Why You Should Partner With a Software Development Company in Ukraine in 2019

Why You Should Partner With a Software Development Company in Ukraine in 2019

March 28, 2019
by Andrew Denysov

Ukrainian IT market has never stopped growing for the past decade. From $1.1 billion in 2011 (according to Daxx) to projected $8.4 billion in 2025, the industry has never been healthier.

While there is a significant number of teams that develop their projects and get funding from all over the globe, 90% of the whole industry is based on outsourcing. Taking into account the stable market growth, it is fair to say that Ukrainian companies have established themselves as a reliable addition to any team, no matter the complexity of the end product.

If you're still unsure about whether you need an outsourcing company or don't know how to establish a prolific partnership, take a look at this guide to clear out some questions about collaboration.

This article is dedicated to overviewing the Ukrainian IT market and determining its fortes. This research will come in handy for the clients that don’t have a full picture of the global outsourcing market or those that have already heard of Ukrainian IT professionals.

Partnering A Ukrainian Software Development Company In Ukraine: Quality Service For Reasonable Pricing

Due to the number of factors, Ukrainian IT companies offer top-notch software development services for a price that would be considered cheap or average in the US or the UK.

Better value to price ratio naturally brings more customers to Ukrainian firms each year, and you could join their ranks.

Huge Pool Of Talented Software Developers

Average salaries of developers in Ukraine are higher than the average throughout the country. Many companies in other countries get fresh blood in their ranks only through those who are passionate about the whole industry and love building apps or coming up with new solutions to existing issues.

Ukraine has an advantage because people of all mindsets and skills are attracted to IT due to high and stable income. It is common to see a journalist learn front-end and become one of the most wanted individuals on the position. An IT firm in Ukraine is a mix of opposite mindsets and creativity. The client can be sure that their issue will be viewed from all possible angles and the best solution and ways to create it will be applied.

The search for quality talent results in better compensation industry-wide, attracting even more people with better skills. DOU releases monthly salary reports and here how things stand as of December 2018:

Ukrainian IT salaries per position 2018

Source: Ukrainian IT salaries per position 2018

The figures above are average monthly salaries in USD.

Massive Competition In Software Outsourcing

The fact that Ukraine has so many talented experts in most of the fields required by software engineering plays a vital role in a healthy competition. The companies are forced to play their strongest cards from the get-go to land clients and produce quality products to retain those clients.

While the software development itself is a vast space where anyone can fit in, Ukraine's market sets up a relatively high level of quality for the companies.

As of the end of 2017, there was more than 1000 software developing companies from more than 3000 enterprises that are heavily tech-based. The clients get far better diversity in the companies, allowing them to choose the outsourcing team that would benefit them the most.

The need to get clients to survive drives Ukrainian IT outsourcing firms to act faster and with better quality while charging reasonable prices. For those new to the local market, here's a small list of types of companies currently active and thriving in Ukraine:

  • Industry giants. These companies are active since the early 90s and 00s and have already established themselves as market leaders. According to Clutch, these enterprises will charge from $30 to $150 per hour (sometimes even more) for their services and assign dozens of professionals to the task. These companies operate with a wide range of technologies and staff up to 6000 professionals throughout their Ukrainian offices.

  • Stable enterprises. Experienced companies with a trustworthy client base that specialize in one or another type of tasks (web development, custom software solutions, mobile apps, gaming industry, etc.).

  • Startups and newcomers. It is common to see a bunch of software engineers to open up a small company and start making a name for themselves. These companies will charge less and often offer the same amount of quality to move up the market ladder and grow further.

This is a very rough generalization of the Ukrainian market, as many teams stand in between those types and do their own thing. The only thing that matters is that all those companies are willing to compete for the best clients and projects, including you.

Prowess in Software Engineering and Beyond

Ukrainian developers are naturally strong in the most demanded technologies in the outsourcing market. Thousands of engineers get their bachelor's degrees annually and offer new vision and expertise to the field.

More than 70% of IT professionals are using self-education, according to DOU. Professional literature, meetups, and online courses are among the most popular ways to improve hard skills off-work.

The same research suggests that about 20% of specialists already have their side-projects within IT, and 30% more are considering launching one. This data shows one crucial thing - Ukrainian IT experts are continually looking to improve and become more versatile and valuable for the market.

Ukrainian software engineers respond quickly to the industry trends - they were fast to start using Blockchain, and are currently making good progress in the areas like VR, AR, AI, Machine Learning, Big Data, etc.

An Award-Winning Software Outsourcing Market

While being a huge part of the country's GDP, Ukrainian IT gains more recognition abroad. International rankings show that Ukraine’s positions are improving across various criteria and that’s another sign that the market is ready for more action and more challenging tasks.

Here’s a great visualization of how things stand at the moment:

Ukrainian Outsourcing Market Rankings

Source: Ukrainian Outsourcing Market Rankings

The data is backed up by big names of western companies, seeking to outsource their projects to Ukraine. Forbes 500 includes at least 100 companies that regularly partner with local software engineering companies to produce top-notch solutions - Disney, Google, DHL, Lufthansa, Panasonic, and many more. By the way, we are recognized as a Top Software Development Company on DesignRush.

Should You Trust Ukrainian Software Engineers With Your Project?

The most valuable advice here is to consider your time windows, budgets and communication standards. Ukrainian teams have improved massively in communication, and the number of fluent English-speakers has increased dramatically. The majority of the industry is shifting from basic to intermediate and upper-intermediate levels of English.

IT outsourcing in Ukraine is generally much cheaper than in more developed countries like the US, the UK or Germany, although not as cheap as a decade ago. You can find a bargain with a small company or go all in with over $1 million contracts for top-class cross-platform applications, etc.

The local IT sector is investing greatly in support personnel, like sales management, marketing, business planning, and leadership. You don't have to be afraid of talking to tech-minded individuals only. The companies offer a full-package service and can help you build your project even when you have no clue about which technologies to use or what functionality to add. Architects and managers will be there for you to help plan every step of the development, agree on milestones and translate raw tech terminology into general language.

Don’t be afraid to approach the companies and ask about their fortes and weaknesses. Scan the market and find the best options for your business. You don’t even have to go further than this page.

Contact us here and ask anything you want about IT in general and the services that we provide. Free of charge, no obligations. Let's talk and build you that solution to give your business a quality headstart for reasonable money.


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