11 Reasons to Outsource Software Development to Ukraine

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Key Takeaways

• Despite the Russian invasion, Ukraine’s IT industry remains the largest export sector (35.3% of all services).
• Outsourcing to Ukraine offers a combination of cost-effective services, access to highly skilled IT professionals, expertise in advanced technologies, strong English proficiency, and convenient time zone alignment for seamless collaboration.
• The median salary of a middle developer varies from $2200 to $3000 monthly, depending on the technology stack.

Software development outsourcing is gaining popularity over in-house solutions due to its cost savings, access to a global talent pool, and faster development timelines.

As more companies consider their outsourcing and outstaffing options, it’s crucial to choose the right nearshore, onshore, or offshore team. While there’s no simple answer, it’s always a good idea to outsource IT to Ukraine.

Here are 11 compelling reasons to consider outsourcing (even for a startup) to Ukraine today. Let’s take a look at the current situation in the country.

Software Development Outsourcing Destination Stays Resilient

Even in the midst of the Russian invasion, the Ukrainian tech industry kept its position as the country’s largest export center. Over the last decade, IT exports have grown significantly, with computer services now making up 4% of Ukraine’s GDP and contributing to a 35.3% share of service exports.

In fact, it took most Ukrainian software companies just a month to relocate their staff and restore their previous activity. The New York Times reports that Ukrainian IT companies have successfully retained 95% of their contracts despite the challenges posed by the war.

Ukrainian technology companies still attract customers worldwide thanks to their talented teams, affordable services, and cutting-edge innovations. The leading economies importing IT services from Ukraine are the USA, the UK, and Israel.

The wave of complex cyberattacks forced business and government institutions in Ukraine to invest significant funds in cyber defense. This made Ukraine a leader in cyber security, whereas the understandable growth of miltech boosted areas such as IoT, AI, and cloud computing.

The software development outsourcing Ukraine market is projected to generate $1.09 billion in revenue in 2024, with an expected annual growth rate of 9.68%, reaching $1.73 billion by 2029. Globally, the highest revenue will come from the United States.

At the same time, IT area became the major supporter of the Ukrainian army and people within the country. Approximately 3% of software specialists are currently serving in the armed forces, while around 12-15% are involved in the country’s cyber defense efforts.

Outsourcing software development Ukraine and Ukrainian IT are resilient and stronger than ever. That’s why you shouldn’t worry about war in Ukraine more than any other outsourcing risks. So instead of second-guessing, check out the reasons why IT outsourcing in Ukraine is a great solution.

High-Quality and Available Tech Education

96% of Ukrainian students and graduates recommend a university education, citing its role in developing basic skills and facilitating the exchange of ideas. There are 316 higher educational institutions in Ukraine, and in 2023, 31,500 technical specialists with bachelor’s and master’s degrees graduated.

Some Ukrainians enroll in tech courses in private schools to gain practical skills and specific knowledge. Ukrainian IT schools have trained more than 600,000 specialists, many of whom have successfully found jobs. On top of that, large companies provide beginner software specialists with internships to prepare junior developers with practical experience and skills in 3-6 months.

Developed Software Community

Until February 24, more than twenty IT clusters operated in Ukraine — in Kyiv, Dnipro, Kharkiv, Lviv, Odesa, Poltava, Mariupol, Ivano-Frankivsk, Mykolaiv, Vinnytsia, etc. Most of them continue to work today, and even more: people who migrated to western regions of Ukraine for safety reasons are forming a new IT cluster in Mukachevo (a small city next to the Hungarian border).

The Lviv IT Cluster continued its activities even during the war: in the spring of 2024, it organized the third IT Future project for high school students and computer science teachers. The discussed topics included cybersecurity, data science, and artificial intelligence.

Vast Talent Pool and Tech Stack

Despite the ongoing challenges of a full-scale war, Ukraine’s tech industry continues to thrive. Over the past year, the number of tech specialists has grown by more than 7%, now totaling 307,600. Of these, 242,000 are living and working in Ukraine. Meanwhile, the number of Ukrainian tech experts abroad has surged by 20%, reaching 65,000, compared to last year’s 55-57,000.

Ukraine IT outsourcing professionals are highly qualified, with nearly 43% having over six years of experience in the tech sector and about 8% boasting 15 years of expertise. The most popular programming languages ​​in Ukraine are JavaScript, C#, Java, Python, and PHP. Other widely used languages ​​are Kotlin, Swift, C++, TypeScript, Go, and Ruby.

Robust Digitalization

Ukrainians know how to work with blockchain, fintech, healthcare, and governmental projects. Innovation in Ukraine has increased by 12.8%, ranking 1st among lower-middle-income nations and 43rd globally. In the realm of digital assets, Ukraine ranks 3rd worldwide in cryptocurrency adoption.

E-Governance is rapidly advancing, with a 59.6% improvement over the past eight years, placing Ukraine 46th globally. Ukraine’s data maturity has reached 97%, earning it the 2nd spot in the EU for Open Data maturity, reflecting one of the highest scores among member and candidate countries.

The most popular apps used in Ukraine: Privat24 and MonoBank (internet banking), Diia (an official governmental app to get public services), and Helsi (online public healthcare portal).

Strategic Geography and Time Zone

Most specialists are easy-going and open to discussion, so it will be easy for you to work with them if you hire a dedicated development team Ukraine. Additionally, 13% of Ukrainian software professionals possess advanced English skills, while 43% are at the upper intermediate and 32% at the intermediate level.

Offshore software development company Ukraine also understands the importance of customer service and is flexible in meeting clients’ needs. As proof, you can easily find photos of Ukrainian tech people working from bomb shelters. Ukrainians even joke that every citizen can now add “the ability to work under stress” to their resumes.

Variety of Software Services Providers

Companies mean more diverse services, vendor types, specializations, and pricing models. According to Clutch, 311 companies offer custom software development in Ukraine, 281 — web development, 194 offer mobile app development, and 207 — software strategy consulting. You can also find more narrowly-focused businesses, such as cloud consulting, staff augmentation, big data consulting, CRM consulting, and so on.

Global Recognition

Talking about the reviews: custom software development Ukraine has earned global recognition and secured its status. For example, Google, Samsung, and Amazon have R&D centers in the country, and many tech startups are founded in Ukraine or by Ukrainians.

For instance, Jan Koum, co-founder of WhatsApp, and Vlad Yatsenko, co-founder of digital bank Revolut, are both of Ukrainian origin. Such startups as Grammarly, Ajax, MacPaw, and RefaceAI were also founded in Ukraine and have headquarters there.

High Data Security and Quality of Service

Ukrainian companies also know that you need more than trust to sign contacts, so they use all legal methods to guarantee the security and confidentiality of your data. For example, signing a non-disclosure agreement (NDA) and a data processing agreement (DPA) is a standard procedure. Most software outsourcing development companies in Ukraine companies provide services for developing HIPAA and GDPR-compliant software.

Beneficial Business Environment

Many software companies practice hiring in Ukraine dedicated developers as contractors or self-employed workers rather than employees on paper, although they still get the same benefits as employees.

They do it because taxes on such a contractor-employee are several times lower (5% instead of 22%), cutting software prices, which is the next reason to hire a dedicated software development team Ukraine.

High Value for Fair Money

Yes, one of the main reasons for partnering with software outsourcing company Ukraine is to save money. The average hourly rate of a developer in Ukraine is 2-3 times lower than in the UK or the USA and even lower than in Poland and other Eastern European countries. Of course, you can find the lowest prices in Asia or South America, but be aware of the cultural, time, and other differences.

Opportunity to Support Ukraine

By hiring a dedicated development team in Ukraine, you support the country and help it to be one step closer to winning the war and bringing stability to Europe. If you think that your contribution is not that significant, let’s look at the numbers:

• 90% of Ukrainian IT companies have mobilized employees. Half purchase military equipment for personnel, 40% offer financial support, and 34% provide full salary payments.
• Since the beginning of the full-scale invasion, the Ukrainian IT industry paid ₴68+ billion (ca. $1.75B) in taxes and donated about ₴39 billion (ca. $1B) to the Armed Forces of Ukraine and humanitarian initatives. ₴31.3 billion (over $800M) came on behalf of companies, while ₴7.45 billion (ca. $200M) — directly from employees.
• Ukrainians daily donate for civil and military needs from their personal accounts. Did you know that the Ukrainian people (not the government) bought a satellite for the needs of space intelligence?

Outsourcing Rates in Ukraine

In IT outsourcing Ukraine stands out for its affordability, offering competitive rates that are often lower than many other destinations, such as Western Europe and North America.

Outsourcing development Ukraine is affordable due to the lower cost of living, resulting in competitive salaries for skilled professionals. A strong tech ecosystem with a large talent pool fosters competition among service providers and drives prices down while maintaining quality.

Here are the latest data from DOU on the salaries of Ukrainian middle developers:

Acropolium — Your Software Development Outsourcing Partner with Ukrainian Roots

Acropolium is a software development outsourcing company in Ukraine, and some of our dedicated team members work here today. We have earned our reputation by implementing projects for fintech, retail, healthcare, hospitality, and other industries. For example, we’ve developed hotel channel management multi-platform web and mobile solutions, modernized ERP systems, and supported startups — from the discovery phase to delivery.

Our diverse range of services has attracted clients from small businesses to Fortune 500 companies. Some opt for IT consulting or custom software development, while others prefer our subscription-based service for common business needs. If you are interested in the offshore rates, it all depends on the project’s complexity and the required size of the software development team Ukraine but varies between $50-$99.

And here’s why you should take a closer look at our company when IT outsourcing to Ukraine:

• Acropolium’s ISO certification guarantees high-quality standards and consistent service delivery across all projects.
• Our bespoke software solutions are fully GDPR-compliant, ensuring data protection and privacy for clients and users alike.
• Acropolium’s team has expertise in AI & ML, big data, cloud storage, video streaming, payments, blockchain, and the Internet of Things.

You can view Acropolium’s high ratings on Clutch and GoodFirms for proof. Moreover, our certified team has secured a spot in the Clutch Top 1000 Global Service Providers. TechBehemoths recognized Acropolium as a top big data analytics company in Ukraine. In addition, Clutch and TechBehemoths ranked Acropolium as a top IT consultant vendor in 2024 in the Czech Republic and Ukraine.

Final Thoughts

Software outsourcing Ukraine offers skilled IT professionals, competitive pricing, and a strong emphasis on innovation and quality. Its robust tech ecosystem and commitment to excellence provide businesses with tailored services. With a strategic location and a focus on value, Ukraine is a dependable partner for companies seeking to enhance their software development projects.

To explore how Acropolium can help your business succeed with innovative software solutions, don’t hesitate to contact our IT outsourcing company Ukraine today and learn more about project estimation!

Sources of Information

• The Power of Ukrainian IT Research for 2023
• IT Outsourcing in Ukraine by Statista
• Inside Ukraine’s Thriving Tech Sector