IT Outsourcing in Ukraine: Why It Is So Popular Among EU & the USA Companies

The global IT outsourcing market is thriving, and choosing the right software development destination is a complicated process. If you are considering Ukraine, this article will help you learn more about the local IT landscape the most attractive outsourcing destinations.

Outsourcing development is now a viable alternative to in-house development of software and IT products. Outsourcing offers some distinct advantages compared with building your development team stateside. Currently, 30% of global IT projects are undertaken offshore.

Why Ukraine is so popular for IT outsourcing

among EU and US companies?

An increasing number of businesses are considering Ukraine as a primary location for outstaff / outsourcing their software development needs.

Ukraine’s $5 billion IT industry did not happen overnight. Software development companies in Ukraine offer high-quality technical services including software engineering, custom web development, software testing, cloud, and app development, to name but a few. Plus, there is a large number of developers with different expertise and skills from which clients can choose from.

It is a well-known fact that Ukraine has repeatedly ranked as a top IT outsourcing destination in numerous sources, the facts speak for themselves:

1. The country ranks fourth in the world by the number of tech workers after the United States, India, and Russia.
2. Ukraine is among the top 20 offshore locations in EMEA.
3. The Ukrainian IT industry is expected to reach $10 billion in value by 2020.
4. It’s IT workforce is expected to surpass the 200.000 marks by 2020.

For software development, IT outsourcing to Ukraine makes total sense for companies across the globe.

Software engineer salary comparison

The critical factor which makes software development more expensive in Europe and the USA compared to Ukraine is salaries.
Let’s see the average salaries of software developers in the major European states and the US.
This information may give a hint to businesses looking to hire tech specialists to understand where to search for cheaper talent and without losing the quality.

How much does a software developer make in the US?

Quite predictably, the country which pays the highest tech salaries in the US (According to Indeed) — Software Developers in the US made a median salary of $101,790 in 2018. The best-paid 25 percent earned $128,960 that year, while the lowest-paid 25 percent earned $77,710.

*To figure out how many hours are in a "work year," multiply the number of work hours in a week by the number of weeks in a year. In other words, increase a typical 40-hour workweek by 52 weeks. That makes 2,080 hours in a typical work year. Thus, the median rate of a software engineer = $48,9375 per hour.

How much does a software developer make in the EU?

EU states differ in terms of economic well-being, which affects the range of salaries offered to software developers in their markets. Here is a quick snapshot of the average annual wage by country (according to Payscale):

1. The average software engineer salary in Switzerland is close to $83K per year, which puts the country in second place.
2. The median developer salary in Norway is around $72K.
3. The next country is not far behind—the median pay for a software engineer in Denmark is $70K a year.
4. Annual developer salaries in Germany, Sweden, and Israel range between $53K and $64K.
5. Software engineers that live in Australia, the Netherlands and Canada earn slightly lower salaries — around $48K.
6. Finland, New Zealand, UK, and France software developers can expect the lowest salaries— $44K yearly and below.

Average developers salaries in Ukraine

To put this into perspective, let’s look at the tech market in Ukraine, where we build and retain cross-functional development teams for our clients.

The average hourly rate for software development is within the $25–50, with the average annual software developer salary varying between $24,000 and $ 48,000.

However, this data is very approximate. IT expert is a well-paid profession all across the world. Nevertheless, web developer salaries (in Ukraine as well as in any other part of the world) differ widely depending on the candidates’ years of experience, tech stack, seniority level, and the language of programming.

The true cost of hiring software developer in 2019

Each in-house employee costs the sum of his or her gross wages. This is in addition to other employee-related expenses, including:

1. Recruiting expenses.
2. Basic salary.
3. Employment taxes.
4. Benefits (insurance, health coverage, paid time off, and meals).
5. Space and office maintenance.
6. Other approaches.

Thus, before looking for a developer in Ukraine, you should analyze the needs of your project and your available budget for successful outcomes. So, how can the hiring process be made easier and quicker? Here’s the solution – hiring a vendor of IT talents.

Read the full version of the article at https://devcom.com/tech-blog/ukraine-it-outsourcing-for-eu-us/