Why building software development in Ukraine is a good idea?16 May 2016
Today more and more organizations of all sizes are choosing to adopt a distributed architecture that allows them to outsource IT functions, with staff working in different places, on different projects, with relative autonomy from each other. Ukraine as an IT outsourcing country is not breaking news. Many European countries are already aware of benefits from working with its own local European IT hub, some of global IT companies as well.
Let's try to dig a little bit deeper and look through all pros and cons (this is just the expression, just cons) of working with Ukrainian IT fellas.
What Ukraine has now?
More and more global companies recognize Ukraine as a playground to experiment with new products and make a quality research. Many are already aware that via outsourcing in Ukraine will they get skilled personnel combined with low production costs.
Along with 4000 IT companies that are functioning in Ukraine, and outsourcing companies that are already working with Europe and US and along with hundreds of educational programs.
Let’s look though some facts about Ukrainian IT today.
Ukrainian IT market is valued over $5 billion in 2015 and is built by more 90 000 of IT specialists. And more than 20 000 of IT students are ready to join the IT market every year, thus every month Ukraine produces a couple of thousands of IT specialists.
The majority of big companies specializes in IT outsourcing services to customers in US and Western Europe, which means that more than 20 thousands IT specialist are already importing their well known worldwide professional skills and you are still missing out.
And even more, according to Bloomberg’s 2015 ranking, Ukraine is one of the world’s 50 most innovative countries. Ukraine took 33rd place achieving a great performance index in Education category which measures the education levels of a country’s workforce. We surely can conclude that it is an attractive market to make an investment in people and their talent.
The great news for outsourcing is also that you can not only be serviced by IT professional, but today, most likely, you can work with him or her directly. We can claim that because statistics of developers’ English knowledge are in our favor now. Fluent English speakers’ number is increasing constantly and it’s now amounts to 40.2%. And total number of fluent-intermediate level speakers is 78.8%. Thus technical specifications, documentations or communication won’t be a problem anymore.
What are your benefits?
Let’s stop here and talk about salaries in Ukraine. An average salary for senior software developer in Ukraine amounts to 3000 $/month. It depends on location, work experience and other factors, but you can’t hide from the fact that in any case, it’s not even twice a number from the salary of Western European of USA equivalent specialists (and we’re not even talking about New York or London).
Just a couple of examples that will clarify the difference:
· Senior Java Developer: USA specialist’s salary is 3 times greater than Ukrainian
· Senior C#/.NET Developer: USA specialist’s salary is 3.7 times greater
· Senior PHP Developer: USA specialist’s salary is 4 times greater
· Senior iOS Developer: USA specialist’s salary is 4.1 times greater
· Senior Android Developer: USA specialist’s salary is 3.7 times greater
We haven’t even started to talk about taxation. By the way, Ukrainians have simplified method of salary taxation for IT specialists and in 2016 it equals to 4%.
As a result, Ukrainian outsourcing or outsourcing companies with development center in Ukraine will definitely offer you hourly hate 4-12 times lower than average in USA or Eastern Europe.
How tomorrow will look like?
We mention hundreds of IT schools and universities, but world is now going further that just conventional education. You no longer need to be in the same place with you facilitator and in IT you sometimes don’t need a facilitator or tutor at all. For instance, there is now officially launched education program Technology Nation, which be held 2016 in 22 cities of Ukraine. The classes are based on Harvard, Stanford and MIT IT development educational programs. And it’s free, like almost every other IT educational program in Ukraine. This way country has huge amount of programs for every city, every level of previous experience and for every age. There are also pre-school educational programs for kids.
Based on that and other factors of growing IT sector in Ukraine, we’re expecting a hundred thousand specialists more by 2020. The IT industry in Ukraine can overwhelm even agriculture and metallurgy and transform a huge raw material supplier into technology exporter.
The only trick of the situation is that the lower index of demand/supply of IT employees in Western Europe is and the more Ukrainian developers are helping to compensate this problem the higher salaries expectations for them will be. Low taxes are also just an instrument to stimulate IT market growth.
But don’t panic, you don't have to look no further, Softremii provides full cycle of software development services and employed best senior level IT specialists available in the industry in Eastern Europe. Contact us any time and we’ll provide you with a tour of Ukrainian informational technologies world.
So just can’t miss your chance to take advantage of great market conditions. If you’re going to outsource from Ukraine, that’s probably a great idea.