
THE IMPACT OF THE WAR ON THE UKRAINIAN IT MARKET
CURRENT STATE OF IT INDUSTRY IN UKRAINE 2022
HOW UKRAINIAN IT COMPANIES MODIFY THEIR WORKFLOW
BENEFITS OF OUTSOURCING SOFTWARE DEVELOPMENT TO UKRAINE
WHAT SERVICES DO IT COMPANIES IN UKRAINE OFFER?
Advanced tech infrastructure development, many tech universities, and an incredibly active tech community – these factors are the critical ones making Ukraine the most attractive outsourcing destination for international companies. At the same time, Ukrainian software developers are recognized among the world’s best. That proves the high quality of Ukrainian software development services in the modern information technology industry.
Below, we will analyze the key benefits of IT outsourcing in Ukraine and define the major outsourcing services offered by Ukrainian software development companies. But firstly, we have to talk about the impact of the Russian invasion on the Ukrainian IT market and its current state.
When thinking about software outsourcing, Ukraine has been among the most well-known destinations for a long time. So, does everything change due to the Russian invasion?
On February 24, Russian troops attacked Ukraine, and many bombs and missiles hit different military and civilian infrastructures in all parts of the country. In turn, the start of the war in the heart of Europe forced the United States and European Union to launch drastic sanctions against Russia and its ally Belarus.
These sanctions mean the mass exodus of western companies from the Russian market, including the IT industry. Such a situation provoked tech specialists from Russia and Belarus to migrate from their countries since they see no future living in these totalitarian regimes.
Therefore, IT services customers from abroad have started considering competent and affordable replacements and regard Ukrainian software developers as the top among the Eastern European countries. Besides, the Ukrainian outsourcing market has a reputation as a great IT powerhouse since Ukrainian developers contributed to the foundation of such tech giants as PayPal, Whatsapp, and Grammarly.
No doubt, in Ukraine, software outsourcing is quite affected by the Russian invasion. But Ukrainian companies are improving the current situation and demonstrating excellent resilience when it comes to adapting to such new conditions.
Nowadays, the local IT industry is among the most solvent in the Ukrainian business environment. The country’s outsourcing companies pay all taxes on time as usual, although the whole of Ukraine is living under martial law. For instance, many companies available in the local outsourcing market even do that in advance.
Fortunately, almost all organizations in the IT industry in Ukraine have business continuity plans. Thus, they could react immediately after the war’s beginning. Their HR managers play a crucial role in organizing the relocation of Ukrainian software developers and other staff to safer destinations in the country or abroad, especially in Eastern Europe. So, many Ukrainian developers could relocate to the Western part of the country or move to other European countries.
Finally, all tech specialists (both relocated and those who stayed at their homes) continue performing their tasks remotely. The key reason for such a quick adoption to the new obstacles is that the Ukrainian IT industry has been working remotely due to coronavirus restrictions. That is why Ukrainian developers can also demonstrate significant flexibility today. So, if you want to hire software developers in Ukraine, you can be sure that your outsourcing team will maintain the efficient project management and do everything on time.
Many software development companies apply drastic changes to their traditional workflow. For instance, some of them make it possible for their software engineers and other staff to work part-time. Meanwhile, the percentage of these employees fluctuates about 40-45%.
Also, there are some Ukrainian software companies that decided to suspend operations, but they maintain ongoing communication with their team. In this case, each IT company intends to track the movements and whereabouts of its staff. Another popular practice for the modern Ukrainian IT sector is to recruit psychologists who help employees overcome war-related stress.
Ultimately, the relocation is becoming mainstream for numerous Ukrainian IT companies since they intend to overcome the situation. For instance, some software development companies from East and North Ukraine moved their staff to the safer parts of the country or even abroad (especially to Poland). Here, they plan to open their offices. The particular flexibility enables the Ukrainian market to remain afloat during such hard times. So, local outsourcing companies can continue operating and use their expertise for delivering top-notch solutions for customers worldwide.
In terms of software outsourcing, Ukraine offers many critical advantages. Let’s consider some of them.
Today, the local outsourcing companies deliver about 90% of services to different countries worldwide, especially to the USA and Western Europe. Among the most popular services offered by the Ukrainian IT industry are custom software development (web development and mobile development), system integration, cloud migration, modernization of legacy systems, etc. For instance, end-to-end development is typically widely used by enterprises that require a dedicated team to address their existing IT challenges.
In addition, another critical service worth mentioning is IT staff augmentation. It means that you can hire Ukrainian software developers for your team easily. A large number of tech companies and different startups that develop a software product lack appropriate skills and expertise because of many reasons. Thus, if they want to scale up quickly, they can hire experienced developers in Ukraine.
After all, if your company needs any IT service, consider Ukraine, among other countries in Eastern Europe, the best destination with hundreds of great opportunities to find a reliable outsourcing provider.
When searching for a software development outsourcing company in Ukraine, you can use the following popular approaches:
But if you have no free time, you can use these two more efficient methods of IT outsourcing to Ukraine.
When partnering with a software outsourcing company, Ukraine offers two popular types of collaboration models – a dedicated team and product development. Let’s consider both.
Organizations that have numerous different requirements and a significant amount of software engineering work to outsource can find a dedicated software development team model the most suitable. That is because this model predicts long-term collaboration. Here, outsourcing companies should provide customers with a full-time development team. Such a team can cooperate with your in-house engineers to complete the necessary project.
If your business aims to outsource the software development process and hire Ukrainian engineers, you can contact Exoft to establish your own dedicated team in Ukraine.
After all, the particular model is a perfect option for companies:
Using the product development approach is the best choice for organizations that want to develop their own software solutions. This model serves as a full-cycle software product development services model that includes market research, business analysis, the development process, and launching. It is mostly suitable for companies that:
If your organization wants to outsource software development, Ukraine is also a perfect option due to the average hourly rate of local tech specialists like developers, software testers, or product managers. But of course, no company in the software development industry will tell you about the exact costs of their services. After all, the cost necessary to hire Ukrainian software developers can depend on these factors:
So, how can you obtain an accurate estimation related to your project cost? Before outsourcing to Ukraine, your organization should collect all the necessary data about project objectives, requirements, and budget. But with reliable project outsourcing, you should not worry about collecting the requirements. That is because many outsourcing companies in Ukraine will offer your company to undergo a business analysis stage, also known as the discovery phase.
Such a discovery phase serves as the time spent by your company with your software vendor to formalize the requirements for your future software product. You can regard that as a guarantee of receiving the most accurate specification, which ensures the smooth design, development, and testing processes. Also, it is a guarantee that your organization will get what it expects.
So, what are the actual salaries of developers in Ukraine? After conducting the relevant research, we can provide you with such numbers:
Ultimately, hiring developers in Ukraine appears at least twice as low compared to the United States, for example.
When talking about outsourcing software companies, Ukraine offers plenty of options. Exoft is among the leading software firms providing excellent outsourcing services to satisfy your business demands.
Since 2013, we have enriched our experience by building custom software development systems of various types and levels of complexity. The Exoft team is mostly focused on the back-end, front-end, and mobile app development. Moreover, our company offers quality assurance (QA) services that help detect each bug before getting the system to users. Meanwhile, our support team contains business analysts, UI/UX design specialists, and a project manager. They will make web and mobile development processes easier.
Apart from providing custom software development services, Exoft offers IT staffing. So, your organization can regard us as an outsourcing partner to hire Ukrainian software developers.
Among the other valuable benefits of building your software product with Exoft are:
To conclude, when it comes to software development outsourcing, Ukraine is among the most reliable destinations across the world. Regardless of the Russian-Ukrainian war, many global businesses recognize the potential of making investments in the country’s tech industry. The relatively low cost of living, the appropriate legal rules, and efficient data protection encourage organizations to regard Ukraine as an attractive outsourcing and offshoring destination.
So, if your company aims to hire Ukrainian developers for your project, let’s contact Exoft and discuss possible options.
Copyright © 2013 – 2022 Exoft LLC