What do you know about IT outsourcing to Ukraine? Let’s start our story about software development in Ukraine with a real-life question: “How often do you give the keys to your car to someone you know little?”

One of our clients, Ashley Ragan, compares IT outsourcing to giving the keys to your car to a stranger. Thousands of people like Ashley would agree with the statement when it comes to choosing a software development vendor overseas.  

Are you here because you want to make sure Ukraine is the right destination to outsource your development or find a reliable IT staff augmentation provider? The one you could trust your keys without any doubts?

This compelling overview of the Ukrainian IT market tells all you want to know about software development companies in Ukraine, their work culture and ethics, costs, and lots of other things you would hardly find elsewhere. 

Answering your “What”, “How”, and “Why” questions about IT outsourcing to Ukraine 

What if you were choosing Ukraine as your IT outsourcing destination? What things would you like to learn about this country? Below are the answers to the most frequent questions about software engineering in Ukraine. 

What services do Ukrainian IT companies offer? 

90% of services provided by the Ukrainian IT companies are delivered to various countries of the world. The most popular services include custom software development, including web and mobile app development, system integration services, cloud solutions, legacy system modernization, and many more. Here is a comprehensive list of services you can get.  

End-to-end development is traditionally popular within enterprises that need a dedicated team to solve their IT challenges. For example, a bank hires a software vendor to upgrade a core banking system.  

Another popular service we mentioned is IT staff augmentation — hiring developers to scale up your project team. Many technology companies and startups developing a software product often lack skills, expertise, resources due to a wide range of reasons. So, for quick scale-up, they prefer augmenting expert IT staff to hiring people in-house.  

So, if you need any IT service, be sure that Ukraine will meet you with hundreds of perfect opportunities to find the provider you can trust.  

What level of expertise can I find here in Ukraine? 

Any customer contacting us for the first time told us why they decided to consider Ukraine for outsourcing. Some of them were frustrated by their previous experience in outsourcing to other countries. The others searched for developers in Ukraine because of the high level of their engineering expertise.  

We can talk about expertise endlessly. It’s not about skills and knowledge only. It’s about the willingness to help and solve your challenges together. Here at DICEUS, 100% of software engineers thoroughly explore the client’s business logic before the development.  

With the help of business analysts and architects, the rest of the team must completely understand how the client’s business or solution works, what business and technical challenges they have, and how a final solution should function to meet the requirements. 

Good read: Here’s what our business analyst says about the BA phase of the project. 

Besides, expertise is also about the engineering background in a particular industry. For example, you may find a developer who’s super skilled in creating a payment gateway for retail but knows nothing about RPA solutions for banking. Although that’s not a problem, you’d likely prefer choosing an engineer with experience in projects similar to yours.  

What are the strongest sides of Ukrainian IT specialists? 

Each year the number of Ukrainian IT specialists with a Master’s Degree in computer science is increasing — around 20,000 young people graduate from universities yearly. Most of these students start working on the third or fourth year of study, which gives them a head start in their career path.   

Due to a great passion for technology innovations, Ukrainian developers pay interest in advanced technologies and regularly improve their knowledge of artificial intelligence, blockchain, robotic process automation, big data, etc.  

Ukrainians are good-natured and easy-going; that’s why any foreign customer can find common ground with a Ukrainian engineer. Most IT specialists speak English fluently as lots of software companies ensure free English classes for their employees. Thanks to regular classes with professional English teachers and communication with native speakers, IT guys have a good command of spoken and written English.  

Ukrainian developers are flexible. There’s no problem organizing flexible working hours or even days if the client has another time zone and somehow needs to shift a working schedule. Besides, you can agree on many other things before starting the project: engagement models, metrics, deliverables, acceptance criteria, and many more.  

What level of service should I expect? 

The level of service in Ukrainian software development companies is rather high. It usually depends on the company’s corporate culture and works ethics. Here are the essentials to pay your attention to when choosing a software vendor: 

  • How well is the pre-sales process organized? 
  • Is the vendor consistent in communication? 
  • How soon did you get the proposal?
  • Do you get regular project updates? 
  • How valuable are the vendor’s recommendations? 
  • Do you get on-time answers to your questions? 
  • Does the vendor meet the deadlines? 
  • And many more 

The level of service is a combination of expertise, quality, communication, and empathy. You should feel comfortable with your vendor, like you were talking with your friend, drinking a cup of coffee.  

Good read: How to choose a reliable software vendor 

What project management methodology do they follow? 

If you hire a development team in Ukraine, you can rest assured that your project will be appropriately managed by a professional project manager. For example, here at DICEUS, some of our project managers have IPMA certificates.

As for the methodology, Agile and Waterfall are the most popular methodologies to manage a project. However, you can discuss this if a client has different requirements. Task management is usually performed via Jira, and in some cases, customers are provided access to the project’s board and reports to track the progress. It’s pretty comfortable for a client to see how much time is spent on the task, what dependencies the task has, who is responsible, etc.  

Ukraine software development: How many IT firms are there? 

According to recent statistics, more than 4,000 companies and 200,000 IT self-employed entrepreneurs work in the IT industry. This number is increasing each year as IT jobs have become very popular over the latest five years.  

The biggest number of developers live and work in Kyiv, Kharkiv, Lviv, Dnipro, Odesa. What is interesting — before the world met with the pandemic, the location of a developer played a significant role. All companies preferred hiring full-time developers in-house. Now, when we get used to working remotely, these limitations are blurred. Ukrainian companies were good at reacting to the Covid challenges on time and organizing due to work-from-home conditions for their employees. Today, most of them support work from home.    

And now, please take a look at the leading IT outsourcing companies in Ukraine, according to Clutch. Here is the list. Offering quite acceptable rates, offshore software development Ukraine companies are skilled in a significant number of services and industries.  

How much does it cost to develop software in Ukraine? 

No company will tell the exact cost of software development, be it Ukraine or another country of the world. Usually, the cost of software development in Ukraine depends, but is not limited to, much on the following factors: 

  • The complexity and scope of your project 
  • The chosen technology and platforms 
  • Number and seniority level of team members 
  • The urgency of time to market 

How to get an accurate estimation of the project cost? First off, you should gather all the information about the project goal, requirements, budget. However, if you feel stressed gathering the requirements, don’t worry — a software vendor will offer you to undergo a business analysis phase, also called a discovery phase.  

A discovery phase is a time you spent together with your vendor on formalizing all requirements for your software product. That’s a guarantee of getting the most accurate, non-ambiguous specifications to ensure smooth design, development, testing, etc. Moreover, it’s a guarantee of getting what you expect.  

So, what about the costs? Although your vendor only can name the exact budget you need to spare, we conducted short research on software engineer salaries in Ukraine. 

  • Junior software engineer – $300-1000 
  • Software engineer – $2300-3350 
  • Senior software engineer – $3650-5000 
  • Team/tech lead – $4250-5800 
  • System architect – $5250-7500 

As you can see, the salaries are at least twice lower than in the US, for instance.  

How long will it take to find IT staff for my project or startup? 

Apart from IT outsourcing to Ukraine, many companies search for IT staff services, also referred to as IT outstaffing or IT staff augmentation. In most cases, the consumers of this service are fast-growing technology companies requiring quick scale-up, specific expertise, or developer skills.  

The time needed to select the suitable candidates for the client’s project differs from vendor to vendor. For example, here at DICEUS, for example, it takes us from 12 to 21 business days to offer you the right people. Our process includes all essential stages of staff augmenting: job description creation, candidate sourcing, recruiting, hiring, and onboarding.

Usually, we have more than 250 developers available to start working immediately or in a short time and around 80,000 IT specialists in our talent pipeline. Also, if you need more than developers with specific skills but a whole team, we offer dedicated teams for your particular project. 

Hire developers quickly: IT staff augmentation service for you 

How to find a reliable software vendor? 

Are you stuck looking for the right software company? Googling over the internet and finding endless lists of software companies in Ukraine won’t help if you don’t get how to distinguish a reliable vendor from scams. The knowledge and skills for effective software vendor search should include the following: 

  • Where to search for software vendors 
  • How to shortlist software companies 
  • What things to discover with a potential vendor 
  • How a good proposal looks like 
  • Criteria to evaluate when choosing a vendor 
  • How to select the suitable engagement model for you 
  • Ways to check if your vendor is cheating 
  • How to control the project after you signed the contract 
  • How to collaborate with a vendor effectively 

You might think that that’s too much to know but believe, that’s a minimum you must know if you want to hire the right company. So, to cut a long story short, we gathered all these tips into one helpful white paper, which can be downloaded here.  

Why outsource software development to Ukraine? 

Are you considering Ukraine IT outsourcing? Here are some key reasons why your choice is right: 

  • Ukraine has more than 200,000 highly skilled specialists working in the IT industry. 
  • IT services exported from Ukraine in 2020 equal to more than $5 billion. 
  • More than 100 Fortune 500 companies used Ukrainian IT services. 
  • There are around 100 R&D centers that represent or partner with such companies as Siemens, Samsung, Oracle, eBay, Google, and many more. 
  • The major part of Ukrainian clients is from the USA, Western Europe, Great Britain. 
  • Ukraine has around 40 universities providing computer science education. 
  • 50% of Ukrainian developers have 2-5 years of experience on average. 

As you can see, the current state of software development Ukraine is quite fast-growing, perspective, and a good fit for those who search for a good quality-price balance.  

Why does a discovery phase (business analysis) matter? 

As mentioned above, a discovery phase is your number one opportunity to get the expected value on time, scope, and budget. During the business analysis stage, the BA experts identify all the project stakeholders, define the project goals and scope, create and formalize requirements. The BA team usually includes business analysts and solution architects, designers, developers, test engineers, project managers, and any other specialists required. 

Together, based on the requirements, offer a tech stack and team member roles needed, decide on the most suitable project management methodology, estimate costs, schedule timeframes, and provide a risk management plan. At the end of the discovery phase, the client gets all the deliverables, e.g., an SRS document (software requirements specification), WBS (work breakdown structure), CPA (critical path analysis), etc. 

The discovery phase is the most critical stage of any SDLC (software development lifecycle) as it ensures a clear understanding of project requirements and goals across all the team members and stakeholders, effective project roadmap, and timeline setting. Besides, all risks you associate with deadlines, deliverables, or other things related to IT outsourcing Ukraine, are forecast and managed in advance. Thus, deadlines won’t be missed; releases will be on time, and, consequently, you can save up to 30% costs.  

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