A Comprehensive Guide on Outsourcing to Ukraine

by Lauren Soucy
outsourcing to ukraine

Ukraine has a global reputation for being a highly competent global outsourcing destination, especially in the information technology (IT) sector.

The Covid-19 pandemic and the rise of work from home have further boosted the Ukrainian outsourcing sector.

In this article, we’ll cover everything about outsourcing to Ukraine – its benefits, top services to outsource, and the best platforms to hire local talent.

Table of Contents

Let’s get started.

4 Top Benefits of Outsourcing to Ukraine

Here are a few ways businesses can benefit by outsourcing their operations to Ukraine:

1. Cost-Effective

Outsourcing to Ukraine is highly cost-effective, thanks to the easy availability of skilled talent at affordable rates. 

Businesses can hire a Ukrainian specialist at rates much lower than in many countries in Western Europe and North America.

For example, the average hourly rate of a Ukrainian software engineer is around USD 41, lower than the UK (USD 93), the US (USD 51), and Germany (USD 61). 

Besides, the low cost of living in Ukraine means it’ll be much cheaper to set up an office in cities like Kyiv and Lviv, as compared to global tech centers like San Francisco, London, etc.

Companies can further reduce their operating costs by employing Ukrainian employees remotely and saving up on relocation, office, and other infrastructure expenses.

Please note that low average wages in Ukraine do not mean there’s a compromise with the quality of work. As per a Gartner report, Ukraine has the best price to quality ratio in Central and Eastern Europe (CEE region).

2. Highly Skilled Talent Pool

Ukrainian IT professionals are highly sought-after globally for their skills and expertise.

As of 2022, Ukraine has a massive pool of around 240,000+ tech specialists with a degree in STEM (Science, Technology, Engineering & Mathematics) fields. This is the fourth biggest IT talent pool globally and the biggest in Eastern Europe.

Besides, Ukraine’s robust education system adds 23,000 IT specialists and 130,000 engineering experts to the talent pool each year.

Here are a few points that highlight the strength and quality of Ukraine’s IT workforce:

  • As per HackerRank, Ukraine is placed 11th on the list of countries with the best software developers, ahead of popular outsourcing countries like Mexico, India, and Romania.
  • As per the Global Skills Report 2021 by Coursera, Ukraine is placed at the 27th position overall and 8th position in the technology branch. Coursera analyzes 77 million learners registered on its platform to create the lists.

3. Globally Recognized Tech Prowess

Wondering how Ukraine manages to produce such a sizable and high-quality IT talent pool?

Besides its education system, Ukraine’s dynamic technology ecosystem plays a significant role in shaping its sizable and high-quality IT talent pool.

The Ukrainian IT market accounts for around 4% of its GDP and has contributed significantly to the country’s economic growth. As per a PwC report, the export volume of Ukraine’s IT Industry is predicted to reach USD 8.4 billion by 2025.

Here are some figures and stats on Ukraine’s tech community and ecosystem:

  • Being an IT hub, Ukraine is home to around 5600 tech companies and around 1600 IT outsourcing firms in 2022.
  • As per a StartupBlink report, Ukraine is among the 30 best technological ecosystems in the world.
  • Ukraine is ranked 49 (out of 132 countries) on the 2021 Global Innovation Index (GII).
  • The East European country has around 22 IT clusters, incubators, accelerators, and innovation parks spread across cities like Lviv, Kyiv, Kharkiv, Dnipro, etc.
  • More than 100 international companies have their R&D centers operating in Ukraine.
  • There are more than seven tech associations in Ukraine, such as IT Ukraine Association, Tech Ukraine, etc. The country hosts more than 3000 tech events annually.

4. Proven Outsourcing and Business Track Record

Over the years, Ukraine has proved its mettle as a top business and outsourcing destination. 

The country also has a thriving home-grown startup scene. Many popular global brands, such as GitLab, Grammarly, Reface, and Preply, were founded in Ukraine.

Here’re some figures that showcase Ukraine’s outsourcing and business caliber:

  • According to Outsourcing Journal, Ukraine is the top IT outsourcing destination in Central & Eastern Europe.
  • 21 of the world’s top 100 outsourcing companies are either based in or have development centers in Ukraine.
  • As per Beetroot’s 2021 Tech Market Report, 100+ Fortune 500 companies have offshore teams in Ukraine or are clients of Ukrainian IT and software outsourcing companies.
  • In 2021, British Global Sourcing Association recognized Ukraine as the best country in the world for IT outsourcing.

Additionally, Ukraine falls in a convenient time zone for most European countries. And even companies in the USA (7-hour difference between Ukraine and the Pacific Time Zone) can conveniently collaborate with their Ukrainian development teams over shared working hours.

Learn all about outsourcing and its benefits in this detailed guide.

4 Commonly Outsourced Services to Ukraine

Ukraine has many global businesses outsourcing their IT operations to the country. Here are four services most commonly outsourced to the country:

1. Software Development and Data Services

Ukraine’s software developers have expertise in platforms like Java, Javascript, C++, Python, Pearl, PHP, etc. These programming language pros make your app development projects a breeze, whether for desktop, mobile, or cloud.

Moreover, you’ll also find reliable and affordable Ukrainian providers for IT services like data analytics, DevOps, UX/UI design, quality testing, etc. 

Companies can choose to outsource their IT operations to a third-party Ukrainian outsourcing company or hire a Ukrainian IT specialist directly.

For the reasons mentioned above, prominent companies like IBM, Oracle, Adobe, Apple, etc., have set up offshore operations in Ukraine and actively hire software developers from the country.

According to Clutch, these are some of the top IT and software development outsourcing companies in Ukraine that cater to global clients:

  • ImageX.
  • Django Stars.
  • GBKSOFT.
  • KindGeek.

2. Automotive Tech

Ukraine is a popular outsourcing destination for automotive software solutions. Automobile companies can hire a Ukrainian developer or engage a development service provider to work on:

  • UX/UI design for in-vehicle infotainment systems.
  • Speech recognition and voice assistance for these systems.
  • Smart navigation solutions that offer real-time traffic information and on-road guidance.
  • Cloud technologies that help with intelligent vehicle connectivity systems.
  • Human Machine Interfaces (HMI) to improve driving assistance.
  • Systems for diagnostics and repair assistance, vehicle tracking, fuel monitoring, etc.

Some of the top automotive brands that trust Ukrainian developers with their projects include Daimler Group, Mitsubishi, KIA, and Volvo.

Here are a few top Ukrainian vendors that offer specialist automotive services that you can choose as your outsourcing partner:

  • Intellias.
  • Innovecs.
  • Qubit Labs.
  • Sigma Software.

3. Emergent Technologies

The savvy tech community in Ukraine is well versed in novel technologies and can help companies in various domains leverage them. These include:

  • Artificial Intelligence (AI) and Natural Language Processing (NLP) based systems to be used in different industries. For example, Grammarly and People.ai are two popular AI-based platforms that are developed in Ukraine.
  • Augmented Reality (AR) and Virtual Reality (VR) applications and systems for entertainment and educational purposes. Ukrainian IT specialists have developed content for popular AR/VR platforms like HTC Vive and Oculus Rift.
  • Blockchain-related services like the creation and maintenance of cryptocurrencies, smart contract applications, and custom software development.
  • Internet of Things (IoT) solutions for enhanced connectivity in smart city and smart house projects, logistics, power grids, healthcare, etc.

Some of the top Ukrainian outsourcing companies that offer services based on the above technologies include:

  • Unicsoft: A Blockchain and Artificial Intelligence development company based in Kyiv.
  • Peiko: A Ukrainian IT company (based in Kyiv) that offers blockchain and other software solutions to global clients.
  • Blaize: Located in Dnipro, Blaze offers custom Blockchain development for mid-sized enterprises.
  • ITRex Group: With an office in Kyiv, this Belarus-based software development company offers IoT, AI, and ML (Machine Learning) services.

4. Research and Development

Starting research and development operations is often associated with high costs and capital risks. That’s why businesses in developed economies look for affordable options to set up their R&D labs and mitigate some of these risks.

Ukraine is already a preferred location for companies to run resource-intensive R&D processes. The country currently has over 100 R&D centers, including those of big companies like Samsung, Boeing, Oracle, etc. 

The following outsourcing service companies are great options if you’re looking to delegate your R&D operation to Ukraine:

  • UKAD.
  • Newxel.
  • Nearshore R&D.
  • Qubit labs.

It’s clear why Ukraine is a top choice for outsourcing all things tech. But given the current humanitarian crisis in the region, how do you hire a Ukrainian developer?

6 Best Platforms to Hire Ukrainian Talent

The ongoing conflict between Ukraine and Russia has affected the country’s economy and the job market. Millions of Ukrainian citizens are displaced and left without a job. 

But Ukrainian talent remains some of the most sought-after in the world. Thankfully, organizations globally are helping Ukrainian citizens find jobs and get back on their feet. 

Note: We stand in solidarity with Ukraine during this difficult time. Here is a list of charities to donate to if you wish to help Ukraine.

If you want to hire some top Ukrainian talent, get in touch with these platforms that match outsourcing companies with job-seekers from the country:

1. EmployUkraine

employukraine

EmployUkraine (formerly known as RemoteUkraine) is a free-to-use platform that has over 7000+ registered Ukrainian job candidates and 2500+ jobs listings.

You can use the platform to source and hire a remote or in-house Ukrainian engineer or developer, for full-time or part-time roles, from anywhere in the world.

It’s used by over 1600 global employers, including major companies like Microsoft, SAP, Amazon, etc., to hire top Ukrainian developers.

2. Adecco Jobs for Ukraine

adecco jobs for ukraine

Adecco is a Swiss recruitment company that has started a dedicated platform to help connect Ukrainian job seekers with employers worldwide.

Adecco is running training programs to help these job seekers master different work skills. 

The platform also helps employers understand labor law amendments and special measures taken by counties to welcome Ukrainian workers to enter their job markets.

3. Randstad (Ukraine)

randstad ukraine

Randstad is a staffing solutions company headquartered in Diemen, Netherlands. The platform has started a support page for Ukrainian refugees and aims to utilize its global network to provide job opportunities for crisis-struck citizens.

The platform helps companies develop a custom plan to source, engage, and nurture Ukrainian talent. This includes support for building an inclusive culture and developing intercultural sensitivity within your company. 

Randstad also runs skill development and coaching programs for Ukrainian job-seekers.

4. JobAidUkraine.com

jobaid ukraine

Job Aid Ukraine is a non-profit initiative connecting employers with displaced Ukrainian talent. Companies can list a job on the platform free of cost.

The platform has an FAQ page that guides employers on labor and immigration law provisions in various countries for Ukrainian refugees and helps them find the most viable option to hire them.

The FAQ page also provides detailed information to refugees and job seekers about residence and work permits, employment contracts, tax structure, etc.

5. Job4Ukraine by Agorize

job4ukraine

Job4Ukraine is a Ukraine-specific job board started by Agorize, a talent acquisition and technology platform, to bring together employers and job aspirants.

Ukrainian refugees can send their CVs, while employers can post job offers on this free-to-use service.

6. Executive VA

executive va

Executive VA is a talent sourcing platform that helps business owners hire qualified virtual assistants from Ukraine and other eastern European countries. Since virtual assistants work remotely, displaced Ukrainians can easily apply for the job from any location.

The platform assesses an employer’s specific needs and helps source candidates with a suitable skill set. Executive VA even offers a 60-day integration program that involves regular follow-ups and coaching sessions to ensure a smooth onboarding process.

Wrapping Up

Outsourcing IT operations to Ukraine is a smart choice for companies looking to scale their business while keeping their expense in check. When you outsource to Ukraine, you’re tapping into a pool of diverse skill sets and expertise.

Use the information shared in this article to understand how Ukraine IT outsourcing can help your business and how you can leverage the expertise of the local tech talent to fuel growth.

Also, head over to any of the recruitment platforms above to find a skilled Ukrainian software developer or engineer. And remember that doing so will help the country’s workforce and economy recover from these challenging circumstances.

 
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