Nearshoring Services in Ukraine: a Trap or World-Class Software Developers


Over the last decade, the services of outsourcing software developers have enabled the countries-providers to level up their economies, and, in turn, clients have benefited from hiring top specialists. Since 2000, IT companies in Ukraine have become one of the most demanding destinations for outsourcing. Software development in Ukraine has a rich 60 years history, which eventually brought the country to the level of having extensive IT education and training opportunities, numerous qualified players, thus, a solid presence in the global market. Ukraine IT outsourcing growth is actively supported by governmental policies in terms of tax exemptions and creation of technology parks for specialists. In an exponential manner, the number of seasoned developers continues to grow, which remains the key attractive point for companies from the world.

Ukraine IT Market Overview

Like nothing else, statistics will show you the actual situation on the IT market of Ukraine in the span of years. The “CEE  IT Outsourcing Review” reported that in 2008, 2009, 2010, according to the volume of exported IT services, Ukraine took the 16 place within the CEE region. Moreover, during the last decade, the growth was estimated at the rate of 540%, which in numbers is from $243 to $1.311 billion. With this in mind, 20% of the globally recognized corporations establish their offices in Ukraine to attract the domestic specialists to work for their prosperity. These companies include ABBYY, Huawei, Samsung, Microsoft, and other.

According to the tax policy in Ukraine, IT specialists pay 5% taxes from their income. Such low rates allow not only developers but also local as well as international companies maximize the profits.

A lion’s share to the growth of the IT sector in Ukraine is dependent on the startup businesses, which continue to invade the market. In 2017, $265 million were generated by the newcomers who made 44 deals in total.

In order to keep up with the technologies and bring new investors to the IT market, Ukraine holds about 1000 educational events every year to introduce new technologies, tools, and players. With such an increasingly growing potential, IT providers export custom software development (92%), software testing/QA (67%), application maintenance (55%), SaaS (39%), and other services.

Software Developers as a Ukrainian IT Powerhouse

People are the driving force of any industry, governments, small and large enterprises, factories, and other establishments. Through their loyalty, dedication, and development the countries filling in the GDP, thus, level up the state of the economy. The IT sector in Ukraine counts about 160.000 specialists, who, according to the HackerRank Portal, were ranked in the 11 place among 50 countries with qualified developers.

Most IT specialists are employed by large-scale companies with more than 1000 workers. With 37% of qualified developers working for tech giants in Ukraine, these corporations are able to make 39% of the total volume of outsourcing services. That is the key reason why well-known corporations in the world go for IT nearshoring to Ukraine. This model of outsourcing remote development teams is no longer something new or privileged. Companies, both startups, and tech giants apply this approach as they are sure that an IT provider will ensure quality performance, excellent communication, smartly implemented recent technologies, not mentioning dedication, loyalty, and a responsible attitude to work.

Since in 2013, the Ukrainian Government has facilitated the life of its citizens in terms of diminishing borders with the EU, it has become so much easier to travel and expand technological awareness for specialists from Ukraine. Moreover, this allowed clients from Western Europe, such as Germany, the UK, the Netherlands, to hire distributed software development teams from the Ukrainian market.

What’s The Benefit for Nearshoring in Ukraine?

Ukraine IT outsourcing is a common practice for companies that are striving for staff augmentation through the hiring of qualified specialists. Nearshoring presupposes bringing the talents from other countries in close proximity to the client. With such a factor, you are able to avoid considerable time zones difference, thus, the communication between the parties is maintained in a reliable manner. The location of a nearshoring vendor is also beneficial in terms of scheduling visits, as the travel time does not take longer than 3 hours.

Ukrainian software developers working for nearshoring services get the same terms of employment and office perks as you would give for your in-house employees. Since the HR actions are managed by a vendor, recruiters are striving to do the best to analyze and search the market to find the most suitable candidates for your needs and requirements.

Most IT software developers are well-communicated in English, have at least a Bachelor’s degree or pass IT educational courses, constantly learning new technologies to meet your expectations. Moreover, the culture and overall viewpoint of the Ukrainian specialists are similar to the ones of the Western European countries and the US; that’s why many companies claim that developers are easy to communicate with, find common language, and find compromise in resolving the issues.

Key Points

The stereotype that Ukraine is a country with a low quality of life and developing economy becomes invalid. The IT sector allows the country to maintain its competitiveness on a worldwide level and establish a reliable and recognized stance due to the rapidly growing industry. Every year, the pool of Ukrainian software talents increases, giving the countries an opportunity to get quality services for fulfilling a variety of needs. The software development, software testing/QA, application maintenance, SaaS, and other IT services are exported to the developed countries in Western Europe as well as to the US. The professionals reveal a high level of professionalism as the state’s government encouraged IT awareness by holding numerous educational events each year.

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