The Ukrainian IT Outsourcing Industry on The Rise

The Ukrainian IT Outsourcing Industry on The Rise

Since 2012, Evolvice has being operating development centers in Ukraine. In our daily working progress, we constantly benefit from the advantages of working with Ukrainian developers. As one of the Eastern European countries Ukraine is becoming increasingly popular among those looking for IT outsourcing possibilities. But why is it so attractive as an outsourcing destination? In this article you’ll learn more about Ukraine’s IT industry.


Over the last fifteen years Ukrainian IT industry has grown by nearly 40 times, in 2018 the IT sectors’ share in country’s GDP was around 4% and is expected to be rising.[1] Due to strong tech education, today there is a large talent pool of around 185.000 IT-specialists, and the country is becoming a leading IT outsourcing destination in Europe and the fourth-largest supplier of tech talent to the world (after the US, Russia, and India). This corresponds with a constant growth in the amount of outsourcing. About 60% of the Ukrainian IT-Specialists work for IT outsourcing companies.[2]


What is so advantageous about outsourcing in Ukraine?


According to Ukraine Invest, an independent advisory body installed by the Cabinet of Ministers of Ukraine, about one hundred Fortune 500 companies have chosen Ukrainian IT services that previously outsourced in India or Israel. More than 4.000 tech companies and more than 1.500 Software Development Centers are based in Ukraine. The country emerges into a global R&D Hub since over 110 global players have located R&D facilities in Ukraine, further driving the high-tech sector.


The reason that so many IT companies have chosen the country as an IT outsourcing location is that the tax conditions are beneficial for the start-ups and establishing branches.  Most of these companies are located in tech areas, such as Kyiv, Lviv or Dnirpo. In Kyiv alone there are over 300 IT companies and more than 40.000 IT specialists.[3]



Our graphic gives an overview of the reasons for it outsourcing to ukraine.


Another point in favor of Ukraine is its geographical location – just one hour time difference and close proximity to middle eastern European countries, like Germany.


In contrast to other EU countries, there is no sign of a shortage of skilled workers. One of the main reasons is probably the high salary for IT specialists, which is considerably higher than in other jobs. The average salary for a software developer is 1.900 US Dollar, compared to the average salary in other industries of around 800 US Dollar.[4] For mainstream technologies developers with practical experience, the salary is more like 4.000 EUR from our experience. The high salary attracts the young generation. Many graduates are looking for a job in the IT sector because of the good earning potential.


Constant stream of new IT talents


A further advantage is that Ukraine with about 130.000 graduates in engineering per year is one of the top 10 countries for engineering, manufacturing, and construction graduates.[5] The majority of them are fluent in English, so over 80% of developers speak English. Many of those attend regularly tech events and are active in the tech community.


Your first step


If after reading you are convinced that it is a good idea to outsource your software development to Ukraine or integrate Ukrainian IT specialists into the existing team, you might need a partner to realize it.


Evolvice is as a German service provider active in Ukraine since 2012. We offer custom software solutions. Since 2019 we have been offering outstaffing services by providing IT specialists, tech talents and engineers who work remotely for our customers. We’ve successfully established and run Ukrainian development centers and IT hubs in Kiev and Uzhhorod.


Why should you choose Evolvice as your outsourcing partner?


We are the right partner for you to start outsourcing in Ukraine. We’ve been active there for a long time. We understand how to operate the business with all its specifics there. Furthermore, we have gained a lot of experience in software development, especially with distributed and remote teams. So, we know what we are talking about!


When you’re outsourcing you want it to be fast and efficient, secure and flexible. We provide you with everything you need like an infrastructure, business premises and efficient administration. When building up dedicated remote teams, our very well connected recruiters find the right people, and we integrate them into your in-house team.


If you would like to know more about Ukraine and outsourcing opportunities, please contact us. Many of our customers have been working with us for years. We would be happy to tell you more.