Advantages Of An Outsource IT Service Provider From Ukraine

Advantages Of An Outsource IT Service Provider From Ukraine

When it comes to IT outsourcing, you are probably already familiar with its basic concept, the principles, and the advantages it could have for your company.

Hence, we will not study the outsourcing process and will explain the ideal-fit place for it instead. Plus, if you’re reading this, then it is likely that you are thinking about development outsourcing in Ukraine but don’t have enough facts to make your final decision.

Then you have come to the right place, because in this article, you will find numerous facts and figures that have been proven by independent resources. Plus, we have done our own research so that we can easily explain the modern Ukrainian IT landscape to you. Continue reading to find out more.

1. A Properly-Developed IT Market

In the past couple of years, Ukraine has gradually climbed towards the top when it comes to the list of outsourcers. This tells us about the maturity and experience of the Ukrainian IT market. There are outsourcing companies of different sizes in Ukraine that offer premium services and various developers that are well-experienced in different IT technologies, hence, they are able to easily handle it.

The number of companies collaborating with the Ukrainian IT market is gradually increasing thanks to new tech startups and an increase in investment flow. To be fair, there was never a better time for this remarkable country with historically great expertise to get the right horse.

2. Exceptional Educational Background And Outstanding Expertise

In Ukraine, there are more than two hundred educational institutes that teach IT specialists. On average, the number of people who graduate on a yearly basis is 23,000 when it comes to the technology and engineering field. It is the Kyiv Polytechnic University from where the majority of the Ukrainians developers graduate. This university is ranked at the 501st place by the ‘QS World University Rankings,’ which makes it one of the best universities within the CIS rating. Plus, there are two additional polytechnic universities located in Lviv and Kharkiv that are known are one of the best institutions when it comes to IT, computer engineering, and telecommunications.

Moreover, a lot of the younger IT field specialists end up taking extra software development courses and also professional training, hence, making themselves even more skilled in this field. Also, there are IT specialists who are working as developers, but they do not possess a specialized degree because they learned their IT skills by self-educating themselves.

Due to this massive number of skilled professionals, you can find great services with affordable prices. In addition to all this, advanced technologies will always be used when it comes to developing your software.

3. Suitable Time Zone And Geolocation

It is important to have good communication between the outsourcing vendor and the customer in the case of software development. However, different time zones can be an issue when it comes to project discussions. Ukrainian time zone tends to be quite convenient (GMT +2). It is only one hour ahead of the majority of European countries, and seven hours ahead of United States. If you live in Europe and a working emergency arises, then it is going to take about three hours to reach the major cities of Ukraine by plane, like Kharkiv, Lviv, and Kyiv. If you live in the U.S., then the 7-hour time difference might make things slightly difficult. On the other hand, the shared working hours tend to be a lot more convenient as compared to other outsourcing options, such as the Philippines or India.

4. The Increase In R&D Centers

When it comes to the most innovative economies in the world, Ukraine lands on number five among fifty others. Hence, this shouldn’t be a surprise that there are over 110 R and D centers for the global tech heavyweights.

Moreover, there are different areas of expertise among these R&D centers, like artificial intelligence development, Big Data, telecommunications, E-commerce, and various other software development fields. In addition to all this, Ukraine is where the home of the R&D offices of certain tech giants are located like Microsoft, Google, IBM, Apple, Siemens, Magneto IT Solutions, etc.

Among the many Eastern European countries, Ukraine offers the most favorable business environment with a rising IT industry that will only grow more from here.

5. Great Language Skills

When it comes to the communication between the customer and the vendor, language can be a barrier. However, majority of the Ukrainian software developer speak excellent English. The English language is a compulsory subject in all of the schools in Ukraine. Moreover, a lot of the IT companies offer corporate English language courses to their employees. There will be no issues when it comes to the communication since up to 70% of the Ukrainian programmers have learned either intermediate or upper-intermediate levels of English.

6. Beneficial And Competitive Rates

Cost efficiency is the top reason why entrepreneurs end up choosing outsourcing. When you pay less for your app development, it is better for you. Hence, entrepreneurs are always looking for more reasonable prices, while also looking for quality. This is where Ukraine comes in the picture. In Ukraine, the average software development hourly rate is $50. When you pick one of the outsourcing companies located in Ukraine, you will end up sparing about 40 to 60% of your funds, which makes this very profitable.

7. Low Taxes

When it comes to the taxation system in the Ukraine, it is straightforward and also affordable for IT business owners. IT specialists usually have low tax rates. Hence, this helps in keeping the hourly development costs low. This is a significant advantage for other foreign companies, if they plan on doing business there.

Moreover, it is easier to pay taxes in Ukraine. The country started a flat and lower rate of 22% for their Unified Social Contribution tax that is paid by the employers. It ended up replacing the previous rates that ranged from 36.76% – 49.7%.

All of these factors have contributed in the development and growth of their local IT community. A lot of business owners picked Ukraine for its IT outsourcing for particularly these reasons.

8. Protection Of Intellectual Property

In the case of software development, intellectual property tends to hold a high importance. The majority of the Ukrainian companies are following international security requirements like PCI, ISO, HIPAA, and have devoted to training their staff, while also working on an efficient security strategy.

Moreover, IT outsourcing companies in Ukraine tend to strictly keep up with the property rights. In order to protect one’s idea from getting copied or stolen, a non-disclosure agreement (NDA) is signed right from the beginning; hence, the information of your project cannot be provided to a third party.

If you want to check this, you can take a look at the audit reports of the company that is offering information regarding its security, integrity of processing, availability, privacy, and confidentiality.

9. Ideal Work Ethics And Mentality

When picking an outsourcing destination, it is important to check the cultural background and mentality of the country. When you share similar values and view of the world, it becomes easier to have that professional workflow between the outsourcing vendor and the customer.

When it comes to work, the people of Ukraine share similar values as the people living in Central Europe and United States. The Ukrainian people tend to be very responsible and hard-working. They stay motivated and look forward to new challenges. They believe in teamwork and are willing to help anyone who needs it. Plus, they love to learn from their seniors and enjoy talking to like-minded individuals. Ukrainian developers work hard on their projects and always have a goal of creating high-quality software, while also forming a great relationship with their clients.


Currently, Ukraine is the leading outsourcing location in Eastern Europe. It has a booming IT industry that will continue to grow as time goes on. There are numerous dedicated and experienced software developers that work hard and look forward to building a trusting relationship with their clients. When it comes to cost efficiency and time zones, picking an outsourcing company from Ukraine will be the most convenient option for people in both Europe and America.

Hopefully, this article provided you with the information you needed when it comes to IT outsourcing to Ukraine, so you can now work on creating your own software product.