IT Outsourcing: Market Insights & How to Choose the Right Team for You In Ukraine

MLSDev
6 min readOct 12, 2021

Huge tech giants like Samsung, IBM, Hitachi, Boeing, Skype, eBay, PayPal also use Ukraine as their IT outsourcing destination.

This is not surprising.

If you are also thinking about outsourcing software development to Ukraine, this guide will cover everything you may need to know. You’ll discover:

Key Info & Top Company to Outsource IT in Ukraine

The Ukrainian IT market in 2021 is on the rise, as even just the top 50 IT companies have opened more than 7,000 new positions.

  1. There are 11,932 software development companies in Ukraine that employ over 183k developers.
  2. The top 25 Ukrainian companies now hire, on average, 42.5 technical specialists.
  3. The top 5 Ukrainian IT companies give work to 26,601 technical specialists with an average rate of $40 — $50 per hour.

IT Outsourcing: Market Overview in Numbers, Ukraine

If you want to hire an IT outsourcing team quickly and securely, pay attention to MLSDev.

MLSDev is Your Ukrainian IT Outsourcing Company

MLSDev has strong expertise in web and mobile development and provides offshore software development services in a range of industries. We have created products for healthcare, eCommerce, FinTech, social networking, streaming platforms, and more.

In 11+ years on the market, the MLSDev team has completed over 200 projects and is proud to boast a 97% customer retention rate.

The products created by MLSDev include:

  • Instant needs delivery project- Gopuff — now a growing service in the USA, present in 650+ locations, with 400+ fulfillment centers.
  • mHealth product dana — app helping thousands of users in Germany, compliant with the IEC 62304 standard used in software for medical devices.
  • Solution for McDonald’s Baltics — app that increased customer loyalty and revenue streams
MLSDev Project Portfolio (Gopuff, Idana, McDonald’s)

Why Should You Consider Software Development in Ukraine: 12 Vivid Benefits

By the end of 2020, the IT industry had gone through a considerable rise. More and more businesses are now focused on Ukraine as an IT outsourcing hotspot.

Reasons Why Companies Outsource

1. Great price-quality ratio

The following list of the average salaries in Ukraine for programmers, business analysts, QA engineering specialists might be helpful:

As of 2021, here is an illustration of the medium salaries for IT industry employees from the highest to lowest:

Average Salaries in Ukraine in the IT Industry, winter 2021

2. Strong skill-set of Ukrainian developers

3. A great number of specialists

The number of highly skilled specialists in informational technology in Ukraine has been steadily growing since 2011. The IT market has faced considerable changes over the last 10 years:

Growing Number of IT Specialists in Ukraine, 2015–2020E (by N-iX)

4. Great tech basis

1. Mobile app development

Mobile development is represented by specialists in Swift, Kotlin, Dart, JavaScript, C#, Java, and TypeScript.

Distribution of Technologies Used for Mobile Development among Ukrainian IT Specialists, 2021

2. Back-end development

If you select Ukraine for outsourcing IT for your back-end project, there is a wide range of programming languages: Java, C#, PHP, Python, JavaScript, Ruby, Go, TypeScript, Scala, C++, Kotlin, 1C, Elixir, Apex, PL-SQL, Clojure, T-SQL, Erlang, and Groovy.

Distribution of Technologies Used for Back-end Development Among Ukrainian IT Specialists, 2021

3. Front-end development

The most popular technologies for front-end development are JavaScript and TypeScript. Other technologies include Java, C#, PHP, Python, Clojure, Ruby, and Dart.

Distribution of Technologies Used for Front-end Development Among Ukrainian IT Specialists, 2021

4. Full-stack software development

Ukrainian full-stack developers are experienced in JavaScript, C#, Python, TypeScript, PHP, Java, Ruby, Apex, and Elixir.

Distribution of Technologies Used for Full-stack Development Among Ukrainian IT Specialists, 2021

5. Data processing

If you seek expertise in data processing in Ukraine, the IT outsourcing market will offer specialists in Python, T-SQL, Scala, R, PL-SQL, Java, C++, 1C, PHP, C#, JavaScript, SAS, and Delphi.

Distribution of Technologies Used for Data Processing Among Ukrainian IT Specialists, 2021

6. Internet of things technology

Companies seeking expertise in Ukraine for IT outsourcing in the domain of IoT can find numerous experts in C, C++, Python, JavaScript, C#, Scala, TypeScript, Kotlin, MatLab, and Rust.

Distribution of Technologies Used for IoT Among Ukrainian IT Specialists, 2021

5. Growing number of tech specialists

6. Wide range of software companies

A wide variety of IT companies in Ukraine can cover all the needs in software development.

Software Companies Map of Ukrainian IT Outsourcing Market

Numerous foreign companies partner with Ukraine. These include PayPal, eBay, Boeing, Bosch, and Skype.

The overall number of IT companies as of 2020 (including startups) was 11,932.

7. Strong startup & tech community

For example, Grammarly, the world’s number one AI-powered service for document proofreading and editing, was created by Ukrainian web developers.

Other examples include:

1. GitLab
2. Looksery
3. CleanMyMac
4. TechNovator

8. No language barrier

Fortunately, based on the IT Industry in Ukraine, 2019 Market Report, 82% of Ukrainian developers have an intermediate level of language skills in English.

English Proficiency of Ukrainian IT Outsourcing Professionals

9. Compatibility in culture

The proximity in culture, religion, and common values make communication with Ukrainian businesses simple and transparent, which is a must for successful project handling.

10. Favourable business climate

The positive developments in this field include:

  • Foundation of the High Anti-Corruption Court of Ukraine
  • Automatic auto-refund system
  • Introduction of the e-procurement system Prozorro
  • Public access to property registers

11. Convenient country location

Ukraine has topped the Gardner ranking for offshore service locations in EMEA.

As well, most European, as well as American and Canadian, travelers can enter the country without a visa and stay for 180 days, which is extremely convenient for business travel.

IT Outsourcing Market: Time Differences with Ukraine

12. Multinational R&D centers

Currently, there are more than 100 R&D centers in Ukraine. The largest R&D partner collaborating with Ukraine is the United States, followed by the EU and Israel.

How to Find the Right Ukrainian Developers

IT Outsourcing: 3-Step Process

1. Define your objectives

2. Search for a necessary IT vendor

3. Shortlist the IT vendors

This should include the following aspects while asking a list of the following questions:

  • Background checks
  • References
  • Capabilities
  • Culture
  • Tools
  • Legal aspects

4. Finalize your Decision

As you run through these questions, you will find out if a selected candidate is the best fit for you.

Note: This is a summary of a guide.
Check out more details and recommendations about the IT market in Ukraine in the complete article on the MLSDev blog.

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MLSDev

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