In recent decades, outsourcing has become one of the leading IT trends and an effective way to launch or expand a business. If you consider IT outsourcing to Ukraine but have some doubts or questions, this article is just what you need to get your answers and help you make the final decision. Keep reading to find out which companies will benefit from outsourcing, learn more about the business climate in Ukraine, and see how outsourcing can help with growing your business.
What Kind of Companies Will Benefit from IT Outsourcing?
First of all, let’s clarify who needs to hire outsourced software developers. Actually, there is no limit for the size of a company that decides to outsource. This business solution has been effectively used by both giants of the tech world and tiny startups trying to win their niche and customer loyalty. Of course, the motives and approaches differ, but the essence remains – by delegating some design and development tasks you can:
- save on development costs
- get quick access to specialized knowledge
- hire qualified developers without a long screening and onboarding process
Outsourcing Services for Large Companies VS Startups
In 2018, the global outsourcing market was estimated at 85.6 billion U.S. dollars. An impressive number, isn’t it? In the case of large and medium companies, outsourcing is mainly about the need to hire a dedicated team of developers that can quickly solve difficult tasks and have the necessary tech expertise. It is much easier to entrust the part of work to an existing team, which already has the established working process and relevant experience – rather than to create a separate department for every task. A https://codeable.io/top-companies-outsourced-development/, such as Alibaba.com, Github, and Skype, have started from outsourcing and relied on the remote professional assistance to grow their businesses. As you probably already know, they did very well and inspired other startups to try their luck.
Speaking of startups, the reasons are quite different. In most cases, they have a limited budget and need to hit the market really fast. There is no time to develop a corporate structure, build a team of developers, and fine-tune all processes. Thus, the opportunity to fully or partially delegate the development process can help them to cut expenditures and launch the product more quickly. In addition, the chance to delegate some tasks will help to focus on the core problems and work more effectively. Hence, startups commonly prefer the Time & Material or Fixed Price type of cooperation.
Five Key Benefits of IT Outsourcing to Third-Party Developers
#1. Get access to advanced technical expertise
Sometimes, a local labor market cannot satisfy the needs of tech companies due to the missing, limited, or overpriced resources. In this case, it makes sense to start looking outside the national labor market. IT outsourcing is an effective way to attract the required level of expertise and find the developers who will complete and strengthen the existing structure of the company.
#2. Save staffing time.
When you need to hire a new team member, it always turns out to be extremely time-consuming since finding, selecting, and convincing the right candidate is not an easy task. Let’s admit, the tech field is very competitive, and working with the already established team with distributed processes and tasks will considerably save your time.
#3. Start and terminate projects without extra hassle.
If you have a web and mobile app project that needs to be started right away or is completed on a short-term basis, cooperation with third-party developers may become the most effective solution. You can start working right away and easily terminate the project as soon as the goals and tasks are achieved.
#4. Support the scaling process.
Sooner or later, any company needs to decide whether to stay at the same level and settle or continue growing. In case you feel like you can do more, consider using outsourcing as a way to scale your business. The decision to entrust a part of your tasks to a third-party team will help you to increase productivity while avoiding the related human resources and management issues.
#5. Find the best quality/price ratio.
One of the key reasons to outsource is the chance to find more highly-skilled developers at lower rates and, therefore, cut expenditures. Whereas in the USA, the average annual developer salary may reach up to $90K, the other labor markets, including the Ukrainian, can offer qualified and professional specialists at a more affordable cost.
Why Outsourcing Mobile App and Web Development is Better than Internal Development?
If you have never worked with mobile app and web development on a large scale, and now it’s time to start, consider using some external help. The agencies specializing in .NET, Mobile, and Web software usually have teams of developers, designers, quality assurance engineers, web designers, and software architects who already cooperated on different projects and know how to achieve the necessary result. Helping others to meet their goals and find the most suitable tech solutions is their specialization, whereas you may have hard times forming your own mobile app and web development team. Even if you currently have several people, most probably, you’ll need to fill the gaps and hire a number of other specialists. This is always risky and can slow down the working process. In this case, web and mobile outsourcing can save you from the pain of forming a new tech team and provide the necessary result within a shorter time span.
Why Is Ukraine One of the Most Favorable European Countries for IT outsourcing?
Now, when you know about the main advantages of IT outsourcing, you probably wonder what are the best countries to outsource. During the past several years more and more companies started to hire developers based abroad.
When it comes to the most attractive places for IT outsourcing, Ukraine is at the top of the list. Local business and labor markets are extremely favorable and open to the companies that have decided to outsource their tech services. In 2017, Global Sourcing Association UK announced Ukraine as the Offshoring Destination of the Year. Currently, IT is the fastest growing field of the Ukrainian economy, and the positive tendency remains even when some other economic sectors are witnessing stagnation. Such independence of the Ukrainian tech industry makes it strong enough to withstand the negative external factors and prosper.
The Overall Situation in Ukraine and the Positive Changes That Are Currently Taking Place
During recent years, the Ukrainian government has taken a series of actions to support closer cooperation of the country with the Western world. One of the key achievements was a visa-free agreement that opened the European borders for millions of Ukrainians. This crucial change outlined the direction of the future development of Ukraine and allowed Ukrainian specialists to get better access to the European tech communities and expertise.
Also, several international low-cost airlines have entered the country providing a better connection with many tech hubs and creating a more favorable business environment. In addition to that, local companies have also greatly contributed to the tech development of Ukraine. For instance, at the beginning of 2018, the largest Ukrainian mobile operators, have paid around $300 million to get their 4G licenses and take the local Internet connection to the next level. Thanks to the faster mobile Internet, a range of streaming services, such as iTunes and Netflix, as well as other online apps have greatly expanded their Ukrainian audience.
Some Facts About the Tech Labor Market of Ukraine
Lately, the number of qualified Ukrainian developers has considerably grown, and this tendency continues to gain momentum. Ukrainians are interested in the IT field and willingly spend a lot of time on personal development and self-perfection. At the same time, the average hourly rate is lower than in most countries.
Here are some numbers that depict the current situation on the IT market of Ukraine:
- In 2018, Ukraine had around 170,000 IT professionals, with most of them living in Kyiv, Lviv, and Kharkiv,
- 44% of Ukrainian developers and other IT specialists work in outsourcing,
- 56% of Ukrainian developers and other IT specialists have a university degree in STEM disciplines,
- 70% read professional literature and dedicate time to self-development,
- 60% regularly visit different Ukrainian and European IT events,
- Nearly 80% of Ukrainian developers and other IT specialists know English on the Intermediate level and above.
This shows that the Ukrainian IT field has very favorable conditions for outsourcing and can satisfy the need for qualified employees. According to HackerRank, Ukraine takes 11th place in the ranking of best developers. If to take a closer look and analyze the market situation by domain, Ukraine is leading in security, distributed systems, and mathematics. Also, mobile app and web development becomes more popular generating a larger number of qualified web developers.
Some Extra Tips on Finding the Company for IT Outsourcing Services in Ukraine
In case you have some doubts regarding the choice of a company for IT outsourcing, you should, first of all, define your business needs and goals. A clear understanding of these factors will help you to find the right partner for mutually beneficial cooperation.
Here, at Leobit, we have substantial expertise in web and mobile app development and provide development and testing services for tech companies and startups all over the world. You can hire our dedicated team for .Net, Web, and Mobile app development, UI/UX and architecture design, quality control & testing, application support and maintenance.
Leobit has been recognized as the top IT employer in Lviv by DOU.ua and has remarkable tech expertise in specialized fields, including:
- Microsoft Technology Stack
- C#, Asp.Net, MVC, WCF
- WPF, XAML, WinForms
- Xamarin, UWP, Mono
- .Net Core
- Entity Framework, DevExpress
- IIS, Azure
- Mobile Technology Stack
- Java, Kotlin (Android)
- Objective-C, SWIFT (iOS)
- C#, Unity, Xamarin.Forms, Xamarin.Native
- JS, PhoneGap, Cordova, Ionic
- React Native
- Web Technology Stack
- Angular.JS, Angular
- React, Redux, Ember, Vue
- HTML/CSS/JS/TS, Bootstrap
- C#, Asp.Net, MVC
- Ruby, RoR
- C/C++/C#, Linux, Embedded
- Node.JS, PHP
- Groovy/Grails, Perl, Python
- DevOps, Amazon AWS, S3
Most importantly, top developers in Ukraine working at Leobit have completed the projects related to different fields, starting from healthcare to banking and finance. Every time we try to learn the philosophy of a company, understand their wishes, and create the most suitable product. We aim to develop solutions that would meet the primary goals set by our customers which is proven by our numerous successful projects, including:
- Interim Management Portal: Our web developers have created a solution for a US recruitment company to replace the existing portal for consulting and recruiting tasks. The main functionality includes chat, video conferencing, meeting scheduling, Salesforce support, and white labeling. Technologies: Ruby on Rails, Ruby, Heroku, PostgreSQL, Elastic Search, Twilio, Stripe, Calendar, Google Analytics, Mailgun, DaXtra, JS, HTML, CSS, Bootstrap.
Parking Management System: Parking Management System: We have developed a parking assistant app that helps to combine multiple parking tasks in different locations. This simplifies the life of users, making parking operations really easy and allows businesses to provide better customer experience and earn customer loyalty. Technologies: .Net 4.6, Xamarin.iOS, Xamarin. Android, Realm, Node.js, Bluetooth.
Android app for a police department: Leobit has cooperated with an EU customer that provides software for government agencies to develop a tablet app allowing traffic police to record violations. Technologies: Android (tablet), Java, .Net.Compared to other companies that provide IT outsourcing services on the Ukrainian market, Leobit stands out with its:
- Technically strong team consisting of 100+ software engineers, architects, quality control experts, and UI/UX designers with substantial experience in outsourced projects;
- Flexibility in terms of models and approaches, including extended team, partial or full cycle product development, T&M, dedicated team, and fixed price;
- Quick team staffing and project rollout (starting from 1 week for key tech stacks, such as .Net, Android, iOS, etc.);
These skills and working methods ensure the success of projects and mutually beneficial cooperation where both parties win.