraining your staff to perform certain tasks. Scope of Projects — if you're the owner of a small startup with a handful of employees, at some point you may feel the need to expand your team if your in-house team can't handle the volume of tasks. In such a case, IT outsourcing is a great option. You can hire an outsourced team for a specific project or specific tasks and sign a contract for a clearly defined period of cooperation without expanding the in-house team. Cost Efficiency — in addition to the fact that the remuneration of developers in Ukraine is lower than that of specialists of the same level in the USA or the UK, it is also worth noting that outsourcing relieves you of many routine tasks related to maintaining a team. For example, the services of accountants and HRs are provided by the outsourced team. This not only saves money but also saves time for you to focus on more important business questions. Compliance — obviously, compliance with the regulations and laws is a prerequisite for any business relationship. Both parties must ensure that their rights are protected and that all parties comply with the laws of their respective countries. We will tell you more about this in the next portion of the article. Quality Monitoring and Level of Expertise — competition in the outsourcing market is constantly growing; therefore outsourcing companies are interested in constant monitoring of the quality of services and continuous improvement of the level of qualification of their own developers. Thus you can set the requirements for the level of quality expected and be sure that the outsourced company adheres to these standards. Communication — building an honest and trusting relationship between the parties is not a matter of one day. However, already during the initial negotiations, you can assess to what extent the work ethic and communication style of the outsourced company coincides with the vision of the customer's company. As we’ve mentioned before, the work culture in Ukraine is really similar to those of European countries and the US so you will rarely face issues in communication. Culture — although this factor might seem like the least important one during the initial stages of the cooperation process, it really does matter in the long run. It is worth making sure that the management style of the outsourcer company and their attitude and requirements to employees coincide with your vision. Simply because it directly affects the productivity and efficiency of the outsourced team. Almost every company in Ukraine has a human resources specialist whose main task is to ensure the connection between business and employees and meet their needs at the workplace.