Outsourcing to Ukraine
Petcube, Grammarly, and PromoRepublic were all developed in Ukraine. Samsung and Microsoft have their R&D offices in Ukraine. Moreover, the developers of WhatsApp and PayPal were born and raised here. We bet you didn’t know this. Most people don’t.
And if you’re among that majority, then you simply underestimated the powerful potential behind Ukraine’s IT minds that are recognized worldwide. That is the truth that we believe, you should know to be able to choose the right country to outsource your software development to. Comparing Ukrainian rates with other well-known outsourcing destinations, you should consider additional expenses, time zone and cross-cultural communication difference. Ukraine has comfortable geographical position, as well as similarity in mentality and business ethics.
THE TRUE COST OF HIRING WEB DEVELOPERS
The most popular wage estimation in North America and Europe is a yearly (annual) rate. However, in Ukraine it is different. Some software development companies estimate an hourly rate for each programmer. Many experts today believe that this is not the best option. The reason for this is very simple: you don’t have a fixed price, which may lead to an endless chain of unexpected spending. Because every enterprise has to pledge a certain amount of budget for workforce expenses beforehand, it is more reasonable to estimate each engineer’s salary by monthly rate.
As a rule, IT companies in Ukraine enclose agreements for a year or two ahead. EchoUA company helps to sign a contract on absolutely transparent payment terms. It is based on a developer monthly salary rate, plus overhead costs, which is called Cost+ model.
In fact, there are numerous and substantial costs involved in hiring and maintaining employees that many people ignore. An in-house developer (or any employee) is always more expensive than his salary when you factor in embedded costs:
- Hardware, software and equipment
- Office rent, utility bills, supplies
- Recruitment & HR
- Employee benefits
- Taxes and legal support
- Management fee
Total overhead costs are around 1000 USD/monthly.
These numbers represent nearly half or less of an average American developer’s salary. Ukraine might be an unexplored territory for you. So how do you find the most skilled and accurate development team for your business in such a big country? Probably, the win-win strategy is to act through a trusted representative in this place. EchoUA is a professional mediator between global companies and Ukrainian IT-professionals market.