4 Reasons Why Outsourcing to Ukraine Proves to be Highly Effective

While artificial intelligence (AI) and machine learning (ML) may have taken off in recent years, outsourcing continues to fill the gaps in critical business processes. It’s also a vital component that helps keep business stay at the cutting-edge and remain competitive.

Depending on the location and specific project requirements, companies can choose to either nearshore or offshore their next technology project. But when it comes to IT, in particular, Ukraine has been steadily making a name for itself primarily servicing enterprises in the EU, Israel, and North America.

There are many reasons why outsourcing software development to Ukraine has proven to be highly effective. However, for this post, we’ll take a look at the top four reasons why Ukraine had proven to be a great outsourcing destination.

1. Ukraine is a Robust IT Hub

Compared to other countries in Eastern Europe, Ukraine has a highly developed IT market that’s driving the local economy. Supported by a great education system, over 90,000 IT professionals in the country serve a wide variety of multinational corporations.

Ukraine’s tech ecosystem is further boosted by several tech giants operating over 100 R&D centers around the country. Some of the multinationals operating R&D centers in the country include Oracle, NetCracker, and Samsung.

2. IT in Ukraine is Highly Cost-Effective

When you compare the cost of mobile and software development in Ukraine with Western Europe and North America, you can expect to save more the 50% or more on your total development costs. This is one of the primary reasons why businesses outsource their IT functions to the country.

However, if you look at the outsourcing world as a whole, Ukraine is definitely not the cheapest. For example, while India in South Asia still offers the lowest project costs, the quality of development is much higher in Ukraine.

A simple legal structure and lower taxes also help to keep development costs down while lowering administrative expenses.

3. Favorable Times Zone and Lower Travel Expenses

When it comes to outsourcing, geographic proximity to western markets in one the country’s key advantages. As Ukraine is located in the +2UTC time zone, it falls right in the middle of the Americas and Australian time zones.

If you’re located in Western Europe, the working hours will be almost the same. Countries like India are located in the +5:30UTC time zone which can translate into developers working nightshifts and double shifts to better communicate and collaborate with clients.

As visa requirements are pretty straightforward, traveling to Ukraine is pretty easy. As people coming from most nations can take advantage of the 90-day visa-free program, there’s more than enough time to plan and discuss any IT project in person (but only if you choose to take the offline route).

4. Lack of a Cultural and Language Barrier

Although Ukraine is located in the former Soviet Bloc in Eastern Europe, 80% of software developers speak advanced or upper-intermediate English (with about 40% falling in the fluent category). This is because having a good command of the English language can have a positive impact on salaries.

Years of experience within the outsourcing market has also enabled developers to gain a comprehensive understanding of the various cultural nuances that can come into play when collaborating on a new project. As a result, you can eliminate any potential misunderstandings that can derail a project.

Beyond outsourcing, Ukraine is also rapidly making a name for itself as a leading startup nation. This phenomenon is expected to attract more entrepreneurs looking to get their startups off the ground.

Finally, when you engage a software developer in Ukraine, there’s a good chance that you will be working closely with an individual who has worked with some of the best enterprises in the western hemisphere. This enables businesses to get access to extensive global industry experience, cost-effectively.

Thinking of outsourcing your next mobile app development project to Ukraine? Click HERE to get in touch with one of our in-house IT outsourcing experts.

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