Insights, News, Outsourcing and Outstaffing, Software development

Why Outsource to Ukrainian Software Developers?

Software development: a laptop on the table

SOLVVE must be the thousandth company to pick up the topic. Still, would people be talking about it should there be no substance to the question? Thus, without further ado, here is a short-list of perks and benefits when it comes to outsourcing software development to Ukraine.

High software development expertise in Ukraine

Ukraine is home to nearly 45 million people, 70% of whom have secondary or higher education. Currently 9.8% of students in Ukraine graduate with a degree in math, science and computing delivering 130,000 engineering graduates a year as reported by UkraineInvest. Forbes reports that Ukraine produces 25,000 – 30,000 IT specialists a year with 16,000 of them having a university degree. No wonder Ukraine has become one of the primary locations of outsourcing during recent years.

Ukraine is financially attractive

Ukraine came 20th in Kearney Global Services Location Index (GSLI) of 2019 moving 4 positions up compared to the previous year. The index takes into account 44 different metrics, including financial attractiveness, where Ukraine scores at 2.9 points. Kearney’s report mentions “an increase in [Ukraine’s] infrastructure costs and business environment scores” as a reason for getting ahead of the Czech Republic, Poland, and Hungary.

What exactly does financial attractiveness constitute?

First of all, labor costs. A quick detour: it is hard to pull reliable data about salaries in Ukraine since people rarely report to Glassdoor, Payscale, and other similar resources. Talking about salaries is not one of the cultural traits. Moreover, a lot depends on the level of experience and the skillset of each particular developer.

Thus, we rely on reports by DOU, Ukraine’s most popular and trusted resources about the software development industry in Ukraine, to asses the labor costs in Ukraine as of June 2019. The average salary for software developers in Kyiv is USD 2,500 per month, which will aggregate to USD 30,000 per year or so. The numbers for the United States instantly go to USD 70,000 on Payscale and USD 85,000 per year on Glassdoor.

Secondly, Ukraine has flat income tax rates ranging from 5% to 18% depending on the contract type, which is significantly lower than in many countries around the world, especially those that use progressive taxation scales. Moreover, Ukrainian software developers are often providing their services as private entrepreneurs, sparing their partners the trouble of tax calculations since the burden of the accounting lies with Ukrainian software developers.

Forbes reports that Ukraine produces 25,000 – 30,000 IT specialists a year with 16,000 of them having a university degree.

Communication with Ukrainian software developers is easy

When it comes to communication, one must remember that it is not only about the language, but also cultural settings, time zones, attitudes to work, and many other aspects. However, let’s start with language skills.

According to the EF English Proficiency Index Ukraine scores 52.13 out of 100 points which corresponds to the B2 level in the Common European Framework of Reference for Languages (CERF) or upper-intermediate. What it means on practice is that an average Ukrainian software developer is able to speak without a strain and clearly write about concrete and abstract topics in one’s field of specialization. That is specifically handy when communicating with business analysts and project managers to ensure smooth cooperation and deep mutual understanding.

Culturally-wise Ukrainians are rather flexible. In the course of history, the country felt the impact of numerous other cultures making Ukrainians rather open-minded about many aspects of life and adaptable to different social and business settings. Ukrainian IT companies are particularly willing to meet their partners halfway and accommodate their requests.

The low number of public holidays and the flexible labor code ensures constant connectivity to the development team in Ukraine.
As you can see from the graph below, Ukrainians score very high on long-term orientation and uncertainty in Hofstede’s cultural dimensions. Thus, if you are looking for a reliable and stable partner, Ukrainian software developers might be the right choice for you. It is also worth mentioning that Ukrainians have high work ethic standards are very result-oriented, often willing to put extra effort to deliver exceptional results and exceed expectations.

Cultural compatibility of Ukrainian software developers per Hofstede index.

Ukraine lies in the UTC+3 time zone, having 1-to-3 hours time difference with other European countries, and lying 7 hours ahead of Washington DC. Thus, when working with partners in Europe, software developers in Ukraine can easily adjust their working hours and stay on the same page with the stakeholders. At the same time, when working with partners in the United States, Ukrainian teams are half a working day ahead of their partners and stakeholders. Thus, by the time the US team starts to work, software developers in Ukraine can already report on the work they have performed so far.

Summary

Hiring Ukrainian software developers is your first choice when it comes to outsourcing because of 3 key aspects that help them to stand out: deep expertise, clear communication skills, and cultural proximity to many European countries as well as the United States. Whether you are looking for an onsite or remote team, you might want to consider working with software developers in Ukraine.