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Top 5 Benefits of Outsourcing Software Development Ukraine

August 16, 2021
14 min

Over the last decade, outsourcing software development Ukraine has become one of the leading business initiatives for lots of world-known companies in the global IT services market.

According to IT Ukraine Association Report 2021, the volume of IT industry in Ukraine has overpassed the level of $5 bln in 2020 compared to $4,1 bln in 2019.

What’s more, a general IT services market growth for the last 5 years is valued at 254,5% starting from $1,9 bln in 2016.

These numbers vividly show how fast-growing is the market of software development Ukraine thus attracting more and more foreign investments and becoming one of the best choices for many startups and entrepreneurs around the world.

Today, we want to share the key benefits of outsourcing software development Ukraine covering such aspects as:

  • Why outsource to Ukraine: 5 advantages for your business
  • IT market in Ukraine: 2021 overview
  • The latest trends and statistics of Ukraine IT industry.

Hope you’ll enjoy reading our blog post and realize why hundreds of world companies outsource development Ukraine.

IT market in Ukraine: 2021 Overview

As we’ve already said, Ukraine is among the leading global IT services providers and now we want to share the most impressive market statistics for the last years and 2021.

NOTE: the provided below information was analyzed and taken from a large all-inclusive report ‘Ukraine: The Home of Great Devs. 2021 Tech Market Report’ prepared by Beetroot and other sources.

 

Tech Ukraine: 5 Quick Facts

  1. The number of active tech specialists in 2021 has exceeded the level of 200,000 professionals with over 36,000 tech graduates yearly.
  2. Over 50% of the active IT labor force (100,000+ IT professionals) have 2-5 years of working experience while 14.2% of tech specialists have over 10 years of technical background.
  3. The PwC forecast states that the software development Ukraine market size is predicted to reach the level of $8.4 bln by 2025 with more than 243,000 active tech specialists.
  4. The core world clients outsourcing in Ukraine are the United States (>50% market share), Great Britain (~30%), and Western European countries.
  5. More than 85% of Ukrainian tech specialists have at least an intermediate level of English skills while over 30% of them show Advanced (C1) English proficiency level.

 

Key Statistics on the Ukrainian IT Market | Ascendix Tech

Key Statistics on the Ukrainian IT Market | Ascendix Tech

 

World-known corporations with R&D offices in Ukraine

The investment-attractive IT market in Ukraine has been drawing attention and motivating dozens of world-famous companies for the last decade.

This way, Ukraine is among the leading R&D centers for many global giants like:

  • Gameloft
  • Huawei
  • Siemens
  • Samsung
  • eBay
  • Upwork
  • Oracle
  • Google
  • Plarium
  • Grammarly
  • And others.

 

Global Famous Companies with R&D-Offices in Ukraine | Ascendix Tech

Global Famous Companies with R&D-Offices in Ukraine | Ascendix Tech

 

Top Investment-Intensive Tech Startups from Ukraine

Apart from outsourcing software development, Ukraine is also famous for its own successful product startups that compete for global leadership with other market-specific solutions.

Among the most prosperous companies, we should mention the following ones:

  • GitLab with $268M raised investments in 2019
  • Grammarly with over $90M round of funding in 2019
  • People.ai with $60M of raised funds
  • Restream (a collaboration between Vinnytsya, Ukraine, and Austin, USA) with $50M of investments raised during the first 2020 round
  • Reface raising $5.5M in 2020.

 

Top Ukraine-Based Successful Tech Startups | Ascendix Tech

Top Ukraine-Based Successful Tech Startups | Ascendix Tech

 

Ukraine development industry focus

Clutch.co states that the key Ukraine technology development industry directions are eCommerce, Enterprise, and Finance.

Below you can see the industry focus distribution for most directions:

  • Ecommerce (17,4%)
  • Enterprise (15,7%)
  • Finance (15,2%)
  • Other (12,8%)
  • Education (12%)
  • Health (11%)
  • Travel (9,6%)
  • Telecom (6,6%).

 

Ukrainian IT Companies Focus by Industry | Ascendix Tech

Ukrainian IT Companies Focus by Industry | Ascendix Tech

 

How many hours ahead is Ukraine?

Ukraine has become a prosperous IT services market provider for multiple reasons and one of them is the convenient timing difference for most locations.

Considering the Western European countries, they can easily collaborate with Ukraine app developers having from 1 to 4 time zone differences which don’t create any inconvenient obstacles for effective cooperation.

In terms of North America (the US specifically), American companies looking for outsourcing software development Ukraine opportunities can also efficiently interact with Ukrainian software development companies with an average 6 h time difference.

This means that Ukraine app developers work on projects while the US clients fall asleep and still stay active while American people wake up in the morning.

These overlapping opportunities allow us to efficiently discuss major projects tasks and progress to continue working without any communication issues.

For example, at Ascendix we have outsourced to 5 different locations and shared all nuances and challenges we’ve faced with including time zone differences, overlapping, communication barriers, and others for each country in detail.

How We Found an Ideal Offshore Development Location

Check our in-depth post where we describe our story of outsourcing software development to 5 different locations across the world. You will find out the key challenges and benefits of IT outsourcing to India, Mexico, China, and Argentina. 

Ukraine outsourcing rates in 2021

The Beetroot’s report states that the average Middle Software Developer monthly salary in Ukraine is approximately $3770.

In turn, US middle technical specialists get paid $86,523 a year which means $7210 per month.

So, if you hire software developers Ukraine, you approximately save up to $3440 per month compared to nearshoring resources in the US.

These reasonable Ukraine outsourcing rates are among the top reasons and benefits for US tech companies and startups to consider Ukraine as their ideal offshore development location.

Top 5 Benefits of Outsourcing Software Development Ukraine

#1 Large talent pool of >200,000 tech specialists

As we mentioned above, the number of IT professionals has exceeded the level of 200,000 in 2021 with over 36,000 of tech graduates per year.

In contrast, only 130,000 tech specialists were at the time of 2017 with only 23,000 IT graduates per year.

These numbers give a clue to the rapid growth of the Ukraine IT industry with over $5 bln market value size in 2021.

What does this all mean to your business?

Simply put, outsourcing software development Ukraine allows you to access a wide talent pool with tech specialists that have strong technical skills in the most widespread programming languages, frameworks, libraries, and tools.

For example, JavaScript is the #1 programming language among Ukraine app developers with over 60% of software developers using JS as its primary focus in 2020.

Below you can see the results of StackOverflow Developer Survey 2021 with the ranking showing the top programming languages and tools preferred by Ukrainian professional developers.

 

stackoverflow-developer-survey-2021

StackOverflow Developer Survey 2021

 

Below you can see the detailed percent-based chart of technologies mostly used by Ukraine tech community.

 

Programming Languages by Ukrainian Developers | Ascendix Tech

Programming Languages by Ukrainian Developers | Ascendix Tech

 

Well, all these facts and numbers mean that accessing a large talent pool allows you to find the right software developers with proper technical skills, English level proficiency, suitable rates, and an appropriate engagement model.

For example, at Ascendix Tech you hire Ukrainian developers at a preferred amount, technical background, and within an engagement model, you consider suitable for your project and budget expectations.

In case you want to closely interact with our development team, you can hire a dedicated team of Ukraine app developers and manage them like your in-house team.

In turn, you can fully delegate the project development process to our Ukrainian app developers at Ascendix Tech and focus on other project-related tasks.

Below you can see the contract options we provide:

 

ascendixtech-contract-options-engagement-models

Ascendix Tech Contract Options

#2 The quality meets the price

As we mentioned above, Ukraine has become a prosperous IT services provider mainly due to reasonable rates and a large talent pool.

This high price-quality relationship allows our Ukraine IT industry to compete with most European countries and the United States.

The average software development Ukraine outsourcing rates are $25-$50 while US companies charge $55-$85 providing the same technical background.

What’s more, Ukraine provides more cost-efficient rates compared to Poland, Belarus, and Czech Republic that are among the top East European IT services providers. This fact becomes one of the most significant reasons for many companies to outsource development Ukraine.

For example, the average monthly salary of a software developer in Poland is about $4,540 according to PayScale. In contrast, the same tech specialist in Ukraine gets paid $2,260 per month based on Indeed’s Report.

Below you can see a detailed matrix of median salary by seniority level in Ukraine from Junior to Tech Lead positions.

 

Median IT salary by seniority level in Ukraine

Median IT salary by seniority level in Ukraine

 

Apart from it, Ukraine app developers are well-known for their strong high technical education background due to a large number of world-class Ukrainian universities with STEM programs.

According to the QS World Universities Rankings 2021 which annually highlights the top 1000 higher education institutes, the following 6 Ukrainian universities were featured this year:

  • V. N. Karazin Kharkiv National University
  • Taras Shevchenko National University of Kyiv
  • National Technical University “Kharkiv Polytechnic Institute”
  • The National Technical University of Ukraine “Igor Sikorsky Kyiv Polytechnic Institute”
  • Sumy State University
  • Lviv Polytechnic National University.

 

What’s more, the QS EECA 2020 Ranking includes 20 Ukrainian universities from 29th to 125th places among other 353 world-class institutions.

The big number of world-recognized tech-oriented universities greatly boosts Ukraine in terms of becoming an even more attractive IT services provider on the world stage with over 200,000 tech specialists and around 36,000 tech graduates in 2021.

Besides, Ukrainian development teams have been attending multiple collegiate programming contests and tournaments to compete with world-class IT communities and let the whole world recognize Ukraine as a powerful IT cluster.

For example, Ukraine app developers have recently attended the 2021 Regional ICPC Tournaments and performed impressive point-scoring statistics.

Further, lots of software development companies invest much funds in building and offering paid internship programs for tech newcomers and junior positions. So, all IT services market parties facilitate the growth of the international heft of Ukraine app developers to allow both tech specialists and foreign companies ensure high-quality product delivery.

At Ascendix Tech, we regularly provide Junior Salesforce Developers with an opportunity to attend our paid internship programs and become high-skilled in-demand tech specialists ready to solve business challenges of any complexity by transforming them into need-specific technology solutions for our clients.

With that said, outsourcing software development Ukraine allows you to access highly qualified IT professionals and save much funds on building an application thus increasing your profit margins and allocating saved funds for developing other aspects of your project like marketing, sales, etc.

Below are the words of Todd Terry, CTO and Managing Partner at Ascendix, describing what is like to work with Ukraine app developers:

What is it like working with our Ukrainian developers?

These are a group of very smart, very skilled people. They are just like people everywhere in what they like to do and what they do in their free time but what makes them special for us, and for me, is they’re just a little more direct than others, even like we can say an American is, and that’s a crucial trait for someone when you’re talking about recommending something for a customer, building an estimate, choosing a technology. They’re not afraid to tell you if they disagree if there’s something you’re overlooking.

They’re not afraid to give you this type of feedback and this is one of the best traits I like working with Ukrainian developers, business analysts, project managers is this lack of fear to engage this way.

- Todd Terry, CTO and Managing Partner at Ascendix

#3 Suitable geolocation and time zone difference

As we mentioned earlier, Ukraine is 1h ahead of most European countries that allows sharing at least 7 business hours with 90% of Western Europe locations.

For example, a company from London has only 2 shared business hours with an outsourcing software development team based in Vietnam and only 1h with the Philippines.

In contrast, Ukraine provides 7 out of 9 shared business hours for the UK and 8 out of 9 for most other European companies.

Convenient geographical location allows Ukraine to be the #1 nearshoring option for CEE countries and among the top countries for offshoring engagement models.

Moreover, Ukraine provides (depending on COVID-19 restrictions) daily direct flights to most European locations that seize only 2-3 hours from Kyiv to Lisbon, for example.

Ukraine International Airlines offer daily direct flights to most CEE tech hubs like Amsterdam, London, Berlin, Warsaw, Stockholm, and Paris.

What’s more, you can greatly save funds on tickets by using Ryanair and Wizzair low-cost airlines that offer two-way direct flights from London, Berlin, Vienna, and other cities for $20-$60 per ticket.

For example, below you can see a direct flight ticket from Kyiv to Berlin for only $35 and 2h 15 min length.

 

lowcost-direct-flight-kyiv-berlin

Lowcost direct flight from Kyiv to Berlin

 

Also, residents of 81 European and US countries don’t need to be issued a visa for visiting Ukraine while over 50 other countries just need to provide their online passports to visit Ukraine for a short period of time.

This way, convenient geolocation, and suitable time zone difference become one of the reasons many companies outsource development Ukraine.

#4 Strong English proficiency level

Communication is of utmost importance for the successful delivery of your software development project.

In case you experience miscommunication issues, language barriers, and other challenges while having calls and meetings with a software development provider, it will surely impact the project deadlines, final product quality, and your satisfaction.

When you hire software developers Ukraine, you can be sure of being roughly on the same page with 85% of development teams according to The Portrait of IT Specialist 2020 report by Dou.ua.

Among the tech specialists that have Advanced English proficiency levels, we should mention Product and Project Managers, Business Analysts, Solution Architects, Team/Technical Leads.

The best communicators are Senior PMs as the majority of them have Advanced+ English level which means that you will have no issues getting in-depth project progress reports, follow-ups, and discussing any project-related activities.

 

English proficiency level by tech specialists | Ascendix Tech

English proficiency level by tech specialists | Ascendix Tech

#5 Rapid Annual Growth of It Industry Ukraine

We have listed several quick facts about the current IT services market value and its growth in Ukraine above, but now we want to share more in-depth statistics.

During the last 5 years, Ukraine has significantly grown and invested in increasing the volume of IT services export.

Let’s review these 5 years in greater detail:

Ukrainian IT Services Market Overview, 2016-2025 (estimated)
YearNumber of tech specialistsMarket value, in billions
2016153,000$1,98
2017172,000$2,49
2018184,000$3,2
2019192,000$4,17
2020205,000$5,03
2025 (estimated)242,000$8,4

To prove the words, we want to show the Ukrainian IT job market dynamics from Jan 2020 to Jan 2021 according to the DOU report (one of the top IT blogs and communities in Ukraine).

NOTE: the chart below shows the dynamic pattern of a number of IT job vacancies for the last calendar year.

 

Ukraine IT Job Market Dynamics 2020-2021 | Ascendix Tech

Ukraine IT Job Market Dynamics 2020-2021 | Ascendix Tech

 

As you can see, the number of job offerings has shown a significant decrease from Jan to Apr 2020 due to the winter holidays and the upcoming pandemic.

However, the supply returned to its previous condition in July 2020 and since then the Ukraine IT jobs market has only increased with a short pause for winter holidays in Dec 2020.

Ukraine has set an all-time record for the number of IT job vacancies in Jan 2021 supplying over 8,132 positions.

What’s more, the last several years have been the largest funding rounds for the IT market in Ukraine.

GitLab, Grammarly, People.ai, Restream, Reface, and other tech startups have raised totally over $500 million since 2019.

Besides, more and more world-known companies (listed above) open their new R&D centers in Ukraine.

Wondering why outsourcing software development Ukraine is becoming more and more beneficial for foreign companies year by year?

Let’s puzzle this out and discuss the advantages you can get by hiring offshore software developers.

So, why outsource to Ukraine:

  • Reduce labor costs through reasonable rates
  • Access a large talent pool with over 200,000 tech specialists
  • Ukrainian developers are known for their high-quality code and profound math background
  • Avoid massive legal restrictions
  • Leverage the rapid growth (>20%) of the IT industry in Ukraine
  • Work within a convenient time zone
  • Get minimal cultural differences.

 

Benefits of IT Outsourcing to Ukraine | Ascendix Tech

Benefits of IT Outsourcing to Ukraine | Ascendix Tech

 

Ultimately, here are the words of Constantine Vasuk, Executive Director of IT Ukraine Association, on the annual growth of the market of software development Ukraine:

Every year IT export grows by 20-25 percent. To maintain the current growth rate against, tough global competition for talents, the first thing we require is that the state adopts a balanced approach to existing tax models review and develops IT education.

- Constantine Vasuk, Executive Director of IT Ukraine Association

Why Outsourcing Software Development to Ascendix?

Once you recognize the advantages of outsourcing software development Ukraine, you will most likely start searching for a reliable software development company that can meet your project requirements and needs.

Now we want to share the core reasons of IT outsourcing to Ascendix Tech for consideration:

 

Own Story of IT Outsourcing to 5 Locations

We have made our own path of looking for an ideal offshoring development location working with such countries as China, Argentina, India, Mexico, and finally Ukraine.

This experience greatly helped us learn most of issues and challenges companies face while outsourcing software development as we bearded all of them on our shoulders.

This way, we provide not only high-quality development of custom solutions, but also follow an exclusive client-oriented approach to make our collaboration as smooth as possible.

For example, we offer multiple flexible engagement models that allow you to choose the volume of your involvement, the number of tech specialists you need, and other aspects designed to meet your project and budget needs.

We decided to provide as much flexibility for your business as possible because we had faced the issue of limitations provided by lots of software development companies.

In case you want to closely interact with our development team and manage it like your in-house one, we can offer a dedicated team model. This means we board the tech specialists that meet your project needs and our team works only on your project.

In turn, you can fully delegate the project development process to our teams and focus on other project-related tasks that require your attention as well. This way, we’ll provide you with a final digital solution that meets your needs and requirements within minimum involvement from your side.

 

Ever-Growing Domain Expertise

At Ascendix Tech, we have built multiple digital solutions catering to different market niches that allow us to know the needs of end-users within the most popular verticals.

For example, we have over 15 years of experience in developing top-notch software products for the Commercial Real Estate market covering the demands of CRE agents and brokerages.

What’s more, this expertise allowed us to build our own digital solutions and customizations on top of Salesforce/Dynamics 365 that allow companies and brokers to get a wide range of useful functionality out of the box.

AscendixRE CRM, Composer, Ascendix Search, MarketSpace, AscendixRE Capital Markets, and Land are among our main ready-made software products for the Commercial Real Estate market.

Also, we have solid expertise in building fleet management software for big companies like Flibco – a leading private airport shuttle service provider with a passenger turnover of $1.9 million/year.

How We Built a Shuttle Bus Ticketing System Software for Flibco.com

Check our case study to know the key challenges solved and solutions built that may be of great help for your project.

This way, we have most likely already faced lots of issues and challenges that you try to cope with in your specific market niche. In case we haven’t dealt with some unique vertical you operate in, it’s not a problem due to our extensive software development expertise.

 

Latest IT Industry Standards

Apart from a technical background and previous experience, we constantly try to improve our development process and empower each new software product with the latest advanced technologies and standards.

We carefully monitor the market of technologies testing lots of lately released programming languages, frameworks, libraries, and tools that can help us solve your business problems through even more powerful technology solutions.

Moreover, our tech specialists regularly visit offline tech-related conferences and meetups (if any) and attend online workshops, courses, and webinars that help them constantly improve their technical skills.

 

Pilot Project Development

At Ascendix Tech, we help both SMBs and large enterprises transform their business ideas into cutting-edge software solutions.

So, if you have only an idea to be validated through building a pilot project, we’re here to help you as well.

Our software development teams will help you build a time- and cost-effective software product to verify your business idea, validate its feasibility, and save much costs before full-featured product development.

Outsource software development to Ascendix Tech

Looking for a software outsourcing company Ukraine that will help you build a demand-specific software solution? Test Ascendix Tech for any kind of your project and we’ll prove that our tech expertise is worth investing in. Answer a few simple questions and get a ball-park estimate.

Bottom Line

IT industry in Ukraine is growing at a rapid pace attracting more and more foreign companies around the globe are outsourcing software development Ukraine and leveraging the benefits it provides.

We hope our list of reasons and advantages will help you get a better understanding of the Ukrainian IT market and the opportunities it can provide to your specific business.

If you’re looking for a reliable software development company to hire software developers Ukraine that will help transform your project idea into a problem-solving digital solution, feel free to check our case studies and contact us to discuss your project.

Our offshore development teams will help you build time- and cost-effective digital solutions meeting your project requirements and budget expectations.

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