Software Development Industry in Ukraine [Review 2019]
Last Updated on
- Ukrainian IT industry (overview)
- Ukrainian Software Developer Profile
- Average Salaries for Software Developers in Ukraine
- 15 Reasons to Hire Software Developers in Ukraine
- How to Hire Top Developers in Ukraine
Looking to hire software engineers for your project?
It is not always that easy to find an experienced programmer, let alone to hire a devoted team of IT professionals. The situation gets even more complicated if you are on a budget and have a tight deadline.
A perfect solution for this problem is to opt for outsourcing to Ukraine. With the Ukrainian IT industry on a rise, the country is full of motivated and inspired specialists. Ukrainian outsourcing companies are ready to cooperate and are to exceed your expectations.
Ukrainian IT industry (overview)
The last ten years were especially successful for the world IT market in terms of growth and development. And Ukraine is not an exception. More than that, over the last decade Ukraine became one of the leaders in outsourcing and outstaffing in Europe.
In 2017 Ukraine was on the 24th place in the Global Services Location Index by AT Kerney. A more detailed look at the statistics can help us understand the realities and perspectives of outsourcing in Ukraine.
According to 2018 Ukrainian IT Industry Report, from 2014, the number of IT companies in Ukraine has grown almost twice. There are more than 750 software development companies are registered in Ukrainian IT Clusters, and most of them are fairly small as only 245 employ more than 50 people. As for the end of 2018, there are 172 thousand of Ukrainian software developers.
Around 80% are involved in web development, and around 65% of companies work on the development of mobile applications. It is roughly estimated that around 70% of all the IT companies in Ukraine offer various IT services to different clients, 15% are global in-house centers, and another 15% of software companies in Ukraine create their own original product.
The biggest amount of IT companies (51,7%) are operating in the capital of the country ‒ Kyiv. Respectively, there are the biggest amount of developers in Ukraine, the biggest number of vacancies, and more opportunities for IT specialists in general.
Kharkiv is in second place among the Ukrainian IT cities with 450 companies and around 25,000 software development specialists. Lviv has great potential as well with almost 320 companies and 21,000 of Ukrainian programmers in this city. Dnipro is another Ukrainian IT-hub, where more than 170 companies opened its offices. 50% of these offices, by the way, are small companies and start-ups. Around 7,000 developers work from Dnipro, but this number is constantly growing.
If we are talking about the clients, more than 50% of the revenue of Ukrainian outsourcing companies comes from the United States. The United Kingdom is in second place. Among other clients of Ukrainian IT are companies from Canada, Germany, Israel, Switzerland, and Sweden.
Taking into account everything said above, it can be seen that the future of the IT companies in Ukraine seems bright. More and more companies from the US, UK, and Europe choose outsourcing in Ukraine each year. In order to satisfy the growing demand, software companies in Ukraine will grow and develop.
Ukrainian Software Developer Profile
If we take a more personal approach to the topic, we can try to look at a portrait of an average Ukrainian IT specialist. If you choose to work with Ukrainian outsourcing companies, you will most likely work with:
- A man (because 77% of software engineers in Ukraine are male) in his twenties (21-29 years old).
- 27% of Ukrainian software developers have an experience of 3-5 years.
- 87% of IT specialists have a Master’s degree. 56% of them have a Master’s degree in programming. Therefore, the level of education in Ukraine is almost perfect. Moreover, 89% of them say they pay attention to self-education and self-improvement.
- Almost 80% of Ukrainian programmers have an Intermediate level of English or higher. That means that there will be no problems with communication.
- It can be almost definitely said that Ukrainian software engineers have a European worldview. Taking into account the average age (21-29) of IT specialist, we can conclude that most of them were born in a democratic post-USSR country. This means that they are open-minded and share liberal values. Growing up during the rapid development of technology, they are inspired and motivated to work in this field. With fluent English and availability of information, Ukrainian developers share hobbies, interests, and cultural background with their Western colleagues. Thus it will be really easy for you to find common ground with your Ukrainian team.
- According to DOU.ua, 78% of IT specialists chose this field because they are truly interested in technology. This way, you can be sure that if you hire Ukrainian developers, you can be sure that they will be devoted and dedicated to your project.
Average Salaries for Software Developers in Ukraine
Even though the salaries on the Ukrainian IT market are following global trends and Ukrainian software developers’ salaries are growing, to hire Ukrainian developers is still a budget-friendly option. Obviously, salaries depend on the level of expertise of each software engineer and the peculiarities of each project. Nonetheless, a short overview of the average salary in Ukraine in US dollars for different IT specialist is presented above.
For instance, according to DOU.ua, the average salary of a Senior Software Engineer in Ukraine is $ 3,500. The salaries, however, vary from city to city. A Senior developer can earn up to $ 4,300 in Kyiv, but the salaries in Lviv, Dnipro, and Kharkiv will most likely be lower (around $ 3,000).
The average salary of Python programmers varies from $ 600 to $ 3,500 depending on the experience.
Java specialists have one of the highest salaries among Ukrainian programmers with Senior developers earning up to $ 3,800 – 4,000 a month in Kyiv and Lviv. An average monthly salary of Junior Java developer in Ukraine ranges from $ 700 to $ 755.
Junior Quality Assurance engineers in Kharkiv earn $ 500, while their colleagues in Lviv and Kyiv ear a bit more ‒ $ 540. Senior QA experts can earn a monthly salary of $ 2,350 – 2,700.
As can be seen, Ukrainian software engineers’ salaries keep growing. However, they are still lower than the salaries of IT specialists in the US or UK. That makes outsourcing to Ukraine very cost-effective and beneficial for any company.
15 Reasons to Hire Software Developers in Ukraine
Software companies in Ukraine did not become one of the world leaders in outsourcing in one year. IT business in this country was developing for years though it is still relatively young. Nonetheless, in 2018, 18 Ukrainian web development companies were included in The 2018 Global Outsourcing 100. And if this fact and the experience of numerous companies from Europe and the United States did not convince you to opt for outsourcing to Ukraine, here are 15 reasons to do it.
- More than 20,000 new specialists each year. Around 150 universities and colleges in the country offer technical education, and a lot of tech companies offer courses and educational programs. This allows programmers to quickly acquire knowledge and keep pace with all the modern technologies. With 23,000 graduates each year, the pool of IT talents in Ukraine only grows. Moreover, a lot of these students combine education and work, and by the time of graduation, they already have experience in real projects.
- More than 750 software development companies are registered in Ukrainian IT Clusters. You will definitely find a company that will suit your requirements and needs. Either you need a team of UI/UX designers or interested in ordering web design in Ukraine ‒ Ukraine has it all. Moreover, you can definitely find a company with values and spirit that will match yours.
- Promising local projects and start-ups. Ukraine as well has a few projects that became worldwide phenomena. For example, Grammarly, which was created in 2009 in Kyiv by two Ukrainian talents. This means that the country has great potential not only in outsourcing but in creating unique and interesting projects.
- Research and Development centers. Such tech giants as Microsoft, Oracle, Skype, and Samsung already opened its R&D centers in Ukraine. These centers positively influence the local IT community and prove that big companies see great potential in Ukrainian software developers.
- Prices and quality are perfect. Comparing the average salary of the US or European programmers to Ukrainian developers’ salary, it becomes evident that to hire Ukrainian developers is the cost-efficient option. However, lower prices do not mean worse quality. It is a well-known fact that the final quality of products delivered by Ukrainian software engineers meets and exceeds clients’ expectations.
- Business climate. Being a developing country, Ukraine is perfecting its international relations with the US and European countries. It is also opened for opportunities and investments. Because the IT business is very important for the economy of the country, a favorable environment and policies are created for it.
- Location. Great geographic location is another big advantage of software outsourcing to Ukraine. Thanks to it, Ukraine is only 1 hour ahead of European countries while the difference with the United States is 7 hours. Because of the visa-free regime and various low-cost airlines, flying to meet customers is now cheap and fast. Flights to most European countries take 2-3 hours.
- Great IT community. The opportunity to communicate, share experiences, and ask questions is very important for every profession. And the programmers are not an exception. Luckily, the tech community in Ukraine is incredibly active with such events as Lviv IT Arena, iForum, Dev_Challenge, PyCon Ukraine, and various smaller local events. IT clusters in almost every major city create the best conditions for networking and personal growth.
- English-speaking professionals. Communicating with your Ukrainian team would not be a problem. According to DOU.ua, 12.1% of software specialists speak fluent English, 34.7% have above average level, and 36.3% have an average level of English. In addition, every IT company in Ukraine offers its employees language courses and speaking clubs in order to improve their skills.
- Culture. Ukrainian work culture and communication traditions are quite close to those of Western countries. This means that it would be very easy to convey your thoughts and ideas regarding your project to Ukrainian development teams.
- Very few national holidays. In 2019, only 11 holidays in Ukraine required paid day-offs, which is an undeniable advantage from the point of view of any employer.
- Positive forecasts. All the forecasts both from international and local organizations and specialists promise that Ukrainian IT industry will grow and develop at a rapid pace ‒ 20-25% in the next few years.
- Favorable taxes. Personal income tax in Ukraine is 18%. And if an IT specialist works as a private entrepreneur, a simplified taxation system allows one to pay only 5% tax.
- Skilled specialists of other fields working in the IT companies. Any IT company needs not only programmers but also specialists in other fields ‒ recruiters, HRs, law specialists, office managers, accountants, and payroll experts. Usually, software development companies in Ukraine offer services and advice of these highly-skilled experts for every client.
How to Hire Top Developers in Ukraine
If you are almost convinced to choose IT outsourcing to Ukraine but worry that it will be too complicated, you should stop hesitating. Today it is very easy to hire remote Ukrainian developers. It does not matter if you prefer outsourcing or staff augmentation, the process is usually the same and takes less than 10 steps. In order to get more information and more detailed description of each step read our article “How to Hire Remote Software Developer or Development Team?”.
Evidently, outsourcing software development to Ukraine has numerous advantages. It can be the best choice for your business. Ukrainian IT has a perfect reputation around the world and numerous satisfied clients prove it. You can be sure that you will receive the best results if you pick IT outsourcing to Ukraine.