IT Outsourcing in Ukraine in 2023: Market Overview, Rates, and Benefits
Over the past 5 years, Ukraine has been rapidly becoming a leading IT outsourcing destination in Central and Eastern Europe.?
Despite the war, the Ukrainian tech industry has proven to be resilient, continuing to supply talent to the world.??
As a software development center based in Ukraine, we like to share annual statistics and insights on the state of the Ukraine IT industry that could be helpful for other companies.
Ukraine is an attractive IT outsourcing destination
Many businesses worldwide outsource their development tasks to Ukrainian developers because they are cost-effective, highly skilled, and a good cultural fit.
?20% of Fortune 500 companies have remote development teams in Ukraine?
The IT outsourcing business in Ukraine grew by 380% between 2013 and 2020.
Resilience of Ukrainian IT outsourcing during the war
In 2023, the software development industry in Ukraine faced challenges due to the ongoing Russian invasion that began in 2022. Despite this, Ukrainian IT companies exhibit remarkable consistency and continue to thrive, demonstrating unprecedented resilience.??
The volume of IT services increased by a significant 13% in the first nine months of 2022 compared to the previous year, amounting to $5.5 billion, according to data from the National Bank of Ukraine. Currently, the IT sector contributes to nearly half of the total service exports.
Advantages of outsourcing software development to Ukraine
1. Access to highly skilled IT professionals
Ukrainian outsourcing companies specialize in advanced technologies and prioritize the growth of their teams’ expertise. According to DOU, Ukrainian engineers excel in programming languages such as JavaScript, Java, Python, C#, TypeScript and PHP.
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2. Cost-effectiveness and competitive pricing
When it comes to reducing costs, Ukrainian IT outsourcing companies stand out as exceptional service providers in terms of both quality and affordability.
We’ve created a free Development cost calculator for the evaluation of the cost advantages of hiring a Ukraine vs US based outsourced development team.
3. Cultural fit and language proficiency??
Ukrainian software developers are a cultural fit for many businesses, as they share similar work ethics and communication styles.
4. Time zone advantage and efficient communication??
Ukraine is in the GMT+2 time zone, which is just 1-2 hours ahead of most European countries and 7-9 hours ahead of the US. This makes it a convenient time zone for businesses to outsource their software development to Ukraine, as there is often an overlap between working hours.?
To learn about other advantages of outsourcing software development to Ukraine, related risks, and current market rates, check out our 2023 market overview on IT Outsourcing in Ukraine:
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If you have any questions or need help assessing if a Ukrainian development team is right for you, feel free to reach out for advice and guidance.
By working with Ukrainian companies, you will also be supporting the local economy and helping establish peace across Europe.