Ukraine is considered to be one of the greatest destinations for nearshore software development, so many European businesses prefer to outsource their projects there. It is the 1st country in the world to make a global contribution in science and technology.
According to the BBC, the IT industry of Ukraine earns over $5 billion each year with more than 187, 000 tech professionals. Big names such as Oracle, Upwork, ABBYY, and Ubisoft have already come to Ukraine, while the country has many successful startups like Grammarly, Gitlab, MacPaw, and Petcube. So, you may have no doubts that Ukrainian IT outsourcing is popular among many European companies.
Contribution of Ukraine to the science and technology
In this article, the JatApp team is going to explain why Ukraine is your go-to option for nearshore software development. With more than 200 successfully completed projects, JatApp has provided nearshore programming services to companies from such European countries as Netherlands, Germany, Denmark, Latvia, Czech Republic, as well as Cyprus and the United Kingdom.
From our experience, we know why companies choose to nearshore software development to Ukraine, so we would like to share some of our knowledge with you.
What is nearshoring?
Before talking about why European companies choose Ukrainian vendors to outsource their projects, let’s give a quick definition for nearshore software development. Nearshore software development is an outsourcing practice that aims at hiring talent within countries that are located nearby.
Same or close time zones enable companies to arrange all work on the project as if outsourced employees work in the same office with the rest of the company. This is one of the biggest advantages, especially for European countries, which we’re going to talk about below.
Why is Ukraine a popular destination for nearshore outsourcing?
As mentioned previously, Ukraine is an attractive outsourcing destination for European companies, especially those looking for good nearshore software development services. But why Ukraine, in particular? There are definitely some benefits to discuss, so let’s take a closer look at them.
Location in close proximity to Western European countries
Ukraine is closely located to Western European countries, so the time zone difference is not that big, only 2-3 hours on average. This enables European companies to synchronize their workday with nearshore development teams from Ukraine. Unlike IT vendors from India, China, or Latin America, nearshore software development companies from Ukraine can save you much time.
Good price-quality ratio
We don’t want to say that Ukrainian IT companies will just save your money compared to tech professionals from Western Europe, even though it is one of the benefits you’ll surely get.
What should be noted is that nearshore software development agencies from Ukraine aren’t the cheapest ones, however, Ukrainian developers always offer the most innovative solutions that surely address your business needs rather than just cut costs, but don’t deliver the expected results.
Gartner suggests that reduction of investment in innovation and digital transformation is one of the worst mistakes in cost management, and only 9% of companies create enough capacity for growing their technology base.
That is why nearshore programming vendors from Ukraine tend to provide their customers with solutions that will significantly improve their business performance to reach higher cost effectiveness instead of just saving client’s money on a one-time basis.
Good English proficiency and small cultural gap
In comparison with Indian tech professionals, Ukrainian developers have a good level of English proficiency and little cultural gap, so they are much easier to communicate with. According to the English Proficiency Index, Ukraine ranks 40th in the global rating of English proficiency, while India is 48th.
Also, Ukrainian developers share the same culture with European companies. Indian tech professionals can hardly relate themselves to the Western culture at all, so this factor can be counterproductive to the software development process. If you nearshore software development to a Ukrainian IT company, you can be sure that no cultural misunderstandings will interfere with your project.
Top-qualified tech professionals
Ukraine has a large talent pool of highly skilled tech professionals. In fact, 402 Ukrainian educational establishments graduate around 36,000 tech workers each year. Over 80% of IT workers in Ukraine graduate with a Specialist or Master’s degree in tech disciplines.
At the same time, Rest of World reports that there are 3,500 engineering schools in India, but about 90% of graduates don’t have programming skills necessary to deliver quality results in software development.
Higher education is quite an important factor for the reputation of a tech professional, as it highlights whether a software developer has acquired the fundamental hard skills in a systematic manner. At the same time, graduate software developers had a chance to acquire such soft skills as problem solving, time management, and ability to work in a team during their university years.
Aside from quality education, Ukrainian programmers show a high level of performance. Ukrainian teams of software developers belong to the top IT professionals of Eastern Europe, as they gain 88.7% of the score index across various test challenges provided by HackerRank. This means you’ll surely find Ukrainian tech experts who will fit your project requirements.
Welcoming legal environment
Ukraine has a favorable legal environment for foreign businesses. Apart from a 91.1% score in ease of starting business, Ukrainian legislation gives an opportunity for IT companies to lower their taxes.
Percentage of various IT-related business in the economic activities
Even though Ukrainian IT companies hire their professionals as ordinary employees, many Ukrainian developers work as private entrepreneurs. In such a way, Ukrainian tech workers are contractors that provide IT companies with their services under the signed agreement.
Private entrepreneurs must pay taxes of only 5% out of their income in Ukraine. This approach is used by the majority of Ukrainian software developers, so IT companies significantly save their resources on tax payments. That’s why Ukrainian tech companies price their services much lower compared to the Western European market.
Also, the Ukrainian government has signed legislation for regulation of cryptocurrency and legal recognition of the related businesses. This creates opportunities for various cryptocurrency startups, so if your business matches the description, you can consider Ukraine as a good location for the nearshore software development.
Moreover, TechCrunch reports that Ukraine is already a home to more than 100 companies in the cryptocurrency sector, so you can easily find developers specializing in software engineering of crypto and blockchain technologies.
Rating of countries that adopt cryptocurrency
Hire a nearshore software development team with JatApp
JatApp is a good example of the Ukrainian company to consider for the nearshore project development. We have 6 years of experience in working with various businesses in Europe and beyibd, including such examples as Brandon Learning Centre from Hong Kong, Cunio from Frankfurt, Germany, and a manufacturer and distributor of toys and games from the Netherlands.
We offer both dedicated teams and team augmentation services. For the above mentioned Brandon Learning Centre, we provided a fully stacked dedicated team of software developers. The organization prepares students for entry to the top schools of the United Kingdom, and the owner decided to scale the business by creating an online test platform to enable children aged 9-12 years old to train their skills for the school entrance pre-test.
The customer didn’t have any IT team, so software development outsourcing was needed. JatApp was expected to assemble a software development team with relevant skills and expertise to create the platform from scratch. As a result, we delivered our client a platform called PreQuest with user-friendly design, gamification features, and PayPal integration.
User interface of PreQuest
Also, our company can extend your team with experienced tech professionals. For example, we helped with the development of the Near Miss Reporting App for a large enterprise that offers a range of services on an international scale including cleaning, security, property, catering, and facility management.
NearMiss Reporting App user interface
The client had workplace management software, but they needed to improve near miss reporting inside the company. That is why the customer wanted to augment their team with IT professionals who can develop a mobile application and integrate it with IBM TRIRIGA system.
Apart from the mobile app development and integration, JatApp tech experts also created a web-based dashboard for the customer. As a result, the client saved a lot of time and resources, as they didn’t have to bother with searching for extra workforce to address the problem.
Last but not least, JatApp can provide our professionals as your full-time employees after a year of cooperation. When you have an experienced tech expert, who has worked with your in-house team and knows your business goals and company values, you should not spend any extra effort and money on starting another hiring campaign and onboarding a new employee.
Contact us, if you want to get nearshore software development from a team of experienced IT professionals, and cut your development costs by up to 60% in comparison with Western European markets. We will get back to you soon.