With young generations of IT talent, Ukraine is a dynamic and productive nation. These professionals embrace change and innovation, and continuously aspire to high achievements. Ukraine’s IT outsourcing industry has had tremendous growth in the last twenty years.
With numerous benefits, Ukraine has established a solid reputation as one of the most preferred outsourcing destinations. Over 15,000 IT specialists graduate in Ukraine each year. The country has built a thriving IT ecosystem where thousands of software development companies deliver cost-effective and high-quality solutions. Companies outsource their IT projects to Ukraine to access top-class engineering talent and the finest products.
Ukraine has generally been recognized as one of the top locations to outsource excellent software developers at a reasonable cost. By outsourcing IT needs to Ukraine, companies benefit from a wider talent pool and lower expenses.
Global businesses looking for custom software development frequently choose Ukraine. However, from February 24, Ukrainians must deal with russia’s war against Ukraine. Despite this situation, the Ukrainian software industry is still expanding. What draws Western companies and their IT operations to Ukraine and how have Ukrainian IT enterprises withstood these difficult times? Let’s explore it in this article.
IT business operates seamlessly despite the war
Ukraine has suffered from an all-out war waged by russia since February 24. However, this situation has not halted any operations in the Ukrainian IT industry. After guaranteeing that their staff and data are fully protected in the West of Ukraine or abroad, software development companies and the US and EU corporations with offices in Ukraine continue to operate without interruption. While retaining control, high-quality services, and access to the talent pool, they have decreased and managed all business risks.
Ukrainian IT firms have shown their resiliency and ability to deliver excellent services no matter what. During the wartime, the Ukrainian IT industry has displayed remarkable tenacity, moral courage, and ability to handle crises. Many IT companies ensured the safety of their employees during the early stages of the war or even before the war started since they had launched emergency measures in advance following intelligence warnings.
The shift to a new model went smoothly, and that could be expected. Two years of Covid quarantine have helped Ukrainian IT companies get prepared for any circumstances.
Foreign embassies have also returned to Kyiv, suggesting that the Ukrainian capital is secure enough for businesses. During crisis times, Ukraine’s IT sector has proven to be a reliable partner for global businesses.
Growth of IT services export
Ukraine’s export-oriented IT sector produced a record $2 billion revenue for the first quarter of 2022, the National Bank of Ukraine (NBU) reports. The result is 28% higher than the figure for the same period of 2021 ($1.44 billion).
According to this report, the growth of the software development industry continued until the war started and reached a record monthly export – $839 million. This figure exceeds the same period in 2021 ($480 million) by 43%.
In March 2022, the Ukrainian IT industry retained $522 million that is 96% of IT services exports, compared to the same period last year ($546 million). Moreover, the majority of Ukrainian IT firms expect a growth of 5-30% in 2022. The IT sector has been able to stabilize and quickly rebuild its operations with the help of anti-crisis plans. Most Ukrainian IT companies managed to retain customers and the volume of their development and maintenance contracts, Forbes reports.
Ukraine IT companies still hire
The DOU recruitment portal’s poll found that 90% of IT professionals have not experienced any changes in their jobs or workload since the beginning of the war. This illustrates the trustworthiness of Ukrainian IT firms. More importantly, they keep on hiring talented tech specialists to support their company and the market.
Ukraine IT market grew tremendously in 2021
In 2021, the Ukrainian IT market showed phenomenal growth. To visualize this expansion, think of a 50% staff increase by the five biggest Ukrainian software development companies. The five largest organizations (SoftServe, GlobalLogic, EPAM, Luxoft, and Ciklum) have hired roughly 27,000 IT specialists since 2020. In 2022 they count more than 40,000 employees all together. The recent estimates indicate that 220,000 Ukrainian programmers performed in the global market in 2021. This is the highest result in Europe and the fourth rank globally in terms of capability.
World’s top-100 IT vendors list include Ukrainian companies
The Ukrainian IT industry is famous for its services provided for the EU, UK, and US companies and tech startups. Over 100 corporations from the Fortune 500 list are among the Ukrainian IT vendors’ customers.
The International Association of Outsourcing Professionals announced the top 100 list of IT outsourcing services providers. This rating included 12 Ukrainian software development firms and 3 international companies with offices located in Ukraine. IAOP annually selects the best software development companies based on the most relevant criteria in the industry, such as customer testimonials, certification and awards won by vendors, innovation initiatives, and social responsibility projects.
Strong positions in US market
Clutch, the globally known US B2B software providers review portal, highlighted Ukrainian firms among the fastest-growing IT companies in its ranking published last year. Ukraine’s outsourcing firms are also on the list of companies with the most sustainable growth. The list of the 100 fastest-growing software development companies includes 5 of them from Ukraine, while 9 appear on the list of top 100 companies with the most sustainable growth.
When it comes to IT outsourcing activities, the US continues to be Ukraine’s top partner. Roughly 45% of the IT sector customers represent the US-based businesses. Ukrainian IT experts are among the best in the world for their in-depth technical expertise, excellent English proficiency, and cutting-edge technology skills.
Ukraine to join the EU
Ukraine has been granted European Union candidate status by the EU leaders on Jun 23, 2022. The historic decision marks an essential point on Kyiv’s way to EU membership.
All industries, including IT, will gradually converge on EU standards as part of the EU integration process. Access to the EU market, technological advancements, financial aid to restore vital infrastructure, and low-cost loans to restructure the economy will help Ukraine’s IT industry continue growing.
Benefits of IT outsourcing to Ukraine
Ukraine is one of the best destinations for IT outsourcing. Here you can hire highly-skilled software engineers fluent in English. Ukrainian developers and IT project managers are hard workers and have a positive stance on cultural differences.
Huge talent pool
The talent pool is young and vibrant, with brilliant developers who have continuously raised the bar of excellence despite the challenges to enable the IT sector to prosper. With more than 400 universities spread across the country, Ukraine annually produces over 15,000 IT graduates who are among the best in the world. Seizing the growing need to ensure ongoing software development capabilities, a significant number of private establishments offer specialized courses in the industry. Over the last decade, there has also been a steady rise in the numbers of IT specialists in Ukraine. For instance, the top 50 Ukrainian IT companies hired 10,000 more professionals in the first half of 2021.
Diverse tech skill set covering various technologies
IT experts from Ukraine have a wide range of skills across all programming languages. There are more than 1,000 development centers in the country that hire skilled programmers to work on various high-level software projects for global corporations like Google and IBM. About 10% of Europe’s graduates in STEM fields, including computer science, come from Ukraine. The country has become a hub for innovation and the origin of many popular IT products today. Ukrainian startups include Ahrefs, GitLab, and Grammarly.
Effective Communication and English Language Proficiency
Ukraine has a large number of people speaking English fluently. Western companies do not face any challenges with the language barrier and possible miscommunication when outsourcing to Ukraine. All they need is to provide a detailed description of their project’s technical requirements to get a perfect end product.
Compared to software development firms in Canada, the US, and the EU, Ukrainian IT vendors do offer exceptional technical knowledge and creativity for competitive pricing. Compared to other markets, Ukraine is a more affordable source for software development expertise to hire.
It is usually expensive to hire and train a group of IT specialists as well as create the necessary in-house infrastructure. Additionally, companies can significantly reduce their expenditures on hardware costs, software licenses, maintenance, etc. by subcontracting services. By lowering development costs, outsourcing gives you budget control and access to the best talent that might not be available in-house.
Cost to quality ratio
Pricing is not the only factor. With highly-skilled developers and effective product quality control Ukrainian IT firms guarantee world-class quality. Given that Ukraine has a 30-year tradition of software development, there are many senior engineers. In addition, a lot of IT graduates advance their abilities quickly since they land jobs right out of university and are mentored by highly experienced coworkers.
Strong work ethic
Ukrainians are well-known for their dedication to excellence and exemplary work ethics. You may count on the best outcomes if you hire Ukrainian software programmers. They put a lot of effort into product development and have creative minds to generate ideas for your business.
Compatibility across cultures is the ultimate argument. Ukrainian IT specialists rapidly absorb Western principles and express pro-European views. The Ukrainian people share a very similar mindset to European residents. This translates into a solid cooperation that enables IT projects and tech startups to be launched successfully.
Project management and scheduling alignment are made simple by the time difference because working hours are overlapping with those of several North Coast locations in the US and Canada, and there is only a 1-hour time difference with businesses located in the EU. One of the main arguments for choosing Ukrainian outsourcing is that the working hours in the EU or the UK are nearly identical to those of the remote development team in Ukraine. Top Ukrainian outsourcing cities, like Lviv, are conveniently located and are just a two-hour flight away from the EU (be aware that flights are temporarily canceled because of the war). In addition, citizens of most countries can enter Ukraine without a visa.
Data security is of essential importance to global corporations. The laws of Ukraine are in line with those of the European Union. Databases and computer programs are copyright protected under Ukrainian intellectual property laws. Ukrainian development companies are capable of protecting both sensitive client information and intellectual property rights. They provide secure data recovery techniques to deal with unforeseen data loss in addition to compliance solutions tailored to the customer’s needs. Ukrainian IT firms also sign Non-Disclosure Agreements to protect your business ideas and confidential information.
Take benefits of Ukraine’s IT outsourcing, adapted to new realities
Every business can access highly qualified software developers by outsourcing IT services to Ukraine and get all the listed benefits. The IT firms ensure that the team assigned to your project has the necessary skills and experience to build solid, effective, and scalable solutions. As the vendors have experience working on a variety of projects across multiple industries, they can quickly find efficient solutions to any company’s specific needs. Since businesses must keep up with the rapidly evolving IT trends, outsourcing to Ukraine can help you adopt cutting-edge tools and technology faster.
Ukrainian IT companies continue to expand, reach global rankings lists, and win awards. During the war, crisis management and business continuity strategies performed at their best, and Ukraine’s software development companies have retained customers and kept projects running. The partial transfer of resources to neighboring Eastern European countries went smoothly, and Ukrainian IT firms continue providing top-level services. Ukraine’s IT sector has proven to be a trustworthy and effective outsourcing partner.
ELITEX, as a Lviv-based company, has left the doors of our office open to every employee who will thus feel morally protected or need to communicate with like-minded people. We have provided our employees with safe working conditions and facilitated the possibility of relocating abroad for those of our employees who, for one reason or another, needed it. Security has been a key aspect of our business for more than four months now. This way, we ensure the best security for ongoing and future projects.
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