100 and 5 Reasons Why Outsourcing to Ukraine Is Good For Your Business

by QArea Team on Dec 18, 2012

In our previous article, we considered 5 reasons why outsourcing to India can be good for your business. Now, let’s consider other variants. Ukrainian software companies established as reliable business partners in the IT market. QArea team tried to cover all the benefits of outsourcing to Ukraine. The next information can be useful for those who still haven’t determined with the country as well as with the company to outsource software development.

Benefits of Outsourcing to the Ukraine

The highest quality of software developed by Ukrainian programmers.
Attractive prices and fees. In Ukraine, you can get more quality for less money.
High-skilled labor – Ukraine has great potential of workforce.
Mature IT market.
Ukraine is a European-thinking country.
Ukraine companies comply with international standards as ITIL.
Despite financial crisis, outsourcing industry in Ukraine improved its growth on 20-25 %.
Ukraine has won in nominee “The best place for IT-outsourcing” on outsourcing summit European Outsourcing Excellent Awards -2011 in Madrid.
Ukrainian association, “Informational technologies of Ukraine”, aims to ensure that created software meets international standards. In 2006 association joined European IT Association (EKTA).
With Ukrainian companies your interests will be respected at the legal level.
Safe money transfer.
Ukrainian market economy is actively developed.
Ukraine held 11th place among 20 leading countries in the field of IT Outsourcing and High Tech Services in accordance with the 2010 Global Services 100 list.
Ukrainian IT market is one of the most developed in Eastern Europe for today.
“Outsourcing and globalization of manufacturing allows companies to reduce costs, benefits consumers with lower cost goods and services, causes economic expansion that reduces unemployment, and increases productivity and job creation…”
Larry Elder
Available and high quality labor.
Strong educational system: 87% of high school graduates going to colleges and universities, and 35% of those students choosing IT related subjects.
Ukraine was the 4th in Top 10 Countries with the most certified IT professionals.
US and Western European companies are expecting to save up to 60% of their total IT expenses when outsourcing IT development to Ukraine.
Solid Research and development base.
In accordance with CEEO review, IT services export has grown by 83% while IT infrastructure support increased by 65%.
Small time difference: only 1-2 hours between Ukraine and Western European countries.
Possibility to establish a closer working relationship.
Allowance for schedules to overlap.
Possibility for regular communication.
Geographic proximity to Western European and US markets.
Kyiv (the capital of Ukraine) is among the 25 safest cities for nearshore and offshore outsourcing.
Kyiv has also been included in Tholon’s List of Top 50 Global Emerging Outsourcing Cities.
Cultural similarity of Ukrainian people who are an integral part of European community and have a lot in common with Western Europeans.
“The other part of outsourcing is this: it simply says where the work can be done outside better than it can be done inside, we should do it…”
Alphonso Jackson
No communication barriers: open minded and creative Ukrainians will communicate in the traditional Western style.
Unique sense of humor and positive thinking.
But still serious approach.
Ukraine is a young country with developing market that makes it open-minded.
Highly developed infrastructure of the country.
Low level of local risk.
Highly developed telecommunications.
International airports available.
A lot of hotels with quality service.
Simplified tax and legal system.
Favorable conducting of business.
Ukraine takes 28th place in the world for speed of Internet. Average speed of Internet access for users in Ukraine is 2,28 Mb/sec.
Non-disclosure agreements can be signed upon request.
Restricted access to sensitive information by third parties.
Ukrainian software development companies prefer to cover all of your requirements in a contract.
Your agreement with a company and Ukrainian legislation guarantee intellectual property rights.
Ukraine is a safe place in terms of natural disasters such as hurricanes, floods and earthquakes. No serious force majeure has ever happened here.
When outsourcing your IT development to Ukraine, you can be sure that nothing is going to change the next day.
Ukraine’s location is close to Western Europe so you can arrange meetings with development team with less expense.
Besides, the travel for the United States and European citizens to Ukraine is visa-free.
It eliminates skills crisis during recruitment.
You will have a highly trained team at your disposal instead of having to worry about recruiting people with the right IT skills.
It provides your business with risk management.
By partnering with experts, you are likely to experience fewer IT problems.
You can focus on your core business.
Once you outsource IT services, you do not have to worry about IT related problems that your business may encounter.
It is a widely used practice to solve all legal disagreements on a customer’s side.
You have an access to additional services.
Your business will be in touch with the latest technology.
Ukrainian software development companies usually have analytics department which monitors the market and assesses innovations to implement what works best for their customers.
This helps you stay ahead of your competitors.
For Western European clients it can take only 1-3 hours to reach their nearshore development team in Ukraine.
All rights to the software which has been developed for you 100% belongs to you.
You have an access to staff with great expertise.
If you outsource IT development to Ukraine, you can get the services of experts and to pay for the services that they offer you but not for office or equipment.
Also when employ in-house IT staff, you may need to give them additional company benefits as well as training to keep their skills updated.
Ukraine has strong educational system.
Your software development costs will be reduced significantly.
You don’t need to worry about management issues.
Friendly folks.
Food. Yes, our developers eat well 🙂
Possibility to expand your IT capabilities.
You will be able to implement new interesting business ideas.
Ability to get unique skills and IT consulting from guru in software development.
Ukraine, on its own initiative, refused the third largest arsenal of nuclear weapons in the world.
“If you deprive yourself of outsourcing and your competitors do not, you’re putting yourself out of business…”
Lee Kuan Yew
Low rates for offshore software development in Eastern Europe.
Strong technical universities in Ukraine.
The Industrial Parks legislation envisages public support to and development of a number of industrial parks in 2012–2014, with necessary business infrastructure.
You will gain all nearshore outsourcing benefits.
European mentality.
Easy to reach Your IT team.
Availability of large number of outsourcing providers for medium and small business.
Green IT.
Skilled managers are available.
Low accommodation and living costs.
BOT model is available – Ukraine is the best place to set up your own development team.
For US clients – we work while you sleep.
In good Ukrainian companies multi-language managers are available. We know French, German, Italian, Spanish and some other languages.
English is a MUST for each good Ukrainian company. No exceptions.
A lot of Ukrainian software development companies engage international specialists under exchange programs.
High quality of technical equipment.
Cloud computing for Ukrainian companies is more than a couple of words. We do really work with it.
Ukraine is a large market and has high potential in many sectors.
Ukraine’s economy is on sustainable growth track.
Four out of 10 Pan-European Transport Corridors pass through Ukraine.
Ukraine has huge tourism potential due to the variety of tourist attractions: ski resorts in the Carpathian Mountains, Crimea, Black Sea beaches, medieval cities and castles, ethnic, music and movie festivals and many others, which attract 20 million tourists annually. So you can spend a great time while visiting your offshore team.
Open economic. Ukraine is the WTO member since 2008.
Ukraine’s “green” energy tariffs are more attractive than in many other countries.
The Euro-2012 investments into infrastructure of Ukraine exceeded 7 billion Euros.
Ukraine has International Agreements for the Avoidance of Double Taxation with 63 countries of the world.
Ukraine was the 5th world’s largest wheat exporter in 2009/2010 marketing year, after the USA, Canada, Australia and Russia (source: US Department of Agriculture).
While working together, we provide the best results for our clients in every area of Internet technologies, during every minute of theirs time.
According to State Statistics Service of Ukraine, for September 2012 the average salary in Ukraine is 3 073 UAH (appr. USD 378). Therefore, hiring qualified employee in Ukraine will cost less than in the USA or EU.
In the same time, a lot of Ukrainian specialists have international education or job experience abroad.
Ukrainian Government has established a Council of National and International Investors, representing the Microsoft and other multinational companies.
Ukraine is the largest country (603,6 sq. km of area) located in Europe and is placed on the crossroad of the Europe – Russia – Central Asia – Middle East trade routes.
And the last but not least – Ukrainians are really awesome! 🙂

“And just remember, every dollar we spend on outsourcing is spent on U.S. goods or invested back in the U.S. market. That’s accounting…”

Arthur Laffer

Remember one important thing: whatever country you’ll choose to outsource software development, it should be reliable and have developers with enough experience and robust knowledge to satisfy your needs. When you collaborate with the best Ukrainian companies, you’ll be aware of your IT deals if you want. Otherwise, if you want to focus on your core activities you can just forget about IT problems as Ukrainian programmers know what they do. They don’t deceive clients like developers from many other countries. No doubt, Ukraine is the best country to outsource software development services.

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