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Software outsourcing has been remaining an international trend for a while and according to the forecasts will proceed to expand for the years to come. Statista estimates the current global market size of outsourced services at $92.5bn and predicts to beat its record next year, spending $1.1 trillion worldwide on IT services. That’s the reason why new big players annually enter the outsourcing arena, competing to become the most wanted IT outsourcing destination. 

For a long time, Eastern Europe has been holding a leadership position in the market not only for the Western part but also for the USA and Canada, offering professional and experienced developers with good knowledge of English. Though, in recent years Asian and Middle East countries have been actively gaining popularity with big talent pools and lower rates if compared to European or US outsourcing leaders.

As one of the leading IT outsourcing destinations Ukraine frequently gets compared to its Asian counterpart - India. That’s the reason why we’ve decided to compare these two leading outsourcing destinations in their regions and define which country offers the best IT services to outsource software development.

Brief Overview

Outsourcing From Ukraine

Ukraine has already strengthened its position in the list of Eastern Europe IT outsourcing providers, demonstrating a steady growth of software engineering with average early growth at 26%. Currently, more than 1,600 IT companies that operate in Ukraine provide expertise in healthcare, fintech, retail, logistics, gaming, and many other industries which gives the country 11th position on the HackerRank list in terms of programming quality, while India is ranked 31st. 

The global recognition of Ukraine as one of the strongest players in the IT market has also been proven by the growing number of international tech companies such as Google, Microsoft, Samsung, and others opening their R&D centers in the country. 

Which country has the best developers according to HackerRank
Which country has the best developers according to HackerRank

Outsourcing From India

Compared to Ukraine, India is 6 times bigger in the territory and has a 30 times larger population. India has a big talented workforce. India generates about 3.1 billion graduates and 300k post-graduates annually. Furthermore, engineering and information technology institutes graduate about 500k  students yearly. College grads in India are not just smart, but also inventive and imaginative. As a result, India provides the ideal formula for luring enterprises from all over the globe to outsource web development, software engineering, or any other task to the country.

India takes a lion’s share in the global IT market, having longtime experience in delivering outsourcing services. The country is ranked third in the world among startup communities in cybersecurity, IoT, analytics, and healthcare. Despite the vast availability of talent and low rates, the country still struggles to compete with its European and US counterparts in terms of tech adoption.

While Ukraine and India are both undeniable IT leaders in their regions with highly skilled software engineers and competitive rates, they have a list of differences you should pay attention to.

Geographic Position/English Level

If you have ever considered collaboration with an outsourcing vendor, you must understand the importance location plays. Constant communication with an outsourced team is inevitable if you want to stay aware of the development process and be confident that the result will meet your expectations. The time difference with Ukraine is more than convenient — 1 hour with Europe, and around 7 hours with the US. Whereas, approximately 5 hours between India and Europe and 10 hours with the US. 

Being a democratic country with an active vector of European integration, Ukraine has made the English language compulsory in most schools and universities. Furthermore, almost every IT company offers free English courses for their employees, as a result — 80% of Ukrainian developers speak English, with 47% of them having an upper-intermediate level. India is the second English-speaking nation in the world, hosting call centers of the largest international corporations from all over the world. Though it’s important to take into account pronunciation, intonation, and tone differences that vary a lot from Western.

Education Level

The quality of services the country offers is strongly predetermined by the level of education of its citizens. Ukraine is listed among countries with an almost 100% literacy rate. Ukraine has a high proportion of degree holders. Ukraine generates 150,000+ professionals yearly, with 15,000 becoming IT workers, thanks to a large number of technological institutes, and this number is expected to rise to 20,000 by 2024. In addition, certain higher education institutions in IT centers including Kharkiv, Kyiv, and Lviv are ranked in the QS EECA University Rankings 2021. More than 70% of the Ukrainian population has a secondary or higher education. Around 130k engineers annually graduate from universities which is more than in many European countries.

According to TopCoder and SkillValue, Ukrainian developers are among the best experts in the world. The 2019 study by DOU has shown that the majority of Ukrainian developers have a degree, while almost half of them are STEM-related. Moreover, Ukraine with 9.8% of all graduate students, has one of the largest shares of STEM and CS graduates in Europe.

Holding an important place in the global education industry, India has one of the largest higher education institutions networks in the world with more than 260 million students enrolled. According to the  English Proficiency Index 2021, India was ranked 48th among 112 countries.  India has 620 exclusively technical institutions, which makes technical education the most desirable and developed one. Though, the level of education still remains not high, with 25% of Indians being illiterate. 

With the boom of technology and affordable internet services in the last few years, the education system in India has been reformed through the  representation of a variety of digital platforms for education.

IT Company Statistics

IT product and outsourcing companies, captive centers of global business form an overall number of 1,600 software development service companies currently operating in Ukraine, that are successfully winning global industry awards such as GSA UK Awards, IT Europa Awards, Global Outsourcing 100, etc. Over 100 representatives of the Fortune 500 list of the most influential companies, including Volvo, Audi, Siemens, Lebara, Grammarly, and others are customers of Ukrainian outsourcing companies.

In 2020, the IT industry accounted for 8% of India’s GDP. The same year, the Indian IT industry recorded 138k new hires. TCS, Wipro, Infosys, and other leading Indian IT companies are actively leveraging AI and blockchain technology to bring innovation and create new workplaces. The National Association of Software and Service Companies reported that almost half of Fortune 500 companies outsource in India.

Data Safety and Insurance

According to HackerRank, Ukraine takes one of the top places in terms of security policies and technical safeguards. Data and intellectual property protection, conformity with the GDPR norms have become the main principle in delivering services of the Ukrainian software companies. While, India still faces a lot of security challenges, being a vulnerable country in terms of cyber-attacks and a lack of national-level architecture for cybersecurity.  

Ukraine is the number one country regarding your project security (HackerRank)
Ukraine is the number one country regarding your project security (HackerRank)

Quality to Price Correspondence

One of the main reasons why businesses outsource development to India is low rates. The average salary for outsourcing in India is approximately $8k annually. Although this sum is much lower compared to European countries, for example, local professionals still consider it to be a good salary, as working in IT is very prestigious. According to the Global Service Location Index, India takes first place in offering the best services by experienced developers for a low cost.

 The price of hiring Ukrainian developers will exceed the price offered by Indians but is definitely worth it in the matters of code quality and the factors mentioned above. However, the rates on software outsourcing in Ukraine are still lower than Western European rates, with the average salary of a developer at $20k annually but of course depending on different factors such as industry, qualifications, development language, etc. According to the Global Services Location Index, Ukraine takes fourth place, taking into account financial attractiveness, talent pool, and professionalism.

What is the Right Choice?

Ultimately, both India and Ukraine are popular outsourcing destinations and are recognized as top IT vendors. Ukrainian IT companies offer high-quality services, ensure data safety, and invest in the education of developers. Location is the first choice, but it is not crucial. As you proceed, you’ll have to choose the company based on its portfolio and client reviews. If your choice is India, make sure you entrust your project to a reliable company, because you get what you pay for. Remember, a good developer is worth their weight in gold, and inVerita is happy to be your Ukrainian vendor if you opt for our country.                   

The article was updated on February 16, 2022.
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