Benefits of outsourcing in Ukraine

Benefits of outsourcing in Ukraine

'Outsourcing remains an essential tool for client organizations to support their strategic goals. Requirements constantly evolve (even more so due to the COVID-19 pandemic), and the industry continues to support both established and new solutions,' — Deloitte in 2020.

Maria Shapovalova

Maria Shapovalova

October 11, 2021

3 min read

Outsourcing quickly rises to prominence as one of the most efficient means of employment. It’s easy to understand why this option has become so popular: now companies can search within the much larger talent pool. No longer do they need to persuade specialists to relocate — they can find IT-specialists anywhere in the world.

For those who hope that the trend for remote working will recede — outsourcing is not going anywhere. Quite contrary, studies show that the size of the global IT-outsourcing market can increase by 98 billion USD by 2024. No surprise here, as literally every single company nowadays needs IT-support. What is a business without at least a landing page? Others need a custom management system to operate a vast database.

Let’s digest why companies turn to outsourcing.

First of all, outsourcing is cost-effective. For medium and small businesses, hiring a full-time team of engineers may be far too expensive. If you require a talent for just one project, it is wiser to hire a specialist for specific tasks. Moreover, you can find a specialist with a lower hourly rate.

Secondly, outsourcing saves time. Let’s say, the estimated development time is 400 hours. Instead of one developer, who will need 10 weeks to build your app, you can outsource a whole team that will be able to finish the project in 2,5 weeks.

It is also very important to note that you can afford to be flexible. Even if you hire a whole team of developers, it does not necessarily mean that they will be able to take on any request and task. With outsourcing, you can find an expert, whose expertise is tailored specifically to your needs.

In addition, outsourcing talent is associated with lower risks. Imagine: you hire someone, believing in their potential. After induction and training, however, you realise that this is not what you need. That means you’ve lost your time and money, and you have to start all over. On the other hand, with an outsource developer you’re paying only for the time they work on your project. You know what they are worth from the get go.

Another advantage of outsourcing for small businesses and large enterprises alike is that it may help to reduce tax rates.

Why should you consider Ukraine as a destination for outsourcing?

It just comes to the fact that you are not likely to find a better price-to-quality ratio anywhere else in the world.

The Ukraine Invest predicts that the number of IT-specialists in Ukraine will reach 250,000 by 2025. It means that the talent pool grows by about 4-5% yearly. It is the second country in Europe by the number of freelancers or self-employed developers.

It is well-known for its vast IT-community, which consists of 14 clusters and 80 companies. These clusters are located in Kyiv, Kharkiv, Dnipro and, last but not least, Lviv. Kyiv particularly has made it into the top 20 Europeans IT hubs.

Ukraine also situates more than 110 R&D centres for global tech giants, such as Microsoft, Wargaming, Apple, Samsung Electronics, IBM, Boeing, Skype, Ericsson, Siemens, Oracle, and Magento.

This may be due to the Ukrainian high work ethics standards and ensured security. Working with Ukrainian developers, you can be confident in the commitment to excellence. It is not about finishing the project as fast as possible with as little effort as possible — Ukrainian developers get invested in projects they work on and strive to cooperate as full-fledged partners. Ukrainian IT-outsourcing companies comply rigidly with NDAs, protecting your ideas and data from being stolen or copied.

It is also convenient. Ukraine is only one hour ahead of most European countries. Its 7 hour time difference with the American East Coast also helps to maintain much smoother communication between geographically dispersed teams, compared to India, Vietnam or the Philippines.

It also helps that approximately 4 out of 5 Ukrainian developers speak English at least at intermediate level. Most software development and IT outsourcing companies in Ukraine offer free English classes to their employees.

What it means essentially, is that hiring a dedicated specialist with the same level of expertise in, for example, Belarus, Poland or the Czech Republic, will cost you more than in Ukraine. The average USA or UK rates are three or four times bigger than the maximum rate within Ukraine.

All in all, Ukraine is one of the best destinations for outsourcing, the various advantages being a huge talent pool, affordable rates and easy communication.

If you decide to outsource in Ukraine, we will be happy to help you with the development of your project! With Voypost, you will get all of the pros mentioned above: a dedicated team with great English and a deep expertise in development of digital products. Drop a message to us any time if you need to boost your IT-project — or start a new one. We provide both outsourcing and outstaffing services, as well as consulting, with different payment plans. Focus on what is really important — your business, while we take care of the development.

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