Why Building R&D in Ukraine Makes Sense for Many Foreign Businesses

Companies have to contend with a wide range of challenges on the road to success. One of the primary challenges for startups and other small businesses is building a highly talented R&D team cost-effectively.

Achieving this in Western Europe or North America will come at a high cost which in turn will significantly increase the business’ exposure to risk. But for tech startups, in particular, the development of effective solutions will be key for the business to achieve its goals. As a result, this is something that has to be carefully considered.

So what do you do? For the past twenty years, startups and established corporations have looked offshore to set up effective R&D. In recent years, the focus has narrowed down to Eastern Europe and Ukraine.

In fact, some of the biggest companies on the planet from Boeing to Oracle to Siemens already have an active presence in the country. Even technology companies like Opera Software and Snapchat have maintained a presence in Ukraine for quite a while.

Ukraine is also more than a great location for outsourcing IT functions because the country boasts several world-class companies like GitLab, Grammarly, Jooble, and many more.

Direct access to top talent

Whether you set up your R&D center in tech hubs like Kiev or Odessa, it will be easy to engage top IT talent that’s proficient in English. In fact, Ukrainian IT developers have a higher level of English proficiency when compared to other outsourcing nations.

When it comes to IT, in particular, the talent pool at your fingertips in Ukraine is immense. The country boasts over 90,000 developers with about half of them based in Kiev. What’s more, 15,000 of these software engineers work for major corporations.

In terms of C++ engineers and Unity3D game developers, Ukraine is a global leader. The nation also comes in at second when you look at the number of JavaScript, Magento, and Scala developers on the ground.

Get your product to market cost-effectively

While there is a huge pool of talent to run your R&D center in Ukraine, it also comes with the added benefit of lower costs. The average salary for a senior Java developer is about $40,083 per year which is lower than Central European countries.

A developer with the same background can easily cost more than double that figure in North America. While Ukrainian wages might be a little higher than South Asia, the country also offers the added benefit of more suitable time zones and similar western culture.

The absence of strong and complex legal restrictions or trade unions also makes recruitment of top IT talent pretty straightforward. Furthermore, as getting a visa is also pretty easy, so you can easily visit your R&D team at will.

While there has been some political instability in some parts of the country, IT has been pretty much immune to it. In fact, Ukraine has proven that it can consistently deliver great technology solutions regardless of external forces within the country.

What’s more, the nation’s software market continues to go through a period of acceleration and show no signs of slowing down. As a result, it’s safe to conclude that R&D in Ukraine will continue to boom as more businesses move into the country to get their piece of the technology gold rush!

Looking to outsource your R&D to Ukraine?

Click HERE for a free consultation with one of our in-house experts.

Leave a comment