Nowadays is an era of purpose-driven companies with a significant need to do more with less. With such a pressure, businessmen actively look for solutions that will bring them needed breakthrough.
Many countries started using outsourcing to address their business needs. Let’s consider Ukraine IT industry and Belarus software outsourcing.
Software сompanies in Belarus
Belarus is not only about potatoes) Their IT market is growing, and it helps Belarus to become an equal partner with different countries.
In 2015, outsourcing computer software costed $800 million. Besides, there are more than 5000 software companies in Belarus. Hi-Tech Park annually hires 3000 IT specialists.
What is more, 54 educational facilities are there and 16 000 students gain technical education each year. A survey showed that its IT market now involves approximately 115.000 IT professionals. 34.000 of them are engaged in service and product development for Belarus software outsourcing, other specialists serve for the internal purposes (Hi-Tech Park and its member companies, and other organizations as well). The number of IT specialists are growing and are supplemented with a pool of independent freelancers.
Hi-Tech Park includes companies that provide such services: data processing, fundamental and applied research, design, exploratory developments in the field of natural and engineering sciences, software support, technical protection of information, etc. It has some tax benefits that allow reducing costs.
50% of the residents are enterprises with Belarusian capital and other 50% — with international investments. Experts predict that by 2020 Hi-Tech Park will have up to 40 000 employees and the income will be more than $1.3 billion.
Generally, nearly 1,000 tech companies with more than 7,000 employees are there in Belarus. Viber, Belarusian-Israeli IT company, has promoted Belarus’ image among foreign customers. Moreover, the Belarusian government supports a dynamic IT market and invest in boosting its popularity.
Top IT outsourcing companies in Ukraine and market overview
Ukraine is a country of contrasts. Governmental facilities stuck with antiquated business models and corrupted leaders. At the same time, private companies prosper and are full of young and talented specialists. Many international businessmen believe that Ukraine brings fast money and has more opportunities to earn from the young businesses. That’s why it’s easy to meet people all over the world who run companies in Kyiv and expand it very quickly.
Among software firms, Ukraine has gained a status of #1 outsourcing destination. Not only Kyiv is attractive for the global customers, Lviv and other big cities are tech and trendy.
IT companies in Kiev have a large pool of talents and a wider list of IT services. Their specialists know English much better but other cities offer cheaper Ukraine outsourcing rates.
Related article: 15 Best Web Development Companies in Ukraine
Many well-known companies including IBM, Microsoft, and Samsung have opened their R&D offices in Ukraine. Since 2011, up to 46% of all financing has come from the international investors. Half of the $132m invested in Ukrainian IT in 2015 came from the foreigners. Alexander Kubrakov, the head of the IT sector of BRDO proclaimed that the profit of the outsourcing industry may reach US$6 billion in 2020.
Experts predict that IT outsourcing market will reach $8,4 billion by 2025. Also, top IT outsourcing companies in Ukraine have a great ecosystem of IoT startups. They capture the attention of global companies with their technical expertise, comfortable timezone and certified Ukraine developers. For example, Codeacademy is internationally recognized resource to gain or improve coding skills.
Blockchain-based projects also are welcomed here with the ability to satisfy needs of various businesses all over the world. Ukraine developers have a significant skill set, not only in technology but in soft skills as well. They have good expertise in using up-to-date innovations and they’re tech savvy. But the low cost of living in Ukraine allows offering competitive outsourcing rates comparing to the neighboring countries.
According to PayScale, programmers have the average salary $2,000 a month. Different European countries prefer to work with them because of the quality work and deep experience, willingness to improve their skills all the time, and competitive rates. With developed education facilities and courses, good pricing and work ethic, goal-oriented services and comfortable geographical location, programmers in Ukraine seem like a good fit for your business.
We advise paying the web developers and other IT professionals higher salaries than they expect. Financial bonuses will make them more motivated and engaged.
With or without government support
Ukrainian businesses don’t have a support from the government. Moreover, new companies have a lot of taxes that make their activity harder. But it doesn’t influence IT companies that develop very fast and have a strong financial background. Besides, they contribute to the Ukrainian economics and help companies all over the world to grow their businesses as well.
The main differences
The main difference is that Ukrainians are more creative people by nature. They spark innovations, love challenging tasks and are open for the non-standard solutions. It makes them irreplaceable specialists with a passion to achieve goals. Belarusians grow up in the culture when everything is forbidden. They have strict laws and government system that influences each area of their life. That’s why they’re skilled to handle algorithms, work inside the system with compulsory rules. They’re afraid to take the initiative and try something new but they’re great IT employees to perform usual tasks.
It seems like Mr. Lukashenko is involved in each issue, so if you want to build successful cooperation with their IT companies in Minsk, keep an eye on their laws. He provided some updates to boost the tech industry’s development. For example, visa-free entry for the foreigners who come through the Minsk airport. He also wants to raise comfortability of currency transfers to attract venture financing for the young companies.
The main disadvantage of Ukraine IT industry is economic instability. Many startups fail to reach their goals, so you need to be cautious while cooperating with startups. New companies open up and close in a blink of eye. There is no law regulation about it, so it’s legal and easy. Moreover, not each organization that proclaims itself as IT company provides full-stack software development services. They can offer SEO and website development, and that is all. So, read their portfolio, use cases and clients’ feedback to eliminate wrong companies.
Conversely, Belarusian laws are everywhere. Belarusian legislation determines difficult bureaucratic procedures. For instance, paying for services of foreign websites (such as Apple, Facebook, or Google Play) includes a 35% tax for foreigners that make such services highly unprofitable. This is one of the reasons why Ukraine outsourcing rates are usually 20% lower than in Belarus. On the other hand, there is a surprising fact but Belarus still fails a legal environment for a venture financing of startups.
As we see, Europe-based software companies are attractive for the businesses all over the world. Nowadays, outsourcing is a great solution to take the company to the next level. If comparing Ukrainian and Belarusian IT markets, the first one is more mature and innovative. It holds the leading position as IT outsourcing provider with cost-effective pricing. Ukraine software companies are experienced in cooperating with various businesses and have employees with advanced English level.
Belarusian IT services fit the organizations that look for the country with economic and political stability but with cheaper prices than in the USA or UK, for example. Their developers have good English skills as well and developing IT market.